Questions and Answers
What is allowed if all beneficiaries are in existence and agree?
Under what conditions can an Irrevocable Trust be terminated when the Settlor dies?
What is the difference between Income beneficiaries and Remaindermen?
Income beneficiaries have a present interest in the trust, while Remaindermen have a future interest.
According to common law, trusts are presumed revocable unless stated otherwise.
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According to the Uniform Trust Code (UTC), trusts are presumed irrevocable unless stated otherwise.
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Study Notes
Revocable Trusts
- Settlor can terminate a Revocable Trust if all beneficiaries are alive and in agreement.
- Revocable Trusts provide flexibility, allowing changes or terminations by the settlor.
Irrevocable Trusts
- Upon the settlor's death, an Irrevocable Trust can be terminated through:
- Unanimous agreement of both income beneficiaries and remaindermen.
- Ensuring that no material purpose of the trust remains to be fulfilled.
Beneficiary Types
- Income beneficiaries (IB) hold a present interest in the trust, receiving benefits while the trust is active.
- Remaindermen (R) possess a future interest, receiving benefits after the income beneficiaries' rights end.
Legal Frameworks
- Common law generally presumes trusts to be irrevocable unless there is a clear provision for revocability.
- The Uniform Trust Code (UTC) operates under the opposite presumption, treating trusts as revocable unless explicitly stated otherwise.
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Description
Test your knowledge on revocable and irrevocable trusts with these flashcards. This quiz covers key concepts such as settlor termination and the differences between income beneficiaries and remaindermen. Perfect for law students or anyone interested in trust law.
