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The Technical Quiz: 5 December

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 deeds of variation.

QUESTION ONE

For a deed of variation to be effective which of the following must not apply?

A) It must be in writing

B) It must be executed within two years

C) Contain a statement that the provisions of s142 of the Inheritance Tax Act 1984 is intended to apply

D) It must be made for consideration

QUESTION TWO

How long does someone have to enter into a deed of variation?

A) Two years from date of death

B) Two years from notifications of death

C) Two years from the date the administration of the estate is complete

D) Two years from grant of probate/issue of letters of administration

QUESTION THREE

Where the provisions of a will trust are to be subject to a deed of variation, who must agree to the variation?

A) The executors

B) The executors and trustees

C) The beneficiaries

D) The executors, trustees and beneficiaries

QUESTION FOUR

What is the main reason someone would choose to execute 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 make a gift

D) To speed up the administration of the estate

QUESTION FIVE

Beneficiary inherits shares. The shares increase in value and the beneficiary decides to execute a deed of variation. Will capital gains tax be payable?

A) No, not in any circumstances

B) Yes, because the beneficiary is treated as making a disposal

C) No, provided the variation contains a statement that s.62(6) Taxation of Chargeable Gains Act 1992 is intended to apply

D) No, provided the variation takes place within two years

_________

Answers

1 D
2 A
3 C
4 B
5 C

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