Estate Distribution Explanation

Kara Young was a well-known midwife who died recently. Your firm is acting for the executor of her estate, Jane Sprott, an old friend of Kara’s. Under her will, made in *, Kara left the following gifts: • $*,* payable from her ANZ term deposit account to her sister Leanne. • Her rare art to her son Manu. • A Miyazawa flute to her younger daughter Gemma. • Her Tesla Model * car to her elder daughter Chloe. • $*,* to each of her five grandchildren named in the will (Manu’s three daughters and Chloe’s two sons). • The residue to her husband, Connor – there is a gift over of the residue to be shared equally between her three children if Connor dies before her. Kara’s younger daughter Gemma, a keen flautist, died in an accident 2 years ago. Kara’s husband, Connor, died late last year. When Kara made her will, her and Connor’s combined assets were worth approximately $* million. However, their value reduced significantly in recent years as a result of some unsuccessful investments. Prior to Kara’s death, she sold her rare art at auction for $*,*. The sale proceeds were placed into her BNZ accounts. Kara’s Tesla Model * car was also sold prior to her death. At her death, Kara’s estate consists of: • BNZ accounts of $*,* • ANZ term deposit of $*,* • Peugeot * car valued at $*,* • several watches valued at $*,*. The estate’s liabilities are $*,*. Tasks a. Write a letter from your firm to the executor explaining how Kara’s estate will be distributed. Your explanation should: • when referring to gifts, identify what type each is (e.g. demonstrative, specific or general) • note whether any of the gifts have failed • identify who will benefit from the estate and in what ways (including the quantum of cash gifts), referring to the effects of abatement and ademption on any gifts • refer to any relevant legislative provision(s). You do not need to discuss any claims that could be brought against the estate in your Kara Young was a well-known midwife who died recently. Your firm is acting for the executor of her estate, Jane Sprott, an old friend of Kara’s. Under her will, made in *, Kara left the following gifts: • $*,* payable from her ANZ term deposit account to her sister Leanne. • Her rare art to her son Manu. • A Miyazawa flute to her younger daughter Gemma. • Her Tesla Model * car to her elder daughter Chloe. • $*,* to each of her five grandchildren named in the will (Manu’s three daughters and Chloe’s two sons). • The residue to her husband, Connor – there is a gift over of the residue to be shared equally between her three children if Connor dies before her. Kara’s younger daughter Gemma, a keen flautist, died in an accident 2 years ago. Kara’s husband, Connor, died late last year. When Kara made her will, her and Connor’s combined assets were worth approximately $* million. However, their value reduced significantly in recent years as a result of some unsuccessful investments. Prior to Kara’s death, she sold her rare art at auction for $*,*. The sale proceeds were placed into her BNZ accounts. Kara’s Tesla Model * car was also sold prior to her death. At her death, Kara’s estate consists of: • BNZ accounts of $*,* • ANZ term deposit of $*,* • Peugeot * car valued at $*,* • several watches valued at $*,*. The estate’s liabilities are $*,*. Tasks a. Write a letter from your firm to the executor explaining how Kara’s estate will be distributed. Your explanation should: • when referring to gifts, identify what type each is (e.g. demonstrative, specific or general) • note whether any of the gifts have failed • identify who will benefit from the estate and in what ways (including the quantum of cash gifts), referring to the effects of abatement and ademption on any gifts • refer to any relevant legislative provision(s). You do not need to discuss any claims that could be brought against the estate in your answer.