The following questions all relate to deeds of variation.
Bill dies leaving all of his assets into discretionary trust for the benefit of his spouse, children and remoter issue. Is it possible for them to enter into a deed of variation?
A) Yes, provided they all agree
B) Yes, provided agreement is sought from the Court
C) Yes, provided the spouse executes the deed of variation
D) No, because there could be future beneficiaries
Which of the following assets cannot be subject to a deed of variation?
C) Life interest in a trust
D) Portfolio of shares
What happens when someone disclaims their right to receive an inheritance under a Will?
A) It passes to the next person named in the will
B) It will normally fall into the residue of the estate and be distributed accordingly
C) The personal representatives decide who should receive it
D) The Will fails
Which of the following is not a benefit of entering into a deed of variation?
A) To enable the person making the variation to be able to benefit from the varied assets
B) To achieve an immediate inheritance tax saving
C) To pass assets to another person or into trust
D) It speeds up the administration of the estate
Elizabeth inherits £100,000 from her grandmother and decides to vary it to her adult son, Tom. Tom decides he would like his adult nephew to receive it instead. What option does Tom have?
A) He can vary it to his nephew provided it is still within two years from the date of death
B) He can’t do anything
C) He can gift it to his nephew
D) He can ask his mother to vary it to his nephew