Estate Planning Chapters 8-12 Final
Exam fully solved
Trustee - correct answer ✔✔ is not going to have title of the property
- will not have beneficial title
- manages the trust and carries out provisions of the will
- must act in the best interest of the beneficiaries
Grantor - correct answer ✔✔ - transfers property into trust
(could be cash, stock, tangible property, or residence, etc.)
- person who creates and initially funds the trust
Remainder Beneficiary - correct answer ✔✔ the person who receives property at end of trust
term
Income Beneficiary - correct answer ✔✔ may receive income for life or X amount of years
Legal Title - correct answer ✔✔ held by trustee
beneficial title - correct answer ✔✔ held by beneficiaries
Simple trust - correct answer ✔✔ Mandates distribution of income
ex: 2503b
, Complext trusts - correct answer ✔✔ permits accumulation of income
ex: 2503c
Revocable Trust - correct answer ✔✔ - not a completed gift
- avoids probate
- provides for management of the grantor's assets if grantor is incapacitated
- can be used in the event that something happens to incapacitated
Irrevocable trusts - correct answer ✔✔ Used to achieve estate and gift objectives
Inter vivos trust - correct answer ✔✔ created during life
testamentary trusts - correct answer ✔✔ created at death
standby trust - correct answer ✔✔ - minimally funded
- waiting for triggering event (usually incapacity)
- once funded it will spring into action
pourover trust - correct answer ✔✔ - Receives assets from another source
- basically waits for assets to be "poured INTO* it
pourover will - correct answer ✔✔ pours OUT and pours INTO pourover trusts
grantor trust - correct answer ✔✔ - inter vivos trust for the grantor
Exam fully solved
Trustee - correct answer ✔✔ is not going to have title of the property
- will not have beneficial title
- manages the trust and carries out provisions of the will
- must act in the best interest of the beneficiaries
Grantor - correct answer ✔✔ - transfers property into trust
(could be cash, stock, tangible property, or residence, etc.)
- person who creates and initially funds the trust
Remainder Beneficiary - correct answer ✔✔ the person who receives property at end of trust
term
Income Beneficiary - correct answer ✔✔ may receive income for life or X amount of years
Legal Title - correct answer ✔✔ held by trustee
beneficial title - correct answer ✔✔ held by beneficiaries
Simple trust - correct answer ✔✔ Mandates distribution of income
ex: 2503b
, Complext trusts - correct answer ✔✔ permits accumulation of income
ex: 2503c
Revocable Trust - correct answer ✔✔ - not a completed gift
- avoids probate
- provides for management of the grantor's assets if grantor is incapacitated
- can be used in the event that something happens to incapacitated
Irrevocable trusts - correct answer ✔✔ Used to achieve estate and gift objectives
Inter vivos trust - correct answer ✔✔ created during life
testamentary trusts - correct answer ✔✔ created at death
standby trust - correct answer ✔✔ - minimally funded
- waiting for triggering event (usually incapacity)
- once funded it will spring into action
pourover trust - correct answer ✔✔ - Receives assets from another source
- basically waits for assets to be "poured INTO* it
pourover will - correct answer ✔✔ pours OUT and pours INTO pourover trusts
grantor trust - correct answer ✔✔ - inter vivos trust for the grantor
