FLK 3 and 4 Flashcards
How calculate the chargeable estate for inheritance purposes?
To calculate the chargeable estate, we add up all the assets the person owned at death that are not exempt and subtract out liabilities and gifts made to charities.
What is needed for a will to be valid?
To be valid, a will must be in writing and signed by or on behalf of the testator in the presence of two or more witnesses present at the same time who each sign the will in the presence of the testator. It is possible for another person to sign on behalf of the testator if they are blind or illiterate. However, the testator must be present, and the will should be read to them before the will is signed on their behalf.
Section 20 and 18 grievous bodily harm
Section 20 grievous bodily harm requires intent or recklessness about causing some harm.
Section 18 is the same as 20, but grievous bodily harm requires proof of intent to cause SERIOUS bodily harm or intent to resist lawful apprehension (so RECLESSNESS isn’t sufficient)
Defences to murder and attempted murder
Loss of control and diminished responsibility are partial defences, reducing the conviction to voluntary manslaughter. They are not available to attempted murder.
How to calculate the transfer of value for inheritance tax purposes on the gift of the shares?
The transfer of value is always the loss to the donor. With unquoted shares the value by which the estate has diminished is used. The value of the man’s shares before the gift was £150,000 (since he owned 75% of the shares, we calculate value at £20 per share). After the gift, the man held 45% of the shares (4,500) which were worth £8 per share (£36,000). £150,000 - £36,000 = £114,000
What is the usual presumption when an individual contributes to the purchase of property in the name of another and there is no evidence that a gift was intended?
When there is no evidence that a gift was intended, the presumption is that the legal owner holds on resulting trust and the other party in proportion to their respective contributions.
This presumption does not apply where the contributor was the father or husband or was acting in loco parentis to the legal owner. In these cases, the presumption of ADVANCEMENT applies and it is presumed that the contributor intended to make a gift unless he CAN PROVE that he did not.
Are gains from the sale of a principal residence subject to capital gains tax?
No, except when the home was not lived in during the ENTIRE ownership.
How can a trustee retire without replacement?
If co-trustees consent by deed.
The rules of intestate succession
The rules of intestate succession apply when a person dies without a will.
Under these rules, when the deceased is survived by a spouse or civil partner and issue, the spouse or civil partner will receive personal chattels, £270,000, and one-half of the residue.
The deceased’s issue will take the other half of the residue.
NOTE: children born to unmarried parents ARE issue.
Purpose of the variation of will
A variation allows a beneficiary to change who receives their inheritance. To be effective for tax purposes, a variation must be made in writing, made within 2 years of death, and not made for monetary consideration.
What is a patent defect?
A patent defect is one that is discoverable through inspection. Ordinarily, a seller need not disclose patent defects and the buyer is expected to inspect and notice these. The seller is not under a duty to disclose them.
If a seller takes steps to conceal a patent defect, the buyer may sue the seller for misrepresentation.
Murder - mens rea - indirect intention
The mens rea for murder is intention to kill or cause serious harm. This can be satisfied by direct intention or by indirect intention.
Indirect intention requires the outcome to be a VIRTUAL certainty and for the defendant to foresee that the outcome is a VIRTUAL certainty.
When bail can be refused?
Bail can be refused if there are SUBSTANTIAL (THIS IS A KEY WORD IN THE ANSWER!) grounds to believe that the defendant would fail to surrender, commit further offences, or interfere with witnesses or otherwise obstruct justice.
Example of calculation of taxable income over 100k
If income is above £100,000, the personal allowance must be tapered by £1 of allowance for every £2 of income above £100,000. So if a total income is 111k, £11,000 of income over £100,000, £5,500 must be deducted from the £12,500 allowance, leaving with £7,000.
Rules related to the income management when property is held for a minor beneficiary
When property is held for a minor beneficiary, PRs may apply the income for the maintenance, education, or benefit of the minor. Otherwise, the PRs must accumulate the income. Once the beneficiary turns 18, ongoing income must be paid to them until their contingent interest is satisfied.
