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Understanding trusts and trustee investment duties

Check your answers

Test your knowledge 

1. Trustees almost certainly have:

a. Restrictive investment powers

b. Wide investment powers 

c. Investment powers limited to UK assets

d. No need to invest the trust fund


2. When investing, trustees:

a. Must always take proper advice

b. Cannot spend money on taking advice

c. Are required to take proper advice unless it’s unnecessary or inappropriate 

d. Can only take advice from a solicitor or accountant


3. If trustees are required to pay income to A for life and thereafter the capital passes to B&C, then this is:

a. A Bare Trust

b. An interest in possession trust

c. A discretionary trust

d. A type of trust that no longer exists


4. Which of the following may be a benefit of multi asset investing?

a. Diversification

b. Higher return

c. Lower risk than cash

d. Less chance of negative return 


 

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