3. Types of Express Trusts Flashcards
What is a Pour-Over Will?
a legal document that works in conjunction with a living trust to ensure a comprehensive distribution of a settlor’s assets.
A pour-over will acts as a safety net for any assets not included in the trust before settlor’s death.
Upon passing, the pour-over will directs these remaining assets into the trust, ensuring they are managed and distributed according to the established trust terms.
It’s important to note that assets transferred through a pour-over will may still be subject to probate, but this strategy helps maintain privacy and ensures all assets are distributed as intended
What is required for a will devise to trustees of a trust in Georgia?
A will devise to trustees of a trust requires:
1. The trust is identified in the will
2. Its provisions are detailed in a written instrument executed before or concurrently with the testator’s will or in the valid last will of a deceased person.
True or False: A devise or bequest is invalid if the trust is amendable or revocable.
False
What happens to property devised in a will if not otherwise stated?
The property becomes a part of the trust to which it is given and is administered according to the trust’s provisions.
What causes a devise or bequest to lapse?
Revocation or termination of the trust before the death of the testator causes the devise or bequest to lapse.
What is a Charitable Trust?
A charitable trust is one in which the settlor provides that the trust property will be used for charitable purposes.
How are charitable trusts treated by the law?
Charitable trusts are favored by the law, are liberally construed, and exempt from some restrictions that apply to private express trusts.
What must exist for a trust to qualify as charitable?
There must be a public benefit, so the persons to be benefited must be members of an indefinite class.
What are the statutory subjects of charity in Georgia?
Statutory subjects of charity in Georgia include:
* Relief of poverty
* Advancement of education
* Advancement of ethics and religion
* Advancement of health
* Advancement of science and the arts and humanities
* Protection and preservation of the environment
* Improvement, maintenance, or repair of cemeteries
* Prevention of cruelty to animals
* Governmental purposes
* Other similar subjects for human relief
Can a charitable trust be revoked or modified?
A charitable trust may not be revoked or modified by the settlor unless the settlor has reserved a power to do so.
True or False: A charitable trust can be rescinded or reformed on the same grounds as private trusts.
True
Who typically enforces charitable trusts?
The duty of enforcing charitable trusts generally rests with the state Attorney General or district attorney.
What is the Cy Pres Doctrine?
The cy pres doctrine applies when a specific charitable purpose intended by the settlor has been accomplished, can no longer be accomplished, or a change in circumstances renders it impracticable.
What happens under the cy pres doctrine if there is an existing, qualified beneficiary?
The cy pres doctrine is inapplicable.
What is an Uneconomic Trust?
An uneconomic trust is one where the trustee may terminate a trust if the value of the trust property is insufficient to justify the cost of administration.
What is a Cemetery Trust?
A cemetery trust is a trust whose sole purpose is to hold and invest property for the maintenance and care of cemetery plots.
What are Honorary Trusts?
Honorary trusts are a special form of non-charitable trust in which the purpose is normally unenforceable.
What is a trust for animals in Georgia?
A trust may be created to provide for the care of an animal alive during the settlor’s lifetime, terminating upon the death of the animal or last surviving animal.
What is a support trust?
A support trust is one containing a provision that only so much of the income necessary for the beneficiary’s support may be paid out.
What is a Spendthrift Trust?
A spendthrift trust prohibits anticipatory transfer of the beneficiary’s interest in income or principal and makes the interest not reachable by creditors.
What restrictions apply to a beneficiary’s interest in a discretionary trust?
A beneficiary’s interest can be assigned or claimed by creditors unless specified otherwise by the trust.
What happens if a beneficiary dies intestate?
The beneficiary’s interest will pass to the beneficiary’s heirs according to the applicable distribution statute.
What are the conditions under which a trust may be modified or terminated by the court?
The court may modify or terminate a trust if it determines the value of the trust property is insufficient to justify the cost of administration.
Fill in the blank: A beneficiary is the owner of an _______ interest.
equitable
What is the effect of a spendthrift provision regarding a beneficiary’s transfers?
A beneficiary may not transfer an interest in violation of a valid spendthrift provision.
