Exam 50: Trusts and Decedents Estates

Extinction of a gift by a testator's failure to change his will after changed circumstances have made the performance of a provision in the will impossible is termed:

Codicils will not be valid if executed and attested.

Which of the following would be charged to the life tenant's interest in the course of administering a trust?

A living will is a will that:

Once a trust is validly created, it is revocable.

The failure to appoint a trustee will destroy a trust.

Constructive trusts are generally found where the creator clearly intended a trust to be formed.

A trust divides legal and equitable title to property.

A devise is a gift by will of personal property.

If a person dies without a will and without any heirs or next of kin, her property:

Tom, a trustee, fraudulently purchases property with trust funds and puts title in his own name.What type of trust is created?

A testator with capacity and intent can create an irrevocable will.

The characteristics of a totten trust include that:

Creditors of any trust beneficiary can attach the fund or the income to pay the beneficiary's individual debts.

In 1998, Arthur executed a valid will in which he left his entire estate to the Heart Fund.In 2006, Arthur was declared incompetent and was committed to an institution.At his death in 2009, his son, Brian, who was his sole survivor, contested the will claiming that Arthur was obviously incompetent.Will Brian prevail with this argument? Explain.

Taxes are imposed at death by the federal government in the form of an inheritance tax and by the state government in the form of an estate tax.

Rules for the distribution of property in a situation involving intestate succession:

An express trust may be found if the intent of the grantor to create a trust is unmistakable.

Clarence is the trustee of a trust.With $75,000 of his own money, Clarence purchases a parcel of real estate.Two months later, he sells the parcel to the trust for $150,000 and pockets the profit.Discuss the situation in terms of the duties and powers of the trustee.

The person holding legal title to the property is the settlor of the trust.