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25 Cards in this Set
- Front
- Back
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Requirements for valid trust:
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(1) Settlor
(2) Delivery of legal title to (3) Property (res, corpus) to (4) Trustee who holds title for a (5) Beneficiary with (6) Intent to create a trust for a (7) Lawful purpose (8) In writing AND (9) Either acknowledged or signed by 2 witnesses |
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Who can be a trustee of a lifetime trust?
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Pretty much anyone
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Who can be trustee of a testamentary trust?
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Anyone EXCEPT
(a) people under 18 (b) incompetents (c) convicted felons (d) people incapable because of drunkenness, dishonesty, want of understanding, or improvidence (e) non-resident aliens UNLESS (1) related o the decedent AND (2) NY resident serves as co-fiduciary |
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What happens if the trust fails to name a trustee?
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NEVER invalidates the trust - the court can just appoint someobody
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What happens if beneficiaries are not ascertainable?
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Resulting trust for the residuary beneficiary
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What if the trust is on behalf of "family" or "next of kin"?
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That's ok - apply intestacy rules to see who it's for...
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Does T have to intend to create an enforceable obligation in a trust?
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YES - "precatory" language ain't good enough
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Does the trustee have to actually DO stuff?
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YEP - a "passive" trust is not a trust
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What does it mean that the purpose must be lawful?
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(a) can't call for commission of a crime
(b) can't call for destruction of property (c) can't be against public policy |
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What kinds of things are against public policy regarding purposes of trust?
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Restriction of marriage or promotion of divorce
BUT it's ok to (a) condition upon spouse getting remarried (b) restrict within religious or ethnic group |
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Revocable lifetime trust - discuss...
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(a) Settlor cannot be the only beneficiary
(b) Settlor may retain power to terminate or revoke a trust |
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If a trust does not specify whether it's revocable or not, is it?
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NO - it's irrevocable
*BUT if all appropriate parties consent, it may be revoked anywho |
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Can creditors get at a revocable lifetime trust?
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YEP - the whole thing
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What counts as an asset for estate tax purposes when dealig with a revocable lifetime trust?
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The whole enchilada - if it's revocable OR the settlor retains interest income
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Can you make a testamentary gift to an existing trust?
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Yep, this is a POUR-OVER gift, as long as the trust was in existence before or executed concurrently with the will
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Can you make life insurance proceeds payable to a trust?
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Yes, by
(a) creating an unfunded trust and then naming trustee as beneficiary OR (b) creating testamentary trust and naming "trustee in will" as beneficiary |
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Is ITF enough to create a Totten trust?
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YEP
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Does the beneficiary of a Totten trust have any interest during the depositor's lifetime?
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NO
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Does the remainder of a Totten trust avoid probate?
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YES, except to the extent that it's a T-Sub
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How can the depositor revoke a Totten trust?
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(a) withdraw all funds from the account
(b) express revocation (c) by will |
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What are the requirements for an express revocation of a Totten trust?
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(a) Writing - naming beneficiary and financial institution
(b) Notarized (c) Delivered to the bank |
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What are the requirements for a revocation of a Totten trust by will?
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Will must name:
(1) beneficiary and (2) name of financial institution |
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Can creditors of a depositor reach a Totten trust account?
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Yes, before and AFTER death of the depositor
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Can you challenge a joint bank account as not having a right of survivorship?
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Yes - must present clear and convincing evidence that survivorship was not intended and account was only opened for convenience
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Who owns the cash money in a joint bank account?
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Each person owns 1/2, regardless of who put money in
*except where it's created after marriage - T-Sub |
