SQE2 Wills & Probate Practice 2

Question 1

The rule in Saunders v Vautier allows beneficiaries who are:

Accepted Answer

All adult, fully entitled and absolutely entitled under the trust to terminate the trust and demand the assets

Answer

Saunders v Vautier permits beneficiaries who are all of full age, absolutely entitled and between them hold the entire beneficial interest to collapse the trust and take the assets outright.

Question 2

In a will, a residuary clause is important because:

Accepted Answer

It disposes of everything not covered by specific or general legacies, preventing partial intestacy

Answer

Without a residuary clause, any property not specifically bequeathed (including property acquired after the will was made) passes on intestacy rather than as the testator intended.

Question 3

The 'reading back' principle in succession law provides that:

Accepted Answer

A codicil is read as part of the original will

Answer

A codicil (a later testamentary document) is read together with and as part of the will it supplements, so the will and codicil are interpreted as a single testamentary instrument.

Question 4

An executor's primary duties after a grant of probate include all of the following EXCEPT:

Accepted Answer

Advising beneficiaries on their personal tax planning

Answer

Executors must collect assets, pay debts and distribute the estate; advising beneficiaries on their own personal tax planning is outside the executor's role and is a separate matter for the beneficiary's own advisers.

Question 5

Inheritance Tax (IHT) is generally charged at what rate on the amount of an estate above the nil-rate band?

Accepted Answer

40%

Answer

IHT is charged at 40% on the taxable estate above the current nil-rate band (£325,000); a reduced rate of 36% applies where 10% or more of the net estate is left to charity.

SQE2 Practice Test

SQE2 Practice Test

SQE2 Wills & Probate Practice 2