Estate Duty

In: Business and Management

Submitted By rushdy
Words 500
Pages 2
Assignment: IST 309/611/712
Second Semester: Estate Duty and Estate planning
Due date: 26 September 2012 (negotiable)
Instructions: Assignments can be submitted as an individual or a group. Group assignments are limited to a maximum of 6(six) and numbers greater than 6 must be approved before submission.
Case study:
Romeo is married out of community of property to Juliette but subject to the accrual. They have only one child, Moses (14). At the time of their marriage 18 years ago Romeo’s assets amounted to R450 000 while Juliette’s amounted to R200 000 and these figures were stated in their ante-nuptial contract. The weighted average consumer price index (CPI) at the commencement of the marriage was 71.62.
Romeo’s financial affairs:
Assets/property and liabilities Base cost Market value Liability
Residential property R2 500 000 R5 200 000 R1 900 000
Share portfolio R2 300 000 R5 600 000
Bank investments R 400 000
Motor vehicle R 400 000 R 300 000 R 250 000
Income tax R 84 000 Insurance portfolio: Death benefit Life cover benefit payable on death
Life policy payable to the estate R2 500 000
Life policy payable to Juliette R3 100 000
Keyman policy owned by his employer R1 300 000
Retirement Annuity fund R2 200 000

In terms of Romeo’s Last Will and Testament, he leaves his residential property to his spouse and the residue of the estate to his child.
Romeo’s marginal tax rate is 40%

Question 1 (5 marks)
Calculate the executor’s fees payable in the event of Romeo’s death. Show your calculations.
Question 2 (10 marks)
2.1 Indicate which assets will not attract CGT in the event of Romeo’s death and explain why not.
2.2 Calculate the CGT payable in the event of Romeo’s death. Show all your calculations
Question 3 (22 Marks)
3.1 Explain whether the Annuity proceeds payable on his death will attract estate duty.
3.2…...

Similar Documents

Fiduciary Duties

...FIDUCIARY DUTIES AND OTHER RESPONSIBILITIES OF CORPORATE DIRECTORS AND OFFICERS Morrison & Foerster LLP Christopher M. Forrester Celeste S. Ferber RR DONNELLEY EZ START XBRL We Tag. You Validate. We File. With the release of the proposed rule, the SEC will require the use of XBRL for financial reporting starting as early as 2009 for some companies. RR Donnelley is uniquely qualified to give you guidance on how your company can prepare for the SEC mandate. As the market leader in XBRL filings, we have been helping leading companies successfully tag and file XBRL financials since the inception of the SEC Voluntary Filing Program. RR Donnelley’s proven EZ Start XBRL full-service solution is designed to save you crucial time. With EZ Start, we do the initial tagging for you, reducing the time spent mapping and validating XBRL tags to under ten hours. Our goal is to transfer knowledge to your financial team to ensure a firm understanding of the taxonomies, mapping process and SEC requirements. To learn more, visit www.tryxbrl.com. FIDUCIARY DUTIES AND OTHER RESPONSIBILITIES OF CORPORATE DIRECTORS AND OFFICERS MORRISON & FOERSTER LLP Christopher M. Forrester Celeste S. Ferber RR Donnelley Global Capital Markets Copyright© 2008 Morrison & Foerster LLP (No claim to original U.S. Government works) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic...

Words: 49138 - Pages: 197

Real Estate

...REAL ESTATE AND HOUSING ASSOCIATION OF BANGLADESH Bye- Laws on Code of Business Conduct REHAB is committed towards the enhancement and growth of the Real Estate Sector of Bangladesh. REHAB members recognise that for sustainable long term growth of this sector, they must conduct their business with a high degree of professionalism, fairness, integrity and ethics. In recognition of the member’s responsibility and obligation to Customers, Land Owners, fellow members, the public and the country, the Executive Committee of the Real Estate Housing Association of Bangladesh 2008-2009 exercising the power conferred upon it under clause VI. B of the Memorandum and Articles of Association of the Real Estate Housing Association of Bangladesh incorporated under the companies ACT, 1913 (new 1994) does hereby approve and adopt the Bye-Laws on Code of Business Conduct with the tenets set forth hereunder to be followed by its members. Violation of the Code of Business Conduct by any member of Rehab shall be considered to be prejudicial and detrimental to the interest of the Real Estate Sector and the association and the Executive Committee may issue a show cause to the offending member. Such notice shall specify the date, place and time of hearing so as to allow the member an opportunity to defend himself before the Executive committee. If the Executive Committee finds enough grounds to conclude that the said member has violated the Code of Business Conduct as outlined in this Bye-Laws, then...

