TAX3703
Assignment 2
Semester 2
DUE 17 September 2025
, Assignment 2
Due date: 17 September 2025 – 23h00
Learning units 1 - 8 covered in the assignment
QUESTION 1.1 (43 Marks)
a. The deceased, Mrs Simi Dube, died on 21 July 2025 without a valid will, meaning her
estate will be administered according to the Intestate Succession Act 81 of 1987.
b. The executor of the estate learned that the deceased had given a gift of R500,000 to
her son, Maka, during her lifetime. The deceased's intention was to give the same
amount to her other children in the future, but she had not done so. The executor must
provide for collation in this scenario to ensure a fair distribution among all three children.
This means the R500,000 gift to Maka is added back to the total distributable amount of
the estate. The final inheritance for Maka is then reduced by this amount, while the
other two children receive their full, equal share.
c. Executor's account:
First and final liquidation and distribution account in the estate of the late Mrs Simi Dube
(ID: 620501 0012 080) who died on 21 July 2025 at 48 Waterbuck Street, The
Highlands Estate, Pretoria where she resided. She was a widow (her husband, Mr
Kwagga Dube, predeceased her 5 years ago). She is survived by three children: Lethu
(28), Maka (25), and KG (17 – minor).Estate number: 181/2025.
, LIQUIDATION ACCOUNT
R
ASSETS
Immovable property not reduced to cash
1. Private residence: 48 Waterbuck Street, The Highlands Estate, Pretoria 3,500,000
Movable property not reduced to cash
2. Shares in PropCos (Pty) Ltd 550,000
Movable property reduced to cash
3. Listed shares 105,000
4. Fixed deposit cash amount in Grow Bank 1,500,000
Total assets 5,655,000
LIABILITIES
Administration Costs
Bank charges in respect of the estate bank account 2,865
Funeral costs 65,000
Master’s fees 13,288
Calculation: (R5,655,000 - R400,000) x 0.25% + R150 = R13,137.50 +
R150 = R13,287.50, rounded to R13,288.
Executor’s remuneration 197,925
Calculation: R5,655,000 x 3.5%
Debts
First mortgage bond over residence, Pretoria 400,000
Total liabilities 679,078
Balance available for distribution (Assets – Liabilities) 4,975,922
Assignment 2
Semester 2
DUE 17 September 2025
, Assignment 2
Due date: 17 September 2025 – 23h00
Learning units 1 - 8 covered in the assignment
QUESTION 1.1 (43 Marks)
a. The deceased, Mrs Simi Dube, died on 21 July 2025 without a valid will, meaning her
estate will be administered according to the Intestate Succession Act 81 of 1987.
b. The executor of the estate learned that the deceased had given a gift of R500,000 to
her son, Maka, during her lifetime. The deceased's intention was to give the same
amount to her other children in the future, but she had not done so. The executor must
provide for collation in this scenario to ensure a fair distribution among all three children.
This means the R500,000 gift to Maka is added back to the total distributable amount of
the estate. The final inheritance for Maka is then reduced by this amount, while the
other two children receive their full, equal share.
c. Executor's account:
First and final liquidation and distribution account in the estate of the late Mrs Simi Dube
(ID: 620501 0012 080) who died on 21 July 2025 at 48 Waterbuck Street, The
Highlands Estate, Pretoria where she resided. She was a widow (her husband, Mr
Kwagga Dube, predeceased her 5 years ago). She is survived by three children: Lethu
(28), Maka (25), and KG (17 – minor).Estate number: 181/2025.
, LIQUIDATION ACCOUNT
R
ASSETS
Immovable property not reduced to cash
1. Private residence: 48 Waterbuck Street, The Highlands Estate, Pretoria 3,500,000
Movable property not reduced to cash
2. Shares in PropCos (Pty) Ltd 550,000
Movable property reduced to cash
3. Listed shares 105,000
4. Fixed deposit cash amount in Grow Bank 1,500,000
Total assets 5,655,000
LIABILITIES
Administration Costs
Bank charges in respect of the estate bank account 2,865
Funeral costs 65,000
Master’s fees 13,288
Calculation: (R5,655,000 - R400,000) x 0.25% + R150 = R13,137.50 +
R150 = R13,287.50, rounded to R13,288.
Executor’s remuneration 197,925
Calculation: R5,655,000 x 3.5%
Debts
First mortgage bond over residence, Pretoria 400,000
Total liabilities 679,078
Balance available for distribution (Assets – Liabilities) 4,975,922
