NY BAR REVIEW - trusts, wills, estates 2019

Question 1

trusts, wills, estates

Answer 1

intestate succession.

abandoned property law.

Question 2

if property not disposed of by will, and decedent is survived by these, distribute as follows
spouse and issue:

Answer 2

50k and half of residue to spouse and remainder to to issue by representation

Question 3

if property not disposed of by will, and decedent is survived by these, distribute as follows
spouse and no issue:

Answer 3

whole to spouse

Question 4

if property not disposed of by will, and decedent is survived by these, distribute as follows
issue and no spouse:

Answer 4

whole to issue, by representation

Question 5

if property not disposed of by will, and decedent is survived by these, distribute as follows, parent, but no spouse, no issue:

Answer 5

whole to parent

Question 6

if property not disposed of by will, and decedent is survived by these, distribute as follows
no spouse no issue no parent:

Answer 6

whole to issue of parent by representation

Question 7

if property not disposed of by will, and decedent is survived by these, distribute as follows
grandparents and issue:

Answer 7

half to paternal and their issue, by representation, other half to maternal and their issue, by representation

Question 8

issue of grandparents includes who?

Answer 8

only children and grandchildren

Question 9

by representation, distribution ends with whom?

Answer 9

first cousins

Question 10

if no children or granchildren of decedent’s grandparents survive dcedent?

Answer 10

half to great grandchildren of maternal per capita, and half to great grandchildren of paternal grandparents per capita

Question 11

what is per capita

Answer 11

in equal shares

Question 12

if decedent isnt survived by all mentioned relatives,\?

Answer 12

estate escheats to state

Question 13

when is a parent disqualified from inheritance?

Answer 13

failed to support/ abandoned child while was under 21, whether child dies before 21.

Question 14

what is abandonment according to ct of appeals?

Answer 14

settled purpose to be rid of all parental obligations or forego all parental rights

Question 15

how may a parent regain right to inherit?

Answer 15

if resumes parental duties, financial support, and continues fulfilling until death of child

Question 16

when is a spouse disqualified from sharing in intestacy?

Answer 16

marriage was void under DRL; parties were legally separated or divorced under final decree; surviving spouse abandoned or refused to support deceased spouse and the abandonment or refusal to support continues through time of death

Question 17

inheritance rights of nonmarital child?

Answer 17

full inheritance from mother and her family

Question 18

inheritance rights of nonmarital child from father?

Answer 18

only if paternity is established

Question 19

how is paternity established

Answer 19

order of filiation declaring the paternity. motehr and father acknowledge paternity under public health law. father files a witness and acknowledged affidavit of paternity with the putative father registry.
paternity established by clear and convincing evidence , such as DNA test, or he openly and notoriously acknowledged the child as his own.

Question 20

rights of nonmarital children extend to whom?

Answer 20

their issue as well

Question 21

child conceived using genetic material of deceased is considered what?

Answer 21

a distributee of child’s genetic parent and may be included in any disposition to a class described as issue, children, descendants, heirs, or another term included in a will, trust, other instrument, created by genetic parent

Question 22

genetic parent MUST have created a written instrument within how many years of their death and the instrument must provide consent for use of their genetic material?

Answer 22

7

Question 23

child MUST be conceived no later than ___ months after genetic parents death or born no later than ____ months after genetic parent’s death

Answer 23

24; 33

Question 24

formalities of a will

Answer 24

signed at end by testator or on their behalf in their presence and by their direction.
testator must sign name and declare to each of attesting witnesses that the instrument theyre signed is his will.
minimum of 2 attesting witnesses must sign at end of will in testator’s presence. testator may sign in their presence, who see him sign, or he may acknowledge his signature to them.
attesting witnesses must attest his signature as affixed or acknowledged in their presence and at request of testator, sign their names within 30 days of each other.

Question 25

oral/nuncupative and holographic/handwritten wills are valid or not in NY?