Words: 4018 - Pages: 17

Work in Real Estate Industry

...Work in the real estate industry CPPDSM4080A Edition 2 Assignment 2 (TVET) Please read the “Guide to completing and submitting assignments” before you begin this assignment. What you need to do To successfully complete this assignment you must answer the following questions to demonstrate your knowledge. The assignment will be granted a result of “Competent” if the learning outcomes are achieved or “not yet competent” if not. If a result of “Not Yet Competent” is achieved you will be given the opportunity to resubmit your assignment. Question 1: Describe the meaning of the term ‘Agency’ and identify the types of agency relationships that a real estate agent may enter into. Definition of Agency: "Agency" means a fiduciary relationship between a principal and an agent arising out of a brokerage agreement whereby the agent is engaged to do certain acts on behalf of the principal in dealings with a third party. Duties: A licensee who provides services through a brokerage agreement for a seller, landlord, buyer, or tenant is bound by the duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting. AGENCY RELATIONSHIPS A. SELLER AGENCY: A SELLER'S AGENT has the duties, as defined by law, to represent the seller's interest in the sale of the property: this generally means a duty to seek a sale, lease, rent, or exchange at the price and terms stated in the brokerage agreement or a price and terms......

Words: 6794 - Pages: 28

Work in Real Estate Industry

...Work in the real estate industry CPPDSM4080A Edition 2 Assignment 2 (TVET) Please read the “Guide to completing and submitting assignments” before you begin this assignment. What you need to do To successfully complete this assignment you must answer the following questions to demonstrate your knowledge. The assignment will be granted a result of “Competent” if the learning outcomes are achieved or “not yet competent” if not. If a result of “Not Yet Competent” is achieved you will be given the opportunity to resubmit your assignment. Question 1: Describe the meaning of the term ‘Agency’ and identify the types of agency relationships that a real estate agent may enter into. Definition of Agency: "Agency" means a fiduciary relationship between a principal and an agent arising out of a brokerage agreement whereby the agent is engaged to do certain acts on behalf of the principal in dealings with a third party. Duties: A licensee who provides services through a brokerage agreement for a seller, landlord, buyer, or tenant is bound by the duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting. AGENCY RELATIONSHIPS A. SELLER AGENCY: A SELLER'S AGENT has the duties, as defined by law, to represent the seller's interest in the sale of the property: this generally means a duty to seek a sale, lease, rent, or exchange at the price and terms stated in the brokerage agreement or a price and terms......

Words: 6794 - Pages: 28

Segregation of Duties

...Segregation of Duties One element of IT audit is to audit the IT function. While there are many important aspects of the IT function that need to be addressed in an audit or risk assessment, the fundamental element of internal control is the segregation of certain key duties, especially as it relates to risk. The basic idea underlying segregation of duties (SOD) is that no single employee should be in a position both to perpetrate and to conceal errors or fraud in the normal course of their duties. Similar to traditional SOD in accounting functions, SOD in IT plays a major role in reducing certain risk, and does so in a similar fashion as well. Duties that should be segregated include: 1. Custody of the assets 2. Authorization 3. Recording transactions If adequate segregation of duties does not exist, the following could occur: 1. Misappropriation of assets 2. Misstated financial statements 3. Inaccurate financial documentation (i.e. errors or irregularities) 4. Improper use of funds or modification of data could go undetected 5. Unauthorized or erroneous changes or modification of data and programs may not be detected As the figure 1 shows, there are some of the key roles and functions that need to be segregated. 1. IT Duties vs. User Departments The most basic segregation is the segregation of the duties of the IT function from user departments. Generally speaking, this means the user department does not perform its own IT duties. While a department......

Words: 2548 - Pages: 11

Real Estate

...Progress in Planning 64 (2005) 69–175 www.elsevier.com/locate/pplann Global city making in Singapore: a real estate perspective Sun Sheng Han Department of Real Estate, School of Design and Environment, National University of Singapore, 4 Architecture Drive, Singapore, Singapore 117566 CHAPTER 1 Introduction ‘Global city’ is a notion popularly cited among planning academics and practitioners in describing some strategic places in the world economy. Pioneer researchers in this area define global cities as basing points of capital in a world economy (Friedmann, 1986: 71); production centres of specialized information services such as financial services, media services, educational and health services, and centres of tourism (Hall, 1998: 24); and centres for servicing and financing international trade, investment and headquarters operations (Sassen, 2004: 171). Summarizing those perspectives and recognizing the influence of a new economy, which can be characterized as informational, global and networked (Castells, 2000: 27), global cities can be seen as the urban nodes where globalization materializes so that they are (1) highly concentrated command points in the organization of the world economy; (2) key locations for finance and specialized service firms; (3) sites of production of innovation; (4) markets for the products and innovations produced (Sassen, 2001: 3 and 4). Taylor (2004) has argued that these perspectives involve understanding just the attributes of cities and...

