Important legal principles

Question 1

The 3x types of companies, as separate legal entities listed on Companies house?

Answer 1

Public limited companies, known as ‘PLCs’ listed on the stock market

Private limited companies, not listed on the stock market and sold privately

Limited liability partnerships (LLP)

Question 2

Who is the Trust settlor?

Answer 2

The person setting up the trust and settling assets into it

Question 3

Who are Trustees?

Answer 3

People aged 18 or over and of sound mind, who are appointed by the settlor to look after the trust assets and administer them in accordance with the trust deed

Question 4

Define: TESTATOR, EXECUTOR, INTESTATE and ADMINISTRATOR?

Answer 4

TESTATOR - The person making a will

EXECUTOR - The person named in a valid will to be responsible for sorting out the estate; they can also be a beneficiary

INTESTATE - person who dies without a valid will

ADMINISTRATOR - An appropriate person who takes on the role of distributing the estate where there is no valid will, who will seek a grant of letters of administration

Question 5

A Lasting power of attorney can do what more than an Enduring power of attorney?

Answer 5

Can make decisions regarding personal welfare as well as property & affrairs

Question 6

Types of property ownership? x3

Answer 6

Single ownership, Joint tenancy and tenancy in common

Question 7

What are chattels?

Answer 7

Personal, moveable property including animals

Question 8

As opposed to legal property owners, equitable owners?

Answer 8

have an economic interest in a property / own shares

Question 9

There is no minimum debt for a person to petition for their own bankruptcy, but a creditor must be owed what minimum?

Answer 9

£5000

Question 10

What 3x types of items are exempt from the trustee in bankruptcy selling off?

Answer 10

1. clothing
2. household items
3. items the bankrupt would need to carry on working

Question 11

Regarding bankruptcy, if the debtor’s family is living with them, sale of the property can be delayed by?

Answer 11

12 months

Question 12

The Bankruptcy trustee can ‘attack’ ‘prior transactions’ gifted or sold at less than their true value for how many years prior?

Answer 12

2 or extended to 5

Question 13

Undischarged bankrupts cannot legally do what 3x things?

Answer 13

1. obtain credit of £500 or more without disclosing to the court
2. carry on business in a different name without telling all those they do business with
3. promote/form/manage a limited company, or act as a company director, without court permission

Question 14

An Individual voluntary arrangements (IVA) scheme can be setup as an alternative to Bankruptcy, only if?

Answer 14

creditors who are owed at least 75% of the total debt represented agree to it

Question 15

Criteria for a Debt relief order (DRO) x3?

Answer 15

1. owes a maximum of £30k in unsecured debts
2. has total gross assets of no more than £2k (a vehicle valued below £2k can be excluded)
3. has disposable monthly income of no more than £75 (after tax, NICs and normal household
   expenses)