STUDY UNIT 8

Question 1

What is VESTING?

Answer 1

Vesting is when a person becomes a holder of a right.

Question 2

The time vesting takes place as it has several effects:

Answer 2

1. the time of vesting affects whether a beneficiary may transfer rights he has received from the testator’s estate.
2. accrual does not operate once the beneficiary’s rights have vested.
3. vesting can be a determining factor in solving problems.
4. vesting can also determine whether the acceleration of interests in cases of repudiation or renunciation by the beneficiary should take place.

Question 3

ABSOLUTE BEQUESTS

Answer 3

is a bequest that does not contain any conditions.
-dies cedit and dies venit take place at the same time.

Question 4

Pre-Legacy

Answer 4

is a legacy that take precedence over all other legacies and inheritances according to the instructions of the testator.

Question 5

RESIDUE OF THE ESTATE:

Answer 5

refers to the part of the deceased’s estate that is left after everything is paid out, and it includes all the bequests that have failed.

Question 6

A legacy can fail or lapse in the following:

Answer 6

1. Ademption
2. Legatee dies before vesting of rights
3. Legatee repudiates the legacy.
4. legatee is incompetent
5. Bequeathed object is destroyed.
6. Testator’s estate is insolvent.

Question 7

1. ADEMPTION

Answer 7

is a form of a tacit revocation of a legacy when a testator voluntarily alienates the object of the legacy during his lifetime causing the legacy to fail.

Question 8

2. LEGATEE DIES BEFORE VESTING OF RIGHTS

Answer 8

if section 2C of the wills act applies, the legatee will be substituted by virtue of law.

Question 9

3. LEGATEE REPUDIATES THE LEGACY

Answer 9

if the legatee repudiates and there is no substitution named in the will, and section 2C does not applies, the legacy will fall into residue of the estate.

Question 10

4. LEGATEE IS INCOMPETENT

Answer 10

if he murdered the testator, neither substitution nor accrual is possible, the legacy will fall into residue of the estate.

Question 11

5. BEQUEATHED OBJECT IS DESTROYED

Answer 11

if the object of the legacy is destroyed, there is nothing which can be inherited, it is assumed that the testator revoked the bequest.

Question 12

6. TESTATOR’S ESTATE IS INSOLVENT

Answer 12

there is no legacy transferred to the legatees as the assets of the legacy are used to pay out the creditors.