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19 Cards in this Set
- Front
- Back
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Who can be a trustee?
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Anyone that's over 18, competent, and not a convicted felon
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Requirement for beneficiaries
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Must be definite and ascertainable
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Requirements for valid execution of trust
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In writing, signed by settlor and trustee, and either acknowledged or signed by 2 witnesses
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Requirements for revocable lifetime trust
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at least 1 beneficiary who is not settler; settlor can't be sol beneficiary when also named trustee
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Requirements for pour-over gift
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Trust must be in existence or executed concurrently with will
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Can creditors reach a Totten balance?
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yes, both before and after settlor's death
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When can someone defeat right of surviroship for joint bank account?
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When he shows by clear and convincing evidence that account was established for convenience, and not with intent to create right of survivorship
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Requirements for charitable trust
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Indefinite beneficiaried (no named persons) and for a reasonably large group
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Honorary trust
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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
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Constructive trust
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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 |
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Spendthrift rule
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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 |
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Exceptions to spendthrift protection
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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 |
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Does spendthrif rule apply to interest retained by settlor?
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No
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When is modification of trust by beneficiary or trustee allowed?
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When objectives of trust would be defeated or substantially impaired if the trust were not modified
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What can trustee not do?
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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 |
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What are trustee's affirmative duties?
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Separate trust funds from personal assets
Earmark trust assets by titling them in trustee's name |
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When is trustee personally liable on Ks?
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When he signs in his persnal capacity (including Mary Jones, Trustee of John)
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What torts is trustee personally liable for?
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All torts by trustee or trustee's employees (absolute rule - buy insurance)
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What governs trustee's investment powers?
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Uniform Prudent Investor Act -- "modern portfolio series"
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