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QUESTION 1 [73] Judas Carot and Grace were married to each other out of community of property with the inclusion of the accrual system. They
QUESTION 1 [73] Judas Carot and Grace were married to each other out of community of property with the inclusion of the accrual system. They had a son Peter who died on 5 June 2018. They have been staying in the house with Julia, Grace's daughter from her previous marriage. Judas died intestate on 3 July 2019. His surviving spouse was appointed as the executrix and she establishes that his estate comprises of the following: The house in which they reside has a Municipal value of R835 000.00. There is a mortgage bond registered over the house in favour of Nedbank with an outstanding balance owing to the bank in the total amount of R290 000.00 Furniture valued at R135 000.00 i A farm EVERGREEN on which a bona fide farming undertaking is carried, which has been valued by an appraiser at R1 900 000.00. Farm implements with a total valuation of R185 000.00 Old Mutual Life Insurance Policy on the life of Grace. Judas was paying the premiums and the premiums plus 6% interest amounted to R12 000.00 at his death. The executrix has decided not to cede this policy and it has a surrender value of R200 000.00 and the value of the life cover on Grace's life is R2 300 000.00. 6. Proceeds of Sanlam Life Insurance policy on the deceased's life in the amount of R240 000.00 The policy was taken out by Julia. The premiums were paid by Julia and the premium interest amounted to R15 000.00 at deceased's death. The proceeds were paid to Julia. The proceeds of a Liberty Life Insurance Policy on the life of the deceased. There was a loan of R60 000.00 against this policy and the executrix received a cheque from Liberty Life for the balance of R590 000.00 A motor vehicle valued at R150 000.00. An amount of R75 000.00 is still owing to Stannic Bank for the financing of the motor vehicle. There is a fixed deposit at Invest bank recovered in the amount of R300 000.00. 0.00 was interest in the amount R15 000.00 up to 3 July 2019 10. 280 shares of R2.50 each in LESH (Pty) Ltd, valued by the auditor @ R1500.00 per share liquidation for R430 000.00. 11. The deceased's 1000 shares in LSG Ltd, a company listed on the JSE, which are valued by a stockbroker as at the date of death at R175 000.00. A dividend of R35.00 per share is declared and paid on 2 September 2019. The Stockbrokers' valuation fees amount to R3500.00. 12. Judas's estate has an accrual claim against the surviving spouse in the amount of R45 000.00. The total administration expenses and claims against the estate amount to R660 000.00. The executrix is not registered for VAT. REQUIRED: [66] Draft the entire Liquidation and Distribution Account in the estate of the late Judas Carot to be submitted to the Master of the High Court. Specify the necessary expenses. Use imaginary information where necessary
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