Question $3$ is based on the case study about John:

Section B: Analytical Questions.

Discuss the implications of bequeathing the primary residence to Mrs Smith in terms of estate duty.

Explain how the "spouse deduction" affects the calculation.

Evaluate how the life insurance policy contributes to the estate duty calculation.

What would change if the policy were payable directly to a beneficiary instead of the estate?

Identify any planning strategies Mr$.$ Smith could have used to reduce the estate duty liability.

Consider aspects such as charitable donations, structuring of assets, or use of trusts.

Analyze the potential impact of estate duty tax on the beneficiaries.

Consider how the tax might affect the distribution of assets to Mrs$.$ Smith and the children.

Instructions for Students:

Show all calculations clearly.

Provide detailed explanations and reasoning for your answers.

Use relevant sections of the Estate Duty Act where applicable.

Note to Instructors: Adjust the case study details and asset values as needed for different assessment levels.