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7 Cards in this Set
- Front
- Back
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What is required to create a trust?
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1. Settlor - with capacity
2. Delivery 3. Res 4. Trustee (not required because court will appoint) 5. Beneficiary (RAP) 6. Intent to create a trust 7. Lawful purpose |
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What is required for a trustee to resign?
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1. Court approval showing cannot appropriately serve, and
2. Give accounting of property before, disbursements made, and property now |
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What are the exceptions to spendthrift trust effectiveness?
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1. Contracts for necessities.
2. Child support 3. Interest retained by settlor/revocable 4. Federal tax |
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What must the trustee do under the Uniform Prudent Investor Act (UPIA)?
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Custom-tailored investment strategy with factors like:
1. economic conditions 2. inflation/deflation 3. tax consequences 4. investment role 5. expected return 6. need for liquidity |
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What is the standard for UPIA?
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Invest for total return. Prudence measured by conduct at time of decision.
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What does the Uniform Principal & Income Act (UP&IA) allow a trustee to do?
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Allocate capital gains to income
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What is the allocation for mineral leases?
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Same as O&G! Nominal delay rentals to income, royalty split "equitably" (85% to income)
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