Trusts Flashcards
1
Q
Special relationship called a fiduciary relationship that is created between a trustee and a trustor
A
Trust
2
Q
Person that creates the trust
A
Trustor
3
Q
Person who carries out the trust’s wishes
A
Trustee
4
Q
Person who benefits from a trust
A
Beneficiary
5
Q
Created during a person’s lifetime and is often used when minor children are involved
A
Living Trust
6
Q
Created according to the terms of the will of a deceased person
A
Testamentary Trust
7
Q
Avoiding probate
A
One advantage of having a trust.
8
Q
Trust that does NOT avoid probate
A
Testamentary Trust
9
Q
Are beneficiaries responsible for costs of administering a testamentary trust
A
Yes
10
Q
Cheaper than probate by
A
5 - 10%
11
Q
Trust formed to hold real estate - real property is the only asset in the trust
A
Land Trust
