Trusts Flashcards
A(n) ___ is a device by which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party
Trust
A property owner may provide for their own financial care or for that of the owner’s family by…
Establishing a trust
The person who creates the trust conveys real or personal property to…
a trustee
Duties of a(n) ___ may include the care and investment of the trust assets to produce an income.
Trustee
After paying the trust’s operating expenses and trustee’s fees, income is paid to or used for benefit of…
the beneficiary
Bob wishes to ensure college education for his granddaughter. He transfers his oil field to her mother. He instructs the mother to use the income from the trust to pay for his granddaughter’s college tuition. Bob is the ___.
Trustor
The ___ creates the trust.
Trustor
The ___ is the person who holds legal title to the property and is entrusted with carrying out the instructions regarding the purpose of the trust.
Trustee
Bob wishes to ensure college education for his granddaughter. He transfers his oil field to her mother. He instructs the mother to use the income from the trust to pay for his granddaughter’s college tuition. His granddaughter is the ___.
Beneficiary
The ___ is the person who benefits from the trust.
Beneficiary
Bob wishes to ensure college education for his granddaughter. He transfers his oil field to her mother. He instructs the mother to use the income from the trust to pay for his granddaughter’s college tuition. The mother is the ___.
Trustee
The ___ is a fiduciary who acts in confidence or trust and has a special legal relationship with the beneficiary
Trustee
The trustee is a ___ who acts in confidence or trust and has a special legal relationship with the beneficiary
Fiduciary
The trustee is a fiduciary who acts in confidence or trust and has a special legal relationship with the ___
beneficiary
The trustee’s power and authority are limited by…
terms of the trust agreement, will, or deed in trust
Who should be consulted on the subject of trusts?
Attorneys or tax experts
Illinois permits real estate to be held in trust as part of a(n) ___ or ___ trust, or as the sole asset in a(n) ___ trust.
Living or testamentary trust
sole asset in a land trust
In ___ trusts, real estate is the only asset
Land
In the case of land trusts, the ___ usually is also the trustor
Beneficiary
In the case of land trusts, the beneficiary usually is also the ___.
Trustor
___ trusts are frequently created for the conservation of farmland, forests, coastal land, and scenic vistas
Land
A distinguishing characteristic of a(n) ___ trust is that public records usually do not name the beneficiary.
land
A distinguishing characteristic of a land trust is that public records usually do not name the ___.
beneficiary
A beneficial interest in a land trust is ___ property.
Personal
When referencing land trusts, the beneficial interest in property can be pledged as security for a loan without having a(n) ___ recorded.
Mortgage
When does a land trust transfer?
At the beneficiary’s death
How long does a land trust typically continue?
A definite term
If the beneficiary does not extend the land trust term when it expires, the trustee is usually obligated to ___ the real estate.
Sell
If the beneficiary does not extend the land trust term when it expires, the ___ is usually obligated to sell the real estate
trustee
If the beneficiary does not extend the land trust term when it expires, the trustee is usually obligated to sell the real estate and return the net proceeds to the ___.
beneficiary
In regards to land trusts, Illinois law requires that the trustee disclose the ___ to certain parties under specific sircumstances
Beneficiary’s name
In regards to land trusts, in Illinois, ___ must be revealed to the concerned housing authority within 10 days after receiving a complaint of a violation of a building ordinance or law.
the beneficiary’s name
In regards to land trusts, in Illinois, ___ must be revealed when applying to any state of IL agency for license or permit affecting the entrusted real estate
the beneficiary’s name
In regards to land trusts, in Illinois, ___ must be revealed if selling the entrusted property by land contract
the beneficiary’s name
In regards to land trusts, in Illinois, ___ must be revealed if the trustee is named as a defendant in a private lawsuit or criminal complaint regarding the subject of real estate
the beneficiary’s name
In regards to land trusts, in Illinois, ___ must be revealed if a fire inspector or another officer is investigating arson
the beneficiary’s name
___ relates to the creation of a living, testamentary, or land trust
Deed in trust
___ is a financing document simlar to a mortgage
Deed of Trust
Trust deed can mean both ___ and ___.
Deed in trust and deed of trust