Words: 47333 - Pages: 190

Liquidators Duties

...Principal duty of liquidator • Subject to section 254, the principal duty of a liquidator of a company is— o (a) to take possession of, protect, realise, and distribute the assets, or the proceeds of the realisation of the assets, of the company to its creditors in accordance with this Act; and o (b) if there are surplus assets remaining, to distribute them, or the proceeds of the realisation of the surplus assets, in accordance with section 313(4)— in a reasonable and efficient manner. Powers of liquidator • (1) A liquidator has the powers— o (a) necessary to carry out the functions and duties of a liquidator under this Act; and o (b) conferred on a liquidator by this Act. (2) Without limiting subsection (1), a liquidator has the powers set out in Schedule 6. Schedule 6 Powers of liquidators s 260(2) A liquidator of a company has power to— • (a) commence, continue, discontinue, and defend legal proceedings: • (b) the extent necessary for the liquidation carry on the business of the company: • (c) appoint a solicitor: • (d) pay any class of creditors in full: • (e) make a compromise or an arrangement with creditors or persons claiming to be creditors or who have or allege the existence of a claim against the company, whether present or future, actual or contingent, or ascertained or not: • (f) compromise calls and liabilities for calls, debts, and liabilities capable of resulting in debts, and claims, present or future, actual or......

Words: 639 - Pages: 3

Director Duties

...company as well as shareholders. Directors are basically fiduciary agents and they owe duties to the company, directors' are appointed by the company's shareholders to run the company's affairs for the benefits of the shareholders. Moreover, no company can get success without having the good and honest directors, so company success can only be achieved, if the directors of the company fulfil their duties and complete enforcement of the director's duties. Therefore directors play very significant role in any corporate governance system. Director's general duties are based on the certain common law rules and equitable principles. Lord Judge Bowen explains director's duties in these beautiful words that “directors are described sometimes as agents, sometimes as trustees and sometimes as managing partners. But each of this expression is to be used not as exhaustive of their powers and responsibilities, but indicating useful points of view from which they may for the moment and for the particular purpose be considered.” The Chapter 1 of this paper is amid to critically analyze that what are the duties and responsibilities of directors under Companies Act 2006. The duties of directors alone are of no importance if they cannot be fully enforced, the chapter 2 of this piece of work relates to the system of enforcement which provides the different kind of controls which gives assurance than how these duties of directors are implemented. Basically Common law provides three ways of......

Words: 8848 - Pages: 36

Duties of an Nco

...As a noncommissioned officer, you have duties, responsibilities and authority DUTY: A duty is something you must do by virtue of your position and is a legal or moral obligation. For example, it is the supply sergeant's duty to issue equipment and keep records of the unit's supplies. It is the first sergeant's duty to hold formations, instruct platoon sergeants and assist the commander in supervising unit operations. It is the duty of the squad/section/team leader to account for his soldiers and ensure that they receive necessary instructions and are properly trained to perform their jobs. A noncommissioned officer's duties are numerous and must be taken seriously. An NCO's duty includes taking care of soldiers, which is your priority. Corporals and sergeants do this by developing a genuine concern for their soldiers' well-being. Leaders must know and understand their soldiers well enough to train them as individuals and teams to operate proficiently. This will give them confidence in their ability to perform well under the difficult and demanding conditions of battle. Individual training is the principle duty and responsibility of NCOs. No one in the Army has more to do with training soldiers than NCOs. Well trained soldiers will likely succeed and survive on the battlefield. Well trained soldiers properly do the tasks their NCOs give them. A good leader executes the boss's decisions with energy and enthusiasm; looking at their leader, soldiers will believe the......

Words: 1247 - Pages: 5

Real Estate Ethical Issue

...Ethical Principles and Real Estate Issues John D. McKay Ethics 316 5/1/2015 Terrance Davis Ethical Principles and Real Estate Issues In order practice Real Estate in the state of California a license is required. To sit for the exam there is a requirement to take three college level courses and a passing score on the state exam. When completed the individual has the opportunity to buy and sell property for another and enter the world of Real Estate sales. Real Estate sales can be very lucrative. Unfortunately, a real estate agents reputation is usually grouped together with used car salesmen and lawyers. The sales career seems to attract the unscrupulous where ethical boundaries are crossed all the time. According to Waller (n,d), As with most careers involving sales, real estate professionals encounter ethically compromising situations so frequently that they may be unaware of the situation or the implications of their actions. Many offer advice to their clients trying to be helpful, but are unaware of the problems they may create (para. 2). Since Real Estate Agents make their money based on performance and number of sales it predictable that agents make self serving decisions. The world of the Real Estate Agent can be analyzed using ethical principles to address issues, and answering the following...

