Trusts Flashcards
a remainder interest in a charitable trust that is triggered by the termination of the trust’s specific charitable purpose must give way to the application of the doctrine of cy pres if
21 years or more have passed since creation of the trust
Is a trust that receives a devise from the will of the settlor of the trust (i.e., a “pour over” trust) an invalid trust due to failure to conform to the formalities required for a will?
No
Pour over trust is valid if
The trust was identified in the testator’s and the terms of the trust were set forth in a written instrument.
Requirement for Trust for care of animals
Animals must be alive during settlor’s lifetime… can include more than one animal
A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of
(I) The amount to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred or
(ii) the profit the trustee made by reason of the breach.
In general, is a self-settled irrevocable trust protected from claims against the settlor?
No
To what amount can a creditor of the settlor reach?
the maximum amount that can be distributed to the settlor or for the settlor’s benefit
Is a self-settled irrevocable trust protected from claims against the settlor?
No
What must a trustee of a testamentary trust do to serve as trustee
qualify with the clerk of the circuit court or the court
To whom are the duties of the trustee owed if the trust is revocable?
Exclusively to the settlor during settlor’s lifetime
While a trust is revocable, a trustee may follow the directions of
The settlor even if directions violate the trust terms
If exculpatory clause provides immunity for a breach committed in bad faith or with reckless indifference to trust purposes or the interests of the beneficiaries
The clause excusing breach of trust is NOT enforceable
When can Creditors of the beneficiary of a spendthrift trust reach the interest of the beneficiary?
Not until the beneficiary is entitled to receive a distribution of that interest.
exception: what kind of creditor may reach the beneficiary’s interest in the spendthrift trust?
a child of the beneficiary who has a judgment or court order against the beneficiary for support
When can court enter an order terminating the trust?
If all of the beneficiaries as well as the settlor of an irrevocable noncharitable trust consent to its termination, even if the termination of the trust is inconsistent with a material purpose of the trust.
