Trust Administration & Probate Filing Flashcards
7 cards from real ACP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Trust Administration & Probate Filing flashcards as text
A special needs trust (SNT) is structured to supplement, rather than replace, government benefits primarily by:
Answer: Restricting distributions to non-countable supplemental expenses
An SNT preserves public benefit eligibility by limiting distributions to supplemental goods and services not covered by government programs.
When a will is admitted to probate, Letters Testamentary grant the personal representative the authority to:
Answer: Act on behalf of the estate in legal and financial matters
Letters Testamentary are the court-issued credentials that empower a personal representative to collect assets, pay debts, and administer the estate.
Under the Uniform Fiduciary Income and Principal Act (UFIPA), a trustee's power to adjust between income and principal is primarily intended to:
Answer: Allow the trustee to achieve a fair total return for all beneficiaries
The power to adjust enables trustees to reallocate between income and principal to produce a fair result for both income and remainder beneficiaries under a total return investment approach.
A trust protector's role in modern trust drafting most commonly includes the power to:
Answer: Modify trust terms to respond to changes in law or circumstances
Trust protectors are typically granted limited powers such as modifying administrative provisions or amending the trust to address unforeseen tax law changes.
In a small estate affidavit procedure, the primary requirement in most states is that:
Answer: The total probate estate value falls below a statutory threshold
Small estate affidavit procedures allow simplified asset transfer without formal probate when the total estate value is below the state's prescribed dollar limit.
When a trust instrument is silent on the issue of trustee compensation, the trustee is generally entitled to:
Answer: Reasonable compensation as determined by state statute or custom
In the absence of express trust language, most states allow trustees to receive reasonable compensation commensurate with the services rendered and trust complexity.
Which of the following best describes an 'active' trust as distinguished from a 'passive' (dry) trust?
Answer: A trust where the trustee holds legal title and performs ongoing management duties
An active trust requires the trustee to perform substantive duties such as managing investments, making distributions, or operating property, giving the arrangement legal substance.