All flashcards

112 cards

1What is a trust?
2What relationship does a settlor have to a trust?
3May the trustee of a trust be either a natural person or an artificial entity?
4May a living trust distribute property during the settlor’s lifetime?
5What is an express trust?
6What must a settlor do to create a trust?
7What is the trust res?
8Must the property that is the subject of a trust be ascertainable?
9May a settlor create a trust of property in which the settlor owns no interest?
10In general, how must a settlor describe the trust property to satisfy the requirement that the subject of a trust be ascertainable?
11A settlor declared that he held “all land that I may ever own” as trustee for the benefit of a named beneficiary. At the time of the declaration, t...
12Under the common law of trusts, may an animal be a private-trust beneficiary?
13Will a trust necessarily fail for lack of a beneficiary if no beneficiary is living at the time the trust is created?
14A testator’s will created a trust for the benefit of “such of my friends as the trustee shall select.” Under the common law of trusts, does the tru...
15In general, will a trust fail if the designated trustee is unavailable or unwilling to serve as trustee?
16May a legal entity serve as trustee of a trust?
17A man’s will left his estate “to my brother, in trust for the benefit of my children.” The will continued, “If, however, my brother is unwilling or...
18What is a revocable trust?
19A man declared in writing that he held land in trust for the benefit of certain named beneficiaries. The trust was valid, and the declaration said ...
20What is the capacity required to create a revocable living trust?
21What is an irrevocable trust?
22What is the primary difference between a revocable trust and an irrevocable trust?
23Is an irrevocable living trust a form of will substitute?
24What mental capacity must a settlor possess to create an irrevocable living trust?
25What is a testamentary trust?
26Is a testamentary trust revocable?
27Is a testamentary trust a form of will substitute?
28Must a testamentary trust be in writing?
29What is the capacity required to create a testamentary trust?
30What is a semisecret trust?
31A man’s will left a bank account to a friend “under the terms that I have expressed to him.” The same will left “all the rest of my property to my ...
32What is a pour-over devise?
33In the absence of a statute, what common law doctrines could validate a pour-over devise?
34Under the Uniform Probate Code (UPC), does a pour-over devise fail if the trust terms are not set forth in a writing?
35A man transferred his home to his daughter, naming her as trustee of his revocable living trust. The trust was to hold all property for the benefit...
36What is a charitable trust?
37Must a charitable trust have at least one ascertainable beneficiary?
38May a settlor create a charitable trust without specifying the trust’s charitable purpose?
39Are charitable trusts subject to the rule against perpetuities?
40Under traditional common law principles, must an interest in trust be alienable?
41A settlor created a trust for the benefit of her daughter. Under the terms of the trust, the daughter was entitled to a fixed sum of money from the...
42What is a protective trust?
43What is a discretionary trust?
44Under traditional law, is the beneficiary’s interest in a discretionary trust assignable?
45Under what circumstances can the beneficiary of a discretionary trust compel a distribution?
46A settlor created a trust for the benefit of his descendants, giving the trustee “absolute and unfettered discretion” over distributions to the ben...
47Under the UTC, what types of creditors have standing to compel a distribution from a discretionary trust?
48What is a support trust?
49In jurisdictions following the traditional law that distinguished between support and discretionary trusts, may the beneficiary of a support trust ...
50Under the UTC, what types of creditors have standing to compel a distribution from a support trust?
51A settlor created a support trust for the benefit of her children, providing that the trustee “shall make distributions for the comfortable support...
52May a settlor restrain the involuntary alienation of an interest in trust while leaving the beneficiary free to assign his or her interest for value?
53A settlor created a trust for the benefit of her children, granting the trustee “absolute and unfettered discretion to make distributions to the be...
54What is a self-settled spendthrift trust?
55Under the UTC, what are the exception creditors against whom a spendthrift provision is unenforceable?
56What is a nonfiduciary power of invasion?
57What is a fiduciary power of invasion?
58Under what circumstances does a settlor have a power of invasion under the UTC?
59A settlor transferred a portfolio of investments to a trustee. The trust terms directed the trustee to manage the portfolio for the benefit of the ...
60In what ways can a settlor amend or revoke a revocable trust under the UTC?
61If a revocable trust not involving community property has more than one settlor, may each settlor revoke or amend the trust as to property she has ...
62May either spouse solely amend a revocable trust involving community property?
63Can an irrevocable trust be amended or revoked under the UTC if the settlor and all beneficiaries consent, even if the amendment is inconsistent wi...
64A settlor granted land to his brother as trustee. The trust terms provided that the brother would hold the land for the benefit of certain named be...
65A settlor created an irrevocable spendthrift trust for the benefit of his children. At the time of creation of the trust, the settlor was worried t...
66Is a trust’s spendthrift protection always a material purpose of the trust under the UTC?
67Under what circumstances may a court approve a proposed modification or termination of an irrevocable trust without the consent of all beneficiaries?
68Under the UTC, may a court modify or terminate an irrevocable trust based on circumstances the settlor did not anticipate upon creating the trust?
69What is the doctrine of cy pres?
70In the early 1900s, a settlor created a charitable trust to operate a facility for the treatment of tuberculosis. Over the course of the century, t...
71Under the UTC, may a court modify or terminate an irrevocable trust if enforcing its existing terms would be impracticable or wasteful?
72Under what circumstances does the UTC permit modification or termination of an irrevocable trust due to mistake?
73May a court modify or terminate an irrevocable trust under the UTC to achieve the settlor’s tax objectives?
74Under the UTC, what is the standard for modification of a noncharitable irrevocable trust if all the beneficiaries consent?
75Under the UTC, may a court modify or terminate a trust if the value of the trust property does not justify the costs of administering the trusts?
76Does a trust automatically terminate when all trust property is withdrawn?
77In what ways can a trust terminate under the UTC?
78Under the UTC, what is the standard for termination of a noncharitable irrevocable trust if all the beneficiaries consent and the settlor does not ...
79Under the traditional common-law approach to termination of trusts, would a spendthrift trust have a material purpose for continuation?
80A settlor created a testamentary trust for the benefit of her children, giving the trustee “absolute discretion” to make distributions to the child...
81When do a trustee’s duties concerning the trust begin?
82Is a trustee entitled to reasonable compensation?
83How does one accept a trusteeship?
84Under what circumstances is a trusteeship rejected?
85If a trusteeship becomes vacant, may a court appoint a replacement trustee?
86How may a trustee resign under the UTC?
87Under what circumstances may a court remove a trustee under the UTC?
88What general powers do trustees have under the UTC?
89In addition to general powers, does the UTC also confer specific powers on the trustee?
90What primary duties does the UTC impose upon trustees?
91May a trustee delegate his duties and powers to an agent?
92If a settlor creates a trust with multiple co-trustees, must the co-trustees act unanimously under the UTC?
93What limitations period does the UTC impose upon actions brought by beneficiaries against a trustee for breach of trust?
94What remedies may a court impose following a trustee’s breach of trust?
95Does the duty of prudence require a trustee to avoid high-risk investments?
96A testamentary trust was initially funded with a decedent’s portfolio of investments, which consisted solely of stock in a single company. The trus...
97Does a court applying the UPIA use hindsight to evaluate the trustee’s investments of trust property?
98Under what circumstances would a trustee’s special skills be relevant in assessing whether the trustee has acted prudently?
99Does a trustee of a discretionary support trust have a duty to inquire into the circumstances of the beneficiaries in order to determine what distr...
100May the trust terms completely excuse a trustee for breaching the duty of care?
101What is self-dealing under the UTC?
102Is objective fairness under the circumstances a valid defense to a trustee’s self-dealing?
103A court appointed a man to be the personal representative of a decedent’s intestate estate. The personal representative was a real estate dealer. T...
104Under UTC, what are the exceptions to the general rule that a self-dealing transaction is voidable?
105Under the UTC, what transactions involving trust property presumptively are affected by a conflict between the trustee’s personal and fiduciary int...
106Can transactions not involving trust property can be considered self-dealing under the UTC?
107What types of trustee-beneficiary transactions does the UTC exempt from the duty of loyalty, so long as the transactions are fair to the beneficiary?
108Does the duty to act impartially mean that a trustee must treat all beneficiaries equally?
109Does the trustee of a purely discretionary trust have a duty of impartiality?
110Under the Uniform Principal and Income Act (UPAIA), may a trustee adjust between principal and income?
111Under the Uniform Principal and Income Act (UPAIA), must a trust instrument specifically authorize a trustee to adjust between principal and income...
112What should a trustee’s paramount consideration be in adjusting between principal and income in the trust property?

What is a trust?

Keyboard shortcuts: