Mock 10/12 Flashcards
When should you advice to include vat in property purchase price
Never if acting for seller.
For buyer: if ‘VAT-sensitive’, ie it makes exempt supplies and may not be able to recover any VAT it has to pay on the purchase price.
MR for Murder
Intention to kill/ GBH. - can have ‘transfered malice’, key element is intent to kill or cause GBH
Direct or indirect intent: aim or purpose was to kill the victim. or/ Can include situations where the defendant foresees death or serious injury as a virtual certainty.
What are the non-statutory duties of trustees when exercising investment powers?
Duty to Act Impartially Between Beneficiaries:
Balance the needs of all beneficiaries fairly:
Life Tenant: Prefers income.
Remainder Beneficiary: Prefers capital growth.
Duty to Secure the Best Return for Beneficiaries:
Aim for the best financial return, not necessarily the highest return, to avoid excessive risk.
Financial considerations must take precedence over personal ethical or moral views.
Exceptions for Ethical Investments:
Trustees may consider ethical factors only if:
(i) Ethical investments yield returns equal to non-ethical ones.
(ii) The trust is charitable, and investments contradict its purposes
(iii) The settlor’s instructions in the trust deed specify ethical considerations.
Standard Investment Criteria trustees must consider?
(a) Suitability:
The type of investment and the specific investment’s suitability to the trust.- the area of investment and the selected investment in that area.
(b) Diversification:
need to diversify investments, where appropriate, based on the trust’s circumstances.
must apply the SIC when exercising any power of investment.
Investments must be reviewed periodically to decide if they should be varied, considering these criteria.
intestacy rules, distribution for spouse w/ children
Personal Chattels: Spouse receives all personal possessions (e.g., jewellery, car, furniture).
Statutory Legacy: Spouse gets the first £322,000 outright.
Half of the Remainder: Spouse also receives 50% of what’s left after the statutory legacy.
Children’s Entitlements:
The other half of the remaining estate is divided equally among the children.
Children under 18 will have their share held in trust until they turn 18 (or marry/enter a civil partnership earlier).
study express tusts
What can trustees do when a remainder beneficiary requests funds, with no express provisions in the trust instrument?
Trustees may make an advancement of capital under Section 32 of the Trustee Act 1925.
Conditions for Advancement:
The beneficiary must have an interest in capital (e.g., remainder beneficiary).
The payment must be for the beneficiary’s advancement or benefit (e.g., university expenses qualify).
Trustees must** obtain the consent of anyone with a prior interest** (e.g., the life tenant).
Consent from the settlor or other remainder beneficiaries is not required.
Trustees cannot refuse solely because the beneficiary is contingent/ remainder, as s32 allows advancements for their benefit.
who is entitled under inheritance provision dependent act 1975?
Who Can Claim:
Spouse or Civil Partner: Entitled to a provision akin to what they would have expected during the relationship.
Former Spouse/Civil Partner: Can claim unless remarried or in a new civil partnership.
Cohabitee: Must have lived with the deceased for at least 2 years in a marriage-like relationship.
Child of the Deceased: Includes biological, adopted, or stepchildren.
Person Treated as a Child: Someone the deceased treated as their child, even if not formally adopted.
nDependants: Anyone wholly or partly maintained by the deceased immediately before their death.
What Can Be Claimed:
Spouse/Civil Partner: Provision for reasonable financial needs, including maintenance or capital.
Others: Provision limited to what is reasonably required for maintenance.
What are the steps to calculate Inheritance Tax (IHT)?
Identify the Gross Estate Value:
Include all assets owned by the deceased (e.g., property, accounts, valuables).
For joint accounts, only include the deceased’s share.
Exclude lifetime gifts made more than 7 years before death.
(Apply Relevant Reliefs:
Business Property Relief (BPR): Apply 100% or 50% relief to qualifying assets (e.g., shares in family trading companies).
Subtract Nil Rate Bands:
Residence Nil Rate Band (RNRB): Up to £175,000 if a home passes to direct descendants.
Standard Nil Rate Band (NRB): £325,000 for all estates.)
Calculate the Taxable Estate:
Gross estate value minus reliefs and nil rate bands.
Apply the Tax Rate:
Taxable estate × 40% (standard IHT rate)
Meaning of absolute leasehole title and other optins for title in lease
What are the elements of the loss of control defence
The defendant must have lost self-control at the time of the killing.
The loss does not need to be sudden (e.g., cases involving cumulative abuse)
Qualifying Triggers:
Fear Trigger: A fear of serious violence from the victim against the defendant or another identified person.
Anger Trigger:
Things said or done that amount to grave provocation and cause the defendant to feel seriously wronged.
Sexual Infidelity Exception: Sexual infidelity alone is excluded but can be considered as part of the overall context if included along with other factors
Objective Test for Jury
A person of the defendant’s age, sex, and with a normal degree of tolerance and self-restraint might have reacted in a similar way in the same circumstances.
Loss of control cannot result from a desire for revenge.
