Question 1
Liquidation Account
Immovable Property Not reduced to cash
Residence at Moorkloof, pretoria, at valuation
Movable property not reduced to cash
2016 Mercedes Motor vehicle at valuation
Furniture and personall effects at valuation
Claims in favour of the estate – reduced to cash
Proceeds of one life insurance policy No 12347. Interms of the
stipulations in the policy the proceeds are paybale to the estate
TOTAL ASSETS
Liabilities
Claims against estate
Adminstrative costs
Valuation fees
Advertising costs
Master's fees – maximum
Executor's remuneration @ 3,5% of 3 480 000
Balance available for distribution
RECAPITULATION STATEMENT
Cash and assets reduced to cash
Less: Total liabilities
Cash legacy to two major sons, registered walfare
Cash available for distribution
DISTRIBUTION ACCOUNT
Amount available for distribution as according to the liquidation account
Distributed as follows:
Two major sons
Reach for a Dream
To surving spouse
, - Residence at Moorkloof, Pretoria
-2016 Mercedes Motor Vehicle
-Furniture and personal effects
- Cash to Jackie
ESTATE DUTY ADDENDUM
Total assets as according to the liquidation account
Less: Liabilities before estate duty
Less amounts left to surving spouse section 4q
Net estate Duty
Less 4A Abatement 3.5Million limited to
Taxable estate @20%
Question 2
1. Estate duty in Mary's estate
Value of property
Residence in Emerald Lake estate Johannesburg
Furniture and Fittings
Motor Vehicle
Holiday Home in Knysna
Value of holiday home
Annual value of usufruct(12%1 800 000)
Capitalisation factor(daughter 37years on next birthday)
Value of usufruct(216000*8.22426)
Note 1 Value of Baredominium ( 2500 000 - 1776 440)
Appartment in London
30% Shareholding in Beuty Saloon
Deemed property
A policy, Matrix
Fixed deposist (150 000+7000)
Cash in Bank
Gross Value of Estate
Allowable deductions
Master's Fees
Executor's remuneration (3.5%*9793560)
Net Value of Estate
Less S4A Abatement (3 500 000+3 500 000 - 300 000)
Dutiable amount
, Estate Duty @20%
Estate Duty Payable
2. Promblem with Mary's Estate
There is not enough liquidity on the estate.
Available funds are not enough to settle estate duty and other debts
Question 3
Part A
Donation Tax
Diamond Ring to spouse (Exempt)
Lisa(Usufruct) 1278127
Annual value (1350 000*12%) 162000
Lisa next birthday 51
Present Value factor from tables 7.88967
Andrew (Value of Baredominium) Donation
Market value 1,350,000
Less usufruct value 1278127
Brand new motor vehicle to Hanna
David Prost Golf Foundation
Donation to Samuel
Total Donation tax
Part B Taxable Capital Gains/Losses
Wayne
Primary Residence
Proceeds
Base Cost
Capital Gains Tax
Primary residence exclusion
Taxable Primary residence
Listed Shares
Proceeds
Liquidation Account
Immovable Property Not reduced to cash
Residence at Moorkloof, pretoria, at valuation
Movable property not reduced to cash
2016 Mercedes Motor vehicle at valuation
Furniture and personall effects at valuation
Claims in favour of the estate – reduced to cash
Proceeds of one life insurance policy No 12347. Interms of the
stipulations in the policy the proceeds are paybale to the estate
TOTAL ASSETS
Liabilities
Claims against estate
Adminstrative costs
Valuation fees
Advertising costs
Master's fees – maximum
Executor's remuneration @ 3,5% of 3 480 000
Balance available for distribution
RECAPITULATION STATEMENT
Cash and assets reduced to cash
Less: Total liabilities
Cash legacy to two major sons, registered walfare
Cash available for distribution
DISTRIBUTION ACCOUNT
Amount available for distribution as according to the liquidation account
Distributed as follows:
Two major sons
Reach for a Dream
To surving spouse
, - Residence at Moorkloof, Pretoria
-2016 Mercedes Motor Vehicle
-Furniture and personal effects
- Cash to Jackie
ESTATE DUTY ADDENDUM
Total assets as according to the liquidation account
Less: Liabilities before estate duty
Less amounts left to surving spouse section 4q
Net estate Duty
Less 4A Abatement 3.5Million limited to
Taxable estate @20%
Question 2
1. Estate duty in Mary's estate
Value of property
Residence in Emerald Lake estate Johannesburg
Furniture and Fittings
Motor Vehicle
Holiday Home in Knysna
Value of holiday home
Annual value of usufruct(12%1 800 000)
Capitalisation factor(daughter 37years on next birthday)
Value of usufruct(216000*8.22426)
Note 1 Value of Baredominium ( 2500 000 - 1776 440)
Appartment in London
30% Shareholding in Beuty Saloon
Deemed property
A policy, Matrix
Fixed deposist (150 000+7000)
Cash in Bank
Gross Value of Estate
Allowable deductions
Master's Fees
Executor's remuneration (3.5%*9793560)
Net Value of Estate
Less S4A Abatement (3 500 000+3 500 000 - 300 000)
Dutiable amount
, Estate Duty @20%
Estate Duty Payable
2. Promblem with Mary's Estate
There is not enough liquidity on the estate.
Available funds are not enough to settle estate duty and other debts
Question 3
Part A
Donation Tax
Diamond Ring to spouse (Exempt)
Lisa(Usufruct) 1278127
Annual value (1350 000*12%) 162000
Lisa next birthday 51
Present Value factor from tables 7.88967
Andrew (Value of Baredominium) Donation
Market value 1,350,000
Less usufruct value 1278127
Brand new motor vehicle to Hanna
David Prost Golf Foundation
Donation to Samuel
Total Donation tax
Part B Taxable Capital Gains/Losses
Wayne
Primary Residence
Proceeds
Base Cost
Capital Gains Tax
Primary residence exclusion
Taxable Primary residence
Listed Shares
Proceeds
