Med - Trust

Question 1

Revocable and Irrevocable

Answer 1

Revocable by default UNLESS expressly stated

becomes irrevocable upon death or incapacity of settlor

Question 2

Charitable Trust

Answer 2

confer a substantial benefit to society
beneficiary may be indefinite or contain class of person
Does not require a statement of specific purpose or beneficiary

Question 3

Termination of Irrevocable Trust

Answer 3

(1) settlor and all beneficiaries agree while settlor is still alive (2) all beneficiaries agree and will not frustrate purpose of trust or (3) by operation of law through merger or passive trust

Question 4

Trustee Powers

Answer 4

expressly granted in trust or implied

Question 5

Trustee - duty to distribute

Answer 5

duty to distribute trust income and in accordance with the directions in the trust instrument

Question 6

Prudent Investor Rule

Answer 6

requires the exercise of care, skill, prudence of reasonable investor investing his own property
includes: diversifying trust assets, avoiding risky investment, duty to monitor, sell and keep assets productive

Question 7

Remedies against Trustee

Answer 7

may be removed and held liable for: (1) any loss or depreciation in the value of the trust (2) any profit made by trustee through breach (3) any profit that would have accrued to the trust but for breach