Types of Trusts Flashcards
1
Q
Revocable Trust
A
Can be revoked anytime during settlor’s life
IN presumes that trust is revocable, unless trust documents say otherwise
2
Q
Irrevocable Trust
A
Usually cannot be revoked by settlor
3
Q
Mandatory Trust
A
Trustee must distribute payments from the trust
Trustee DOES NOT have discretion to make payments
4
Q
Discretionary Trust
A
Trustee given power to distribute payments at their discretion
5
Q
Remedial Trust
A
Equitable remedy created by operation of law
Passive trust
6
Q
Dynasty Trust
A
Can continue for 100 years or longer
Avoids RAP
Avoids taxes
