Unit 1 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 £500,000 B £325,000 C £250,000 D £385,000
D £385,000
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 tenants 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
