Trust – NBC Institute

BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts

Define trust and identify participants using trusteeship terminology.

Question

There are different participants with different roles in trusteeship.

Required:
i. What is a trust?
ii. Identify the different participants using trusteeship terminologies in the situation below:
Ade instructed Segun to keep his Toyota car for the use of Tunde pending the return of Ade, who has just won a scholarship to study accountancy in a United Kingdom university.

Answer

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Tags: Beneficiary, Trust, Trust Terminologies, Trusteeship
Level: Level 1

Topic: Law of Trusts
Series: NOV 2020

TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates

Explain trust-related terms and compute capital allowances and income tax for trustees based on the estate's income.

Question

Mr. Bulamoyoh who lived in the Eastern part of Nigeria died testate in January 2015. He had three children: Moses, Peter, and Nana, but left his business with the trustees. Moses, the eldest son, thought he should be fully in charge of his father’s entire business and told the trustees not to bother about the payment of tax. The trustees claimed that they had a statutory obligation to render yearly tax returns for the estate to the relevant tax authority.

You are provided with the following information:
(i) Net profit of the business as adjusted for tax purposes for the year ended June 30, 2018 was N10,270,000.
(ii) Qualifying property, plant, and equipment acquired during the year ended June 30, 2018 were:

Motor vehicles: N3,650,000
Plant and machinery: N1,250,000
Furniture: N220,000
(iii) The tax written down value of motor vehicles acquired prior to the current year was N345,000, out of which N315,000 is to be allowed as an annual allowance in the current assessment year.
(iv) Moses, Peter, and Nana are entitled to ¼ each of the net distributable income.
(v) Fixed annuity paid to a beneficiary was N250,000.
(vi) Interest on debt repayment by the trustees was N120,000.
(vii) Trustees’ fixed remuneration was N260,000 per annum.
(viii) Administration and other expenses by the trustee amounted to N45,000.
(ix) The trustees, in line with the terms of the trust deed, made the following discretionary payments to the children:
Moses: N310,000
Peter: N225,000
Nana: N460,000

Required:
(a) Explain the following terminologies:
(i) Trust (1 Mark)
(ii) Beneficiary (1 Mark)
(iii) Life tenant (1 Mark)
(b) Compute capital allowances for the relevant year of assessment. (8 Marks)
(c) Compute the income tax payable by the trustees on the income for the relevant year of assessment. (9 Marks)
(Total 20 Marks)

Answer

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Tags: Beneficiary, Capital allowances, Discretionary Payments, Trust, Trust Income Tax
Level: Level 2

Topic: Taxation of Trusts and Estates
Series: MAY 2019

BL – May 2022 – L1 – SB – Q1b – Law of Trusts

Explain four ways to terminate a trust.

Question

Sola was named by Mr. Olaotan Jegede in his will to hold his house for him in trust for his only son, Tommy. However, Sola is tired of Tommy’s constant nagging and wishes to be free of his duties as a trustee.

Required:
Explain FOUR ways to terminate a trust.

Answer

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Tags: Termination of Trust, Trust, Trustee
Level: Level 1

Topic: Law of Trusts
Series: MAY 2022

BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts

This question explains the concept of trust and highlights its various uses.

Question

Trust is created for the benefit of some other persons.

Required:
i. Explain the term “Trust.” (3 Marks)

ii. State THREE uses of Trust. (3 Marks)

Answer

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Tags: Beneficiaries, Legal Structure, Trust
Level: Level 1

Topic: Law of Trusts
Series: MAY 2016

BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System

Administration of estate when a Will is declared invalid.

Question

When a Will fails or is declared invalid by the court, the administration of the estate of the testator will be governed by rules of:
A. Intestacy
B. Testacy
C. Equity
D. Good conscience
E. Trust

Answer

Find Related Questions by Tags, levels, etc.

Tags: Estate Administration, Intestacy, Legal Framework, Trust, Will
Level: Level 1

Topic: Company Law, The Nigerian Legal System
Series: MAY 2024

PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities

State the basis periods for a sole proprietorship, company, trust, and partner in a partnership.

Question

State the Basis Periods for the following persons as provided in the Income Tax Act, 2015 (Act 896):

i) A sole proprietorship
ii) A company
iii) A trust
iv) A partner of a partnership

Answer

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Tags: Basis Period, Company, Income Tax Act, Partnership, Sole Proprietorship, Trust
Level: Level 2

Topic: Income Tax Liabilities
Series: MAR 2024

BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts

Define trust and identify participants using trusteeship terminology.

Question

There are different participants with different roles in trusteeship.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Beneficiary, Trust, Trust Terminologies, Trusteeship
Level: Level 1

Topic: Law of Trusts
Series: NOV 2020

TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates

Explain trust-related terms and compute capital allowances and income tax for trustees based on the estate's income.

