Last Year, Rebecca Left Her Residuary Estate (Worth £1million) to Tony

question 3

Multiple Choice

Last year, Rebecca left her residuary estate (worth £1million) to Tony and Teresa on trust to be divided between her grandchildren in such shares as David might by deed appoint.
Which of the following statements (there may be more than one) are true?

• A) David is under no obligation to make a decision about the division of the estate.
• B) If one of the grandchildren is dead, David could choose that grandchild's surviving spouse as a beneficiary instead.
• C) In the absence of a decision by David, the fund would probably be divided in equal shares between all of the children and grandchildren in equal shares.
• D) David cannot appoint himself as a beneficiary (unless he is one of Rebecca's grandchildren), but he can agree with one of the grandchildren to appoint her in return for a share of what she receives.

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Definitions:

Investment Bankers

Financial intermediaries who facilitate capital raising, mergers, acquisitions, and initial public offerings (IPOs) for corporations and governments.

Firm Commitment Underwriting

An agreement where an underwriter commits to buy all the securities from the issuer and sell them to investors, assuming full financial risk.

Spread

The difference between the buying price and the selling price of a security or asset.

Issuing Company

Refers to a company that offers or has offered its securities for sale to investors.