Future-proofing your legacy planning

Check your answers

1. How do you set up a loan trust?

a. The client sets up the trust, purchases a bond and then lends that bond to the trustees

b. The client purchases a bond, then lends it to the trustees who then set up a trust

c. The client sets up the trusts, lends money to the trustees who then purchase a bond

d. The client receives a loan from the trustees and uses that to purchase a bond


2. Which of the following statements about Discounted Gift Trusts (DGTs) is true?

a. Income from a DGT can be gifted using the normal expenditure out of income exemption

b. The level of payments don’t reduce on first death for joint settlor DGTs

c. Withdrawals to meet ongoing adviser charges increase the discount

d. It’s not possible to set up a DGT for a settlor who’s already attained age 90


3. Which of the following statements about Gift Trusts is false?

a. The settlor is excluded as being a beneficiary of the trust

b. You can use an existing bond to set up a gift trust

c. A gift into an absolute gift trust is a potentially exempt transfer

d. Distributions to beneficiaries can only be made after 7 years


CPD certificate

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