Question 1

Which is an invalid trust combination?

Accepted Answer

A) The settlor, trustee, and beneficiary are three different people. 
B) The settlor is also a co-trustee and a co-beneficiary. 
C) The settlor is also the trustee and beneficiary. 
D) The settlor is also the beneficiary, and another person is the trustee. 
A) The settlor, trustee, and beneficiary are three different people. 
B) The settlor is also a co-trustee and a co-beneficiary. 
C) The settlor is also the trustee and beneficiary. 
D) The settlor is also the beneficiary, and another person is the trustee. C

Question 2

The trustee in the trust instrument is granted the power to do all of the following EXCEPT:

Accepted Answer

A) Delegate the performance of personal duties 
B) Hire attorneys and stockbrokers 
C) Subdivide or exchange real property 
D) Lend or borrow money 
A) Delegate the performance of personal duties 
B) Hire attorneys and stockbrokers 
C) Subdivide or exchange real property 
D) Lend or borrow money A

Question 3

A single trust may have only one beneficiary.

Accepted Answer

A) True 
 B)False  False

Question 4

After the creation of a trust, title to property placed in the trust passes to at least two persons with the trustee receiving the equitable title and the beneficiary receiving the legal title.

Accepted Answer

A) True 
 B)False

Question 5

If there are two trustees, one may make a determination to take action without the other's consent.

Accepted Answer

A) True 
 B)False

Question 6

Which duty prohibits a trustee from personally profiting from his/her position as trustee (other than the compensation allowed by contract or law)?

Accepted Answer

A) Duty to take possession of and preserve trust property 
B) Duty of loyalty 
C) Duty to prevent the investment of the trust property 
D) Duty to make payments of income and principal to the named beneficiaries 
A) Duty to take possession of and preserve trust property 
B) Duty of loyalty 
C) Duty to prevent the investment of the trust property 
D) Duty to make payments of income and principal to the named beneficiaries

Question 7

MATCHING:
-The monetary gain that is generated from the principal of a trust

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 8

MATCHING:
-A contract, made between and signed by the settlor and trustee, that creates a trust

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 9

Any transferable interest in an object of ownership may become trust property.

Accepted Answer

A) True 
 B)False

Question 10

MATCHING:
-The right of the beneficiary to receive the benefits of the trust

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 11

A settlor may cancel a trust if a property transfer is accomplished through duress.

Accepted Answer

A) True 
 B)False

Question 12

Which judicial remedy can a beneficiary use to be compensated monetarily (either directly or through the trust) for a trustee's breach of trust?

Accepted Answer

A) Civil lawsuit to compel the trustee to reimburse the trust for any loss or depreciation in value of the trust property 
B) Removal of the trustee and appointment of a new trustee 
C) An injunction to compel the trustee to do or refrain from doing the act that would constitute the breach of trust 
D) Suing for specific performance 
A) Civil lawsuit to compel the trustee to reimburse the trust for any loss or depreciation in value of the trust property 
B) Removal of the trustee and appointment of a new trustee 
C) An injunction to compel the trustee to do or refrain from doing the act that would constitute the breach of trust 
D) Suing for specific performance

Question 13

MATCHING:
-Oral testimony or written evidence

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 14

Which is NOT an essential element of a trust?

Accepted Answer

A) A sale or gift of property 
B) One or more beneficiaries 
C) Real or personal property 
D) One or more trustees 
A) A sale or gift of property 
B) One or more beneficiaries 
C) Real or personal property 
D) One or more trustees

Question 15

Which is NOT a trustee's duty?

Accepted Answer

A) Duty to account 
B) Duty of performance and due care 
C) Duty to make payments of income and principal to the named beneficiaries 
D) Duty to prevent the investment of the trust property 
A) Duty to account 
B) Duty of performance and due care 
C) Duty to make payments of income and principal to the named beneficiaries 
D) Duty to prevent the investment of the trust property

Question 16

Beneficiaries of a trust must be defined by name.

Accepted Answer

A) True 
 B)False

Question 17

MATCHING:
-The form of ownership of trust property held by the trustee and giving him/her the right to control and manage the property for another's benefit

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 18

MATCHING:
-A trust included in a will

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 19

MATCHING:
-A uniform law available for adoption by states to provide a uniform codified law on trusts

Accepted Answer

A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence 
A) legal title 
B) cestui que trust 
C) equitable title 
D) testamentary trust 
E) trust agreement
F)principal
G)income
H)Restatement of the American Law of Trusts
I)Uniform Trust Code
J)parol evidence

Question 20

The trust instrument must either specifically describe the trust property or clearly define the procedure to be followed in identifying the trust property.

