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The Technical Quiz: 23 May

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

The Technical Quiz MM 480

QUESTION ONE: Who can be included as a beneficiary under the terms of a trust?


A) Anyone

B) Any living person

C) Anyone who is 18 or over and of sound mind

D) Anyone who is 18 or over

QUESTION TWO: Who can be the settlor?

  1. Anyone

  2. Anyone who is 18 or over

  3. Anyone who is 18 or over and of sound mind

  4. Anyone who is 21 or over and of sound mind

QUESTION THREE: Brenda creates a bare trust for her granddaughter, Emilie. Who will be taxable on any income and gains arising?

A) Brenda as the settlor

B) The trustees

C) Brenda and the trustees

D) Emilie

QUESTION FOUR: At what rate are trustees of a discretionary trust taxed on trust income?

A) 20%

B) 40%

C) 45%

D) 50%

QUESTION FIVE: Clive decides to set up a discretionary trust. He has made no other lifetime gifts. How much can he settle without any liability to inheritance tax?

A) £325,000

B) £328,000

C) £331,000

D) £334,000

Questions supplied by Technical Connection

_________

Answers

1 A
2 C
3 D
4 C
5 C

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. q2 – Bare trust where parental settlement rules don’t apply – I thought income/gains were assessed on beneficiary?

    q3 – Didn’t trust rates reduce to 45% wef 2013/14?

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