r/s

Question 1

private trust req’s

Answer 1

intent, res, valid purpose, ascertainable beneficiaries

writing if real property, SoF

Question 2

intent

Answer 2

can be oral, writing, by conduct at same time or before transfer of property

Question 3

future interests and survival

Answer 3

CL: survival is not essential and deceased’s estate takes

UPC: future interests contingent on beneficiary surviving until distribution

Question 4

undue influence

Answer 4

mental or physical coercion exerted by third party on T with intent to influence testator that she loses control of own judgment

Question 5

fraud

Answer 5

misrep by 3P with intent to deceive settlor and intent to influence testamentary disposition

Question 6

charitable trust elements

Answer 6

intent; res; charitable purpose; general beneficiaries

charitable purpose: education, religion, poverty, health, government

unascertainable beneficiaries: community at large or changing group

Question 7

cy pres

Answer 7

can modify charitable trust to seek alternative trust purpose if original charity is illegal, impracticable, impossible only if T has general charitable intent

Question 8

alienability

Answer 8

beneficiary can assign interest to 3P unless statute or spendthrift

Question 9

support trust

Answer 9

directs trustees to pay income or principal as necessary to support beneficiary

creditors can’t reach unless providing necessity

Question 10

spendthrift trust

Answer 10

expressly restrict beneficiary power to transfer equitable interest and prevent creditors from reaching

Creditors cannot reach unless money owed for child or spousal support, basic necessities, or tax lien holders

Question 11

modifying or terminating irrevocable trust

Answer 11

settlor is alive –> settlor has no remaining interest in trust, consent of all beneficiaries and changing wouldn’t interfere with primary purpose

settlor is dead –> consent of all beneficiaries, unless unfulfilled material purpose

Question 12

automatic terminations

Answer 12

-trust purpose accomplished
-illegal, impracticable, impossible/changed circumstances

Question 13

changed circumstances modification

Answer 13

all beneficiaries consent and modification is consistent with material purpose of trust

unforeseen event frustrates purpose

Question 14

duty of care

Answer 14

follow trust terms
act as reasonably prudent person
special skills
oversee delegation
invest prudently and diversity
make property productive
impartial

IM SO FAr= invest/impartial, make property productive, special skills, oversee delegation, follow terms, act reasonable person

Question 15

duty to be impartial

Answer 15

don’t favor beneficiaries
balance interests of income and principal

Question 16

duty of loyalty

Answer 16

administer in good faith

self dealing: per se, irrebutable presumption
UNLESS trust doc authorizes it and fair

conflict of interest–> only ok if reasonable and good faith

ACS = administer, conflict of interest, self dealing

Question 17

other duties

Answer 17

duty to disclose info
duty to account

DA = disclose and account

Question 18

method of revocation of distribution

Answer 18

Revoke with substantial compliance with method in terms of trust, otherwise can revoke by later will that refers to trust or specifically devises property otherwise in trust

Question 19

contingent remainder

Answer 19

unascertainable grantee or condition precedent

Question 20

vested remainder

Answer 20

ascertainable grantee with no express condition precedent

Question 21

executory interest

Answer 21

termination upon specified condition and title will pass to third party

Question 22

constructive trust

Answer 22

Person holding property has title,
retention is unjust,
wrongful conduct

Question 23

presumption of revocable vs irrevocable

Answer 23

trusts presumed to be revocable. Right to modify or terminate.

Question 24

remedies for breach of fiduciary duty

Answer 24

Lost profits, interests, and other losses from breach ⇒ can sue for

Seek damages or removal of trustee

Constructive trust

Question 25

resulting trust

Answer 25

when trust fails, trustee must return property to settlor estate or if unjust enrichment

Question 26

inter vivos trust: delivery

Answer 26

must accompany the declaration of trust if a third-party trustee is named, whereby the settlor parts with dominion and control over the trust property

Question 27

parol evidence

Answer 27

Parol evidence—evidence outside of the written agreement is permitted to show the settlor’s intent only if the written agreement is ambiguous on its face

Question 28

totten trust

Answer 28

a designation given to a bank account in a depositor’s name as trustee for a named beneficiary (no separation of legal and equitable title); can be revoked by any lifetime act manifesting the depositor’s intent to revoke, or by will

Question 29

life insurance trust

Answer 29

proceeds go to trust upon insured’s death; trust is owner of policy and trust is irrevocable

Question 30

honorary trusts

Answer 30

for pets and not for private beneficiaries

Question 31

trustee's liabilities

Answer 31

third parties: The trustee is personally liable on contracts entered into and for tortious acts committed while acting as trustee; can seek indemnity from the trust if the trustee was acting within the scope of the trustee’s duties liable for others' acts: co-trustees are jointly liable; the trustee is liable for a predecessor’s breach if he failed to address it or was negligent in delivering property; generally, the trustee is liable for an agent’s breach if the trustee directs or conceals the agent’s act or fails to exercise reasonable supervision over the agent