Calculate the accrual claim and show all the calculations in full. 120/40 X /40 X

Transcription

1 MARITAL REGIMES WITH SOLUTIONS EXAMPLE 1 Mr & Mrs Verster are married out of community of property, with the inclusion of the accrual system. They were married in The initial value of Mr & Mrs Verster s respective estates was R & R At the dissolution of the marriage in 2013, Mr & Mrs Verster s estates amount to R & R respectively. In 2000, Mrs Verster received a donation from her brother of R She has debts of R Mr Verster s estate includes assets of R which are excluded in terms of the antenuptial contract. He has debts of R The CPI in 1992 was 40 and in 2013,120. Calculate the accrual claim and show all the calculations in full. MR MRS 120/40 X /40 X ASSETS LIABILITIES DONATIONS ASSETS EXCLUDED CPI ADJUSTED COMMENCEMENT NET ASSETS BIGGER LESS SMALLER = / 2 = MRS HAS A R150 CLAIM AGAINST MR

2 EXAMPLE 2 In 1995 Mr & Mrs Saad were married out of community of property with the inclusion of the accrual system. The market value of Mr Saad s assets at the time of his death in 2009 amounted to R An amount of R was outstanding on a property he owned which was secured by way of a mortgage bond over that asset. The value of his assets when he got married, all of which had been excluded from the accrual system, had a current value of R Mrs Saad s assets were valued at R at the time of her husband s death & her liabilities amounted to R Her father had died several years previously & had bequeathed assets with a (current) value of R to her which form part of her assets of R Her father stipulated in the will that his bequest was not to be part of a joint estate or accrual system. The (current) value of her assets when she got married, which were also excluded from the accrual system, amounted to R You have been asked by the executor to calculate any accrual claim and show all your calculations. SOLUTION MR MRS 0 BEG VALUES ASSETS LIABILITIES ASSETS EXCLUDED FROM ACCRUAL ASSETS INHERITED NET ASSETS BIGGER LESS SMALLER = / 2 = CLAIM BY MRS AGAINST MR

3 EXAMPLE 3 Mr & Mrs Lamola are married out of community of property & have made the accrual system applicable to their marriage. Mr Lamola s liabilities exceeded his assets by R5 000 when they got married. Mrs Lamola s net assets when they got married were worth R Upon Mr Lamola s death his net estate is worth R & his widow s net estate is worth R Without making any adjustments for the difference in the consumer price index, what claims arises in terms of the Matrimonial Properties Act No 88 of 1984, if any, on Mr Lamola s death. SOLUTION MR MRS 0 VALUES AT COMMENCEMENT ASSETS VALUES AT BEG NET ASSETS BIGGER LESS SMALLER = / 2 = MR HAS CLAIM AGAINST MRS

4 Example 4 Tom and Jane married in 1994 with ANC including accrual. CPI then was 3.4 and is now 9.8. Tom, at time of marriage had a debt of R and Jane had assets of R Their current situation:. TOM ASSETS AND LIABILITIES PRIMARY RESIDENCE MOTOR VEHICLE ARTWORKS BUSINESS EQUITY INTEREST BOND DEBT CREDIT CARD DEBT INCOME TAX NOT PAID GROUP LIFE COVER APPROVED PENSION FUND VALUE GROUP LIFE COVER UN-APPROVED LIFE POLICY PAYABLE TO JANE LIFE POLICY CEDED TO BANK POLICY PAYABLE TO BUSINESS PARTNER KEYMAN POLICY ON HIS LIFE POLICY OWNED BY TOM ON THE LIFE OF BOBBY. CASH VALUE OF LIFE COVER OF INVESTMENT POLICY HIS WIFE IS THE BENEFICIARY DONATION TO JANE NOT YET PAID

5 JANE ASSETS AND LIABILITIES HOLIDAY HOME INHERITED FROM DAD PRIOR TO MARRIAGE UNITS INHERITED BY MOM AFTER MARRIAGE. SHE CASHED IN THE UNITS AND BOUGHT A HOUSE FOR RENTAL INCOME MOTOR VEHICLE JEWELLERY ENDOWMENT DONATED BY TOM RETIREMENT ANNUITY FUND VALUE CREDIT CARDS LIFE POLICY OWNED BY JANE ON TOMS LIFE Assume that in the event of a disposal for CGT Tom would have a capital gain of R and Jane R They are both concerned that in the event of a death they may not have sufficient capital sum to meet a claim. Please calculate and show them the amount and who the claim will be against. After calculating the above in the event of death, they ask what would be different if they divorced?

6 DEATH TOM JANE COMMENCEMENT VALUE: R0 COMMENCEMENT VALUE X 9.8/3.4 = PRIMARY RESIDENCE HOLIDAY HOME MOTOR VEHICLE MOTOR VEHICLE ARTWORKS JEWELLERY BUSINESS INTEREST ENDOWMENT GROUP LIFE UNAPPROVED POLICY OWNED BY JANE POLICY CEDED TO BANK LESS LIABILITIES BOND CREDIT CARD INCOME TAX CGT COMMENCEMENT 0 LESS LIABILITIES AND EXCLUSIONS CREDIT CARDS CGT INHERITANCE HOLIDAY HOME DONATED ENDOWMENT COMMENCEMENT NET ASSETS NET ASSETS GREATER ACCRUAL LESS SMALLER ACCRUAL = / 2 = IF JANE DIES FIRST = THIS WILL BE AN ASSET AS DEEMED PROPERTY IN HER ESTATE. IF TOM DIES FIRST THIS WILL BE 4IA DEDUCTION IN HIS ESTATE

7 DIVORCE TOM JANE COMMENCEMENT VALUE: R0 COMMENCEMENT VALUE X 9.8/3.4 = PRIMARY RESIDENCE HOLIDAY HOME MOTOR VEHICLE MOTOR VEHICLE ARTWORKS JEWELLERY BUSINESS INTEREST ENDOWMENT PENSION FUND VALUE RETIREMENT ANNUITY INVESTMENT POLICY LESS LIABILITIES BOND CREDIT CARD INCOME TAX CGT COMMENCEMENT 0 LESS LIABILITIES AND EXCLUSIONS CREDIT CARDS CGT INHERITANCE HOLIDAY HOME DONATED ENDOWMENT COMMENCEMENT NET ASSETS NET ASSETS GREATER ACCRUAL LESS SMALLER ACCRUAL / 2 = JANE WILL CLAIM AN ACCRUAL FROM TOM TO THE VALUE OF