COPYRIGHT RESERVED

FACULTY OF LAW
DEPARTMENT OF PRIVATE LAW

EXAMINATION LAW OF SUCCESSION 222 (ERF 222)

DATE 28 NOVEMBER 2020

TOTAL 60

TIME 3 HOURS

INTERNAL EXAMINERS PROF A VAN DER LINDE

MRS R MAUNATLALA
INTERNAL MODERATOR PROF S CORNELIUS

EXTERNAL EXAMINER PROF C RAUTENBACH (NWU)

IMPORTANT INFORMATION
• THIS PAPER CONSISTS OF SIX (6) PAGES (FRONT PAGE INCLUDED).
• OPEN A WORD DOCUMENT TO ANSWER THE QUESTIONS AS YOU HAVE
DONE THROUGHOUT THE SEMESTER. SUBMIT THE WORD DOCUMENT
(ANSWER SHEET) THROUGH TURNITIN BY 11:00 AM.
• YOU MUST SUBMIT YOUR OWN WORK IN YOUR OWN WORDS. AVOID
"COPYING AND PASTING" TEXT FROM OTHER SOURCES AS FAR AS
POSSIBLE. ANY ONLINE EXAMS THAT ARE IDENTICAL OR VERY SIMILAR
WILL BE REJECTED; THE STUDENTS CONCERNED WILL NOT RECEIVE
ANY MARKS; AND THE STUDENTS MAY BE SUBJECTED TO A
DISCIPLINARY HEARING.
• ANSWER ALL THE QUESTIONS.
• ANSWER THE QUESTIONS IN SEQUENCE AND NUMBER YOUR ANSWERS
CLEARLY
• HALF MARKS ARE AWARDED
• NO RESULTS SHALL BE MADE KNOWN TELEPHONICALLY OR OTHER
THAN BY THE ANNOUNCEMENT THEREOF BY STUDENT ADMINISTRATION.
• THE DUTY TO ESTABLISH WHETHER YOU SIT FOR THE SUPPLEMENTARY
EXAMINATION ON THE 11TH OF DECEMBER 2020 RESTS WITH YOU.
• ATTACH THE REQUIRED INTEGRITY STATEMENT
• PERUSAL: FRIDAY 4 DECEMBER 2020 08:00AM - 09:00AM

1
QUESTION 1

1.1 E, was married out of community of property to V. They have twins, A and B. A (17 years
old), has a daughter, A1. B, who is predeceased, has two children, B1 and B2. E and V
divorce. After a short romance, E, marries C, in community of property. C, has a child, D,
born from a previous relationship. E, adopts D. While C is expecting E’s baby, E dies in a
car accident. The joint estate is worth R10 000 000 (ten million rand). E, is survived by V, A,
A1, B1 and B2, C, D, his parents, K and L and by a brother, G. The baby, H, is born alive
two (2) months after E’s death.

(a) Divide the intestate estate and substantiate your answer. (4)

(b) What will the position be if A, has murdered E? Substantiate your answer. (1)

(c) What will the position be if A, repudiates her benefit? Substantiate your answer. (1)

(d) Can D inherit from C, when C dies intestate? Substantiate your answer. (1)

1.2 E dies intestate. E’s mother, M and his father, P have predeceased him. Both M and P
have married a second time, with X and Y, respectively. E, is survived by his sister, A, by
his brother, B, by two half-sisters, D and F on mother’s side, as well as by the G and H, the
sons of a predeceased half-brother, C on father’s side. Divide E’s estate of R 1 200 000 and
substantiate your answer. (3)
[10]

QUESTION 2

T has a valid two (2) page will dated 10 January 2020. On page two (2) he bequeaths R
100 000 to each of his three (3) children X, Y and Z. Z, a building contractor, makes some
minor improvements to T’s house and then sends him (T), a preposterous account of R
500 000! T is furious. He suffers a mild stroke and is hospitalised. T requests his wife, V,
to bring him his will. T requests V, to “tippex out” the amount of R 100 000 that he (T)
bequeathed to, Z. T asks V, to replace the amount of R 100 000, with the amount of R100
(one hundred rand), by using a red roller- ball pen. T requests V, to sign on his behalf. V
signs at the bottom of the page by writing her name in printed (capital) letters. V, takes the
will to the service station on the ground floor of the hospital, where one (1) nurse, N, signs
as a witness, directly next to V’s signature with her initials. V, then takes the will to the
nearest police station where the police officer on duty, after listening to V’s account of
events, certifies the following on page one (1) of the will: “This is the testator, Mr
T’s last will”. T dies two (2) days later. Answer the following questions:

(a) Do the facts constitute an “amendment” of T’s will in terms of the definition of “an
amendment”? Substantiate your point of view. (2)

(b) Is this a valid amendment of T’s will in terms of the formality requirements in section
2(1)(b) of the Wills Act? Provide all possible reasons for your answer. (8)
2
 [10]

QUESTION 3

3.1 T and V execute a mutual will and provide as follows:

“Upon the death of the first dying of us our respective estates should be
massed into a single consolidated economic unit. The massed estate goes
to the survivor. Upon the survivor’s death, it must go to our child X”.

