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The Technical Connection Quiz: 30 January

The Technical Quiz MM 480

QUESTION ONE

Brian would like to make a cash gift for inheritance tax purposes in favour of his minor grandchild. Which of the following would be most suitable?

a)     Discretionary gift trust

b)    Discretionary loan trust

c)     Bare gift trust

d)    Bare loan trust

QUESTION TWO

At what age is a child in England and Wales entitled to take legal possession of the assets held in a bare trust for them?

a)     16 years

b)    18 years

c)     21 years

d)    25 years

QUESTION THREE

Imelda would like to carry out inheritance tax planning but is unsure whether or not she would like to retain access to the gifted amount. Which of the following would meet her objectives?

a)     Discretionary gift trust

b)    Interest in possession trust

c)     Bare gift trust

d)    Discretionary loan trust

QUESTION FOUR

Under the terms of Paul’s will, a discretionary trust is created for the benefit of his minor niece and nephew. The trustees invest in a life insurance investment bond. Who will be taxable on any chargeable event gains?

a)     UK resident trustees

b)    The beneficiaries

c)     Paul

d)    Paul and the trustees

QUESTION FIVE

Phil decides to set up a discretionary trust, having made one other chargeable transfer five years ago of £100,000. How much can he settle without any liability to inheritance tax?

a)     £225,000

b)    £231,000

c)     £325,000

d)    £331,000

Questions supplied by Technical Connection 

Access full CPD, technical updates and business generation ideas throughTechlink Professional. Go to www.techlink.co.uk and click theContact Us link at the top of the screen and then request your free trial from the drop down menu.

_________

Answers

1 C

2 B

3 D

4 A

5 B

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