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TAX3703 Exam pack 2024(Taxation of Estates) Questions and answers
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TAX3703 EXAM PACK2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:gabrielmusyoka940@gmail.com
, lOMoARcPSD|46589353
MOCK EXAM PAPER (BASIS FOR DVD)
These are the instructions that will also appear on your examination paper. Read them
now and make sure that you understand what we require from you. We also suggest
that you do this assignment like a proper examination, under examination conditions, to
see how much you know and what you need to spend time on.
IMPORTANT INSTRUCTIONS
1. This paper consists of four (4) questions.
2. All of the questions must be answered.
3. Show all workings, where applicable. If an amount is subject to a limitation,
clearly indicate how the limitation is applied. Where any item is exempt from
tax or not allowable as a deduction, this must be indicated. All amounts
must be rounded to the nearest rand.
4. You must start each question on a new (separate) page.
5. Please complete the cover page of the answer book in full.
6. You are reminded that answers may NOT be written in pencil.
7. Proposed timetable (try as far as possible not to deviate from this timetable):
QUESTION TOPIC MARKS TIME IN MINUTES
1 Executor’s account 30 36
2 Estate duty 27 33
3 Intestate succession and capital 21 25
gains tax
4 Estate planning 22 26
TOTAL 100 120
Downloaded by Gabriel Musyoka (gabudeking@gmail.com)
, lOMoARcPSD|46589353
QUESTION 1 (30 marks, 36 minutes)
Sandra Bothma died on 15 March 2013 in Bronkhorstspruit where she was ordinarily
resident. She is survived by:
• Anton Bothma, her husband to whom she was married out of community of
property;
• Brittney and Whitney Bothma, major daughters (twins);
• Carla Bothma, her daughter-in-law, wife of Sandra’s predeceased son, Benjamin;
and
• Duncan Bothma, a minor grandson, the son of the predeceased Benjamin
Bothma.
The following assets and liabilities were found in the estate (Master’s reference no
5432/13):
R
1. Residence at 27 Roux Street, Bronkhorstspruit, at 1 280 000
valuation……………....
2. Motor vehicle valued 280 000
at…………………………………………………………. 290 000
The motor vehicle was sold by the executor
for………………………………
3. Listed shares valued at the time of Sandra’s death 870 000
at..……………………... 610 000
These shares were sold by the executor on 15 April 2013
for………………
4. Dividends received by the executor on the listed shares above:
• Dividends declared and payable on 31 January 10 000
2013………………. 15 000
• Dividends declared and payable on 30 April
2013…………………...
5. Personal belongings at 100 000
valuation……………………………………………….
6. Balance on current bank 12 000
account………………………………………………
7. Outstanding account at Pharmaden 500
Pharmacy………………………………
8. Master’s fees and executor’s remuneration at current ?
tariffs………………..
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, lOMoARcPSD|46589353
Additional information:
In 2004, Sandra gave Brittney and Benjamin each the following cash amounts and in
her will she stipulated that these amounts will be subject to collation:
Brittney – R100 000
Benjamin – R120 000
The will further stipulated that the residence, as well as all personal belongings, be
bequeathed to Sandra’s husband, Anton Bothma. The residue of the estate is
bequeathed to her children in equal shares, per stirpes.
REQUIRED: MARKS
Compile a complete executor’s account in the estate of the late Sandra
Bothma for submission to the Master of the High Court. 30
Ignore any capital gains tax implications.
Downloaded by Gabriel Musyoka (gabudeking@gmail.com)
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