Trusts

Question 1

Basic Rule of Termination of Trust

Answer 1

An active trust may not be terminated, even with consent of all beneficiaries, if a material purpose of the settlor remains to be accomplished

Question 2

Private Express Trust

Answer 2

A fiduciary relationship with respect to property whereby one person (trustee) holds legal title for the benefit of another (beneficiary) and which arises out of a manifestation of intent to create it for a legal purpose.

Question 3

Spendthrift Provision

Answer 3

A provision that prevents beneficiary from transferring, and creditors from attaching, his right to future payments

Question 4

Resulting Trust

Answer 4

An implied-in-fact trust based on presumed intent

Question 5

Trustee’s powers

Answer 5

• Those specifically enumerated
• those provided by state law and court decree
• Implied powers

Question 6

Trustee’s implied powers

Answer 6

Those helpful and appropriate in carrying out trust purpose

Question 7

Trustee’s Duties

Answer 7

• Duty of due care
• Duty of loyalty
• Duty to Invest
• Duty to Earmark
• Duty to Segregate
• Duty not to delegate
• Duty to Account