Answer 25

NOT

Question 26

formalities of codicil

Answer 26

same as will

Question 27

codicil wasnt executed with the formalities results in what?

Answer 27

will remains as originally executed

Question 28

a will may or may not incorporate by reference any doc that was not signed and attested with the formalities?

Answer 28

NOT

Question 29

a testator may direct in his will that the assets be poured over into what?

Answer 29

a lifetime trust

Question 30

pour over trust MUST be in existence when?

Answer 30

before or be executed contemporaneously with the will

Question 31

trust formalities

Answer 31

writing.
signed by creator and at least 1 trustee.
acknowledged like a deed or signed by two witnesses.

Question 32

revocation how?

Answer 32

physical act.

subsequent writing.

Question 33

will can be revoked by what?

Answer 33

another will.
writing of testator clearly indicating intention to effect such revocation, executed w formalities prescribed by statute for execution and attestation of will, or by physical act.

Question 34

revocation of will by physical act- how?

Answer 34

burning.
tearing.
cutting.
canceling.
obliterating.
mutilating.

Question 35

testator may destroy will with whom?

Answer 35

by himself or direct another to do so in his presence and in presence of 2 witnesses other than the destroyer of the will.

Question 36

question of fact for courts to decide

Answer 36

whether a marking is sufficient to constitute revocation

Question 37

nuncupative or holographic declaration of revocation

Answer 37

a will may be revoked or altered by this

Question 38

revocation is effective only if what?

Answer 38

intended by testator

Question 39

revocation of will revokes codicils?

Answer 39

yes

Question 40

can one partially revoke a will by physical act?

Answer 40

NO

Question 41

will may be partially revoked?

Answer 41

YES, by another will or a writing executed and attested with formalities of a will.

Question 42

copy of lost or destroyed will may be submitted for probate only if establish what?

Answer 42

will hasnt been revoked.
will was properly executed.
AND
all provisions of will can be clearly and distinctly proved by each of at least 2 credible witnesses or by copy or draft of will proved to be true and complete

Question 43

what is the presumption if will previously executed cannot be found after death of testator?

Answer 43

was revoked by destruction of testator

Question 44

proponent of lost/destroyed will has burden of proof to show what?

Answer 44

testator didnt destroy the will w intent to revoke it

Question 45

testator executes will that is revoked by a later will containing revocation clause, first will cannot be what?

Answer 45

revived by testator merely revoking later will.

Question 46

how can a prior will or disposition be revived?

Answer 46

execute a codicil that incorporates provisions of will by reference. writing executed w will formalities declaring revival of old will.
OR
reexecution and reattestation of prior will in accordance w will formalities.

Question 47

what is the doctrine of dependent relative revocation?

Answer 47

where intention to revoke a will is conditional and where condition is not fulfilled, revocation is not effective. usually where testator cancels a will w intent to make new testamentary disposition and new disposition is not made or fails for some reason

Question 48

dispositions that are revoked if spouses are judicially separated, divorced, or if marriage annulled or declared void or dissolved on ground of absence?

Answer 48

dispositions by will, by powers of appointment, by beneficiary designations for securities, life insurance, pension, retirement benefits, revocable trust, totten trust.

Question 49

nominations of a former spouse to serve in fiduciary or representative capacity is what?

Answer 49

revoked

Question 50

former spouse is treated as?

Answer 50

having predeceased testator; disposition passes to alternate beneficiaries

Question 51

anti lapse statute

Answer 51

testator makes disposition to brother, sister, or issue in a will, and that beneficiary predeceases testator, disposition passes to issue of predeceased brother, sister, or issue

Question 52

if will executed after 8.31.92, disposition passes how?

Answer 52

by representation

Question 53

if will executed before 8.31.92, disposition passes how?

Answer 53

per stirpes

Question 54

class gift to issue

Answer 54

not subject to anti lapse statute.

disposition to issue will pass by representation - from 8.31.92

Question 55

when residuary disposition of 2 or more residuary beneficiaries is ineffective in part, then?

