To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these five questions.
This week, the questions relate to trusts.
Answers can be found at: www.moneymarketing.co.uk/technical
At what age would a child in England and Wales be entitled to take possession of the assets in a bare trust of which they were the beneficiary?
A) 16 years
B) 18 years
C) 21 years
D) 25 years
Under which type of trust is there usually a life tenant?
A) An absolute trust
B) A discretionary trust
C) An interest in possession trust
D) A charitable trust
When does a will trust come into effect?
A) On the testator’s death
B) When the testator signs his or her will
C) When the settlor buys the investment that will be held in the will trust
D) When the administration of the estate of the testator is completed
Who legally owns the assets held in a trust?
A) The beneficiaries
B) The settlor, while alive
C) The trustees and beneficiaries jointly
D) The trustees
Which of the following cannot be a trustee?
A) Anyone under the age of 21
B) The settlor
C) Any beneficiary
D) Anyone not of sound mind
Questions are supplied by Technical Connection
Answers: B, C, A, D, D