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Question 1
Marie established a trust for the benefit of her spouse and children, stating: "for Michelle as long as she remains single, but if she ever marries, to Douglas." "To Douglas as long as he stays married to India, but if he ever divorces, to Michelle." "To Edmundo, income for life, but if he ever remarries, income to Michelle and Douglas." Which purpose is prohibited?
Correct Trusts are invalid if they promote actions that are against public policy. Particularly, restrictions that discourage marriage or promote divorce are invalid. Here, the gift to Michelle is only valid if she stays single. Purposes that discourage marriage are against public policy and are therefore invalid.
Incorrect! Trusts are invalid if they promote actions that are against public policy. Particularly, restrictions that discourage marriage or promote divorce are invalid. Here, the gift to Michelle is only valid if she stays single. Purposes that discourage marriage are against public policy and are therefore invalid.