Bar Exam Bar Exam Wills, Trusts & Estates 2

Question 1

Which of the following is NOT a required element for a valid express trust?

Accepted Answer

A written instrument signed before a notary public

Answer

Express trusts do not require a notarized writing; the essential elements are a trustee, identifiable trust property, and a definite beneficiary or charitable purpose.

Question 2

A spendthrift clause in a trust instrument is designed primarily to:

Accepted Answer

Prevent beneficiaries from alienating their interest and creditors from reaching it before distribution

Answer

A spendthrift clause restrains a beneficiary's power to assign their interest and prevents creditors from attaching the interest before it is distributed.

Question 3

Under the Uniform Trust Code, the trustee's duty of loyalty requires the trustee to:

Accepted Answer

Administer the trust solely in the interest of the beneficiaries, avoiding conflicts of interest

Answer

The duty of loyalty requires the trustee to act exclusively for the benefit of the beneficiaries and to avoid transactions in which personal interests conflict with trust interests.

Question 4

Under the cy pres doctrine, a court modifies a charitable trust when the charitable purpose becomes:

Accepted Answer

Impossible, impractical, or illegal to fulfill

Answer

Cy pres authorizes a court to modify a charitable trust to apply assets to a purpose as near as possible to the original when the original purpose becomes impossible, impractical, or illegal.

Question 5

A resulting trust arises by operation of law when:

Accepted Answer

An express trust fails entirely or does not exhaust all trust property

Answer

A resulting trust arises when an express trust fails or trust property is not fully disposed of, returning the beneficial interest to the settlor or the settlor's estate.

Bar Exam Practice Test

Bar Exam Practice Test

Bar Exam Bar Exam Wills, Trusts & Estates 2