Copy of GARY AND PRETTY MOCK QUIZ

Quiz Summary

0 of 5 Questions completed

Questions:

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 5 Questions answered correctly

Your time:

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 5

1. Question
Gary had a gold watch, valued at R312 900, before he got married. He excluded this asset from his accrual calculation. Upon termination of his marriage through divorce or death, the gold watch will be excluded from the accrual. What value would be excluded? Select the correct amount.
- R312 900 the same value at the time of the commencement of marriage
- R312 900 x 6.5/7.6 = R267 612 which is the CPI adjusted value
- R312 900 x 7.6/6.5 = R365 852 which is the CPI adjusted value
- R200 000
Correct

Incorrect
Question 2 of 5

2. Question
Assume that Gary has in fact implemented a life policy in favour of his children for R2 000 000 each. Upon his death, will this policy be estate dutiable or will it be exempt from estate duty?
- The policy will be estate dutiable
- The policy will be exempt from estate duty
Correct

Incorrect
Question 3 of 5

3. Question
Gary is the bare dominium holder of fixed property (note 1). which is subject to a usufruct to his sister Pam.

Select the incorrect statement:
- Gary can bequeath the property to whomever he wishes subject the usufruct (ie the usufruct will continue)
- Pam can rent out the property in which she has the right of use and retain the rental income
- Pam can donate her usufruct back to Gary if she so wishes
- Gary is not permitted to bequeath the property to any other as this limited interest obligates him to pass it over to the usufructuary which is his sister Pam.
Correct

Incorrect
Question 4 of 5

4. Question
The foreign endowment has no nominated beneficiaries only nominated owners for ownerships which are his children. The value of this endowment will be included in the accrual valuation as well as attract executor fees as the proceeds will pay into Gary’s estate in the event of his death. Select the incorrect statements.
- Beneficiary for ownership has the same effect as a nominated beneficiary
- There will be no executor fees on this policy but it will be estate dutiable
- The executor will charge to handle this policy and it will be dutiable.
- The policy will be included in the accrual calculation but will not be estate dutiable
- The policy will not be included in the accrual calculation and the executor will not charge on foreign property
- The policy will not be included in the accrual calculation, it will be estate dutiable and the executor cannot charge on the policy proceeds due to beneficiary ownership
Correct

Incorrect
Question 5 of 5

5. Question
The annuity (rental) income which Pretty receives from Roland – note 5 – is treated as follows:

Select the correct statement.
- The annuity which is received is included in taxable income but does not include the deductions (expenses against trade)
- The annuity, upon the death of Pretty, is considered an ongoing annuity and will therefore be estate dutiable.
- The annuity, upon the death of Pretty, is considered a ceasing annuity and will therefore not be estate dutiable
- The annuity is an annuity charged on property and estate dutiable irrespective of whether ongoing or ceasing
- The annuity which is received, because it is an inheritance, will not form part of taxable income for Pretty
Correct

Incorrect

Copy of GARY AND PRETTY MOCK QUIZ

Copy of GARY AND PRETTY MOCK QUIZ

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question