Trusts

Question 1

creator of trust

Answer 1

settlor

Question 2

Resulting

Answer 2

When fails, revert to origin estate

Question 3

Gift over clause

Answer 3

X

Question 4

Constructive trust

Answer 4

X

Question 5

bifurcated transfer

Answer 5

SETTLOR transfers to second-party TRUSTEE to manage for benefit of third-party BENEFICIARY.

Question 6

who hold legal title

Answer 6

trustee

Question 7

who hold equitable title

Answer 7

beneficiary (enjoys)

Question 8

irrevocability (majority)

Answer 8

majority rule - presumed to be irrevocable unless expressly states otherwise

Question 9

irrevocability (UTC)

Answer 9

presumed revocable unless expressly stated irrevocable

Question 10

who holds title

Answer 10

trustee - legal title

beneficiary - equitable title

Question 11

settlor can declare himself to be the trustee of a trust by using

Answer 11

declaration of trust

Question 12

spendthrift provision

Answer 12

creditor cannot reach the trust property until the trustee makes a distribution to the beneficiary

Question 13

Claflin Doctrine

Answer 13

trustee can block the premature termination of a trust if it is still serving some material purpose

Question 14

If a trustee has special skills

Answer 14

trustee is expected to use those skills and will be held to a heightened standard.

OTHERWISE

trustee satisfies the duty of care if the trustee uses the care that a person of ordinary prudence would use in the care of his own estate.