Trusts and Estates

Question 1

Default rules (intestacy laws)

Answer 1

Govern the distribution of assets when there is no valid will.

Question 2

surviving spouse (intestacy laws)

Answer 2

Entitlement to a significant portion, or all, of the estate.

Question 3

Children and issue (intestacy laws)

Answer 3

Share the remainder of the estate.

Question 4

Parents and Collaterals

Answer 4

Entitled if there are no surviving spouse or descendants.

Question 5

Per Stirpes vs. Per Capita Distribution

Answer 5

Methods of dividing an estate among descendants.

Question 6

Simultaneous death

Answer 6

Uniform Simultaneous Death Act: If two people die simultaneously, each is treated as having predeceased the other for inheritance purposes.

Question 7

Advancements

Answer 7

Lifetime Gifts: Considered advancements against an heir’s share of the estate if intended as such.

Question 8

Formal requirements of wills

Answer 8

1. Writing: Generally required.
2. Testamentary Intent: Clear intent to create a will.
3. Capacity: Legal and mental capacity to make a will.
4. Witnesses: Usually requires two disinterested witnesses.

Question 9

holographic will

Answer 9

handwritten and signed by the testator

Question 10

Nuncupative will

Answer 10

oral wills made before witnesses

typically only for personal property and in limited circumstances

Question 11

Revocation (how to do it)

Answer 11

Physical act (e.g., tearing, burning), subsequent will or codicil, or operation of law (e.g., divorce).

Question 12

revival (revocation)

Answer 12

can be reviewd if re-executed or republished by codicil

Question 13

incorporation by reference

Answer 13

documents not present at the time of will execution can be included if certain conditions are met

Question 14

acts of independent significance

Answer 14

acts or events that affect the distribution of property and are significantly for reasons other than their effect on the will

Question 15

Lack of capacity

Answer 15

grounds for contest

testator did not have the requisite mental capacity

Question 16

undue influence

Answer 16

grounds for contest

coercion that overpowered the testators free will

Question 17

fraud

Answer 17

grounds for contest

misrepresentation intended to deceive the testator

Question 18

mistake

Answer 18

grounds for contest

error in the wills creation

Question 19

no contest clauses (enforceability)

Answer 19

clauses intended to dissuade will contests enforceability varies by jurisdiction

Question 20

Creating trusts

Answer 20

1. Intent: Clear intention to create a trust.
2. Res: Trust property.
3. Trustee: Person holding and managing the trust property.
4. Beneficiary: Person benefiting from the trust.
5. Purpose: Legal purpose for the trust.

Question 21

express trust

Answer 21

created intentionally by the settlor

1. private trust – For the benefit of specific individuals
2. charitable trust – For charitable purposes

Question 22

implied trust

Answer 22

created by law

1. Resulting Trusts: Arise from the conduct of the parties.
2. Constructive Trusts: Imposed to prevent unjust enrichment.

Question 23

Revocable trusts

Answer 23

can be altered or revoked by the settlor

Question 24

irrevocable trusts

Answer 24

cannot be altered or revoked once created

Question 25

Duties of the trustee

Answer 25

1. Duty of Loyalty: Act in the best interest of the beneficiaries.
2. Duty of Prudence: Manage the trust property with care.
3. Duty to Inform and Account: Provide information to beneficiaries and account for trust management.

Question 26

Modification (trusts)

Answer 26

Can be modified by settlor (if revocable), by beneficiaries (if all consent), or by court (under certain conditions).

Question 27

Termination (trusts)

Answer 27

Can be terminated by the terms of the trust, by revocation (if revocable), by consent of all beneficiaries, or by court order.

Question 28

reversion (trusts)

Answer 28

type of future interest

Interest retained by the grantor.

Question 29

possibility of reverter (trusts)

Answer 29

type of future interest

Follows a fee simple determinable.

Question 30

right of reentry (trusts)

Answer 30

Type of future interest

Follows a fee simple subject to condition subsequent.

Question 31

remainders (trusts)

Answer 31

type of future interest

Interest in a 3rd party that follows a life estate

Question 32

vested remainder (trusts)

Answer 32

type of future interest

certain to become possessory

Question 33

contingent remainder (trusts)

Answer 33

type of future interest

Depends on a condition precedent

Question 34

rules against perpetuities

Answer 34

no interest is good unless it must vest no later thna 21 years after the death of a measuring life

The rule against perpetuities is a legal rule that says when someone sets up a trust or gives away property in their will, the people who get that property must be able to own it within a certain amount of time. This rule helps make sure that property doesn’t stay tied up for too long and can be used by future generations. It’s like making sure everyone gets their turn to play with a toy without having to wait too long

Question 35

Powers of appointment

Answer 35

authority granted to a person to designate the recipients of certain property

Question 36

general power of appointment

Answer 36

donee can appoint to anyone including themselves

Question 37

special power of appointment

Answer 37

donee can appoint only to a specified group

Question 38

exercising powers of appointment

Answer 38

must complu with any formal requirements in the creating instrument

failure to exercise typically returns to the donors estate or follows an alternate distribution plan

Question 39

What is a personal representative’s Role

Answer 39

Executor (if named in will) or administrator (if appointed by court) manages the estate.

Question 40

what duties does a personal representative have?

Answer 40

Collect assets, pay debts, distribute property

Question 41

Probate process

Answer 41

1. Initiation: Filing of the will and petition for probate.
2. Notice: Notice to heirs, beneficiaries, and creditors.
   Inventory and Appraisal: Listing and valuation of estate assets.
3. Distribution: Payment of debts and distribution of remaining assets according to the will or intestacy laws.

Question 42

Joint tenancy (non probate transfer)

Answer 42

right of survivorship

Question 43

Beneficiary designations (non probate transfer)

Answer 43

things like

1. life insurance
2. retirement accounts

Question 44

trusts (non probate transfers)

Answer 44

property held in trust passes according to the trusts terms