Free CeMAP 1 Quiz Test Unit 1 Topic 16

1 / 22

When a single person dies intestate without any children, with an estate of £150,000, which one of the following would apply?

The estate is shared equally between the parents

Everything goes to the Crown

The estate is shared equally between the parents and grandparents

The estate is shared equally between any brothers and sisters

2 / 22

The difference between a lasting power of attorney and an ordinary power of attorney is that:

an ordinary power of attorney remains valid if the donor becomes mentally incapable whereas a lasting power of attorney becomes invalid.

a lasting power of attorney can be revoked at any time by the donor, whereas an ordinary power of attorney can only be revoked by the Court of Protection.

a lasting power of attorney can be agreed on a verbal basis between donor and donee but ordinary power of attorney must be registered at the Public Trust Office.

an ordinary power of attorney becomes invalid if the donor becomes mentally incapable, whereas a lasting power of attorney remains effective.

3 / 22

Tom was declared bankrupt in June 2018. For how long will his bankruptcy order remain in place?

Until June 2019

Until June 2022

Until June 2024

Until June 2020

4 / 22

What requirement rests on a discharged bankrupt when applying for a mortgage?

As he is now discharged, there is no requirement

To ensure the lender conducts a thorough credit search

To disclose the previous bankruptcy to a credit reference agency

To disclose the previous bankruptcy to the lender

5 / 22

Which one of the following has the capacity to enter into a legal contract?

A person under the age of eighteen years

An unauthorised insurance company

Someone who was purchasing guns for terrorist activities.

A limited company

6 / 22

If there is a valid will, the insurer will determine the identity of the personal representatives by:

requesting clarification of the laws of succession.

obtaining a copy of a grant of letters of administration.

requesting a signed declaration from the solicitor.

obtaining a copy of a grant of probate.

7 / 22

Martin has set up a trust fund for the benefit of his three grandchildren and has appointed two trustees with discretion to exercise their powers. In these circumstances:

the Trustee Act 2000 requires the grandchildren to obtain advice when reviewing investments.

both trustees must agree before exercising their discretionary powers.

Martin is known as a testator and the grandchildren as beneficiaries.

the trustees have no legal interest in the trust property.

8 / 22

What is the benefit of a ‘deed of variation’ to a beneficiary under a will?

That a person can reject a gift given to them

It is a way of meeting the deceased’s wishes

It is way of avoiding intestacy

That tax advantages can be obtained

9 / 22

Where a person with an invalid will dies, the insurer will determine the identity of the personal representatives by:

requesting a certified copy of the will

requesting a signed declaration from the solicitor

obtaining a copy of the grant of probate

obtaining a copy of the grant of letters of administration

10 / 22

Any loss made by a partnership is usually:

held to reduce any potential tax liability.

written off.

held to be offset against future profits.

allocated amongst the partners in the same ratio as profits are shared.

11 / 22

One of the financial restrictions placed on undischarged bankrupts is that:

they are unable to contribute to protection policies

they are only able to work on an employed basis

they are only able to borrow nominal amounts of money

they are unable to buy goods except for their own consumption

12 / 22

Your customer, Mr Smith, wants to know the best way of ensuring that his 16-year-old son, Tom, has a legal interest in the new house he has just bought. What would be the best way of doing this?

Tom already has a legal interest

By creating a trust

By creating an equitable interest

By granting Tom a lease

13 / 22

If a person dies intestate, what document will the deceased’s legal representatives require in order to deal with the estate?

Grant of probate

Codicil

Grant of Letters of administration

Deed of variation

14 / 22

When an individual dies intestate, leaving a spouse, children and an estate valued at £110,000, which one of the following applies?

The surviving spouse inherits a life interest only in the deceased’s entire estate

The entire estate passes to the spouse

The first £50,000 passes to the surviving spouse absolutely, along with a life interest in half the remaining estate

The estate is divided equally between the surviving spouse and children

15 / 22

Despite his recent marriage to Katrina, John’s existing will has remained in force. Why is this?

John has no children or other dependents

John’s estate is valued at £199,000

The will was witnessed by Katrina and her father

The will was written with the wedding in mind

16 / 22

If a man dies intestate leaving a widow and children and an estate valued at £500,000, what is the MAXIMUM cash sum the widow will receive from the deceased’s estate?

£250,000

£125,000

£375,000

£100,000

17 / 22

What role does the Court of Protection play with lasting powers of attorney?

Lasting powers of attorney must be registered with the Court of Protection.

Lasting power of attorney can only be revoked with the consent of the Court of Protection.

The Court of Protection retains a list of all those qualified to act as attorneys.

Any action taken by attorneys must be agreed by the Court of Protection.

18 / 22

When acting as the agent of a principal, it is a fundamental rule that:

a principal is always responsible for the acts of the agent.

a principal must act within their apparent authority.

an agent can conclude contracts on behalf of the principal.

a principal must ratify the acts of his agent.

19 / 22

Under the rules of intestacy, which one of the following ranks the highest should a divorced person die intestate?

Brother and sister

Ex-wife

Son and Daughter

Father

20 / 22

Which ONE of the following items of property would be referred to as personality

A Victorian factory building A

A paddock used for grazing horses

A collection of vintage wines

A detached house

21 / 22

Peter, Paul and Pamela own a house on a ‘tenants in common’ basis, each having a 1/3 share. In the event of Paul’s death:

Peter and Pamela will automatically increase their share to 50%.

Peter and Pamela are obliged to purchase Paul’s share from his estate.

his estate is obliged to sell his share to Peter and Pamela.

the beneficiary of Paul’s share will be determined by his will or the laws of intestacy.