Short Answer Questions Flashcards
Under the Uniform Trust Code, as adopted by VA, a trustee may resign by giving ______ days’ notice to the settlor (if living), all co-trustees, and all qualified beneficiaries (other than beneficiaries under a revocable trust).
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Under the Uniform Trust Code, as adopted by VA, a trust will fail if…
1) its enforcement involves the commission of a crime
2) its enforcement involves the commission of a tort
3) it was created with the intent to defeat the settlor’s creditors
4) it was based on illegal consideration
This type of trust contains a provision prohibiting voluntary and involuntary transfer of a beneficiary’s interest, which might read as follows: “No interest of any beneficiary herein shall be transferable by the beneficiary, nor shall such interest be reachable by the beneficiary’s creditors by garnishment, attachment, or other legal process.”
Spendthrift trust
Under the Uniform Trust Code, as adopted by VA, fully explain how it is possible to create a perpetual trust in Virginia.
The Rule Against Perpetuities does not apply to any trust if the trust instrument, by its terms, provides that the RAP shall not apply to the trust. As a result, the RAP is a default rule that applies absent a contrary provision. Therefore, to create a perpetual trust in Virginia, the trust instrument must indicate that the RAP does not apply to the trust.
A trust in which the trustee’s discretionary power to make distributions is tied to a standard such as “support” or “maintenance” is called a ________________ trust.
Support trust
Generally, a trustee in Virginia may be removed on what grounds?
(i) commission of a serious breach of trust;
(ii) lack of cooperation among co-trustees that impairs the administration of the trust;
(iii) unfitness, unwillingness, or persistent failure to administer the trust effectively; or
(iv) substantial changes in circumstances so that removal is in the best interest of all beneficiaries
Which particular words are required to express an intent to create a trust in Virginia?
The use of the words “trust” or “trustee” is not necessary.
Moreover, the fact that the words “trust” or “trustee” were used does NOT compel a finding that a trust was created.
Unlike most states, Virginia recognizes oral trusts with respect to both real and personal property as long as the existence and terms of the trust are established by what standard of proof?
Clear and convincing evidence
Under the Uniform Trust Code, as adopted by VA, examples of these kinds of trusts include trusts for maintenance of cemetery plots and trusts for pets.
“Honorary trusts”
There is no beneficiary who can enforce the trust by bringing an action against the trustee. The trustee is on her honor to carry out the trust. However, under the Uniform Trust Code, as adopted by Virginia, the trust is enforceable by someone named in the trust instrument or appointed by the court.
If through the passage of time or change circumstances the stated charitable purposes of a trust can no longer be accomplished, or if the named charitable beneficiary goes out of existence, under what doctrine may a court redirect the trust to a purpose “as near a possible” to the charitable endeavor initially contemplated by the settlor?
Under the cy pres doctrine.
The court will direct that the trust property be applied to another charitable purpose as close as possible to the original one, rather than permit the trust to fail.
