PVL2602-Exam Questions & Answers-Pack.

Question 5 In this question you receive a number of definitions of principles or concepts from the law of succession. Write down the name of each particular concept below its definition. (a) Refusing to inherit. (1) Repudiation (1) (b) The legal institution where property is left to a beneficiary subject to the condition that as much of it as may be left at the time of his or her death is to devolve upon another person. (1) Fideicommissum residui (c) The type of trust where the beneficiary is the owner of the trust property. (1) Bewind (1) (d) The time when a beneficiary’s right to claim delivery of bequeathed property becomes enforceable. (1) Dies venit (1) (e) If an inheritance is made subject to this concept, vesting of the bequeathed property in the heir only takes place upon the happening of an uncertain future event. (1) Suspensive condition (1) (f) If a bequest is made subject to this concept, the beneficiary loses his vested rights when a certain future event takes place. (1) Resolutive time clause (1) (g) This takes place when any benefit received by a descendant from the testator during the latter’s lifetime, is taken into account upon division of the estate in order for a fair distribution to take place. (1) Collation (1) (h) In this account the executor lists all assets and liabilities of the estate and sets out how the estate is to be distributed. (1) Liquidation (½) & distribution account (½) (1) (I) this evidence is evidence of facts and circumstances which were known to the testator and places the court in the testator’s position at the time of making the will, when the court interprets the will. (1) Armchair evidence (1) (j) This concept applies when a testator leaves a specific benefit, for example a house or a farm, to a beneficiary. (1) Legacy (1) PVL2602-Exam Questions & Answers-Pack. 2 Define the law of succession. (2) The law of succession is a branch of private law.(1) The law of succession comprises those legal rules or norms which regulate the devolution of a deceased person's property upon one or more persons.(1) Thus the law of succession concerns itself with what happens to a deceased person's estate after his/her death.(1) (b) Distinguish between an "estate" and the "residue of an estate". (4) The testator's estate consists of the assets (½) and liabilities.(½) The residue of the estate refers to that part (½) of the deceased's estate which remains after the payment of funeral expenses,(½) administration costs,(½) tax (½) (if any), the testator's debts (½) and the legacies.(½). (4) Question 2 Read the following set of facts and then answer the questions that follow: Mary and John are siblings. In his will John appointed his sister Mary to inherit his whole estate. In her will Mary appointed her husband Peter to be her heir. Mary and John are killed in the same car accident, and no evidence exists as to who died first. John leaves behind both his parents. Mary leaves behind her parents and her husband Peter. (a) Who will inherit John and Mary's respective estates? Briefly explain your answer. (7) When two people die in the same disaster and it is not possible to establish who died first, the court will find that they died simultaneously.(1) Ex parte Graham (1) held that in our law no presumption as to the order of death exists.(1) That means that two persons who die in the same accident, cannot inherit from each other, because one has to survive a person to be able to inherit from him/her.(1) John’s will cannot be given effect to because Mary cannot inherit from him.(1) John’s estate will therefore devolve in terms of the law of intestate succession (1) and his mother and father will inherit his estate. (1) Mary is survived by her husband and he will inherit her estate in terms of her will. (1) (b) Would it have made a difference to your answer if John died at the scene of the accident and Mary died two hours later in hospital? Briefly explain your answer. Yes. If Mary survived John, she would have inherited John’s estate as indicated in his will (1), and her husband would then have inherited both her and John’s estates as John’s estate would have formed part of her estate. (1). John’s parents would then not have inherited. (1) (3) Testator, T, provided in his will that he leaves his estate to “my sister’s children”. At T’s death his sister had a daughter, D, and an adopted son, S, and she was expecting a child C. His sister also had a stepchild; B. B was her husband’s son from a previous relationship. After T’s death, C was born alive and T’s sister had another two children, E and F. Who can inherit T’s estate? [1] D, C, E and F [2] D, S, C, E and F [3] D, S, B [4] D, S, C Succession can take place a by virtue of a will (testamentary succession) b by virtue of the law (intestate succession) c by virtue of an ante nuptial contract 3 Distinguish between testate and intestate succession. 1 (The answer to this question is partly to be found in Ch 1.) Testate succession applies when a person dies leaving a valid will. Intestate succession applies when a person dies and does not leave a valid will. Question 1 1.1 Give a definition of each of the following concepts: 1(a) Legacy A legacy is a bequest of a specific asset (for example a house) or a specific amount of money (for example R10 000). 1(b) Fideicommissary substitution Fideicommissary substitution occurs where, in his will, a testator directs that after his death a series of successors (heirs or legatees) are to own his whole estate or part of it (1), or specific assets, so that the bequest passes from one successor to another (1). The different successors thus inherit the same property of the testator one after the other. (2) 1(c) Direct substitution (3) Direct substitution (substitutio vulgaris) occurs in the will where, a testator names a substitute or even a whole series of substitutes who are to inherit if the instituted heir or legatee does not inherit (1): for example, if the instituted heir or legatee repudiates (1) or is incompetent (1) to take a benefit under the will or if he dies before the testator (1). Either the instituted heir /legatee or the substitute inherits (max 3) 1(d) Suspensive condition (3) If an inheritance is made subject to this concept, vesting (1) of the bequeathed property in the heir only takes place upon the happening of an uncertain (1) future (1) event. (or: vesting is postponed (1) until happening of an uncertain (1) future event (1).) 2. Define the term "residue of the estate". (5) Refers to that part of the deceased's estate which remains after the payment of funeral expenses, administration costs, tax, the testator's debts and the legacies. 20. Name the following legal concepts in T's will and indicate very briefly when dies cedit and dies venit take place for the parties involved: (a) "I bequeath my assets to X. Whatever remains upon X's death must pass to Y." (3) Fideicommissary substitution - X will first inherit the estate and afterwards, when X dies, Y will inherit what's left.