Which of the following is most suitable where someone wishes to retain a right to receive ‘income’ under the terms of a trust?
a) Gift trust
b) Loan trust
c) Excluded property trust
d) Discounted gift and income trust
Melinda creates a bare trust for her grandson, Sam. The trust asset comprises an onshore bond. Who will be taxable on any chargeable event gains?
b) Melinda as the settlor
c) Melinda and the trustees
d) The trustees
Under which type of trust do the trustees have the most flexibility in terms of deciding who should benefit and when?
a) Bare trust
b) Interest in possession trust
c) Discretionary trust
d) Discounted gift trust
What rate of tax do trustees of a discretionary trust pay on capital gains?
Which of the following cannot be a trustee?
a) The settlor
b) Any beneficiary
c) Anyone under age 18
d) Anyone not of sound mind
Questions supplied by Technical Connection
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