Answer 55

ineffective disposition will pass to other residuary beneficiaries, ratably, unless testator provided otherwise or unless anti lapse statute applies to lapsed portion

Question 56

identity theory of

ademption

Answer 56

testator makes specific disposition of property and property is not part of estate of testator’s death, disposition fails

Question 57

where specifically devised property changes form, specific gift adeems or not?

Answer 57

NOT

Question 58

conveyance, settlement or other act of testator by which an estate in his property, previously disposed of by will, is altered, but not wholly divested does what?

Answer 58

does not revoke such disposition, but the estate in the property that remains in teh testator passes to the beneficiaries pursuant to the disposition.

Question 59

any such conveyance, settlement, or other act of testator which is wholly inconsistent w such previous testamentary disposition does what?

Answer 59

revokes it

Question 60

if specific disposition of property is damaged or destroyed before decedent’s death and insurance company reimburses executor after decedent’s death, then who is entitled to that money?

Answer 60

the beneficiary

Question 61

what is the doctrine of advancement?

Answer 61

testator may satisfy part or all of disposition or intestate shareby making lifetime gift to beneficiary

Question 62

doctrine of advancement is limited to what type of situations?

Answer 62

where such gifts are accompanied by writing, which MUST be executed contemporaneously w the gift and signed by the decedent, or acknowledged by the donee, stating that donor intended the gift to be an advancement. decedent MUST intend to substitute the gift for donee’s share of the estate

Question 63

an attesting witness beneficiary - disposition valid?

Answer 63

VOID, unless there are 2 other disinterested attesting witnesses available to testify.

Question 64

an interested witness remains competent and may be called to testify as to what?

Answer 64

validity of will

Question 65

if interested witness is also an intestate distributee, witness is entitled to what?

Answer 65

recieve the lesser of his intestate share or disposition made to him in the will

Question 66

what is renunciation?

Answer 66

disclaim a gift, renounce an interest in decedent’s estate

Question 67

a person who disclaims a gift/ renounces, is considered what?

Answer 67

to have predeceased the decedent

Question 68

in order for disclaimer to be valid, formalities are?

Answer 68

writing.
signed and acknowledged before notary public.
accompanied by separate affidavit stating no consideration was received for disclaimer by person whose interest will be accelerated.
MUST renounce within 9 months of transfer and disclaimer is irrevocable.

Question 69

what retains priority over dispositions under a will and distributions in intestacy?

Answer 69

funeral expenses.
debts.
taxes.
administration expenses.

Question 70

if assets of testator’s estate are insufficient to pay all obligations of estate and distributions under the will, interests in estate will abate how?

Answer 70

this order:

1. distributive share in property not disposed of by will.
2. residuary dispositions.
3. general dispositions.
4. demonstrative dispositions.
5. specific dispositions.
6. dispositions to decedent’s spouse eligible for estate tax marital deduction.
   * testator may provide for a diff order of abatement

Question 71

dispositions to issue will pass by representation if instrument created when?

Answer 71

after 8.31.92.

Question 72

what is by-representation disposition?

Answer 72

issue of deceased issue take equal share w other survivors at their level

Question 73

dispositions to issue prior to 8.31.92 will pass how?

Answer 73

per stirpes

Question 74

what is per stirpes?

Answer 74

issue of deceased issue take their parent’s share

Question 75

who is entitled to share when a testator disposes of property in favor of a class described as his issue?

Answer 75

children:
adopted.
posthumous.
non marital.

Question 76

a genetic child may be included when?

Answer 76

in any disposition to a class

Question 77

what is issue?

Answer 77

descendants.

adopted children and their issue.

Question 78

what are adopted children?

Answer 78

the issue of their adoptive parents

Question 79

what are adopted children NOT?

Answer 79

the issue of their biological parents

Question 80

an adopted out child wont take when?

