Trust administration

Question 1

memorize table pg 37

Question 2

list (4)

remedies for breach of trust

Answer 2

1. ct enforces specific performance of trustee’s duties
2. enjoin trustee from committing breach
3. compel trustee to pay money or restore property
4. suspend or remove trustee

Question 3

list (2)

damages trustee gives to B for breach

Answer 3

Trustee liable to B for the greater of:

1. amount necessary to restore trust property
2. trustees profit from breach

Question 4

list (3)

if trustee engages in self-dealing, B can

Answer 4

1. affirm transaction if trust profited
2. set aside transaction if trust lost money
3. trace profit from trustee if trustee profited

Question 5

list (4)

when trustee is not liable for breach

Answer 5

1. T acted in reasonable reliance on terms of trust
2. B consented to conduct
3. B released trustee from liability
4. B ratified the transaction

2-4 - B must not have been improperly induced

Question 6

what is an exculpatory clause

Answer 6

An exculpatory clause is part of a contract that prevents one party from holding the other party liable for damages related to the trust.

Question 7

ist (2)

exculpatory clauses void if

Answer 7

1. they relieved a T who breaches in bad faith or with reckless indifference
2. appear in trust instrument because of Trustee abuse of a confidential relationship with Settelor

Question 8

UPAIA applies to all trust and estates unless

Answer 8

instrument says otherwise