To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. Alison’s husband died recently leaving his entire estate to a trust created in his Will. The Will states the estate is to be held on trust “for the benefit of my wife during her lifetime, thereafter for my children Sapphire and Bannon in equal shares absolutely” What type of trust has been created?
a) Bare
b) Discretionary trust
c) Interest in possession trust
2. The trustees of a Will trust invest in a portfolio of OEICs. The receive dividend income of £10,000 in the 2026/27 tax year. The trust is an interest in possession trust. Who will need to complete a tax return in respect of this income?
a) The settlor’s personal representatives and the trustees
b) The trustees and the remaindermen
c) The trustees and the life tenant
d) The life tenant and the remaindermen
3. Which of the following factors is not relevant when it comes to making a recommendation for a trustee investment?
a) Investment term
b) Trustee’s personal attitude to risk
c) Taxation of the investment
d) Any investment restrictions in the trust deed
