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Question 1
Judith bequeaths "to Claudia in trust upon such terms as I have or may communicate to her during my lifetime." This is an example of:
Correct A 'semi-secret' trust is where property is to be held in trust; however, no beneficiary has been designated. In most jurisdictions, this type of arrangement is not recognized. As such, the assets go into a resulting trust (covered in the next section) for the benefit of the testator's heirs. Here, Judith intended to create a trust; however, she did not designate an intended beneficiary. As such, the trust fails and Claudia instead holds a resulting trust for Judith's estate or her heirs at law.
Incorrect! A 'semi-secret' trust is where property is to be held in trust; however, no beneficiary has been designated. In most jurisdictions, this type of arrangement is not recognized. As such, the assets go into a resulting trust (covered in the next section) for the benefit of the testator's heirs. Here, Judith intended to create a trust; however, she did not designate an intended beneficiary. As such, the trust fails and Claudia instead holds a resulting trust for Judith's estate or her heirs at law.
Correct
Incorrect!
Correct
Incorrect!
Question 2
Judith's will bequeaths all her assets to Maxwell, her attorney. Her daughter Claudia protests this action, asserting that Maxwell was only holding the assets in trust for her. This is an example of:
Correct
Incorrect!
Correct A 'secret trust' is where property is devised to a person without any indication on the instrument of transfer that the property is to be held in trust for another person. Here, Judith's will did not indicate that Maxwell was to hold the assets in trust for Claudia. As such, the court can evaluate Claudia's oral testimony and determine whether a constructive trust should be established.
Incorrect! A 'secret trust' is where property is devised to a person without any indication on the instrument of transfer that the property is to be held in trust for another person. Here, Judith's will did not indicate that Maxwell was to hold the assets in trust for Claudia. As such, the court can evaluate Claudia's oral testimony and determine whether a constructive trust should be established.