Trusts Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Default term if at least one income beneficiary is a natural person

A

Death of last income beneficiary who is natural person

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

Default term if settlor is a natural person but no income beneficiary is

A

20 years from death of settlor

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

Default term if no income beneficiary or settlor is natural person

A

50 years from creation

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

Maximum term if one settlor and one income beneficiary are natural persons

A

Later of death of last income beneficiary or 20 years after death of settlor

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

Maximum term if one income beneficiary is a natural person but no settlor is

A

Later of death of last income beneficiary or 20 years after creation

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

Maximum term if one settlor is natural person but no income beneficiary is

A

20 years from death of settlor

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

Maximum term if no settlor or income beneficiary is a natural person

A

50 years from creation

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

When may a settlor name a substitute principal beneficiary?

A
  1. Irrevocable trust if: (a) substitute is descendant of principal beneficiary, and (b) principal beneficiary died without descendants
  2. Revocable trust: any time before trust becomes irrevocable

May name one of settlor’s descendants as substitute

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

What is the general rule upon principal beneficiary’s death?

A

Interest goes to successors

If they die before trust is in existence, and they are the settlor’s descendant, sibling, or a descendant of either, then the principal beneficiary’s descendants become principal beneficiaries

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

When may a settlor name a substitute if the principal beneficiary’s interest is the legitime in trust?

A

Only if:

  1. Principal beneficiary dies intestate
  2. Without descendants
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Termination of income interest

A
  1. Death

2. Expiration of period of enjoyment

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

What happens upon termination of income interest?

A

If only one, principal beneficiaries become income beneficiaries

If more than one, other income beneficiaries get the interest

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