Exam 51: Trusts and Wills

A trust is a fiduciary relationship in which the settlor holds legal title to certain property while its use and benefit belong to a trustee.

A statement signed by the required number of witnesses who observe the execution of a valid will is called a(n):

Anyone legally capable of holding title to and dealing with property may be a trustee.

In the case of In the Matter of the Estate of Rowe, the court found:

Codicils will not be valid if executed and attested.

In 1985, Jack executed a valid will in which he left his entire estate to the Heart Fund.In 1990, Jack was declared incompetent and committed to an institution.At his death in 1995, his son, Brian, who was his sole survivor, contested the will claiming that Jack was obviously incompetent.Will Brian prevail with this argument? Explain.

A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted.

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

Each trust has which of the following?

A court will require witnesses' signatures to be proven before a formal decree will be issued allowing the will.

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

A totten trust may also be referred to as a savings account trust.

Consideration is essential to an enforceable trust.

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.

MATCHING Part X Matching Match each statement with the correct term below.a.Security interest in land created by a written document.b.Co-ownership in which each tenant holds an undivided interest with no right of survivorship.c.Commingling of identical goods belonging to different people so that the owners cannot identify their individual property.d.Property not in a physical form.e.Temporary transfer of possession of personal property by one party (the bailor) to another (the bailee).f.A security interest by possession.g.Absolute ownership of real property.h.Person who dies without a valid will.i.Co-ownership with the right of survivorship; requires the presence of the four unities.j.The right to remove the natural resources from the land of another.k.Revocable permission to use land of another.l.Ownership of real property for an indefinite time or for the life of a person.m.The principal method of public control over private land use.n.A formal document transferring any type of interest in land.o.The acquisition of title to land by open, continuous, and adverse occupancy for a statutorily prescribed period.p.The power of a government to take (buy) private land for public use.q.Private restrictions on real property contained in a conveyance, widely used in subdivisions.r.Fiduciary relationship in which legal title to property is held by one party for the use, enjoyment, and benefit of another.s.A written instrument executed with the formalities required by statute whereby a person makes a disposition of his property to take effect after his death.t.The court's supervision of the management and distribution of a decedent's estate.u.The person named in the will and appointed by the court to administer the will.v.An addition to or revision of a will executed with all the formalities of a will.w.Limited right to use another's land in a specific manner.x.Document of title issued by a carrier to a shipper as a receipt of goods for transportation.y.Intentional relinquishment of a known right. -probate

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

MATCHING Part X Matching Match each statement with the correct term below.a.Security interest in land created by a written document.b.Co-ownership in which each tenant holds an undivided interest with no right of survivorship.c.Commingling of identical goods belonging to different people so that the owners cannot identify their individual property.d.Property not in a physical form.e.Temporary transfer of possession of personal property by one party (the bailor) to another (the bailee).f.A security interest by possession.g.Absolute ownership of real property.h.Person who dies without a valid will.i.Co-ownership with the right of survivorship; requires the presence of the four unities.j.The right to remove the natural resources from the land of another.k.Revocable permission to use land of another.l.Ownership of real property for an indefinite time or for the life of a person.m.The principal method of public control over private land use.n.A formal document transferring any type of interest in land.o.The acquisition of title to land by open, continuous, and adverse occupancy for a statutorily prescribed period.p.The power of a government to take (buy) private land for public use.q.Private restrictions on real property contained in a conveyance, widely used in subdivisions.r.Fiduciary relationship in which legal title to property is held by one party for the use, enjoyment, and benefit of another.s.A written instrument executed with the formalities required by statute whereby a person makes a disposition of his property to take effect after his death.t.The court's supervision of the management and distribution of a decedent's estate.u.The person named in the will and appointed by the court to administer the will.v.An addition to or revision of a will executed with all the formalities of a will.w.Limited right to use another's land in a specific manner.x.Document of title issued by a carrier to a shipper as a receipt of goods for transportation.y.Intentional relinquishment of a known right. -license

The administration of the assets of the deceased and the proving of the validity of the will are determined in:

A minor's declaration of trust is voidable.

Identify and describe the following types of wills. a.Holographic b.Nuncupative c.Soldiers' and sailors' will