EXAM PAPER – ESTX01M
Question 1
Explain the meaning of “estate” in South African law and distinguish between a
deceased estate and a living (inter vivos) estate.
Answer:
In South African law, an estate refers to the totality of a person’s assets, rights,
liabilities, and obligations. It includes movable and immovable property, corporeal and
incorporeal assets, as well as debts owed by the person. A deceased estate comes into
existence immediately upon a person’s death and is temporarily created for the purpose
of collecting assets, settling debts, and distributing the residue to heirs. A living estate,
by contrast, refers to a person’s assets and liabilities while they are alive, which they
manage themselves. A deceased estate must be administered under the Administration
of Estates Act, while a living estate is administered by the person who owns the assets
unless legal incapacity requires someone else to manage it.
Question 2
Describe the role and powers of the Master of the High Court in the administration of
estates.
Answer:
The Master of the High Court supervises and regulates the administration of deceased
estates in South Africa. The Master issues Letters of Authority or Letters of
Executorship, depending on the size and complexity of the estate, which empower the
personal representative to act. The Master ensures compliance with statutory
processes, such as the submission of the liquidation and distribution account,
scrutinising the account for accuracy and fairness, and authorising its advertising for
inspection. The Master also deals with disputes, complaints, and queries relating to
estate administration, and may instruct executors to take specific steps or remove
executors who fail to fulfil their duties. Overall, the Master ensures that estates are
administered lawfully, transparently, and in accordance with beneficiaries’ rights.
Question 3
Explain what a Will is and list the legal requirements for its validity.
Answer:
A Will is a written legal document in which a person expresses their wishes regarding
, the distribution of their estate upon death and appoints an executor to carry out those
instructions. For a Will to be valid under the Wills Act, it must be in writing, signed at the
end by the testator, and witnessed by at least two competent witnesses who sign in the
presence of the testator and each other. The testator must have the mental capacity to
understand the nature and consequences of the Will, and the document must not be
signed by beneficiaries or their spouses as witnesses, otherwise those benefits may be
forfeited. Any failure to comply with these formalities may render the Will invalid unless
condonation by a court is granted.
Question 4
Discuss the difference between testate succession and intestate succession.
Answer:
Testate succession occurs when a deceased person leaves a valid Will that governs the
distribution of their estate. The executor must follow the wishes expressed in the Will,
subject to legal limitations such as maintenance claims or statutory rights. Intestate
succession applies when the deceased dies without a valid Will, or the Will is partially
invalid. In such cases, the Intestate Succession Act determines who inherits, following
a hierarchy based on family relationships. The order typically prioritises spouses,
descendants, parents, and siblings depending on the surviving relatives. Testate
succession respects personal choice, whereas intestate succession imposes a default
legal structure.
Question 5
Explain the purpose of a Liquidation and Distribution Account and summarise what it
must contain.
Answer:
The Liquidation and Distribution Account (L&D Account) provides a comprehensive
record of how the executor intends to wind up the estate. It lists all assets, showing their
values, and all liabilities, including administration costs, taxes, and debts. It sets out
how the executor proposes to liquidate assets where necessary and details the
distribution of the remainder to heirs or legatees. The account must balance exactly,
showing that all assets have been accounted for and all liabilities settled. It must also
include supporting schedules, such as income statements, cash reconciliation, and
details of heir benefits. Once approved by the Master, it is advertised for inspection to
allow objections before finalisation.
Question 1
Explain the meaning of “estate” in South African law and distinguish between a
deceased estate and a living (inter vivos) estate.
Answer:
In South African law, an estate refers to the totality of a person’s assets, rights,
liabilities, and obligations. It includes movable and immovable property, corporeal and
incorporeal assets, as well as debts owed by the person. A deceased estate comes into
existence immediately upon a person’s death and is temporarily created for the purpose
of collecting assets, settling debts, and distributing the residue to heirs. A living estate,
by contrast, refers to a person’s assets and liabilities while they are alive, which they
manage themselves. A deceased estate must be administered under the Administration
of Estates Act, while a living estate is administered by the person who owns the assets
unless legal incapacity requires someone else to manage it.
Question 2
Describe the role and powers of the Master of the High Court in the administration of
estates.
Answer:
The Master of the High Court supervises and regulates the administration of deceased
estates in South Africa. The Master issues Letters of Authority or Letters of
Executorship, depending on the size and complexity of the estate, which empower the
personal representative to act. The Master ensures compliance with statutory
processes, such as the submission of the liquidation and distribution account,
scrutinising the account for accuracy and fairness, and authorising its advertising for
inspection. The Master also deals with disputes, complaints, and queries relating to
estate administration, and may instruct executors to take specific steps or remove
executors who fail to fulfil their duties. Overall, the Master ensures that estates are
administered lawfully, transparently, and in accordance with beneficiaries’ rights.
Question 3
Explain what a Will is and list the legal requirements for its validity.
Answer:
A Will is a written legal document in which a person expresses their wishes regarding
, the distribution of their estate upon death and appoints an executor to carry out those
instructions. For a Will to be valid under the Wills Act, it must be in writing, signed at the
end by the testator, and witnessed by at least two competent witnesses who sign in the
presence of the testator and each other. The testator must have the mental capacity to
understand the nature and consequences of the Will, and the document must not be
signed by beneficiaries or their spouses as witnesses, otherwise those benefits may be
forfeited. Any failure to comply with these formalities may render the Will invalid unless
condonation by a court is granted.
Question 4
Discuss the difference between testate succession and intestate succession.
Answer:
Testate succession occurs when a deceased person leaves a valid Will that governs the
distribution of their estate. The executor must follow the wishes expressed in the Will,
subject to legal limitations such as maintenance claims or statutory rights. Intestate
succession applies when the deceased dies without a valid Will, or the Will is partially
invalid. In such cases, the Intestate Succession Act determines who inherits, following
a hierarchy based on family relationships. The order typically prioritises spouses,
descendants, parents, and siblings depending on the surviving relatives. Testate
succession respects personal choice, whereas intestate succession imposes a default
legal structure.
Question 5
Explain the purpose of a Liquidation and Distribution Account and summarise what it
must contain.
Answer:
The Liquidation and Distribution Account (L&D Account) provides a comprehensive
record of how the executor intends to wind up the estate. It lists all assets, showing their
values, and all liabilities, including administration costs, taxes, and debts. It sets out
how the executor proposes to liquidate assets where necessary and details the
distribution of the remainder to heirs or legatees. The account must balance exactly,
showing that all assets have been accounted for and all liabilities settled. It must also
include supporting schedules, such as income statements, cash reconciliation, and
details of heir benefits. Once approved by the Master, it is advertised for inspection to
allow objections before finalisation.
