Constructive Trusts - ANSWERSA fraud rectifying trust, imposed by a court to protect those who lose property to a wrongdoer
Resulting Trust - ANSWERSAn intent enforcing trust based upon the presumed intent of a transferor of property
Implied Trust - ANSWERSAn implied trust is an element of tr...
Constructive Trusts - ANSWERSA fraud rectifying trust, imposed by a court to protect
those who lose property to a wrongdoer
Resulting Trust - ANSWERSAn intent enforcing trust based upon the presumed intent of
a transferor of property
Implied Trust - ANSWERSAn implied trust is an element of trust law, and refers to a
trust that has not been "expressly created by the settlor."[1] There are two types of
implied trust:
Constructive Trusts and Resulting Trusts are always - ANSWERSImplied Trusts
Can a minor hold an interest in real property? - ANSWERSYes - a child may be a
beneficiary under a trust regardless of the nature of the trust corpus
Dad creates a trust under which he declares that any interest in real property he
receives under the will of his uncle are held in trust for the benefit of his son. An
enforceable trust has not been created because.... - ANSWERSAn expectancy under a
will is not a transferable property interest
Qualified Terminable Interest Property trust (QTIP) - ANSWERSa type of trust that
enables the grantor to provide for a surviving spouse, and also to maintain control of
how the trust's assets are distributed once the surviving spouse dies. Income, and
sometimes principal, generated from the trust is given to the surviving spouse to ensure
that the spouse is taken care of for the rest of her life
Is there a power of appointment in a QTIP trust? - ANSWERSNO
What must happen for a QTIP trust to qualify for the marital deduction? - ANSWERSAn
irrevocable QTIP election must be made on the donor spouse's estate tax return
Annual Exclusion Trust
- how many Benes?
- is a minor bene entitled to I/P?
- Age at which trust property is distributed to bene?
- If bene dies before reaching that age, how must the property pass? - ANSWERS- 1
beneficiary
- I/P must be made available for the benefit of minor beneficiary
- age 21
, - if the beneficiary dies before reaching age 21, the trust property must go to the
beneficiary's estate or pass through a valid power of appointment
Crummey Trust
- how many benes?
- is a minor bene entitled to I/P?
- Age at which trust property is distributed to bene? - ANSWERS- multiple beneficiaries
- give trust beneficiaries a power to withdraw to the trust for a small period of time
- can continue to operate beyond a beneficiary reaching the age of 21
Can a power of appointment trust be irrevocable? - ANSWERSNO
Who is the beneficiary of an estate trust? What does that mean? - ANSWERSThe
surviving spouse and the surviving spouse's estate. Therefore, income need not be paid
to the spouse and under productive property may be retained in the trust without
jeopardizing the marital deduction
What is the primary disadvantage of an estate trust? - ANSWERSThe surviving spouse
cannot appoint trust property during their lifetime
How does an estate trust differ from a power of appointment trust? - ANSWERSIncome
does not need to be paid to the spouse
Credit Shelter Trust - ANSWERSA credit shelter trust is a type of trust fund that allows
married couples to reduce estate taxes by taking full advantage of state and federal
estate tax exemptions. As such, it's generally only applicable in cases of multimillion-
dollar estates
Under A credit shelter trust, what is the difference between the one pot and several pot
structures upon the death of the second spouse to die? - ANSWERSUnder the several-
pot approach, property of the credit shelter trust is divided upon the death of the
surviving spouse into separate trust for each of the spouses children.
Under the one-pot approach, property is retained in a single trust until the occurrence of
a particular occurrence such as the youngest beneficiary attaining a certain age.
Why would one want to use the single-pot approach? - ANSWERS-when funds are
insufficient to establish separate trust (ex Winters)
-the parents are concerned about the special needs of a particular child (ex Kimbrough)
Express Trust - ANSWERSExpress trusts are created by a settlor, who transfers
property to a trustee for a valid trust purpose. The trustee then distributes the trust
property to a beneficiary pursuant to the terms of the trust
Non tax benefits of an express trust - ANSWERS- professional asset management
- greater flexibility in choosing a post mortem fiduciary
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