Answer 80

in a class gift from a birth relative unless that child is specifically named in a biological ancestor’s will or the gift is expressly made to issue including those adopted out of the family

Question 81

an adopted out child may share ina class gift to whom?

Answer 81

issue of his biological family if testator or grantor is his grandparent or descendant of grandparent - aunt, unlce, cousin, and adoptive parent is a stepparent, grandparent, or descendant of grandparent

Question 82

who has the burden of proving due execution?

Answer 82

proponent of will

Question 83

who has testamentary capacity?

Answer 83

person 18 y of age.
sound mind.
sound memory.
may dispose by will of real and personal property and exercise power to appoint such property.

Question 84

courts will look to whether the testator

Answer 84

understood nature and consequence of executing will.
knew nature and extent of property that he was disposing of.
knew those who would be considered natural objects of his bounty and his relationship to them.

Question 85

who has burden of proving testator possessed testamentary capacity?

Answer 85

proponent of the will

Question 86

who has burden of proving undue influence?

Answer 86

the objectant

Question 87

what MUST the objectant show?

Answer 87

that the influencing party’s actions are so pervasive that the will is actually that of the influencer, not the decedent

Question 88

what MUST the influence amount t?

Answer 88

moral coercion, which restrained independent action and destroyed free agency, or which, by importunity which could not be resisted, constrained testator to do that which was against his free will and desire, but which he was unable to refuse or too weak to resist

Question 89

how to prove fraud?

Answer 89

MUST be shown that proponent knowingly made a false statement that caused decedent to execute will that disposed of property in manner diff from disposition he would have made in teh absence of that statement

Question 90

objectant has the burden of what?

Answer 90

establishing existence of fruad

Question 91

will is entitled to probate even if decedent was mistaken concerning extraneous facts which might have caused decedent to make diff disposition, unless what?

Answer 91

mistake of fact was product of undue influence

Question 92

where mistake affects decedent’s testamentary intentions, will may be what?

Answer 92

denied probate

Question 93

objectant has burden of proving what?

Answer 93

mistake

Question 94

what is in terrorem clause?

Answer 94

no contest clause

Question 95

testator may include no contest clause which does what?

Answer 95

prevents disposition from taking effect if will is contested by beneficiary, even if beneficiary has probable cause for contest

Question 96

no contest clause enforcement is subject to following exceptions:

Answer 96

beneficiary objects, based on probable cause, on grounds of forgery or revocation by later will.
guardian contests on behalf of infant beneficiary.
beneficiary objects to court’s discretion, refuses to join in probate petition, or waives service of citation.
beneficiary provides info pertinent to probate of will.
beneficiary conducts preliminary exams under law to evaluate merits of his objections.
institutes, joins, or acquiesces in a proceeding for construction of provision in will.

Question 97

who has standing to contest probate of will

Answer 97

person whose interests would be adversely affected

Question 98

non probate transfer

Answer 98

inter vivos gift

Question 99

what makes an inter vivos gift valid?

Answer 99

intent of part of donor to make a present transfer.
delivery of gift- actual or constructive, to donee.
acceptance by donee.

Question 100

proponent of gift has burden of proving each of elements by what standard?

Answer 100

clear and convincing evidence

Question 101

property owned by individual or more than one person as:

Answer 101

joint tenants.
tenants in common.
tenants by entirety.

Question 102

disposition to 2 or more persons creates what?

Answer 102

tenancy in common (unless otherwise specified)

Question 103

what is a totten trust?

Answer 103

bank acct in name of decedent payable on his death to named beneficiary.
creator ofsuch may revoke or modify during creator’s lifetime or by will.

Question 104

trust MUST be described in will as being trust for whom?

Answer 104

named beneficiary in named financial institution

Question 105

will neednt mention an intent to what?

Answer 105

revoke or modify trust, but MUST dispose of part of whole of trust account in order to effect revocation or modification of trust

Question 106

what rights does beneficiary have in trust?

