Documentation & Legal Requirements Flashcards
7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Documentation & Legal Requirements flashcards as text
Which document is used to transfer ownership of a vehicle into a trust in most U.S. states?
Answer: A certificate of title re-issued in the trust's name
Motor vehicles are titled assets, so ownership transfer to a trust requires the state DMV to re-issue the certificate of title naming the trustee of the trust as the registered owner.
An irrevocable trust is being terminated early by agreement of all beneficiaries under the doctrine of 'Claflin.' What condition prevents early termination under this doctrine?
Answer: A material purpose of the trust remains to be served
Under the Claflin doctrine, a trust cannot be terminated early by beneficiary consent alone if a material purpose of the trust — such as spendthrift protection or age-conditioned distributions — remains unfulfilled.
Which notice is a trustee typically required to send to qualified beneficiaries when there is a change of trustee under the Uniform Trust Code?
Answer: Notice of the change within 60 days after the new trustee accepts the trusteeship
The UTC requires the new trustee to notify qualified beneficiaries of the trustee change within 60 days of accepting the trusteeship, along with the trust's basic terms.
A durable power of attorney for financial matters differs from a regular (non-durable) power of attorney in what key respect?
Answer: It remains effective even if the principal becomes incapacitated
A durable power of attorney includes statutory language that allows it to survive the principal's incapacity, unlike a standard power of attorney which terminates upon incapacity.
What is the legal effect of a 'disclaimer' by a beneficiary of an estate or trust under IRC Section 2518?
Answer: The disclaimed interest passes as if the disclaimant had predeceased, potentially reducing estate taxes
A qualified disclaimer under IRC Section 2518 causes the disclaimed interest to pass as if the disclaimant had died before the decedent, allowing assets to pass to alternate beneficiaries without gift tax consequences.
Under HIPAA, a healthcare provider may disclose a deceased patient's protected health information to the executor or administrator of the estate for how long after the patient's death?
Answer: 50 years
Under HIPAA, the privacy protections for a deceased individual's health information remain in effect for 50 years after the date of death, after which the information is no longer protected.
A trustee receives a Crummey withdrawal notice from a beneficiary. What does this notice relate to in trust administration?
Answer: A beneficiary's right to withdraw a gift contributed to the trust within a defined window, preserving the annual gift tax exclusion
Crummey notices give trust beneficiaries a temporary right to withdraw contributions, converting gifts into present interests that qualify for the annual federal gift tax exclusion.