Copy of REEN COMBINATION MOCK 2: 10 QUESTIONS 20 MINUTES 60% PASS MARK

The Constitutional Court confirmed a Supreme Court of Appeal (SCA) ruling which legally recognizes Muslim marriages and, declared certain sections of the Marriage Act and Divorce Act unconstitutional. Is this statement true or false?

True
False

The following acts may deem a person insolvent. Select the correct options

i)Sells assets

ii)Encourages a divorce with no intention to separate

iii) Renegotiates payment terms with creditors

iv)Leaves the country

v)Obtains surety to assure creditor debt will be settled

vi)Takes out life insurance on his own life with the wife as the beneficiary

vii) Sells all the assets to a trust on a loan account basis

i, ii, iv, vii
i, ii, iii, vi. vii
i, iii, iv
ii, iii, v, vi
None of the above are acts of insolvency
All of the above are acts of insolvency
There is no correct combination that reflects the acts of insolvency

Gary married to Claire out of community of property excluding the accrual system. Gary and Claire have 3 minor children. Gary passed on 1 month ago. He left the following life insurance policies in which he was both the policyholder and life assured.

Benefit	Value	Beneficiary
Life cover 1	R4 000 000	None
Life cover 2	R2 100 000	Claire
Life cover 3	R 900 000	Estate
Life cover 4	R3 200 000	Collateral cession to bank to settled debt of R2 450 000
Disability cover 5	R3 900 000	Gary
Severe illness cover 6	R1 000 000	Gary

The above transactions will be reflected as ‘’claims in favour of’’ in the Liquidation and Distributed account in Gary’s deceased estate. Select the correct option

Life cover 1, 3 and 4, 5 and 6
Life cover 1 and 3
Life cover 3 and 4 and 5
Life cover 1 ,2 , 3 and 4
All 4 life cover policies will be reflected
None of the life cover policies will be reflected
No answer to this question

Due to the fact that a FISA member must manage deceased estates and ensure that funds are appropriately accounted for, a FISA member is required to submit a list of assets and liabilities to the FISA Council on an annual basis. This is to ensure that a FISA member can show that his personal assets are greater than his personal liabilities. Should this not be the case, it leads to temptation to ‘’loan’’ money from the deceased estate to settle a FISA member’s own debts.

Choose the correct option

A member is required to submit assets and liabilities schedule on an annual basis but, not for the reason specified
A member is required to submit assets and liabilities schedule on an annual basis purely to ensure that FISA as a whole does not lose credibility as a result of the insolvency of its members.
A member is only required to advise the FISA council that it may be requesting voluntary sequestration and in the notification, submit a schedule of assets and liabilities in its personal capacity.
A FISA member is not required to submit annual assets and liabilities schedule to FISA Council but must report this to the Master when lodging a deceased estate
None of the above statements are correct as only executors need to comply to these requirements
The statement made is not correct

Jane and Jack were married out of community of property with the accrual system applicable. Jack has recently passed away. During their lifetime, Jack had donated several assets to Jane. Select the incorrect statement.

The value of the donation, if still held by the respective spouses, will not be reflected in the accrual valuation of either of the spouse’s estate
If the donation has not been made by the deceased spouse before his death, the donated asset will reflect as a deduction in his accrual estate but, will not be reflected in the surviving spouse accrual estate
If the donation has not been made by the deceased spouse before his death, the donated asset will reflect as a deduction in his estate and will be reflected in the surviving spouse estate
None of the above are incorrect

Insolvency Act provides for the effect of sequestration on property of the spouse of the insolvent. In this context, the spouse is defined as: Select the correct option.

Spouses married according to the Marriage Act, Civil Union Act and Customary Marriage Act
Spouses married according to the Marriage Act, Civil Union Act, Customary Marriage Act as well as long term partnership and tenets of religion irrespective of whether same sex or opposite sex.
Spouses married according to the Marriage Act, Civil Union Act and Customary Marriage Act. Where unions are of the same sex, the Act is not applicable
Spouses married according to the Marriage Act, Civil Union Act and Customary Marriage Act as well as long term partnership and tenets of religion. Where unions are of the opposite sex, the Act is not applicable.
Spouses married according to the Marriage Act, Civil Union Act and Customary Marriage Act as well as long term partnership and tenets of religion. Where unions are of the same sex, the Act is not applicable

Match the statements below:

Sort elements

SARS Official rate of interest
Market related interest

When calculating the amount that has to be attributed back to the donor as a result of an interest free loan account, the interest rate used in the calculation is:

When calculating a deemed donation under S7C of the Income Tax Act, the interest rate that is used in the calculation is the:

Tom bequeathed all the assets in his estate to a testamentary trust for the benefit of his 4 adult children. Tom’s spouse did not feature in the Will nor as a beneficiary of the testamentary trust. The children repudiated their inheritance and as a result the testamentary trust failed. Select the correct option.

Tom’s deceased estate will fall intestate and will be distributed equally between the surviving spouse and the 4 children
Tom’s deceased estate will be equally divided between his 4 children
Tom’s deceased estate will go the state as the children repudiated and Tom did not want his spouse to inherit
Tom’s deceased estate will fall intestate and will be distributed amongst all descendants where spouse will be awarded the greater of R250 000 or a child’s share. The remaining estate will be divided equally among the 4 children
None of the above are correct

Fiduciary Institute Code of ethics is build on two broad principles which are:
Choose the correct option

Integrity, Honesty
Diligence, Honour
Fairness, Objectivity
Independent thought and behaviour
Integrity, Diligence

Match the statements below:

Sort elements

The formal requirements for the execution of a valid will remains. The court is given the power to make the order in question so as to avoid invalidity.
The intention of the legislature is to eliminate the injustice and inequity which frequently resulted from non-compliance with the formalities required of a valid will as per S2(1) of the Act
Only if the stated formal requirements for the execution (S2(1)(a)) or for the amendments (S2(1)(b)) of a will have not been satisfied

The courts would have the power in terms of S2(3) of the Wills Act to condone non-compliance with the formalities in Section 2(1)

MacDonald v The Master: By introducing S2(3) of the Act
Ndebe v The Master: The purpose of S2(3) is clear