Trusts

Question 1

7 requirements for creating a trust

Answer 1

1. settlor
2. intent
3. trustee
4. trust res
5. ascertainable beneficiaries
6. valid purpose
7. real property requires a writing to satisfy SOF

Question 2

Settlor’s capacity must be clear of

Answer 2

Duress
fraud
mental capacity (issues)
undue inflience
or mistake

Question 3

If fraus, duress, undue influence or mistake is found in a provision of the trust what happens?

Answer 3

that provision is struck and the remainder remains

Question 4

What is a “valid purpose” of a trust?

Answer 4

1. lawful
2. not against public policy
3. possible to achieve

Question 5

Who can revoke a Revocable trust?

Answer 5

always revocable by settlor or grantor

Question 6

Is an irrevocable trust never able to be revoked?

Answer 6

Yes, unless by ct order

Question 7

What is the** remedy** for breach of trust

Answer 7

removal of trustee

Question 8

What are damages awarded when a breach of trust is found?

Answer 8

money damages

Question 9

Trustee’s Duties

Answer 9

1. admin in good faith
2. loyalty (no self dealing)
3. impartiality
4. preudent admin
5. trsut accounting/ keep benes informed

Question 10

What is a spendthrift provision?

Answer 10

a provision that prevents creditor’s bene to take any money from the trust unless for alimony, child support, and taxes.

Question 11

elements of undue influence from Carpenter

Answer 11

1. bene is present at execution
2. testator wants to draft will
3. bene reccomends legal counsel
4. bene has knowledge of assets in will
5. bene gives instruction on how to draft the will
6. bene proures witness
7. who safekeeps the will

Question 12

Settlor requires

Answer 12

1. capacity
2. right to covey property
   can be multiple

Question 13

When is intent manifested?

Answer 13

at creation

Question 14

T/F intent to create a trust must be written

Answer 14

False it can be oral or written

Question 15

Can a trustee be the settlor

Answer 15

yes

Question 16

T/F trustee can be reasonably compensated

Answer 16

true; and fully reimbursed for expenses used to admin the trust

Question 17

How does a trustee properly decline to act

Answer 17

must be in wiritng to settlor or benes

Question 18

How does a trustee properly accept duties?

Answer 18

1. substantially comply with trust provisions
2. accepting deliver of trust property
3. perfome duties

Question 19

how does a trustee properly resign

Answer 19

1 through ct approval OR
30 days written notice to settlor if alive and or benes

Question 20

why would a trustee be removed?

Answer 20

1. incapacitation
2. serious breach of trust duties
3. by the Ct
4. if settlor or benes have standing to bring action
   Once removed, ct will appoint new trustee

Question 21

what can be included as trust res?

Answer 21

1. real property
2. tangible property
3. intangible property
4. business interest
5. contingent assets

Question 22

Trust res must be

Answer 22

1. property or rights owned at the time of trust execution
2. specific and identifiable

Question 23

When must benes be ascertainable?

Answer 23

now or in the future subject to RAP

Question 24

T/F: settlor can never be bene

Answer 24

false; they can so long as they are not sole beneficiary and sole trustee too

Question 25

hows does a bene accept and disclaim their trust interest?

Answer 25

Acceptance is presumed
Disclaimer must be in writing

Question 26

can trusts be without definite bene?

Answer 26

yes,
1. charitable trusts
2. pet trusts
3. trusts for non-charitable purposes
4. trustee to select bene from indefinite class

Question 27

Trustee’s Powers

Answer 27

1. buy/sell/invest/mortgage/pledge trust property
2. prosecute/defend/compromise lawsuits

Question 28

antilapse statute

Answer 28

substitute another beneficiary for the predeceased devisee.