Trusts

Question 1

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

Answer 1

Trust

Question 2

A property owner may provide for their own financial care or for that of the owner’s family by…

Answer 2

Establishing a trust

Question 3

The person who creates the trust conveys real or personal property to…

Answer 3

a trustee

Question 4

Duties of a(n) ___ may include the care and investment of the trust assets to produce an income.

Answer 4

Trustee

Question 5

After paying the trust’s operating expenses and trustee’s fees, income is paid to or used for benefit of…

Answer 5

the beneficiary

Question 6

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 ___.

Answer 6

Trustor

Question 7

The ___ creates the trust.

Answer 7

Trustor

Question 8

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.

Answer 8

Trustee

Question 9

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 ___.

Answer 9

Beneficiary

Question 10

The ___ is the person who benefits from the trust.

Answer 10

Beneficiary

Question 11

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 ___.

Answer 11

Trustee

Question 12

The ___ is a fiduciary who acts in confidence or trust and has a special legal relationship with the beneficiary

Answer 12

Trustee

Question 13

The trustee is a ___ who acts in confidence or trust and has a special legal relationship with the beneficiary

Answer 13

Fiduciary

Question 14

The trustee is a fiduciary who acts in confidence or trust and has a special legal relationship with the ___

Answer 14

beneficiary

Question 15

The trustee’s power and authority are limited by…

Answer 15

terms of the trust agreement, will, or deed in trust

Question 16

Who should be consulted on the subject of trusts?

Answer 16

Attorneys or tax experts

Question 17

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.

Answer 17

Living or testamentary trust
sole asset in a land trust

Question 18

In ___ trusts, real estate is the only asset

Answer 18

Land

Question 19

In the case of land trusts, the ___ usually is also the trustor

Answer 19

Beneficiary

Question 20

In the case of land trusts, the beneficiary usually is also the ___.

Answer 20

Trustor

Question 21

___ trusts are frequently created for the conservation of farmland, forests, coastal land, and scenic vistas

Answer 21

Land

Question 22

A distinguishing characteristic of a(n) ___ trust is that public records usually do not name the beneficiary.

Answer 22

land

Question 23

A distinguishing characteristic of a land trust is that public records usually do not name the ___.

Answer 23

beneficiary

Question 24

A beneficial interest in a land trust is ___ property.

Answer 24

Personal

Question 25

When referencing land trusts, the beneficial interest in property can be pledged as security for a loan without having a(n) ___ recorded.

Answer 25

Mortgage

Question 26

When does a land trust transfer?

Answer 26

At the beneficiary’s death

Question 27

How long does a land trust typically continue?

Answer 27

A definite term

Question 28

If the beneficiary does not extend the land trust term when it expires, the trustee is usually obligated to ___ the real estate.

Answer 28

Sell

Question 29

If the beneficiary does not extend the land trust term when it expires, the ___ is usually obligated to sell the real estate

Answer 29

trustee

Question 30

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 ___.

Answer 30

beneficiary

Question 31

In regards to land trusts, Illinois law requires that the trustee disclose the ___ to certain parties under specific sircumstances

Answer 31

Beneficiary’s name

Question 32

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.

Answer 32

the beneficiary’s name

Question 33

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

Answer 33

the beneficiary’s name

Question 34

In regards to land trusts, in Illinois, ___ must be revealed if selling the entrusted property by land contract

Answer 34

the beneficiary’s name

Question 35

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

Answer 35

the beneficiary’s name

Question 36

In regards to land trusts, in Illinois, ___ must be revealed if a fire inspector or another officer is investigating arson

Answer 36

the beneficiary’s name

Question 37

___ relates to the creation of a living, testamentary, or land trust

Answer 37

Deed in trust

Question 38

___ is a financing document simlar to a mortgage

Answer 38

Deed of Trust

Question 39

Trust deed can mean both ___ and ___.

Answer 39

Deed in trust and deed of trust