TR as Valid Will Sub

Question 1

What is a pour over clause?

Answer 1

A gift in a will to an inter vivos trust.

Question 2

True or False: Even if property is taken out of the trust, the pour over clause serves as property.

Answer 2

True

Question 3

Can a sole beneficiary be the sole trustee of a trust?

Answer 3

No - this causes a merger of the trust.

There must either be: (i) two or more trustees even if one of the trustees is a beneficiary; or (ii) two or more beneficiaries even if one of the beneficiaries is a sole trustee.

Question 4

Is an intervivos revocable trust valid in Florida?

Answer 4

Yes even if the Settlor retains one or more of the following rights:

• Income for life
• Power to revoke, alter, amend, or terminate
• Power to designate new beneficiaries
• Power to remove trustee or control trustee’s administration of the trust
• Power to add or withdraw property or cause insurance proceeds to be paid to the trust.

Question 5

What is the FL Statutory requirements to make a grant in a trust control where the Settlor’s property goes upon the Settlor’s death?

Answer 5

If a FL resident creates a revocable inter vivos trust, the provisions of the trust control where the property goes at the settlor’s death if the trust and any amendments are executed in the manner required for a will. (Signed by Testator and two witnesses)

Question 6

If a gift by will to a revocable trust valid?

Answer 6

Yes - provided that the trust is in existence before or executed at the same time as the well and that it is executed in accordance with the will requirements.

Question 7

What do you call a bank account that is designated for a beneficiary?

Answer 7

A Totten Trust.

Question 8

What are classic characteristics of a Totten Trust?

Answer 8

Revocable during the life of the testator by any manifestation of intent.

The account is reachable by creditors during the depositor’s life.

In Fl, the trust can be reached after death to the extent the depositor’s assets are insufficient to pay creditors.

Question 9

Can extrinsic evidence be admissible to show that a trust was not intended?

Answer 9

Yes

Question 10

What is the majority and FL rule on revocation of a Totten Trust?

Answer 10

A totten trust can be revoked by the depositor’s will. The will must expressly identify the bank account.

Question 11

Can a joint bank account with survivorship be affected by a will?

Answer 11

No

Question 12

What happens when the beneficiary of a totten trust dies before the depositor?

Answer 12

The trust is automatically revoked and it becomes a regular bank account.