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19 Cards in this Set

  • Front
  • Back
Who can be a trustee?
Anyone that's over 18, competent, and not a convicted felon
Requirement for beneficiaries
Must be definite and ascertainable
Requirements for valid execution of trust
In writing, signed by settlor and trustee, and either acknowledged or signed by 2 witnesses
Requirements for revocable lifetime trust
at least 1 beneficiary who is not settler; settlor can't be sol beneficiary when also named trustee
Requirements for pour-over gift
Trust must be in existence or executed concurrently with will
Can creditors reach a Totten balance?
yes, both before and after settlor's death
When can someone defeat right of surviroship for joint bank account?
When he shows by clear and convincing evidence that account was established for convenience, and not with intent to create right of survivorship
Requirements for charitable trust
Indefinite beneficiaried (no named persons) and for a reasonably large group
Honorary trust
Where no human is beneficiary - not at trust at all, but you can make honorary trust for pets (lasts for pet's life) and cemetary maintenance
Constructive trust
Not actually a trust, but an equitable remedy that disgorges unjust enrichments that result from unlawful conduct

"Trustee's" only duty is to convey property to person who should have it in equity
Spendthrift rule
In NY: automatic on interest, voluntary on principal

Protects beneficiary's interest form beneficiary's creditors by preventing voluntary or involuntary transfer of beneficiary's interest
Exceptions to spendthrift protection
Creditors who furnish necessities
Child support and alimony
Federal tax liens
Excss income beyond that needed for support and education (determined according to beneficiary's lifestyle)
10% levy provided by CPLR
Does spendthrif rule apply to interest retained by settlor?
When is modification of trust by beneficiary or trustee allowed?
When objectives of trust would be defeated or substantially impaired if the trust were not modified
What can trustee not do?
Sell or buy assets to/from himself and trust
Borrow trust funds
Lend money to trust
Profit as serving from trustee (except for fees)
Corporate trust cannot buy its own stock
What are trustee's affirmative duties?
Separate trust funds from personal assets

Earmark trust assets by titling them in trustee's name
When is trustee personally liable on Ks?
When he signs in his persnal capacity (including Mary Jones, Trustee of John)
What torts is trustee personally liable for?
All torts by trustee or trustee's employees (absolute rule - buy insurance)
What governs trustee's investment powers?
Uniform Prudent Investor Act -- "modern portfolio series"