4 - Legal Concepts Flashcards
2 types of LPA (lasting power of attorney)?
Property and affairs LPA
Personal welfare and healthcare LPA
LPA’s need to be registered with which office to be effective?
OFFICE OF THE PUBLIC GUARDIAN
4 reasons why contracts could be discharged?
Performance: obligations met by both parties
Agreement: both agree to end
Frustration: completion of contract is impossible
Breach: one party does not fulfil T&C’s (damages could be awarded)
Legal ownership and beneficial ownership difference?
Legal: name on title docs, shares(broker or nominee)
Beneficial: rights of ownership, voting rights on shares, dividends
Insolvency and bankruptcy difference?
Insolvency is a ‘state of being’
Bankruptcy is a matter of law
Characteristics of a bare trust?
Holds a ‘single beneficiary’ that holds absolute interest. Assets usually held in trust until beneficiary turns 18
Characteristics of a Life interest trust / or interest in possession trust?
Beneficiary is entitled to the immediate income from/use of property. Interest held by ‘remainderman’ after death (passed onto next of kin)
Characteristics of discretionary trust?
No beneficiary has the right to income
Trustees have the power to distribute or accumulate at their discretion
Lots of tax benefits
Charity trust characteristics?
Must be of charitable nature and for the public benefit
Trustee act 2000 allows trustees to make any kind of investment provided they do what?
Obtain proper advice, review trusts, Prove suitability and need to diversify
Who does the Trustee act 2000 not apply to?
Occupational pension scheme
Authorised unit trust
Some schemes under the charities act 2011
Trustees of occupational pension funds are responsible for producing a Statmeent of Investment Principles (SIP) what does this include?
The scheme-specific funding requirement
The nature of investments held in the fund
The risk of the fund
Reviewed every 3 years
