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The Technical Quiz: 17 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

When someone dies without making a will their estate will be divided in accordance with which legislation?

A) The Intestacy Act 1925
B) The Inheritance Tax Act 1994
C) The Administration of Estates Act 1925
D) The Inheritance (Provision for Family and Dependants) Act 1975

QUESTION TWO

Brenda is the life tenant under the terms of a will trust set up on her late husbands’ death. She has a personal estate which is in excess of her available nil rate band. Who will be liable to pay the inheritance tax arising on her death?

A) Her legal personal representatives in respect of her estate
B) The trustees of the trust in relation to the trust
C) Her legal personal representatives in relation to the whole amount
D) The trustees in relation to the amount held in trust and her personal representatives in relation to her estate

QUESTION THREE

Peter has an estate which comprises his house, jointly owned with his wife, cash and investments. His total estate is worth £350,000 – £250,000 is the value of the house. He wishes to leave £20,000 to his son. How much inheritance tax will be payable?

A) Nil
B) £10,000
C) £9,000
D) £40,000

QUESTION FOUR

When is probate usually granted to the legal personal representatives?

A) Before any inheritance tax is paid
B) After payment of any inheritance tax
C) Once they have filed an inheritance tax account
D) As soon as a copy of the death certificate and will is sent to the Probate Registry

QUESTION FIVE

Susan died leaving an estate of £300,000 – £100,000 to her son and £200,000 upon trust for her grandchildren who are all minors. Which of these beneficiaries can enter into a deed of variation?

A) The son
B) The grandchildren
C) All of them with approval from the Court
D) All of them regardless of approval from the Court

_________

Answers

1 C
2 D
3 A
4 B
5 C

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