Missed Essay Subjects

Question 1

What’s it called when you reduce other people’s shares of an estate b/c of pretermitted child?

Answer 1

Abatement

Question 2

How do you abate other people’s shares?

Answer 2

You look at the % that each person took from the total of the gift, and that is the % that must be taken out from what the pretermitted person got. (So if one person gets 1/2 and the pretermitted child gets $100k, the person gettin 1/2 must pay 1/2 of $100k. If someone takes 1/4 of an estate, they have to give up 1/4 of $100k)

Question 3

“The interests of the beneficiary are inalienable and not subject to the claims of creditors”: What kind of trust is this called?

Answer 3

Spendthrift trust
Only “preferred creditors” can take out (The IRS, creditors who provide ‘necessities of life to beneficiary’ (so credit card company who pays for groceries), child for child support, alimony, spousal support). SOME JX SAY ANY SURPLUS $ RECEIVED NOT NEEDED TO SURVIVE GOES TO CREDITORS

Question 4

Terminating a trust, how can you do it?

Answer 4

Only if all beneficiaries agree so long as it does not conflict with purpose of trust

Question 5

“I give this property to T as trustee to distribute to my kids A, B, and C as he sees fit” what kind of trust is this?

Answer 5

discretionary trust, sole discretion to pay anything if ever. Beneficiary can assign (only if there is an actual payment made, and trustee must pay the assignee)

Question 6

“I give this property to T as trustee to distribute to my kids, A, B, and C enough for necessities” what kind of trust is this?

Answer 6

support trust (CAN'T ASSIGN, CREDITORS CAN'T ATTACH UNLESS PREFERRED CREDITOR) preferred = IRS, necessities of life creditors, child for child support, alimony, spousal support.
This trust includes health, support, maintenance AND education

Question 7

What are the two kinds of trusts arising as a matter of law?

Answer 7

Constructive trusts and resulting trusts

Question 8

What is a resulting trust?

Answer 8

When a trust is created because there is nowhere for the trust property to go, so it reverts back to the settlor or the settlor’s beneficiaries/decedents

Question 9

Secret trusts vs. semi-secret trusts:

Answer 9

See p. 27. Secret= “I’ll give you (A) $100k to take care of B”. A agrees. Will says “I devise $100k to A”. Parol evidence allowed to show B was the beneficiary, and A doesn’t get to keep property, he becomes constructive trustee who gives property to B.
Semi-secret= “I devise $100k to A as trustee” (no beneficiary is indicated, so resulting trust is created and property goes back to settlor)