Trusts Flashcards
The person who owns equitable title to property held in trust is called a _____
Beneficiary
When does a resulting trust occur?
When a trust, or part of a trust, fails
A creditor of a beneficiary can reach trust principal or income only when such amounts __________
become either payable to the beneficiary or subject to the beneficiary’s demand
What does a possibility of reverter follow?
A fee simple determinable
Under the old rule, the life beneficiary was entitled to _____ and the holder of the remainder was entitled to ______
income, principal
What is a surviving spouse entitled to in California?
In California, the decedent’s surviving spouse is entitled to the decedent’s one-half of community property and quasi-community property, and one third of the decedent’s separate property if the decedent is survived by more than one lineal descendant.
RAP
Under the Rule against Perpetuities, an interest is valid only if it must vest or fail to vest within a life in being plus twenty-one years.
When does a trust automatically terminate?
A trust automatically terminates only when the trust purpose has been accomplished.
A trust will not fail if a trustee ____________
dies, becomes disabled, resigns, or refuses to accept the office. Instead, the court will appoint a successor trustee, unless the settlor expressed an intent that the trust should continue only as long as a particular trustee served.
True or False: A trustee must disclose to the beneficiaries any possible breaches of trust.
True
What does a valid trust require?
A settlor, a trustee, an ascertainable beneficiary, trust res, and a valid trust purpose.
When can a beneficiary’s creditors reach the trust principal or income?
Only when such amounts become payable to the beneficiary or are subject to her demand
