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Stamp Duty Law: Stamp Duty on Trust Deeds

Description: This quiz will test your knowledge on the Stamp Duty Law: Stamp Duty on Trust Deeds.
Number of Questions: 14
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Tags: stamp duty law trust deeds
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What is the rate of stamp duty on a trust deed?

  1. 0.5%

  2. 1%

  3. 2%

  4. 3%

Show answer
Correct Option: B
Explanation:

The rate of stamp duty on a trust deed is 1% of the value of the property.

Who is liable to pay stamp duty on a trust deed?

  1. The settlor

  2. The trustee

  3. The beneficiary

  4. All of the above

Show answer
Correct Option: D
Explanation:

All of the above parties are liable to pay stamp duty on a trust deed.

What is the value of the property for the purpose of calculating stamp duty on a trust deed?

  1. The market value of the property

  2. The purchase price of the property

  3. The value of the property as assessed by the government

  4. The value of the property as agreed upon by the parties to the trust deed

Show answer
Correct Option: A
Explanation:

The value of the property for the purpose of calculating stamp duty on a trust deed is the market value of the property.

When is stamp duty payable on a trust deed?

  1. At the time of execution of the trust deed

  2. Within 30 days of the execution of the trust deed

  3. Within 60 days of the execution of the trust deed

  4. Within 90 days of the execution of the trust deed

Show answer
Correct Option: B
Explanation:

Stamp duty is payable on a trust deed within 30 days of the execution of the trust deed.

What are the consequences of failing to pay stamp duty on a trust deed?

  1. The trust deed will be void

  2. The settlor will be liable to pay a penalty

  3. The trustee will be liable to pay a penalty

  4. All of the above

Show answer
Correct Option: D
Explanation:

All of the above consequences can occur if stamp duty is not paid on a trust deed.

What is the difference between a trust deed and a will?

  1. A trust deed is a legal document that creates a trust, while a will is a legal document that distributes a person's property after their death

  2. A trust deed is a legal document that transfers property to a trustee, while a will is a legal document that transfers property to a beneficiary

  3. A trust deed is a legal document that creates a trust for the benefit of a specific person, while a will is a legal document that creates a trust for the benefit of a general class of people

  4. A trust deed is a legal document that is used to transfer property to a minor, while a will is a legal document that is used to transfer property to an adult

Show answer
Correct Option: A
Explanation:

A trust deed is a legal document that creates a trust, while a will is a legal document that distributes a person's property after their death.

What are the different types of trusts that can be created by a trust deed?

  1. Fixed trusts

  2. Discretionary trusts

  3. Unit trusts

  4. All of the above

Show answer
Correct Option: D
Explanation:

All of the above types of trusts can be created by a trust deed.

What are the duties of a trustee?

  1. To manage the trust property

  2. To invest the trust property

  3. To distribute the trust property to the beneficiaries

  4. All of the above

Show answer
Correct Option: D
Explanation:

All of the above are duties of a trustee.

What are the rights of a beneficiary?

  1. To receive the income from the trust property

  2. To receive the capital of the trust property

  3. To enforce the terms of the trust

  4. All of the above

Show answer
Correct Option: D
Explanation:

All of the above are rights of a beneficiary.

What is the difference between a trust deed and a mortgage?

  1. A trust deed is a legal document that creates a trust, while a mortgage is a legal document that creates a security interest in property

  2. A trust deed is a legal document that transfers property to a trustee, while a mortgage is a legal document that transfers property to a lender

  3. A trust deed is a legal document that creates a trust for the benefit of a specific person, while a mortgage is a legal document that creates a trust for the benefit of a general class of people

  4. A trust deed is a legal document that is used to transfer property to a minor, while a mortgage is a legal document that is used to transfer property to an adult

Show answer
Correct Option: A
Explanation:

A trust deed is a legal document that creates a trust, while a mortgage is a legal document that creates a security interest in property.

What is the difference between a trust deed and a deed of assignment?

  1. A trust deed is a legal document that creates a trust, while a deed of assignment is a legal document that transfers property to a trustee

  2. A trust deed is a legal document that transfers property to a trustee, while a deed of assignment is a legal document that transfers property to a beneficiary

  3. A trust deed is a legal document that creates a trust for the benefit of a specific person, while a deed of assignment is a legal document that creates a trust for the benefit of a general class of people

  4. A trust deed is a legal document that is used to transfer property to a minor, while a deed of assignment is a legal document that is used to transfer property to an adult

Show answer
Correct Option: A
Explanation:

A trust deed is a legal document that creates a trust, while a deed of assignment is a legal document that transfers property to a trustee.

What is the difference between a trust deed and a deed of covenant?

  1. A trust deed is a legal document that creates a trust, while a deed of covenant is a legal document that creates a security interest in property

  2. A trust deed is a legal document that transfers property to a trustee, while a deed of covenant is a legal document that transfers property to a beneficiary

  3. A trust deed is a legal document that creates a trust for the benefit of a specific person, while a deed of covenant is a legal document that creates a trust for the benefit of a general class of people

  4. A trust deed is a legal document that is used to transfer property to a minor, while a deed of covenant is a legal document that is used to transfer property to an adult

Show answer
Correct Option: A
Explanation:

A trust deed is a legal document that creates a trust, while a deed of covenant is a legal document that creates a security interest in property.

What is the difference between a trust deed and a deed of settlement?

  1. A trust deed is a legal document that creates a trust, while a deed of settlement is a legal document that transfers property to a trustee

  2. A trust deed is a legal document that transfers property to a trustee, while a deed of settlement is a legal document that transfers property to a beneficiary

  3. A trust deed is a legal document that creates a trust for the benefit of a specific person, while a deed of settlement is a legal document that creates a trust for the benefit of a general class of people

  4. A trust deed is a legal document that is used to transfer property to a minor, while a deed of settlement is a legal document that is used to transfer property to an adult

Show answer
Correct Option: A
Explanation:

A trust deed is a legal document that creates a trust, while a deed of settlement is a legal document that transfers property to a trustee.

What is the difference between a trust deed and a deed of variation?

  1. A trust deed is a legal document that creates a trust, while a deed of variation is a legal document that modifies the terms of a trust

  2. A trust deed is a legal document that transfers property to a trustee, while a deed of variation is a legal document that transfers property to a beneficiary

  3. A trust deed is a legal document that creates a trust for the benefit of a specific person, while a deed of variation is a legal document that creates a trust for the benefit of a general class of people

  4. A trust deed is a legal document that is used to transfer property to a minor, while a deed of variation is a legal document that is used to transfer property to an adult

Show answer
Correct Option: A
Explanation:

A trust deed is a legal document that creates a trust, while a deed of variation is a legal document that modifies the terms of a trust.

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