Redmill Week 3 Flashcards
What are the three requirements for a will to be valid?
For a will to be valid it must be:
- In writing
- Signed
- Witnessed by at least 2 people who do not benefit from the will (attested)
What happens if a beneficiary to a will were to witness it?
The beneficiary would lose entitlment
What invalidates a will?
- Physical destruction
- Marriage
- Creation of a new will
What is the position of divorce on a will?
A divorce does not invalidate a will, but has the effect of treating the former spouse as if they had pre-deceased the testator
What is intestacy?
When someone dies without a will
What is the threshold before children start to gain entitlement to some of the estate if the souse is a live and the pre-deceased spouse died without a will?
£270,000
How long after ones death can a will or intestacy be varied?
Up to 2 years
What is a benefit on estate planning for using an immediate needs annuity?
The lump sum used to buy the annuity instantly reduces the estate
What are three uses of a trust?
- IHT Planning
- Avoiding probate
- Looking after assets for minors
What happens on death to the family home if owned as joint tenants?
The deceased’s share of the property is passed to the survivor on death
What happens on death to the family home if owned as tenants in common
The deceased share of the property passes according to their will or intestacy
What decisions can be made and when does the POA cease with an Ordinary POA
An Ordinary POA only gives permission to look after financial affairs and ceases when the donor loses capacity
When must an Enduring POA have been established?
When the donor had full capacity
When can the health and welfare element of a Lasting POA come into force?
Once the donor loses capacity
When can the financial affairs element of a Lasting POA come into force?
It can come into effect straight away
How may someone fall under the court of protection
If they:
- Lose mental capacity
- Have not EPA or LPA
Have assets that need to be used for their benefit
Does a client have the legal right to obtain a copy of any information held about them?
Yes
State 3 ways an individual may be vulnerable.
- Health
- Life events
- Poor resilience
- Low capability
If an adviser has a serious concern about financial abuse who should he raise this with?
Either the internal compliance department or the safeguarding co-ordinator
If there is already a need for care, what type of LTC product would be best?
An immediate needs annuity
For a complaint to be investigated does it have to be valid?
No, a complaint does not have to be valid
Who is classed as an eligible complainant?
An eligible complainant is:
- An individual customer
- Small business with less than 10 staff and turn over or balance sheet less than EUR2m
- A charity with annual income under £6.5m or a trust with net assed of under £5m
When should a customer be sent acknowledgment of a complaint?
Within a ‘reasonable timeframe’
When should a firm notify a complaint of their right to take the matter to the Financial Ombudsman Service?
After 8 weeks
