Explanations of Common Trust Provisions and Goals - Module 2 of 6
Which of the following factors must be taken into account when drafting the provisions that determine the trustee’s authority to distribute the trust assets?
Allowing a grantor to potentially benefit from a trust can hurt all of the following estate planning goals EXCEPT…
Barb establishes “The Barb Family Trust.” The trust agreement states that Barb is entitled to “all income generated by the trust, in annual installments for the remainder of Barb’s life.” Barb retains no further benefit from the trust. Consequences of this provision include…
ABC trust is required to distribute all of its income each year to Saul, who is the husband of the grantor, Elaine. Which of the following is correct?
Which of the following powers, vested in Trustee Tom, could be considered a general power of appointment?
Darren wants to limit the authority of his trustee, Pam, by subjecting it to an “ascertainable standard.” Which of the following powers may Pam possess consistent with this goal?
Wally wants to ensure that his children do not receive their inheritances until age 35. However, he also wants to make sure that they all benefit equally from his estate. Which plan best serves this purpose?
Requiring that income from a trust be distributed in equal shares to five trust beneficiaries has which of the following effects?
XYZ trust has the authority to distribute “trust income” to “any charitable beneficiary” that the trust deems worthy and appropriate. Which of the following is correct?
Which of the following is true of minor beneficiaries of trusts?