Future Interests Flashcards
1
Q
Vested Remainder
A
Holder is
1. Ascertaibable and
2. No express condition precedent required for interest to become possessory
*Future Interest
“all trust income to my brother John during life, then all trust principle to my nephew, Dave.”
John = lifetime interest and income beneficiary
Dave = Future vested interest and principal of the trust
2
Q
Disclaimer
A
- must be in writing and within 9 months after interst becomes indefeasibly vested
- If income beneficiary disclaims, then trust principle becomes immediately distributable (accelerates) to remaineder is remainder is vested (if contingent condition to remainder, no acceleration)
- When holder of a future interest disclaims, they are deemed to have predeceased the life tenant
3
Q
Class Gifts
A
- Remains open and admit new members untel at least one class member is entitled or settlor dies
4
Q
Lapse of a Gift
A
- In most states, anti-lapse statutes do not apply to trusts
- Under the UPC, anti-lapse is applied to trusts
If not specified, talk about both in essay