Question

Motor vehicles: N3,650,000
Plant and machinery: N1,250,000
Furniture: N220,000
(iii) The tax written down value of motor vehicles acquired prior to the current year was N345,000, out of which N315,000 is to be allowed as an annual allowance in the current assessment year.
(iv) Moses, Peter, and Nana are entitled to ¼ each of the net distributable income.
(v) Fixed annuity paid to a beneficiary was N250,000.
(vi) Interest on debt repayment by the trustees was N120,000.
(vii) Trustees’ fixed remuneration was N260,000 per annum.
(viii) Administration and other expenses by the trustee amounted to N45,000.
(ix) The trustees, in line with the terms of the trust deed, made the following discretionary payments to the children:
Moses: N310,000
Peter: N225,000
Nana: N460,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Beneficiary, Capital allowances, Discretionary Payments, Trust, Trust Income Tax
Level: Level 2

Topic: Taxation of Trusts and Estates
Series: MAY 2019

BL – May 2022 – L1 – SB – Q1b – Law of Trusts

Explain four ways to terminate a trust.

Question

Required:
Explain FOUR ways to terminate a trust.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Termination of Trust, Trust, Trustee
Level: Level 1

Topic: Law of Trusts
Series: MAY 2022

BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts

This question explains the concept of trust and highlights its various uses.

Question

Trust is created for the benefit of some other persons.

Required:
i. Explain the term “Trust.” (3 Marks)

ii. State THREE uses of Trust. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Beneficiaries, Legal Structure, Trust
Level: Level 1

Topic: Law of Trusts
Series: MAY 2016

BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System

Administration of estate when a Will is declared invalid.

Question

When a Will fails or is declared invalid by the court, the administration of the estate of the testator will be governed by rules of:
A. Intestacy
B. Testacy
C. Equity
D. Good conscience
E. Trust

Answer

Find Related Questions by Tags, levels, etc.

Tags: Estate Administration, Intestacy, Legal Framework, Trust, Will
Level: Level 1

Topic: Company Law, The Nigerian Legal System
Series: MAY 2024

PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities

State the basis periods for a sole proprietorship, company, trust, and partner in a partnership.

Question

State the Basis Periods for the following persons as provided in the Income Tax Act, 2015 (Act 896):

i) A sole proprietorship
ii) A company
iii) A trust
iv) A partner of a partnership

Answer

Find Related Questions by Tags, levels, etc.

Tags: Basis Period, Company, Income Tax Act, Partnership, Sole Proprietorship, Trust
Level: Level 2

Topic: Income Tax Liabilities
Series: MAR 2024

Question Tag: Trust

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BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts

Define trust and identify participants using trusteeship terminology.

TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates

Explain trust-related terms and compute capital allowances and income tax for trustees based on the estate's income.

BL – May 2022 – L1 – SB – Q1b – Law of Trusts

Explain four ways to terminate a trust.

BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts

This question explains the concept of trust and highlights its various uses.

BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System

Administration of estate when a Will is declared invalid.

PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities

State the basis periods for a sole proprietorship, company, trust, and partner in a partnership.

BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts

Define trust and identify participants using trusteeship terminology.

TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates

Explain trust-related terms and compute capital allowances and income tax for trustees based on the estate's income.

BL – May 2022 – L1 – SB – Q1b – Law of Trusts

Explain four ways to terminate a trust.

BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts

This question explains the concept of trust and highlights its various uses.

BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System

Administration of estate when a Will is declared invalid.

PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities

State the basis periods for a sole proprietorship, company, trust, and partner in a partnership.

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BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts

Define trust and identify participants using trusteeship terminology.

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TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates

Explain trust-related terms and compute capital allowances and income tax for trustees based on the estate's income.

You're reporting an error for "TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates"

BL – May 2022 – L1 – SB – Q1b – Law of Trusts

Explain four ways to terminate a trust.

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BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts

This question explains the concept of trust and highlights its various uses.

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BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System

Administration of estate when a Will is declared invalid.

You're reporting an error for "BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System"

PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities

State the basis periods for a sole proprietorship, company, trust, and partner in a partnership.

You're reporting an error for "PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities"

BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts

Define trust and identify participants using trusteeship terminology.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q4a – Law of Trusts"

TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates

Explain trust-related terms and compute capital allowances and income tax for trustees based on the estate's income.

You're reporting an error for "TAX – May 2019 – L2 – Q4 – Taxation of Trusts and Estates"

BL – May 2022 – L1 – SB – Q1b – Law of Trusts

Explain four ways to terminate a trust.

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BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts

This question explains the concept of trust and highlights its various uses.

You're reporting an error for "BL – MAY 2016 – L1 – SB – Q3b – Law of Trusts"

BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System

Administration of estate when a Will is declared invalid.

You're reporting an error for "BL – May 2024 – L1 – SA – Q20 – Company Law, The Nigerian Legal System"

PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities

State the basis periods for a sole proprietorship, company, trust, and partner in a partnership.

You're reporting an error for "PT – Mar 2024 – L2 – Q3b – Income Tax Liabilities"

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