QUESTION ONE: What is required for a trust to be valid?
A) Certainty of object and subject matter
B) Certainty of subject matter and intention
C) Certainty of object, subject matter and intention
D) Certainty of words used, intention and subject matter
QUESTION TWO: Peter decides to set up a discretionary trust for the benefit of his grandchildren and great grandchildren. The trustees invest in a life insurance investment bond. Who will be taxable on any chargeable event gains?
A) UK resident trustees
B) The beneficiaries
C) Peter, while alive and UK resident
D) UK resident trustees and the beneficiaries
QUESTION THREE: Discretionary trusts are subject to inheritance tax charges. When do these charges arise?
A) When capital appointments are made and at each 10 year anniversary
B) On creation of the trust and when capital appointments are made
C) At each 10 year anniversary
D) On creation of the trust, when capital appointments are made and at each 10 year anniversary
QUESTION FOUR: Which type of trust creates a potentially exempt transfer for inheritance tax purposes?
A) An interest in possession trust
B) A discretionary trust
C) A bare trust
D) A charitable trust
QUESTION FIVE: Who is the legal owner(s) of assets held in trust?
A) The settlor
B) The trustees
C) The beneficiaries
D) All of the above
Questions supplied by Technical Connection