Redmill Week 3

Question 1

What are the three requirements for a will to be valid?

Answer 1

For a will to be valid it must be:
- In writing
- Signed
- Witnessed by at least 2 people who do not benefit from the will (attested)

Question 2

What happens if a beneficiary to a will were to witness it?

Answer 2

The beneficiary would lose entitlment

Question 3

What invalidates a will?

Answer 3

• Physical destruction
• Marriage
• Creation of a new will

Question 4

What is the position of divorce on a will?

Answer 4

A divorce does not invalidate a will, but has the effect of treating the former spouse as if they had pre-deceased the testator

Question 5

What is intestacy?

Answer 5

When someone dies without a will

Question 6

What is the threshold before children start to gain entitlement to some of the estate if the souse is a live and the pre-deceased spouse died without a will?

Answer 6

£270,000

Question 7

How long after ones death can a will or intestacy be varied?

Answer 7

Up to 2 years

Question 8

What is a benefit on estate planning for using an immediate needs annuity?

Answer 8

The lump sum used to buy the annuity instantly reduces the estate

Question 9

What are three uses of a trust?

Answer 9

• IHT Planning
• Avoiding probate
• Looking after assets for minors

Question 10

What happens on death to the family home if owned as joint tenants?

Answer 10

The deceased’s share of the property is passed to the survivor on death

Question 11

What happens on death to the family home if owned as tenants in common

Answer 11

The deceased share of the property passes according to their will or intestacy

Question 12

What decisions can be made and when does the POA cease with an Ordinary POA

Answer 12

An Ordinary POA only gives permission to look after financial affairs and ceases when the donor loses capacity

Question 13

When must an Enduring POA have been established?

Answer 13

When the donor had full capacity

Question 14

When can the health and welfare element of a Lasting POA come into force?

Answer 14

Once the donor loses capacity

Question 15

When can the financial affairs element of a Lasting POA come into force?

Answer 15

It can come into effect straight away

Question 16

How may someone fall under the court of protection

Answer 16

If they:
- Lose mental capacity
- Have not EPA or LPA
Have assets that need to be used for their benefit

Question 17

Does a client have the legal right to obtain a copy of any information held about them?

Answer 17

Yes

Question 17

State 3 ways an individual may be vulnerable.

Answer 17

• Health
• Life events
• Poor resilience
• Low capability

Question 18

If an adviser has a serious concern about financial abuse who should he raise this with?

Answer 18

Either the internal compliance department or the safeguarding co-ordinator

Question 19

If there is already a need for care, what type of LTC product would be best?

Answer 19

An immediate needs annuity

Question 20

For a complaint to be investigated does it have to be valid?

Answer 20

No, a complaint does not have to be valid

Question 21

Who is classed as an eligible complainant?

Answer 21

An eligible complainant is:
- An individual customer
- Small business with less than 10 staff and turn over or balance sheet less than EUR2m
- A charity with annual income under £6.5m or a trust with net assed of under £5m

Question 22

When should a customer be sent acknowledgment of a complaint?

Answer 22

Within a ‘reasonable timeframe’

Question 23

When should a firm notify a complaint of their right to take the matter to the Financial Ombudsman Service?

Answer 23

After 8 weeks

Question 24

What is the legally binding compensation limit from the FOS?

Answer 24

£415,000 plus
Interest, plus
Costs, plus
Interest on costs

Question 25

How is the FSCS funded?

Answer 25

By levies on the firms in the industry

Question 26

How much is covered by the FSCS on investments and mortgages?

Answer 26

100% of £85,000

Question 27

What is the FSCS limit on long term insurance, if the provider fails and if the intermediary fails?

Answer 27

Provider Failure = 100% of claim with no upper limit

Intermidiary Failure - 90% of claim with no upper limit

Question 28

What is the FSCS cover on general insurance policies for compulsory insurance and non-compulsory insurance?

Answer 28

Compulsory - 100% of claim with no upper limit

Non-compulsory = 90% of claim with no upper limit

Question 29

Can the FSCS reduce the size of the claim if they believe there was negligence on behalf of the claimant?

Answer 29

Yes they can

Question 30

How quickly should a complaint against the NHS or local authority be made?

Answer 30

Within 12 months of the individual becoming aware of the fact they had a complaint

Question 31

Who should complaints against the NHS and Local Authorities be made to?

Answer 31

Complaints should be made to the Parliamentary and Health Ombudsman

Question 32

How quickly should complaints against the NHS and Local Authority be made?

Answer 32

Within 12 months of the individual being aware that they had a complaint

Question 33

What does a grant of Probate do?

Answer 33

It confirms that the will is ‘valid’

Question 34

If an individual dies intestate, instead of a grant of probate, what does the exactors get?

Answer 34

Letters of administration

Question 35

If one dies intestate with no family, who gets their assets?

Answer 35

The crown

Question 36

Who is the Financial Ombudsman Service’s decision legally binding on?

Answer 36

It is legally binding on the provider, not the complainant