Friday Five – 31 May – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. What are the three formalities required in making a will?
   1. Printed writing, typed writing and hand writing.
   2. Writing, signature and attestation
   3. Executors, trustees and beneficiaries
   4. Testator’s signature and two witness signatures

2. Why is it regarded as essential to understand how individual investments, portfolio sectors and markets have performed in the past? Tick all that apply.
   1. To confidently predict future returns
   2. To assess the competence of fund managers
   3. To reward investment managers
   4. To understand investments markets generally

3. Bernadette gifted a portfolio of shares to her daughter which at the time was valued at £500,000 after exemptions. Bernadette died 3½ years later, at which time the portfolio was valued at £600,000. How much IHT is payable by Bernadette’s daughter in respect of the gift assuming Bernadette died in this tax year?
   1. £240,000
   2. £110,000
   3. £70,000
   4. £56,000

4. Kamil has been advised that he may be subject to a reduced annual allowance rather than the full £40,000. This is because he has:
   1. net income of £100,000.
   2. adjusted income of £155,000.
   3. threshold income of £90,000.
   4. gross income of £145,000.

5. Kevin is employed and receives sick pay from his employer. This is paid at full pay for six months and then half pay for a further six months. In arranging an income protection policy, he will be able to take out cover based on:
   1. half pay for months 7 – 12 and full pay from month 13
   2. half pay from month 7 only
   3. full pay from month 13 only
   4. full pay from the start of the policy only

Answers

1. B – See R01 Study Text, Chp 3
   Grab our taster mock exam paper for CII R01. Click here to download.

2. BCD – See R02 Study Text, Chp 9
   Grab our taster mock exam paper for CII R02. Click here to download.

3. D – See R03 Study Text, Chp 4
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 2.1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. A – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.