Quiz 6 Vocab - Test 2

Question 1

Testamentary trust

Answer 1

A trust that is drafted as part of the testator’s will and only becomes effective upon the testator’s death.

Question 2

Intervivos trust (living trust)

Answer 2

trusts that take effect during the life of the Trustor.

Question 3

Revocable trust

Answer 3

The trustor has the right to change, amend or terminate the trust at any time during their lifetime

Question 4

irrevocable trust

Answer 4

A trust which cannot be revoked or recalled

Question 5

trustor

Answer 5

The individual who establishes the trust

Question 6

trustee

Answer 6

an individual or legal entity to whom the trustor gives legal titlte to the trust property

Question 7

fiduciary

Answer 7

a person having a duty to act for the benefit of another

Question 8

self dealing

Answer 8

trustee recceiving a personal benefit from the trust to the detriment of the beneficiaries

Question 9

corpus

Answer 9

another term for the property held in trust

Question 10

res

Answer 10

another term for the property held in trust

Question 11

equitable title

Answer 11

the right of enjoyment of property

Question 12

legal title

Answer 12

the legal owner of the property

Question 13

Cestui que trust

Answer 13

another name for beneficiary. “He who has the right to a beneficial interest” to property where legal title is held by another

Question 14

Express trust

Answer 14

deliberately created by the trustor

Question 15

Implied trust

Answer 15

trusts that are created by operation of law. Avoid unjust enrichment.

Question 16

resulting trust

Answer 16

a trust that arises by implication or by operation of law, ususaly under the circumstance when an express trust fails for any reason

Question 17

constructive trust

Answer 17

A trust that arises by operation of law primarily because of wrongdoing on the part of the trustee or the person who obtained title to the property

Question 18

dry trusts

Answer 18

trusts that are funded by only by a very small amount such as $10.00

Question 19

pourover will

Answer 19

a provision in a will that leaves the residuary estate to a trust or trustee of a living trust

Question 20

passive trust

Answer 20

a trust where the trustee has no duties–the trust will fail in this case