PLST 235 Test 3

PLST 235 Test 3 Liberty University

1. It is a duty, as a trustee, to keep all current beneficiaries informed concerning the administration of the trust and to protect their interests.
2. There is only one way to terminate a trust and that occurs when the trust has been fulfilled.
3. If a trust does not have all five elements to make the trust valid, the trust will fail and property will be distributed through a residuary clause or by intestate succession.
4. A person can have a legal disability, like mental illness, and still be a trustee.
5. A trust does not have to be named, but giving it a name ensures that the trust is distinguishable from other legal documents in the client’s possession.
6. Because most trustors tend to maintain all of the control of their assets during their lifetimes, they do not get to:
7. Which of the following was not discussed in the textbook as a reason for creating a trust?
8. Proving oral trusts requires:
9. Which of the following is not a provision that may be found in a trust?
10. A trustor can be a corporation.
11. A trust will fail if:
12. A trustee are given general powers of trust management by state law, and unfortunately they can’t be limited.
13. Charitable trusts are also called:
14. There are no paralegal professional associations of their own, paralegals are recommended to follow and participate to the ABA Model Guidelines.
15. A trust is essentially a contract between the trustor and
16. Special needs trusts are designed to benefit:
17. Which of the following is a correct way to set up a life insurance
18. One of the advantages of a sprinkling or spray trust is that the trustee is given a tremendous amount of power and sole discretion.
19. Trusts for pets are becoming more commonplace.
20. In a marital trust, when the first spouse dies:
21. Example: Let’s visit Donald and Margie Rivers. They have a combined wealth of $13 million. In January of 2016, Donald Rivers dies. When he dies, $11.4 million of the assets are Donald’s. This portion of the trust will be funded with $5,970,000. This amount of money is the irrevocable portion of the trust and not subject to estate taxes upon Donald’s death, taking full advantage of his estate tax credit. This amount is arrived at by taking the amount Donald had at his death, $11.4 million and subtracting the
22. Lady Bird deeds are valid in every state.
23. If property in a trust is left for a charity and the charity no longerexists or has merged with another charity, this is what happens:
24. Charitable lead trusts are:
25. Life insurance trusts are exceptional estate planning tools because under most circumstances, the insurance proceeds are not considered part of the trustor’s estate upon his or her death.