QUESTION TWO [20]

Rowen Moodley died on 30 June 2021, the day after attaining the age of 50 years, leaving his surviving spouse Jerusha Moodley, to whom he was married by ante nuptial contract, and his two sons, Tavin Moodley and Kevin Moodley. Tamara Maharaj, his daughter, had pre-deceased him but Viren Maharaj, who had not remarried, survived.

Rowen Moodley left the following in his estate:

o Shares in Goldmali (Pty) Ltd. These were valued at R950 000 by the auditor but were taken over by Samuel Gold under the Shareholders agreement for no consideration.

o Shares on the JSE. They had a market value at the date of his death of R191 000, but were realised by the executor for a net R188 000, that is after the deduction of the brokerage fee of R3 000.

o A usufruct over a flat valued at R375 711.

o An insurance policy for R500 000 on Anand Moodley, his brothers, life. This has a surrender value of R103 050.

o An insurance policy on his life for R268 555. This policy will be awarded to his mother who still survives him.

o Local municipal stock with a face value of R80 000 was sold in winding up his estate for R90 000.

o A house valued at R2 100 000. He had inherited it five years earlier from his fathers estate.

Expenses incurred by Rowen Moodleys executor in winding up his estate were as follows: Last illness 71 228

Funeral 32 500

Debts owing by him (Rowen Moodley) 102 851

Valuation Fees 5 000

Executors remuneration 63 137

Masters fees 600

REQUIRED:

2.1 Determine the amount of estate duty payable by the estate of Rowen Moodley.