Words: 1041 - Pages: 5

Duty of Care

...Employer’s Care of Duty Dwen Guydon Strayer University LEG500: Law, Ethics, and Corporate Governance Prof. Phylanice Nash, J.D. August 4, 2011 1. Explain whether Jake’s actions are in or out of “his scope of employment.” According to the definition given by USLegal.com, scope of employment refers to a person actively involved in an employment task at a particular time, usually an issue when an accident occurs, which is required to make a claim for work-related injury under state Worker's Compensation Acts (Scope of employment law & legal definitions, n.d., para.1). Workers’ Compensation reported by Terry Halbert and Elaine Ingulli, (2010) is a program which employers are required to make payments to employees who are injured during the course of their employment, regardless of negligence or fault (pp. 376). For example, based on the video, Jake, the service manager for Rally Motors, cuts his thumb while performing a complete car inspection for the customers. Although Jake was told to only perform the free oil changes by his boss, he owes a duty of care to the customers because he is a certified mechanic. He must complete the oil change and check the basic systems, such as the brakes, tires, and transmission, according to the Automotive Service Excellence (ASE) standards. As a certified mechanic, he must make sure each car is thoroughly inspected and nothing is wrong before leaving the shop. Jake’s and the company’s reputation depend upon how well he performs......

Words: 971 - Pages: 4

Duties

...Consumer rights and duties Consumerism, what is? Consumerism is the protection of the rights and interests of the general pool of buyers, or an obsession with buying material goods or items. Consumer Rights * Right to satisfaction of basic needs: The consumer has the right to goods and services to ensure their survival: adequate food, clothing, adequate housing, health care, education and sanitation. * The right to protection of health and physical safety: Life, health and consumer physical security can’t be compromised by the goods and services at our disposal. * Right to choose: Consumers should be able to choose products and services at competitive prices, with a satisfactory quality assurance. * Right to quality of goods and services: Goods and services must comply with quality requirements set by the law for each of them, fulfilling the purpose for which they are intended. * Right to training and education for consumption: The state should promote training activities, primarily integrated into school curricular and programs, creating consumer attitudes critical and selective. * Right to information for consumption: The supplier of goods and service are required to provide true and complete information to the consumer. In the case of goods and essential services, companies that operate on an exclusive basis has the obligation to inform in advance the consumer cuts or interruptions of supply, unless unforeseen cases. * Right to protection......

Words: 399 - Pages: 2

Directors Duties

...------------------------------------------------- business and company law Section 228(1) of the Companies Act 2014 details the eight fiduciary duties directors of companies are obliged and compelled by law to comply with. The question is why it is necessary through the application of law to limit director’s decision making responsibility. The potential for directors to abuse their positions of power with regards to company’s assets in the daily running of the company seems limitless even when directors are in their own perception acting bona fides with regards to their decisions. Section 228(1) is so important and appropriate to business law as Directors are persons who according to Callanan(2007,p207) ‘have been entrusted with powers for the benefit of others’ but the potential to damage one person or persons to benefit another is so highly possible that the law is compelled to control directors decisions. Section 228(1) (d) addresses a directors duties ‘to not use the company’s property, information or opportunities for his or her own or anyone else’s benefit’. The case of Regal Hastings v Gulliver (1942) is one which has involved much debate throughout the years. The directors of Regal although acting in their opinion bona fides, through holding a position as directors were privy to information that, had they not held their position as directors would not have been able to benefit from the transaction that they undertook. The key point behind this case was that......

Words: 2154 - Pages: 9

Real Estate

...TRAINING REPORT ON “Growth of Real Estate Sector with in 5years” A case of Corporate Real Estate Solutions Submitted to MAHARSHI DAYANAD UNIVERSITY, ROHTAK In partial fulfillment of the requirements For the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (II SEMESTER) Submitted by: Name: Alok Kumar Upadhayay Regn. No. Roll.No. DAV INSTITUTE OF MANAGEMENT (ELC CODE: 080923013) NH-3, NIT, FARIDABAD. JULY 2011 DECLARATION I hereby declare that the Training Report conducted at Corporate Real Estate Solutions,Delhi. Under the guidance of (Ms. Aakrity) Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK is my original work and the same has not been submitted for the award of any other Degree /diploma /fellowship or other similar titles or prizes. Place: Date: Alok Kumar Upadhayay Regn.No: Roll No. 2 ACKNOWLEDGEMENT First and foremost, I extend my deepest thanks to my mentor and guide Mr. Vishal Srivastava, Director – Corporate Real Estate Solutions, for giving me this opportunity to work in such a prestigious organization as well as for giving me a wonderful thesis. Without his constant guidance and feedback, I would have never been able to complete the training, I did. I am thankful to Ms. Aakrity, whose consistent support and cooperation showed the way towards the successful completion of the......

Words: 15995 - Pages: 64