Revocable Trusts

Question 1

Pour Over Trust

Answer 1

Is a revocable trust created during the grantor’s lifetime with a a will that leaves estate residue to that truest.

Va allows this so long as the trust is identified in the testator’s will and the terms are in a written instruument.

Question 2

Presumption of revocability

Answer 2

An inter vivos trust created on or after July 1, 2006 is revocable unless the trust terms expressly provide that is irrevocable

Question 3

In a revocable trust, beneficiary rights are subject to the settlor’s control and

Answer 3

During the settlor’s lifetime, the trustee duties are owed exclusively to the settlor

Question 4

Amendment of a revocable trust

Answer 4

The settlor may revoke or amend a trust instrument by “substantial compliance” with the method provided in the instrument

If a trust does not state a method then revocation is by any method manifesting clear and convincing evidence of the settlor’s intent

Question 5

Divorce in a Revocable Trust

Answer 5

Divorce or annulment revokes any provision transferring property to the ex spouse and revokes any provision conferring a power on the spout or appointing the spouse as a fiduciary

If spouse remarries ex spouse before trust is amended, the provisions in the trust are revived

Question 6

A challenge to a revocable trusts validity if

Answer 6

Is brought within the earlier
1) 2 years after the settlor’s death; or

2) 6 months after the trustee sends a potential contestant a copy of the trust and notice of the time allowed to challenge

Question 7

A trustee without knowledge of a pending contest

Answer 7

may make distributions in accordance with the terms of the trust; if the trust is later declared invalid, the beneficiares are liable for distributions received