Taxation And Legal Issues

Question 1

Which is NOT a key requirement of a valid will? The will needs to be:

A. In writing
B. Witnessed
C. Dated

Answer 1

Dated

Question 2

Under what circumstances may a valid will be challenged?

A. Where the testator, although mentally capable, has been eccentric in the choice of beneficiaries
B. Where there has been inadequate provision made for family members
C. Where the testator has been knowingly malicious when making the Will

Answer 2

Where there has been inadequate provision made for family members

Question 3

Nathan died in May 2018 and is survived by his wife Rebecca and their son Jamie. Nathan and Rebecca has a jointly owned house (joint tenancy) values at £620,000 and a joint bank account with a balance of £14,000 at the date of death. He had sole assets of £380,000. Nathan has not made a Will. How much, if any, Will Jamie inherit?

A. Nil
B. £65,000
C. £382,000

Answer 3

£65,000

Question 4

Within what period of time must a deed of variation be signed?

A. 6 months from the date of death
B. 12 months from the date of death
C. 2 years from the date of death

Answer 4

2 years from the date of death

Question 5

Investment in to which of the following will have an immediate effect on someone’s estate for inheritance tax purposes?

A. Discounted gift trust
B. Gift and loan trust
C. LTC Bond

Answer 5

Discounted gift trust

Question 6

What is the potential advantage of a gift and loan trust?

A. Any subsequent growth on the investment will fall outside of the estate
B. The loan will be outside the settlor’s estate immediately
C. Interest on the loan will be received by the estate

Answer 6

Any subsequent growth in the investment will fall outside the estate