T dies. Fully advise V, on the following:

(a) Is there massing of estates in terms of section 37 of the Administration of Estates Act
upon T’s death? Explain. (1)
(b) What is the nature of V’s rights if she adiates? (2)
(c) Discuss the legal position of X and the nature of X’s rights if V, adiates? Refer to
case law. (2)

3.2 Draft (formulate) a clause constituting a so-called “Bewind” trust. (2)

3.3 A clause inT’s will stipulates as follows:

“I hereby bequeath my estate in trust to my trustee, Mr X. The income

beneficiary is my spouse, V and the capital beneficiary upon her death is
my son, S.”

Discuss the vesting and enforcement of rights with regard to V and S, respectively. (3)
[10]

QUESTION 4

4.1 E dies intestate. He is survived by his brother D, his parents, K and L and his three (3)
daughters A, B and C. His daughter, C, has twins, C1 and C2. During his lifetime, E, gave
A and C, R150 000 each, in order to educate themselves as a hairdresser and a dress-
designer respectively. The value of E’s estate upon his death is R 900 000. Apply the
principles of collation and divide the estate. (5)

4.2 Apply the principles of interpretation, and identify the problem with regard to the following
clauses:

3
(a) “I bequeath my car to my best friend.” (1)

(b) “I bequeath my iMac Pro to my cousin, Bontle.” The testator has two

cousins by the name of Bontle. (1)

4.3 Mr M, died on 2 July 2020. Before his death, Mr. and Mrs. M approached TaDa Bank to
draft their joint will. Their instructions to the bank were that the surviving spouse should be
the sole heir of the deceased’s estate and only if they die simultaneously, certain appointed
legatees would inherit the estate. However, the bank drafted the joint will with a provision
that states that should the testators die simultaneously or within three (3) months of each
other the mentioned legatees should inherit. The problem is that the spouse survived the
testator by more than three (3) months. She makes an appointment with you for Monday 30
November 2020 for advice. What will your advice be? Substantiate your answer with
reference to case law. (3)

4.4 Two sisters, A, and B, have a 50/50 share in ABC company. The two conclude a contract
which contain the following clause:

“In the event of either party’s death, the other party will get the first
dying shareholder’s 50% share in the company.“

A dies. B, claims the transfer of A’s shares. The executor of A’s estate refuses the transfer
and contests the above provision. Advise B, on the validity and enforceability of the above
provision? Substantiate your answer by referring to relevant case law. (5)

[15]

QUESTION 5

5.1 Complete the Liquidation Account and Estate Duty Addendum below by providing
the correct answer with regard to missing information (headings; sub-headings;
amounts; values or totals) pertaining to numbers 1-15. Only provide the answer, for
example 1: property; 2. R 10 000 etc:

FACTS: T, a person married out of community of property with the inclusion of the accrual
system, died on 12 June 2020 leaving the following assets and liabilities:

4
 1. Residential property (house), 7 Marais street, Hatfield… valued at R 4 000 000
2. Motor vehicle, Toyota Etios 1400… valued at R 200 000
3. Furniture sold ito testamentary instruction by executor …R 100 000
4. Proceeds of life insurance policy no 1234 Momentum Life, directly payable to the
estate in terms of the nomination form…R 3 000 000
5. Cash in a fixed deposit account at XYZ Bank…R 1000 000
6. Accrual claim of surviving spouse against the estate of T…R 100 000
7. Final income tax assessment payable to SARS…R 100 000
8. Advertisements: GG: R 200 x 2; Citizen: R 250 x 2
9. Transfer fees with regard to the residential property in par 1…R 25 000
10. Executor’s fee according to tariff (no VAT)
11. Master’s fee at tariff (2018 tariff)

I his will, T, bequeaths his estate as follows:

1. “I leave my entire estate to my wife, V.”

Serial
LIQUIDATION ACCOUNT Money column
nr
1. ………………………………………….
(a) Immovable property (not reduced to cash)
• Residential property 7 Marais street, Hatfield A1 R 4 000 000

(To: Spouse V, in terms of Clause 1 of the will)

(b) Movable property
• Etios motor vehicle A2 R 200 000
• Furniture (reduced to cash (sold by executor)) A3 R 100 000
(c) 2. …………………………………………….
• Proceeds of life insurance policy No 1234 Momentum
Life, payable to the estate A4 R 3 000 000
• Cash in fixed deposit at XYZ Bank A5 R 1 000 000
TOTAL ASSETS: R 8 300 000

LIABILITIES
(a) 3. ………………………………
• Accrual claim of surviving spouse C1 R 100 000
• SARS income tax assessment C2 R 100 000
5
(b) 4. …………………………………………
• Advertisements x 2 x 2: C3 R 900
• Executor’s fee excluding VAT C4 5. R……………..
• Transfer fees C5 R 25 000

• Masters’ fee at tariff (NEW TARIFF SINCE 2018) C6 6. R…………….

(c) Estate duty R0

TOTAL LIABILITIES 7. R……………..
Amount available for Distribution 8. R……………..

ESTATE DUTY ADDENDUM

1. Assets (Property) per Liquidation Account (excluding R 5 300 000
Life Insurance Policy Momentum)
2. Property deemed to be property
9. ............................................ 10. R ................
Gross Estate: R 8 300 000
Less:
11. ……………………………………….. 12. R……………
13. ……………………………………….. 14. R……………

Nett value: 15(a): R……………

Less: S4A Rebate: 15(b): R……………
Dutiable amount: R0
Estate Duty R0
[15]

TOTAL: [60]