Trusts Quiz Flashcards
What kind of trusts are inside of a will?
trust for minors, and supplemental needs trust
What is an intervivos trust?
A trust made during the lifetime of the trustor. It becomes effective immediately and upon execution of your payment.
What is an irrevocable trust for?
Helps with Medicaid protection because you are not able to take the assets back once they go into an irrevocable trust.
What is probate?
A process to prove the will is valid, this is determined by a judge. This only happens when the testator dies.
When a testator has passed, what are they now called?
Decedent
What is a testator?
The owner/ creator of the trust.
When does an intervivos trust terminate?
It ends when the grantor or grantee dies.
What is a life estate?
It allows you to remain living in your home until you die even though the property has been transferred via trust.
What is another name for the principal of the trust?
Corpus
What is a fiduciary duty?
A responsibility to the principal to do everything in their best interest, not in yours.
What is a Declaration of Trust?
The actual copy of the trust agreement.
What is a remainderman?
This person gets whatever is left of the principal. This happens when all beneficiaries have passed, and they become the ultimate beneficiary.
What is a Spendthrift trust?
This is a type of trust that gives someone more responsible the authority to control the trust for the benefit of the beneficiary.
What is a supplemental needs trust?
This kind of trust leaves money for the needs of the testator in addition to any government funds they are receiving.
What is an express trust?
Any trust that is created by the deliberate and voluntary actions of the trustor, evidenced by a written document. An express trust is classified according to the purpose for which it was created.
How long is the executor responsible for the trust?
The executor is typically responsible to oversee the terms of the trust for usually a year or less than a year.
What is a testamentary trust?
A trust that is created by a will.
What is a trustee?
A person who holds legal title to trust property.
