Trust Law Fundamentals - MCT

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Questions and Answers

What is the purpose of converting a JT to a TIC?

  • To avoid the rule of survivorship (correct)
  • To increase the number of beneficiaries
  • To give more power to the trustee
  • To reduce the value of the trust assets

What is a trust?

  • A type of business partnership
  • A legal arrangement where one party holds property for the benefit of another (correct)
  • A legal agreement between two parties
  • A way to avoid paying taxes

What is required for a trust to be valid?

  • Only certainty of intention
  • Only certainty of subject matter
  • Certainty of intention, subject matter, and objects (correct)
  • None of the above

What is the consequence of the rule of survivorship?

<p>The remaining beneficiaries inherit the entire trust (A)</p> Signup and view all the answers

What is a characteristic of a joint tenancy?

<p>The rule of survivorship applies (D)</p> Signup and view all the answers

What is the primary reason for severance of a Joint Tenancy?

<p>To avoid the rule of survivorship (A)</p> Signup and view all the answers

What is the significance of Certainty of Subject Matter in a trust?

<p>It ensures the trust has a specific property or asset (C)</p> Signup and view all the answers

What is the primary difference between a Joint Tenancy and a Tenancy in Common?

<p>The rule of survivorship (A)</p> Signup and view all the answers

What is the result of the rule of survivorship in a Joint Tenancy?

<p>The last surviving joint tenant inherits the entire property (B)</p> Signup and view all the answers

What is the primary right of beneficiaries in a trust?

<p>Right to enforce trust rights (C)</p> Signup and view all the answers

When a Joint Tenancy is converted to a Tenancy in Common, what is the primary objective?

<p>To avoid the rule of survivorship (C)</p> Signup and view all the answers

What is a key feature of a Joint Tenancy that is not present in a Tenancy in Common?

<p>Undivided interest in the property (C)</p> Signup and view all the answers

What is the primary right held by beneficiaries in a trust?

<p>Right to enforce trust rights (B)</p> Signup and view all the answers

What is necessary for a trust to be considered valid?

<p>Certainty of subject matter and objects (D)</p> Signup and view all the answers

What is a key difference between a Joint Tenancy and a Tenancy in Common?

<p>Rule of survivorship (D)</p> Signup and view all the answers

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