Accepted Answer

A) True 
 B)False

Which is an invalid trust combination?

The trustee in the trust instrument is granted the power to do all of the following EXCEPT:

A single trust may have only one beneficiary.

After the creation of a trust, title to property placed in the trust passes to at least two persons with the trustee receiving the equitable title and the beneficiary receiving the legal title.

If there are two trustees, one may make a determination to take action without the other's consent.

Which duty prohibits a trustee from personally profiting from his/her position as trustee (other than the compensation allowed by contract or law)?

MATCHING: -The monetary gain that is generated from the principal of a trust

MATCHING: -A contract, made between and signed by the settlor and trustee, that creates a trust

Any transferable interest in an object of ownership may become trust property.

MATCHING: -The right of the beneficiary to receive the benefits of the trust

A settlor may cancel a trust if a property transfer is accomplished through duress.

Which judicial remedy can a beneficiary use to be compensated monetarily (either directly or through the trust) for a trustee's breach of trust?

MATCHING: -Oral testimony or written evidence

Which is NOT an essential element of a trust?

Which is NOT a trustee's duty?

Beneficiaries of a trust must be defined by name.

MATCHING: -The form of ownership of trust property held by the trustee and giving him/her the right to control and manage the property for another's benefit

MATCHING: -A trust included in a will

MATCHING: -A uniform law available for adoption by states to provide a uniform codified law on trusts

The trust instrument must either specifically describe the trust property or clearly define the procedure to be followed in identifying the trust property.

The Concept of Property Related to Wills, Trusts, and Estate Administration

The Estate Plan and the Purpose and Need for a Will

The Law of Succession: Death Testate or Intestate

Wills: Validity Requirements, Modification, Revocation, and Contests

Preparation to Draft a Will: Checklists and the Conference With the Client

Final Draft and Execution of a Valid Will

The Participants and the Proper Court

Personal Representatives: Types, Pre-Probate Duties, and Appointment

Probate and Estate Administration

Informal Probate Administration

Tax Considerations in the Administration of Estates

Classification of Trusts, the Living Trust, and Other Special Trusts

Estate Planning

Long-Term Care

Filters

Exam 12: Introduction to Trusts

Which is an invalid trust combination?

The trustee in the trust instrument is granted the power to do all of the following EXCEPT:

A single trust may have only one beneficiary.

After the creation of a trust, title to property placed in the trust passes to at least two persons with the trustee receiving the equitable title and the beneficiary receiving the legal title.

If there are two trustees, one may make a determination to take action without the other's consent.

Which duty prohibits a trustee from personally profiting from his/her position as trustee (other than the compensation allowed by contract or law)?

MATCHING: -The monetary gain that is generated from the principal of a trust

MATCHING: -A contract, made between and signed by the settlor and trustee, that creates a trust

Any transferable interest in an object of ownership may become trust property.

MATCHING: -The right of the beneficiary to receive the benefits of the trust

A settlor may cancel a trust if a property transfer is accomplished through duress.

Which judicial remedy can a beneficiary use to be compensated monetarily (either directly or through the trust) for a trustee's breach of trust?

MATCHING: -Oral testimony or written evidence

Which is NOT an essential element of a trust?

Which is NOT a trustee's duty?

Beneficiaries of a trust must be defined by name.

MATCHING: -The form of ownership of trust property held by the trustee and giving him/her the right to control and manage the property for another's benefit

MATCHING: -A trust included in a will

MATCHING: -A uniform law available for adoption by states to provide a uniform codified law on trusts

The trust instrument must either specifically describe the trust property or clearly define the procedure to be followed in identifying the trust property.

The Concept of Property Related to Wills, Trusts, and Estate Administration

The Estate Plan and the Purpose and Need for a Will

The Law of Succession: Death Testate or Intestate

Wills: Validity Requirements, Modification, Revocation, and Contests

Preparation to Draft a Will: Checklists and the Conference With the Client

Final Draft and Execution of a Valid Will

The Participants and the Proper Court

Personal Representatives: Types, Pre-Probate Duties, and Appointment

Probate and Estate Administration

Informal Probate Administration

Tax Considerations in the Administration of Estates

Classification of Trusts, the Living Trust, and Other Special Trusts

Estate Planning

Long-Term Care

Filters