R05 Wills, intestacy and nil-rate bands: free practice questions

1. Question 1 of 5

   Oscar dies intestate in England, leaving a wife, two children and an estate of £522,000 in his sole name, excluding personal chattels. Under the intestacy rules, how much of this does his wife inherit?

   Option A: £322,000Option B: £422,000Option C: £522,000Option D: £261,000

   Show answer

   The answer is B: £422,000

   The spouse takes the personal chattels, the first £322,000 and half of the balance: £322,000 + half of £200,000 = £422,000. The children share the other £100,000, held in trust until they are 18.

   Why the other options are wrong

   A

   £322,000 leaves out her half of the £200,000 balance.

   C

   With children, the spouse doesn't take everything; half the balance over £322,000 goes to the children.

   D

   The estate isn't simply halved; the spouse takes the first £322,000 plus half the rest.

2. Question 2 of 5

   Pauline's husband died leaving 40% of his nil-rate band used on gifts to his children and the rest of his estate to her. Pauline dies in 2026/27. What total standard nil-rate band is available to her estate, ignoring the residence nil-rate band?

   Option A: £650,000Option B: £390,000Option C: £455,000Option D: £520,000

   Show answer

   The answer is D: £520,000

   The unused percentage, 60%, transfers and is applied to the nil-rate band at the second death: £325,000 + (60% × £325,000) = £325,000 + £195,000 = £520,000.

   Why the other options are wrong

   A

   £650,000 would need the whole of his nil-rate band to be unused; 40% was used on gifts.

   B

   £390,000 transfers too little; 60% of £325,000 is £195,000, giving £520,000.

   C

   £455,000 transfers 40%, but it's the unused 60% that transfers.

3. Question 3 of 5

   What exactly passes to a surviving spouse under the transferable nil-rate band rules?

   Option A: The unused percentage of the first spouse's nil-rate bandOption B: Only the residence nil-rate bandOption C: Nothing, unless the first spouse left a willOption D: The unused cash amount at the first death, fixed at that figure

   Show answer

   The answer is A: The unused percentage of the first spouse's nil-rate band

   It is the unused percentage that passes, applied to the nil-rate band in force when the survivor dies, not the cash amount unused at the first death.

   Why the other options are wrong

   B

   The standard nil-rate band transfers too, not just the residence band.

   C

   It transfers whether or not there was a will.

   D

   It's the unused percentage that passes, not a fixed cash figure.

4. Question 4 of 5

   How does a final divorce affect an existing will that leaves assets to the former spouse?

   Option A: The former spouse still inherits in fullOption B: The will must be approved by the court before it can take effect at allOption C: The whole will is revokedOption D: The former spouse is treated as if they had died on the date of the divorce

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   The answer is D: The former spouse is treated as if they had died on the date of the divorce

   Divorce or dissolution does not revoke the will, but the former spouse is treated as having died on the date of the decree absolute or dissolution. Making a new will is still best practice.

   Why the other options are wrong

   A

   The former spouse is treated as having died, so doesn't inherit.

   B

   Court approval isn't needed for the will to take effect.

   C

   Divorce doesn't revoke the whole will.

5. Question 5 of 5

   Which of the following is NOT a requirement for a deed of variation to be effective for IHT purposes?

   Option A: It must be approved by HMRC before it is signedOption B: It must be executed within two years of deathOption C: It must be signed by all those who would otherwise have benefitedOption D: It must contain a statement that it is to have effect for IHT and/or CGT

   Show answer

   The answer is A: It must be approved by HMRC before it is signed

   HMRC approval is not required. The deed must refer to the will, intestacy or trust, be signed by those affected within two years of death, include the relevant statement and involve no consideration. Court approval may be needed where children's interests are affected.

   Why the other options are wrong

   B

   This is a genuine requirement: the deed must be made within two years of death.

   C

   This is a genuine requirement: everyone who would otherwise have benefited must sign.

   D

   This is a genuine requirement: the deed must say it's to have effect for IHT and/or CGT.

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