Brainscape's Knowledge GenomeTM

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


See full index

PABar - Trusts > Trusts > Flashcards

Trusts Flashcards

1
Q

What is a trust?

A

A fiduciary relationship where a trustee manages property and income from that property for a beneficiary

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

Who holds equitable title in a trust?

A

The beneficiary

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

How is trust property divided?

A

Between income and principal

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

When is a trust presumed to be revocable in Pennsylvania?

A

It is automatically presumed to be revocable, absent express language to the contrary

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

What is a mandatory trust?

A

A trust that requires the trustee to distribute all trust income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a discretionary trust?

A

A trust that allows the trustee to distribute income at his discretion

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

Who is the settlor?

A

The creator of the trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who is the trustee?

A

The person who holds the legal interest or title to trust property

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

Can the same individual serve as a sole trustee and sole beneficiary of a trust?

A

No

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

Will a trust fail if a trustee dies, becomes disabled, resigns, or fails to accept the office within a reasonable amount of time?

A

No, the court can appoint a successor trustee, unless the settlor expressly conditioned the trust on a particular trustee’s service

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

Must a trustee be given specific duties to perform?

A

Yes, or the trust will fail and legal and equitable title will merge in the beneficiary

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

Who has legal title to a trust?

A

The trustee

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

What qualifications are necessary for a trustee?

A

The same capacity as needed for a will, i.e., over 18 and of sound mind

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

Is a trust valid without a beneficiary?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the Uniform Trust Act’s mandatory rules for a trust?

A
  1. Trust creation requirements;
  2. Duties of good faith and loyalty to beneficiaries, including the duty to keep beneficiaries informed;
  3. That the trust be lawful, in keeping with public policy, and capable of achievement;
  4. The court’s power to modify or terminate a trust;
  5. the effect of spend-thrift provisions; and
  6. The rights of third parties engaging in transactions with the trustee.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a private express trust?

A

A trust that clearly states the intention of the settlor to transfer property to a trustee for one or more ascertainable beneficiaries

17
Q

What are the elements of a valid private express trust?

A
  1. The settlor’s intent, presumed on use of common trust terms;
  2. Trust property, which must be identifiable and segregated;
  3. a valid purpose (anything legal); and
  4. Ascertainable beneficiaries
18
Q

In Pennsylvania, can a settlor’s intent be manifested orally?

A

No, unlike most states

19
Q

Does a settlor have to communicate his intent to establish a trust to the beneficiaries?

A

No, delivery is sufficient

20
Q

Do precatory words (e.g., “hope”) about the disposition of property create a trust in Pennsylvania?

A

No; the words will be either construed as mandatory or have no effect at all

21
Q

Can unborn children be ascertainable beneficiaries?

A

Yes

22
Q

Can class gifts qualify as ascertainable beneficiaries?

A

Yes, as long as reasonably definite

23
Q

Do charitable trusts require ascertainable beneficiaries?

A

No

24
Q

What is an inter vivos trust?

A

A lifetime transfer that becomes possessory at the death of the settlor

25
Q

Must an express trust be in writing to transfer real property?

A

Yes, to satisfy SOF

26
Q

What is a constructive trust?

A

A “trust”–really an equitable remedy–that a court can create when the required writing is lacking but the holder of legal title cannot in good conscience retain the beneficial interest.

In essence, equity converts the holder of legal title into a trustee.

27
Q

What is a Totten trust?

A

Not a true trust; it is a bank account in a depositor’s name as “trustee” for a named beneficiary, controlled by the depositor during his lifetime and subject to the claims of the depositor’s creditors

28
Q

What are Uniform Transfers to Minors Act (UTMA) Accounts?

A

An account for minors, not technically a trust, in which a custodian can manage an account for a minor until the age of 21.

29
Q

What is a testamentary trust?

A

When a trust’s terms are contained in writing in a will or a document incorporated by reference into a will

30
Q

Will a testamentary trust benefiting a spouse survive divorce in Pennsylvania?

A

No, unless clearly intended to survive the divorce

31
Q

What is a “secret” trust?

A

It looks like a testamentary gift, but is created in reliance on the named beneficiary’s promise to hold and administer the property for another.

May be proven by clear and convincing extrinsic evidence.

32
Q

What is a pour-over trust?

A

A provision in a will that directs that the distribution of property to a trust occurs upon the happening of an event

33
Q

When is extrinsic evidence admissible to construe a trust?

A

To resolve patent (facial) ambiguities or latent (emergent or implied) ambiguities

34
Q

What is necessary for a trust to be considered charitable?

A

A stated charitable purpose for the benefit of others

35
Q

Who has standing to challenge a charitable trust in PA?

A

The settlor, a qualified beneficiary, or the AG

36
Q

If a charitable trust’s purpose becomes illegal, impracticable, or impossible, what may a court do?

A

Modify the trust under the cy pres doctrine to select a new purpose “as near as possible” to the original purpose

37
Q

What is an honorary trust, as opposed to a charitable trust?

A

A trust where the trustee is on her honor to administer the trust, as there are no beneficiaries capable of enforcing its terms

38
Q

What is a resulting trust?

A

When a trust fails in some way, a court may create a resulting trust requiring the holder to return property to the settlor or his estate by effectuating the settlor’s intent

PABar - Trusts (2 decks)

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