Answer 106

NONE.

only expectancy that he might receive trust in future

Question 107

transfer-on-death security registration act

Answer 107

owner of securities can register them in his name and upon death, pass to designated beneficiary

Question 108

joint bank acct

Answer 108

deposit of funds in bank acct in name of depositor and another person and in form paid or delivered to either, or survivor of them, creates prima facie evidence of intent ot create joint tenancy w right of survivorship.

Question 109

presumption of prima facie evidence of intent to create joint tenancy w right of survivorship can be rebutted by

Answer 109

providing direct proof that no joint tenancy was intended or substl circumstl proof that joint acct had been opened for convenience only.

Question 110

life insurance assets pass under will or intestacy?

Answer 110

ordinarily they DONT

Question 111

life insurance assets pass how?

Answer 111

under beneficiary designation

Question 112

insurance beneficiary’s rights are affected by laws governing transfer of property by will or intestacy unless what?

Answer 112

insured fails to properly designate beneficiary.
no named beneificary survives the insure.
insured expressly designates his estaet or personal representatives as beneficiary.

Question 113

designation of beneficiary MUST be done how?

Answer 113

signed writing

Question 114

insurance carrier may set forth what?

Answer 114

rules in its contract how to designate beneficiary and carrier MUST agree to designation of beneficiary

Question 115

no statete or laws governing transfer of property by will, gift or intestacy may impair or defeat rights of beneficiaries of what?

Answer 115

pension, retirement, profit-sharing, or other specified benefit plan

Question 116

right of person entitled to receive money or other property pursuant to benefit plan may NOT be what ?q

Answer 116

defeated by testamentary disposition

Question 117

rights under retirement plan are what type of rights?

Answer 117

contractual.

are limited by provisions of contract.

Question 118

surviving spouse has right to take 50k or what?

Answer 118

one third of net estate, whichever greater

Question 119

what does net estate consist of?

Answer 119

property in decedent’s name that could pass under a will/net probate asset.
property that passes in intestacy.
testamentary substitute.
debts owed to decedent.

Question 120

what does testamentary substitute include?

Answer 120

gifts cause mortis made before /after marriage.
totten trust, including bank acct in testator’s name in trust for anotehr and payable on death securities.
survivorship estate- joint tenancy, tenancy by entirety, joint bank acct, survivor bank acct, to extent of decedent contribution.
employee pension, profit sharing, deferred compensation plan, if plan is qualified plan under irs 401 and payable to surviving spouse, only one half is consideref testamentary substitute.
lifetime transfer in which decedent retained power to revoke such disposition or power to consume, invade or dispose of principal, or name new beneficiaries, including annuities.
property over which decedent retained presently exercisable general power of apptmt.
gifts made within one year of death but exclduing portion not subject ot federal gift tax pursuant to annual exclusion.

Question 121

what is a survivorship estate?

Answer 121

joint tenancy.
tenancy by entirety.
joint bank account.
survivor bank acct to extent of decedent contribution.

Question 122

life insurance contract is not what?

Answer 122

a testamentary substitute

Question 123

one third share is reduced by what?

Answer 123

property received by intestacy, testamentary sub, bequests under will.

Question 124

elective share is paid how?

Answer 124

ratably, unless otherwise directed by will, by decedent’s beneficiaries, such as intestate beneficiaries, beneficiaries under will, beneficiaries of testamentary subs.

Question 125

surviving spouse MUST exercise right of election when?

Answer 125

within 2 years of decedent’s death, but court may in its discretion extend time period upon showing of good cause.

Question 126

right of election may be waived how?

Answer 126

by agreement written, signed, acknowledged before notary

Question 127

surviving spouse disqualified from sharing in wrongful death recovery, intestacy or electing against will under certain circumstances.

Answer 127

including where theres a final judgment of divorce or separation, surviving spouse abandoned decedent and abandonment continued until decedent’s death, or surviving spouse failed or refused to support decedent.

Question 128

child born after execution of testator’s will shall succeed to what ?

Answer 128

portion of testator’s estate if after born child was left unprovided for by any settlement or without any mention in the will

Question 129

if the testator had no living child when executed last will?

Answer 129

afteborn child succeeds to portion of such testator’s estaet as would have passed to such child had testator dies intestate

Question 130

if testator had 1 /more children living when executed last will and no provision made for such child,

Answer 130

afterborn child NOT entitled to share in testator’s estate

Question 131

if testator had 1/more children living when executed last will and provision made therein for one/more of children, an afterborn child is entitled to what?

Answer 131

share in testator’s estate as follows:
portion of testator’s estate in which afterborn child may share is limited to disposition made ot children under will.
afterborn child shall receive such share of testator’s estate as he would have received had testator included all afterborn children w children upon whom benefits were conferred under will, and given an equal share of estate to each such child.
if intention of testator was to make a limited provision to be applied only to testator’s children lviing at time will was executed, afterborn child succeeds to portion of such testator’s estate as would have passed to such child had testator died intestate.

Question 132

public health law authorizes any competent adult to appoint a health care agent how?

Answer 132

by health proxy, signed and dated by adult in presence of 2 adult witnesses, who must sign and cannot be the appointed agent.

Question 133

agent’s authority commences when?

Answer 133

upon determination that adult lacks capacity to make health care decisions

Question 134

agent’s decisions must be consistent with what?

Answer 134

known wishes of principal, including religious and moral beliefs- adult having executed living will/having expressed such beliefs

Question 135

if principal’s wishes arent reasonably known or cant reasonably be determined, agent may act how?

Answer 135

in accordance w adult’s best interests.

Question 136

if adult’s wishes regarding admin of artificial nutrition and hydration are not reasonably known and cannot w reasonable diligence be ascertained, agent shall what?

Answer 136

NOT have any authority to make decisions regarding these measures.

Question 137

if agent doesnt know adult’s wishes concerning life-sustaining treatments, then?

Answer 137

ARENT authorized to make decisions regarding those measures

Question 138

how proxy revoked?

Answer 138

notifying agent or health care provider orally or in writing.
any other act evidencing specific intent, execution of subsequent health care proxy, and divorce from agent unless principal specifies otherwise

Question 139

what is apower of atty

Answer 139

permits another person / agent to copmlete financial transactions on principal’s behalf.
GENERAL OBLIGATIONS LAW.
forms creating durable and nondurable statutory and short form power of atty.

Question 140

durable power of atty

Answer 140

survives principal’s incapacity

Question 141

nondurable power of atty

Answer 141

DOESNT survive principal’s incapacity

Question 142

statutory short form power of atty

Answer 142

durable unless principal expressly states otherwise in doc

Question 143

what are the execution requirements for power of atty

Answer 143

certain specific language.
signed and dated by principal w capacity, signed and dated by agent and their signatures must be acknowledged in same manner as required for recording of deed. a

Question 144

for power of atty, does agent have to sign at same time as principal?

Answer 144

NO

Question 145

in order for principal to grant agent the authorities, principal MUST what?

Answer 145

place his initials in bracket preceding each specific authority.

Question 146

if principal qwishes to grant his agent authority over all matters enumeratedin form, needs to what?

Answer 146

place initial inside bracket enumerated P and DOESNT need to initial other lines.

Question 147

marking X or other marks rather than principal’s initials is what?

Answer 147

invalid and DOESNT serve to grant to agent any authority unless principal lacks capacity for standard signature and routinely signs his name w such mark

Question 148

power of atty may contain what?

Answer 148

modifications.

additions.

Question 149

principal may modify power of atty to give agent what?

Answer 149

access to principal’s digital assets, including efiles and email communications

Question 150

according to statutory short form power of atty, agent may NOT do what ref gifts?

Answer 150

in excess of 500 bux in aggregate in any calendar year.

Question 151

if principal wishes to grant his agent authority to make gifts in excess of annual total of 500 buxfor all gifts, principal MUST what?

