Trusts Quiz

1) A settlor of a trust can also be...

• A beneficiary

• A trustee

• Both a beneficiary and a trustee

• Neither a beneficiary nor a trustee

2) Which answer best describes an interest in possession trust?

• The beneficiary has an immediate entitlement to income.

• The beneficiary is absolutely entitled to the income and capital.

• A trust to hold assets for the employees of a company.

• Beneficiaries have no automatic right to receive income or capital.

3) Is the following trust UK resident?

• Yes.

• No.

• Not enough information.

4) Which statement is false?

• Gift holdover relief is not available on gifts to bare trusts.

• Both IIP and discretionary trusts can claim BADR.

• PRR is not available when s.260 relief was claimed on the house.

• Income from non-UK trusts doesn't automatically attract tax credits.

5) How much is Sam taxed on?

• Nothing

• £25,000

• £50,000

• £100,000