Module 2 Trust Basics Question Title * 1. A discretionary trust is useful to protect the assets of a client, true or false? True False Question Title * 2. Which of the following is not an effective use of a trust? Protecting loans to children Bond and investment planning Deliberately avoiding care fees Lifetime transfer of funds for children to buy properties. Question Title * 3. If a Settlor gifts cash assets to a Trust how long does it take for the value to be out of the estate for IHT purposes? Two years Five years Seven years Ten years Question Title * 4. Which of the following must trustees not do? Make investments within the Trust. Make loans to beneficiaries from the trust. Advance capital sums to beneficiaries Risk trust assets Question Title * 5. A discretionary trust can be guaranteed to protect assets? True False Question Title * 6. Potentially which of the following taxes does a Trust not pay? Corporation Tax Income Tax Capital Gains Tax Inheritance Tax Question Title * 7. Which of the following assets can benefit from quick access from a trust for families after a death without a grant of probate? Death in Service payments Life cover death benefits SIPP payments All of the above Question Title * 8. Who is responsible for the payment of any taxes due from a discretionary trust arrangement? The Settlor The Trustees The provider The Beneficiaries Question Title * 9. Trustees are the legal owners of trust assets and can normally delay the dates of distribution from a bare trust? True False Question Title * 10. Which of the following statements is true? Loans from a discretionary trust are not in the estate of a beneficiary for IHT purposes Appointed capital from a Trust is still protected within a discretionary trust Trustees of discretionary trusts must help beneficiaries if a request is made in writing Question Title * 11. Please enter you full name Question Title * 12. Please enter your email address Done