Trusts Flashcards
Where a intervivos trust is created and whether the settlor gives a vested future possessory interest in the trust to a grantee it will be considered a
will subsitute
A pour over will is when the settlor has included a clause whereby
all of the settlors assets at the time of their death pour into the trust for the benefit of the beneficaries
What do you have to make sure with pour over will and steps
that it is a valid will
Steps
1) State who is the trustee
2) purpose of the trust
2) what happens when there is a death
When is a child disinherited
if the child is left out of the will or testamentary document
Acounter argument to disinherited childern is an omitted child. What is a omitted child
where a child is unknown to the parent at the time the testamentary doc is created, and the parent had no reason to know of the child
What is the majority view of intestate share for chldern
modern per stripes
Modern Per stripes
an equal share split at the first level of inheritance
Sucess in terminating a trust depends on
whether a trust is revocable or irrevocable
Irrevocable trust is created where
the settlor intent makes it as such
Majority view as it relates to a trust is to find a trust is
irrevocable
Termination of a irrevocable trust can be done automatically if
the stated term expires or purpose has been accomplished
Termination of an irrevocable trust when the stated term has not expired or purpose has not ben satisified can occur in what 3 ways
either when the settlor and all of the beneficiaries agree while the settlor is still alive or
if all of the beneficiaries agree and it will not frustrate the purpose of the trust, or
a merger where the trustee has become the sole beneficiary
To a certain extent a trustees ability to use discretion varies depending on
type of trust that is being established
When are trustees given great deference
either in a support trust or a discretionary trust
In a support trust or a discretionary trust, how do you know it is being created
must expressly state that is the type of trust being created
How do you determine what type of trust is being created
you look to the purpose of the trust
Trustee’s Duty of Care and what does it include
act as a reasonably prudent person in her dealings as trustee.
This includes investing reasonably, making reasonable distributions ,and all other activities that a trustee conducts in her role as trustee.
Trustee’s duty to distribute in accordance with the trust is breached when
the trustee acts in a way inconsistent with the specific instructions set forth by the settlor.
Trustee’s duty to treat beneficaries equal is when a trustee gives the
same care and deference to each beneficiary of the trust, in accordance with the trust purpose.
A trustee has a number of duties to the beneficiary of the trust. Among those duties are
A) duty of care
B) duty to disbtribute benefits in accordance with the trust,
C) a duty to treat beneficiaries equally and
D) a duty to follow the settlors instructions
When can the trustee use discretion on how to distribut the income of the trust
in a discretionary trust or support trust
When are trustee duties triggered
when the trustee accepts their position as trustee
Where a trustee has breached their fiduciary duties, they may be held
personally liable and or may be removed from their position by the court.
