Trusts

Question 1

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

Answer 1

will subsitute

Question 2

A pour over will is when the settlor has included a clause whereby

Answer 2

all of the settlors assets at the time of their death pour into the trust for the benefit of the beneficaries

Question 3

What do you have to make sure with pour over will and steps

Answer 3

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

Question 4

When is a child disinherited

Answer 4

if the child is left out of the will or testamentary document

Question 5

Acounter argument to disinherited childern is an omitted child. What is a omitted child

Answer 5

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

Question 6

What is the majority view of intestate share for chldern

Answer 6

modern per stripes

Question 7

Modern Per stripes

Answer 7

an equal share split at the first level of inheritance

Question 8

Sucess in terminating a trust depends on

Answer 8

whether a trust is revocable or irrevocable

Question 9

Irrevocable trust is created where

Answer 9

the settlor intent makes it as such

Question 10

Majority view as it relates to a trust is to find a trust is

Answer 10

irrevocable

Question 11

Termination of a irrevocable trust can be done automatically if

Answer 11

the stated term expires or purpose has been accomplished

Question 12

Termination of an irrevocable trust when the stated term has not expired or purpose has not ben satisified can occur in what 3 ways

Answer 12

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

Question 13

To a certain extent a trustees ability to use discretion varies depending on

Answer 13

type of trust that is being established

Question 14

When are trustees given great deference

Answer 14

either in a support trust or a discretionary trust

Question 15

In a support trust or a discretionary trust, how do you know it is being created

Answer 15

must expressly state that is the type of trust being created

Question 16

How do you determine what type of trust is being created

Answer 16

you look to the purpose of the trust

Question 17

Trustee’s Duty of Care and what does it include

Answer 17

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.

Question 18

Trustee’s duty to distribute in accordance with the trust is breached when

Answer 18

the trustee acts in a way inconsistent with the specific instructions set forth by the settlor.

Question 19

Trustee’s duty to treat beneficaries equal is when a trustee gives the

Answer 19

same care and deference to each beneficiary of the trust, in accordance with the trust purpose.

Question 20

A trustee has a number of duties to the beneficiary of the trust. Among those duties are

Answer 20

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

Question 21

When can the trustee use discretion on how to distribut the income of the trust

Answer 21

in a discretionary trust or support trust

Question 22

When are trustee duties triggered

Answer 22

when the trustee accepts their position as trustee

Question 23

Where a trustee has breached their fiduciary duties, they may be held

Answer 23

personally liable and or may be removed from their position by the court.