Answer 151

initial sttmt in statutory short form power of atty.
simultaneously execute separate statutory gifts rider in exact wording as set in general obligations law.
principal MUST sign statutory gifts rider in presence of 2 witnesses or acknowledge his signature before 2 witnesses.
statutory gifts rider may contain modifications or additions as expressly permitted in general obligations law.

Question 152

what is the standard of care by an agent?

Answer 152

observing standard of care that would be observed by prudent person dealing with property of another and exercising a fiduciary duty to act in best interest of principal.

Question 153

what is included in agent’s fiduciary duties?

Answer 153

act according to instructions from principal, or where none, in the best interest of P, and avoid conflicts of interest.
keep principal’s property separate and distinct from any other property owned or controlled by agent.
keep record of all rceipts, disbursements, transactions, entered into by agent on behalf of principal and make such record and power of atty available to principal or to 3rd parties at request of principal.
not make gifts to oneself w/o authority under statutory gifts rider.

Question 154

when does power of atty terminate?

Answer 154

principal dies.
principal becomes incapacitated, if poa isnt durable.
principal revokes it.
principal revokes agent’s authority and theres no coagent or successor agent.
agent dies, becomes incapacitated or resigns and theres no coagent or successor agent.
purpose of poa is accomplished.
court order revokes it.

Question 155

power of atty terminates when authority of agent terminates, which can occur when?

Answer 155

principal revoked agent’s authority.
agent dies, becomes incapacitated or resigns.
poa terminates.
agent’s marriage to principal is terminated by divorce or annulment.

Question 156

grantor may create trust of real or personal property for what purpose?

Answer 156

any lawful

Question 157

how many parties does a trust have?

Answer 157

3.
creator.
trustee.
beneficiary.

Question 158

is a trust merged or invalid bc a person, including but not limited to the creator of the trust, is or may become sole trustee and sole holder of persent beneficial interest therein?

Answer 158

NO.

provided 1 or more other persons hold beneficial interest therein.

Question 159

who may make a lifetime trust?

Answer 159

any person or entity who MUST intend to create a trust, and it must have at least 1 definite and ascertainable beneficiary whos not the trustee and a grantor who delivers corpus to trustee

Question 160

lifetime trust

Answer 160

any kind of estate in property may be disposed of in this way

Question 161

execution of a trust how?

Answer 161

writing.
executed by creator of trust and at least 1 trustee.
acknowledged like real estate deed for recording or exectued in presence of 2 witnesses, who MUST then sign it.

Question 162

trust is NOT valid until when?

Answer 162

funded.

except life insurance, pension trust, pour over trust.

Question 163

in order to be sufficiently funded, assets MUST be transferred how?

Answer 163

through recording of deed or completing registration of stock certificate.

Question 164

if asset is NOT recordable or registrable, grantor MUST waht?

Answer 164

assign the asset to trust in writing.

Question 165

trustee holds what?

Answer 165

legal title to trust property and co-trustees share legal title jointly w right of survivorship

Question 166

what happens when sole trustee dies

Answer 166

trust property vests in court, which can then appoint a successor trustee, unless trust otherwise provides.

Question 167

what the trust types?

Answer 167

revocable.
irrevocable.
testamentary.
pour over.
charitable/cy pres

Question 168

revocable trust

Answer 168

grantor may amend or revoke trust in writing that is executed and acknowledged w same formalities as initial trust instrument.
governing instrument can eliminate the need for formalities, but all revocations /modifications MUST be in writing. grantor may revoke /amend lifetime trust in his will, provided he specifically refers to the trust.

Question 169

irrevocable trust

Answer 169

it is such unless trust instrument expressly provides that its revocable. may be revoked or amended pursuant to eptl.

Question 170

testamentary trust

Answer 170

trust created in a will. only becomes effective upon death of testator.

