Topic 16 Flashcards
What is the benefit of a ‘deed of variation’ to a beneficiary under a will?
A. That tax advantages can be obtained
B. That a person can reject a gift given to them
C. It is way of avoiding intestacy
D. It is a way of meeting the deceased’s wishes
A. That tax advantages can be obtained
When a single person dies intestate without any children, with an estate of £150,000, which one of the following would apply?
A. The estate is shared equally between any brothers and sisters
B. The estate is shared equally between the parents and grandparents
C. The estate is shared equally between the parents
D. Everything goes to the Crown
C. The estate is shared equally between the parents
If a man dies intestate leaving a widow and children and an estate valued at £500,000, what is the MAXIMUM cash sum the widow will receive from the deceased’s estate?
A. £250,000
B. £125,000
C. £100,000
D. £375,000
D. £375,000
If a person dies intestate, what document will the deceased’s legal representatives require in order to deal with the estate?
A. Grant of probate
B. Grant of Letters of administration
C. Codicil
D. Deed of variation
B. Grant of Letters of administration
If there is a valid will, the insurer will determine the identity of the personal representatives by:
A. obtaining a copy of a grant of letters of administration.
B. obtaining a copy of a grant of probate.
C. requesting clarification of the laws of succession.
D. requesting a signed declaration from the solicitor.
B. obtaining a copy of a grant of probate.
Your customer, Mr Smith, wants to know the best way of ensuring that his 16-year-old son, Tom, has a legal interest in the new house he has just bought. What would be the best way of doing this?
A. By creating an equitable interest
B. Tom already has a legal interest
C. By creating a trust
D. By granting Tom a lease
C. By creating a trust
Martin has set up a trust fund for the benefit of his three grandchildren and has appointed two trustees with discretion to exercise their powers. In these circumstances:
A. Martin is known as a testator and the grandchildren as beneficiaries.
B. the Trustee Act 2000 requires the grandchildren to obtain advice when reviewing investments.
C. the trustees have no legal interest in the trust property.
D. both trustees must agree before exercising their discretionary powers.
D. both trustees must agree before exercising their discretionary powers.
Where a person with an invalid will dies, the insurer will determine the identity of the personal representatives by:
A. obtaining a copy of the grant of letters of administration
B. obtaining a copy of the grant of probate
C. requesting a certified copy of the will
D. requesting a signed declaration from the solicitor
A. obtaining a copy of the grant of letters of administration
Under the Consumer Insurance Disclosure Act 2012, the basis of ‘utmost good faith’ is that:
A. the proposer must answer honestly and truthfully all questions on the application form.
B. the insurer is legally obliged to manage the client’s money in an ethically and legally sound manner.
C. all life assurance contracts are based on anticipated financial loss.
D. companies base their underwriting on the information provided, rather than prejudice.
A. the proposer must answer honestly and truthfully all questions on the application form.
When acting as the agent of a principal, it is a fundamental rule that:
A. a principal must ratify the acts of his agent.
B. a principal must act within their apparent authority.
C. a principal is always responsible for the acts of the agent.
D. an agent can conclude contracts on behalf of the principal.
D. an agent can conclude contracts on behalf of the principal.
Walter and Winnie own their house on a joint tenant’s basis. If Walter dies:
A. his share of the property will pass automatically to Winnie.
B. Winnie will need to purchase Walter’s share of the property.
C. his share will pass to whoever is nominated in his will.
D. Winnie will own 50% of the property but retain an interest in the other 50%.
A. his share of the property will pass automatically to Winnie.
The difference between a lasting power of attorney and an ordinary power of attorney is that:
A. a lasting power of attorney can be revoked at any time by the donor, whereas an ordinary power of attorney can only be revoked by the Court of Protection.
B. an ordinary power of attorney becomes invalid if the donor becomes mentally incapable, whereas a lasting power of attorney remains effective.
C. a lasting power of attorney can be agreed on a verbal basis between donor and donee but ordinary power of attorney must be registered at the Public Trust Office.
D. an ordinary power of attorney remains valid if the donor becomes mentally incapable whereas a lasting power of attorney becomes invalid.
B. an ordinary power of attorney becomes invalid if the donor becomes mentally incapable, whereas a lasting power of attorney remains effective.
Tom was declared bankrupt in June 2018. For how long will his bankruptcy order remain in place?
A. Until June 2022
B. Until June 2024
C. Until June 2019
D. Until June 2020
C. Until June 2019
Despite his recent marriage to Katrina, John’s existing will has remained in force. Why is this?
A. The will was written with the wedding in mind
B. The will was witnessed by Katrina and her father
C. John has no children or other dependents
D. John’s estate is valued at £199,000
A. The will was written with the wedding in mind
Under the rules of intestacy, which one of the following ranks the highest should a divorced person die intestate?
A. Brother and sister
B. Ex-wife
C. Father
D. Son and Daughter
D. Son and Daughter
