Trusts

Question 1

Elective Shares

Answer 1

?

Question 2

Elective Shares

Answer 2

?

Question 3

Homestead

Answer 3

?

Question 4

How to create a valid trust?

Answer 4

To create a valid express trust in FLorida, there must be intent by the settlor to create the trust, a trustee, trust propery (res), delivery of the res to the trustee, and ascertainable beneficiaries. Beneficiaries possess the power to enforce the trust instrument by virute of holding equitable title to the property. The trust must also have a valid purpose, and the settlor must have legal capacity

Question 5

Who is the settlor?

Answer 5

The settlor is the creator of the turst.

Question 6

Rule of perpetuities (trusts) –>

Answer 6

provides that an interest must vest within 21 years of the lives in being, or within 360 years as required under teh Uniform Statutory Rule Against Perpetuities.

Question 7

Answer for Trusts Exam

Answer 7

1. Characteristics of Trust
   a. trust - settlor, trustee, delivery, beneficiaries
   b. RAP
2. Beneficiaries

Question 8

Unlawful killing of settlor

Answer 8

By statute Florida prohibits any person who unlawfully and intentionally kills or participates in procuring the death of a settlor from obtaining any trust interest that was dependent on the victim’s death. Such interest devolves as if the killer had predeceased the victim.

Question 9

Anti-Lapse statute –>

Answer 9

operates to create a substitute gift in the beneficiary’s surviving descendants.

Question 10

When can trustees be removed?

Answer 10

by court order if the trustee has committed a breach of trust, if there is a lack of cooperation with trustees, or if there is a failure of the trustee to effectively administer the trust.

Question 11

Duties of trustees =

Answer 11

loyalty and care to the trust, an accurate reporting, keep beneficiaries informed of trust administration, defend the trust against claims, keep trust property segregated, diversify trust investments, make the trust profitable, and not self-deal

Question 12

Can a sole trustee also be the beneficiary?

Answer 12

No, it is prohibited by law

Question 13

When does a court create a resulting trust, and what result?

Answer 13

When a trust fails in some way or when there is an incomplete disposition of turst property , a court may create a resulting trust requiring the holder of the property to return it to the settlor.

Question 14

What is a constructive trust?

Answer 14

A constructive trust is used as an equitable remedy to prevent unjust enrichment if wrongful conduct such as breach of contractual duty occurs.

Question 15

What is a constructive trust?

Answer 15

A constructive trust is used as an equitable remedy to prevent unjust enrichment if wrongful conduct such as breach of contractual duty occurs.

Question 16

Homestead

Answer 16

?

Question 17

How to create a valid trust?

Answer 17

To create a valid express trust in FLorida, there must be intent by the settlor to create the trust, a trustee, trust propery (res), delivery of the res to the trustee, and ascertainable beneficiaries. Beneficiaries possess the power to enforce the trust instrument by virute of holding equitable title to the property. The trust must also have a valid purpose, and the settlor must have legal capacity

Question 18

Who is the settlor?

Answer 18

The settlor is the creator of the turst.

Question 19

Rule of perpetuities (trusts) –>

Answer 19

provides that an interest must vest within 21 years of the lives in being, or within 360 years as required under teh Uniform Statutory Rule Against Perpetuities.

Question 20

Answer for Trusts Exam

Answer 20

1. Characteristics of Trust
   a. trust - settlor, trustee, delivery, beneficiaries
   b. RAP
2. Beneficiaries

Question 21

Unlawful killing of settlor

Answer 21

By statute Florida prohibits any person who unlawfully and intentionally kills or participates in procuring the death of a settlor from obtaining any trust interest that was dependent on the victim’s death. Such interest devolves as if the killer had predeceased the victim.

Question 22

Anti-Lapse statute –>

Answer 22

operates to create a substitute gift in the beneficiary’s surviving descendants.

Question 23

When can trustees be removed?

Answer 23

by court order if the trustee has committed a breach of trust, if there is a lack of cooperation with trustees, or if there is a failure of the trustee to effectively administer the trust.

Question 24

Duties of trustees =

Answer 24

loyalty and care to the trust, an accurate reporting, keep beneficiaries informed of trust administration, defend the trust against claims, keep trust property segregated, diversify trust investments, make the trust profitable, and not self-deal

Question 25

Can a sole trustee also be the beneficiary?

Answer 25

No, it is prohibited by law

Question 26

When does a court create a resulting trust, and what result?

Answer 26

When a trust fails in some way or when there is an incomplete disposition of turst property , a court may create a resulting trust requiring the holder of the property to return it to the settlor.

Question 27

When is there resulting trust with an inference arising in favor of the person who paid money for the property?

Answer 27

if property is purchased and paid for by one person and title is taken in the name of another

Question 28

What is a constructive trust?

Answer 28

A constructive trust is used as an equitable remedy to prevent unjust enrichment if wrongful conduct such as breach of contractual duty occurs.

Question 29

How to create a valid express trust in Florida:

Answer 29

Intent by the settlor to create the trust, a trustee, trust property (res), delivery of the res to the trustee, and ascertainable beneficiaries.

The trust must also have a valid purpose and the settlor must have legal capacity to create the trust. A trust will be created when property is transerred in trust to a trustee for the benefit of a third person or of the settlor. A simple declaration of trust will usually suffice if the settlor is also the trustee.

Question 30

Inter vivos trust –>

Answer 30

An inter vivos trust is presumed to be revocable unless the trust instrument clearly indicates that the trust is irrevocable. If revocable the settlor can amend or reoke the trust

After July 1, 2007, provisions that dispose of trust property upon the death of the settlor other than to the settlor’s estate will be ineffective unless the trust instrument and any amendments are executed in accordance with the formalities equied for the execution of a will in Florida?

Question 31

revocable inter vivos trust which dispose of trust property other than to the settlors estate =

Answer 31

must be executed in accordance with the formalities of a will in Florida:
requires a writing, signatures by the settlors and two witnesses.

Question 32

Can a trust be created for a class?

Answer 32

Yes, a private trust may be created for the benefit of the members of a class of persons, so long as the class is one that is reasonably definite.

Question 33

Duties of trustee =

Answer 33

A trustee is bound by a broad range of fiduciary duties designed to ensure that he acts solely in the best interests of the beneficiares when investing property and otherwhise managing the trust. Florida has adopted the uniform prudent investor act which requires the trustee to adminster the trust as a reasonble prudent person considering the purposes, terms, distribution requirements, and otehr circumstances of the trust while exercising reasonable care, skill and caution in doing so.

Question 34

Spendthrift provision =

Answer 34

A spendthrift provision expressly restricts the beneficiary’s power to voluntarily or involuntarily transer her equitable interest. A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transer of a beneficiary’s interest. If a spendthrist clause applies, a beneficiary cannot sell or gift her interest, and creditor’s are not able to attach it. Further, any attempted assignment is unenforceable.

Question 35

Valid trust =

Answer 35

A private express trust clearly states the present intention of a settlor, with capacity to create a trust, to transfer property to a trustee for the benefit of one or more definite (or ascertainable within the rule against perpetuities) beneficiaries.