Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Trusts > Trust Administration > Flashcards

Trust Administration Flashcards

1
Q

The trustee can properly exercise such powers…

A

expressly or impliedly conferred upon them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Co-trustees who are unable to reach a unanimous decision may act…

A

by majority decision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A trustee’s exercise of discretion should not be overruled by a court unless…

A

the trustee has acted arbitrarily and in such a way as to impair the trust purposes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A trustee may delegate powers and duties that a …

A

prudent trustee of comparable skill could properly delegate under the circumstances.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A trustee is not liable for any actions taken by their delegated agent if the trustee exercised reasonable care, skill and caution in:

A
  1. selecting the agent;
  2. establishing the scope and terms of the delegation; and
  3. monitoring the agent’s performance with a periodic review.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Trustees who invest within the legal list of investments prescribed by statute…

A

cannot be held liable for any resulting loss from these investments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Under the Uniform Prudent Investor Act (“UPIA”), trustees must exercise…

A
  1. Reasonable care, skill, and caution in investing and managing assets;
  2. Prudence in investing, as applied to the entire investment portfolio.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Under the UPIA, investment returns are measured by the…

A

total return concept.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Whether the fiduciary has complied with the UPIA is determined in light of the facts and circumstances…

A

at the time the investment decision is made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Fiduciaires with special skill or expertise are held to…

A

higher standards, and must exercise such skills or expertise in their investment decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Absent a contrary provision, a trustee must invest any collected funds within…

A

a reasonable time, not to exceed 4 months.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A trustee of a revocable trust owes their duties…

A

solely to the settlor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A trustee of an irrevocable trust owes their duties to…

A

all of the beneficiaries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A transaction involving tustee self-dealing is voidable by the beneficiary affected by the transaction, unless…

A
  1. A court or the terms of the trust approved it;
  2. The beneficiary failed to bring suit within the prescribed time period;
  3. The beneficiary gave consent, ratification, or release; or
  4. It involves a contract or claim arising before the trustee became trustee.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A trustee’s duties include:

A
  1. Duty to administer the trust prudently, in good faith, and impartially;
  2. Duty of loyalty;
  3. Duty to report & respond to beneficiaries & provide annual accounting;
  4. Avoid commingling trust and trustee assets;
  5. Abide by the prudent investor rule.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

If a trustee commits or is about to commit a breach of their trust duties, the court may:

A
  1. Enforce specific performance of the trustee’s duties;
  2. Enjoin the trustee from committing a breach of trust;
  3. Compel the trustee to pay money or restore property; or
  4. Suspend the trustee.
17
Q

Most commonly, if a trustee commits a breach of trust, the trustee is liable to the beneficiaries for the greater of:

A
  1. The amount necessary to restore the trust property and distributions to what they would have been absent the breach; or
  2. The trustee’s profit from the breach.
18
Q

A beneficiary must bring their action within ____ after receiving any report disclosing the breach.

A

1 year

19
Q

If the beneficiary never recieves a report about the trustee’s breach, the beneficiary must bring their action within 5 years of:

A
  1. Removal, resignation, or death of the trustee;
  2. Termination of the beneficiary’s interest; or
  3. Termination of the trust.

[whichever occurs first]

20
Q

A trustee is not liable for the breach of trust if…

A
  1. the trustee acted in reasonable reliance on the terms of the trust; or
  2. the beneficiary consented to the conduct, released the trustee from liability, or ratified the transaction.
21
Q

Generally, a trustee is not liable for the acts of a co-trustee if they…

A
  1. Did not join the action; and
  2. Exercised reasonable care in preventing the breach or compelling the co-trustee to redress the breach.
22
Q

A third party who knowingly participates in a breach of trust by the trustee is liable for…

A

the resulting loss to the trust estate.

23
Q

The beneficiaries of a trust cannot bring an action against a third party who damages the trust property or is liable to the trustee on a contract unless the trustee:

A
  1. Participates in the breach of trust;
  2. Fails to sue the third party; or
  3. Abandons office.

Trusts (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions