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27 Cards in this Set
- Front
- Back
What are the requirements to create a valid trust?
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1. Intent by the settlor to presently create a trust
2. Trust property 3. One or more beneficiaries 4. Trustee |
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What is needed to establish undue influence?
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Product of influence was trust that wouldn't have been executed but for the influence
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How can the inference against creation of a trust be overcome?
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1. Directions are definite and precise
2. Directions are addressed to executor/administrator 3. Failure to impose trust results in unnatural disposition 4. Extrinsic evidence shows transferor had been supporting intended beneficiary prior to executing instrument |
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What happens if a trustee dies?
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The trust goes to the successor they name or the court appoints a successor
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What are the grounds for removing a trustee?
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1. Serious breach of trust
2. Legal or practical incapacity 3. Unfitness such as drunkenness, extreme old age, and other practical inability 4. Refusal to post bond/account 5. Existence of significant conflict of interest 6. Trustee's insolvency 7. Extreme friction/hostility between trustee and beneficiaries |
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Does a trust of tangible property need to be in writing?
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No.
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Does a trust of real property need to be in writing?
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Yes.
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A pays B to make a trust for A in future. B acquires the property for the trust, but makes no manifestation of intent to create a trust. What happens?
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Trust automatically created.
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When are beneficiaries not necessary to the validity of a trust?
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1. Charitable trusts (enforceable by state attorney general)
2. Honorary trusts (for animals and to maintain graves) |
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If a trust's beneficiaries are not identified, what happens?
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If susceptible to identification when interests are to come into enjoyment, OK. Otherwise, fails.
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Can a settlor say "hey, trustee, you pick"?
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Yes.
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What is a spendthrift trust?
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A trust that precludes the beneficiary from voluntarily/involuntarily transferring interest. Creditors are precluded from reaching it.
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Can you sell your interest in a trust?
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Yes, if not a spendthrift trust and if the interest is not conditioned on survival.
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Can a creditor reach trust assets?
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Yes, to the extent of the beneficiary's interest, if not a spendthrift trust.
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After distribution, can creditors reach trust funds?
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Yes, even if they're spendthrift.
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What makes a charitable trust special?
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1. Must have indefinite beneficiaries
2. May be perpetual 3. Cy pres doctrine applies |
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What must the purpose of a charitable trust be?
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Benefitting the public
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Who are the official beneficiaries of a charitable trust?
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The community at large
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Does an individual eligible for the benefits of a charitable trust have standing to enforce the terms?
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No.
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Who has standing to enforce the terms of a charitable trust?
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The state attorney general.
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What is the cy pres doctrine?
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When a charitable purpose selected by the settlor is impractical, if the court finds the settlor had a general charitable purpose rather than a specific purpose to help only the named charity, it will select an alternative charity.
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Can you penalize someone for contesting the trust?
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No.
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Can you convey homestead property away from your spouse without asking them?
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No.
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What are the duties of trustees?
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1. Loyalty
2. No comingling 3. No delegation of functions a reasonably prudent person wouldn't delegate |
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What is the exception to not being able to delegate your trustee duties?
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Can delegate investment/management functions that a prudent trustee could delegate if use reasonable care/skill/caution in
1. Selecting agent 2. Establishing scope/terms of delegation 3. Periodically reviewing agent's actions to monitor performance/compliance |
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When can you seek judicial modification of a trust based on change in circumstances?
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1. Purposes fulfilled/illegal/impossible
2. Because of changed circumstances not known to/anticipated by settlor, compliance would defeat/impair accomplishment of material purpose of trust |
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How does the rule against perpetuities work in Florida?
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1. Must vest/terminate within 21 years after death of individual then living
2. Vests/terminates within 360 years after creation (Doesn't apply to charitable trusts.) |