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The Technical Quiz: 10 October

To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions.

The following questions all relate to inheritance tax and probate.


QUESTION ONE

Bill dies leaving an estate of £500,000 to his two adult sons. He has made no previous gifts, how much inheritance tax would be payable on his death?

A) £50,000

B) £63,000

C) £70,000

D) £67,600

QUESTION TWO

When is any inheritance tax payable following death?

A) Three months after the end of the month of death

B) Six months after the end of the month of death

C) Nine months after the end of the month of death

D) Twelve months after the end of the month of death

QUESTION THREE

Why is it necessary to obtain probate/letters of administration?

A) To collect in the money from the estate

B) To pay any debts

C) To distribute the estate

D) All of the above

 

QUESTION FOUR

Jane made a gift to her son, Paul, of £400,000. Who is liable to any inheritance tax on her death within seven years?

A) Jane

B) Paul

C) Her legal personal representatives

D) There would be no tax to pay

QUESTION FIVE

Catherine died leaving an estate mainly comprising property. There are insufficient assets to pay the inheritance tax due on her house. Which of the following would not be an option?

A) Her legal personal representatives take out a loan to pay the tax

B) Her legal personal representatives would need to sell assets to pay the tax

C) Paying the tax in instalments over 10 years

D) Paying the tax in instalments over 20 years

_________

Answers

1 C
2 B
3 D
4 B
5 D

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