MOCK 1: ACCRUAL ON DIVORCE 16 QUESTIONS 45 MINUTES

As a result of their impending or possible divorce and, assets have to be ”given” to the other spouse according to their divorce agreement, a capital gain /loss will arise.

The taxable capital gain for the respective spouses will be:

Match the statements below.

The mere fact that Pretty has excluded any retirement funds from her accrual valuation,  would mean that Gary, should they divorce, also exclude his retirement funds from the accrual valuation.  Is this statement true or false?

In the regards to the endowment policy in which Gary is the owner,  the treatment for the accrual valuation will be:

Select the most accurate statement below:

The annuity that Gary is receiving which amounts to R10 000 per month, is an annuity charged on property.

Is this statement correct or incorrect:

The life insurance policy on the life of Gary, payable to the deceased estate, is included in the accrual calculation at a Rand value of:

If one refers to the fact of the case study, the fideicommissum value which is included in Pretty’s estate for the accrual calculation, amounts to:

Select the correct amount below: (all rounded off)

According to the facts, Pretty has,  in the ante-nuptial contract, excluded any of her retirement funds from the accrual valuation:

Select the most correct statement below

The life insurance policy 2 on the life of Gary in the event of an illness, is included in the accrual calculation at a Rand value of: 

Gary elected to exclude from the accrual calculation his prized gold watch which was valued at R312 000 at the time of his marriage. He has sold this and bought unit trusts with the proceeds. The value that will be excluded (or deducted) when calculating the net value in Gary’s accrual valuation is:

The net commencement value in the accrual calculation for Gary, is:

Select the correct amount

The provision in the ante-nuptial contract, promises a policy of risk to the value of R2 000 000 for each child which, would be payable in the event of death.

Match the statements below:

The value of the bare dominium which was bequeathed to Gary, is included in the accrual calculation at a rand value of:

The life insurance policy 1 on the life Gary which is payable to his sister Pam will, in the event of Gary’s divorce,  be included in the accrual calculation at a Rand value of:

To arrive at a Bare Dominium value when calculating a ceasing usufruct, one would have to revert to the day when the original usufruct was created.

Would this be the correct method to determine the BD value?