Question 171

pour over trust

Answer 171

testator may direct in his will that his assets be poured over into a lifetime trust. NEEDNT be executed w same formalities as a will and may be amendable or revocable, but MUST be in existence before or be executed contemporaneously w the will. MUST be in writing, signed by creator, and at least 1 trustee, and either acknowledged like a deed or signed by 2 witnesses.

Question 172

charitable trust.

Answer 172

for charitable purposes is valid despite lack of definite or ascertainable beneficiary.
state atty general represents beneficiaries of charitable trusts.
it will not fail for lack of a trustee.
title will pass ot court with jurisdiction to appoint trustee.

Question 173

charitable trust may be reformed under by pres doctrine:

Answer 173

court MUST find 3 conditions-
gift / trust is charitable in nature.
language of will or trust instrument indicates donor demonstrated general, not specific, charitable intent. AND
particular purpose for which gift or trust was created has failed, or has become impossible or impracticable to achieve.

Question 174

income interests in a trust a alienable or not?

Answer 174

NOT

Question 175

income interests in trust are beyond reach of whom?

Answer 175

creditors.

this is spendthrift protection.

Question 176

if grantor of trust expressly makes income interests alienable in the trust instrument, then who can reach them?

Answer 176

creditors

Question 177

an income beneficiary may assign all or part of income to whom?

Answer 177

spouse or children he is legally obligated to support, or income over 10k per year to heirs pursuant to acknowledged doc.

Question 178

court may in its discretion make an allowance from principal to what?

Answer 178

any income beneficiary’s support and education

Question 179

remainder interest alienable?

Answer 179

freely alienable, unless by specific provision in trust, grantor makes trust remainder inalienable.

Question 180

disposition in trust by creator for own benefit is valid or not against existing or subsequent creditors?

Answer 180

VOID

Question 181

creditors may reach ___% of income from a trust

Answer 181

10

Question 182

unless a trust requires accumulation of income, creditor may what?

Answer 182

levy ag income in excess of what is necessary for income beneficiary’s support and education

Question 183

if trust is revocable, creator can revoke how?

Answer 183

without consent of beneficiaries by written notice of revocation delivered to at least 1 other trustee w/in reasonable time if person executing revocation is NOT sole trustee

Question 184

if trust is irrevocable, grantor MUST execute what?

Answer 184

instrument in writing acknowledged or proved in manner required for recording of conveyance of real property, w consent of all living beneficiaries, executed in like manner. trustee is NOT an interested person, and consent of unborn child is NOT needed to revoke or amend a trust.

Question 185

court may terminate trust upon applicaiton by trustee or beneficiary if finds that?

Answer 185

continuation of trust is economically impracticable.
express terms of disposing instrument DONT prohibit early termination. AND
such termination would NOT defeat specified purpose of trust and would be in best interest of beneficiaries.

Question 186

when purpose of trust ceases, then?

Answer 186

it terminates, and the estate of trustee also ceases.

Question 187

what is the rule against perpetuities

Answer 187

limits ability of owners to control future disposition of their property.

Question 188

rule ag perp applies to?

Answer 188

real prop.
personal prop.
NOT charities!

Question 189

how to determine validity of a disposition of property?

Answer 189

suspension of absolute power of alienation.
AND
remoteness of vesting of the estate.

Question 190

suspension of alienation rule

Answer 190

any estate in which conveying instrument suspends absolute power of alienation for longer than lives in being at creation of estate plus 21 years is VOID

Question 191

no estate in property shall be valid unless it MUST vest, if at all, not later than?

Answer 191

21 years after one or more lives being at creation of estate and any period of gestation involved

Question 192

beneficiaries of a trust MUST be what?

Answer 192

definite and ascertainable within perpetuities period

Question 193

where an estate would be invalid under rule ag perp bc of a person reaching age in excess of 21 years?

Answer 193

age contingency is reduced to 21 yrs for person subject to that contingency, whose interests would otherwise be invalidated- REDUCTION OF AGE CONTINGENCY