Module 4 – Death in Service Planning for Clients

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* 1. Q1 – DIS planning is not required unless a client has an IHT exposure, true or false?

True

False

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* 2. Q2 – Which of the following is not true for DIS trust planning?

DIS advice is highly relevant to most legal partnerships.

Any value of DIS benefits paid into trust will largely be tax free.

DIS planning is not relevant when advising single clients as it is tax free.

DIS benefits do not benefit from multiple tax allowances if paid into multiple trusts

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* 3. Q3 – If DIS benefits are not paid into Trust and are paid directly to a nominated beneficiary they can still be controlled and protected?

True

False

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* 4. Q4 – If an Asset Preservation Trust receives DIS benefits what options are open to the Trustees?

Trustees must close the APT down or transfer to a new Trust within 2 years

The Trustees can consider investments, loans and advancement of capital at any time

Trustees must invest at least 50% of the Trust Fund for the primary beneficiary

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* 5. Q5 – Which of the following statements is correct?

All DIS schemes can be paid into an APT

Only Trust based DIS schemes can be paid to an APT

It is good practice to check if DIS benefits can be paid to Trust at the discretion of the Group Life Assurance Trustees/employer.

No government body allows DIS benefits to be paid into Trust.

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* 6. Q6 – DIS benefits can only be paid into one Asset Preservation Trust, true or false?

True

False

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* 7. Q7 – Which of the following statements is correct?

DIS payments to an Asset Preservation Trust would be guaranteed if detailed in a Will.

Personally owned pension arrangements (contract based) cannot go into the same Asset Preservation trust as DIS.

DIS benefits and SIPP death benefits can be paid into one Asset Preservation Trust

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* 8. Q8 – Which of the following statements is false?

An APT can be set up to receive death benefits after a client dies with the agreement of the scheme trustees

If a client is in poor health DIS benefits should not be nominated into an APT from a Trust based scheme

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* 9. Q9 – True or false, High net worth clients can take a loan of DIS benefits from an Asset Preservation Trust and immediately gift or invest the assets into Trust

True

False

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* 10. Q10 – Which of the following statements is false?

An Asset Preservation Trust is extremely limited in its ability to protect benefits if a partner remarries.

Local Authorities are highly unlikely to try and attack an Asset Preservation Trust in pursuit of care fee contributions.

Module 4 – Death in Service Planning for Clients

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* 1. Q1 – DIS planning is not required unless a client has an IHT exposure, true or false?

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* 2. Q2 – Which of the following is not true for DIS trust planning?

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* 3. Q3 – If DIS benefits are not paid into Trust and are paid directly to a nominated beneficiary they can still be controlled and protected?

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* 4. Q4 – If an Asset Preservation Trust receives DIS benefits what options are open to the Trustees?

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* 5. Q5 – Which of the following statements is correct?

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* 6. Q6 – DIS benefits can only be paid into one Asset Preservation Trust, true or false?

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* 7. Q7 – Which of the following statements is correct?

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* 8. Q8 – Which of the following statements is false?

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* 9. Q9 – True or false, High net worth clients can take a loan of DIS benefits from an Asset Preservation Trust and immediately gift or invest the assets into Trust

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* 10. Q10 – Which of the following statements is false?

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