LA Bar Wills Trusts and Estates 3

Question 1

Under the Louisiana Trust Code, what written formality is required to create a valid trust instrument?

Accepted Answer

It must be executed as an authentic act or as a private signature duly acknowledged

Answer

Under La. R.S. 9:1752, a trust instrument must be in writing and executed either as an authentic act or as a private signature duly acknowledged.

Question 2

A trustee's duty of loyalty under the Louisiana Trust Code requires the trustee to:

Accepted Answer

Administer the trust solely in the interest of the beneficiaries and avoid self-dealing

Answer

The duty of loyalty requires the trustee to administer the trust solely in the interest of the beneficiaries and to avoid self-dealing transactions.

Question 3

Under the Louisiana Trust Code, which of the following persons lacks the legal capacity to serve as trustee?

Accepted Answer

An unemancipated minor

Answer

An unemancipated minor lacks full legal capacity and therefore cannot serve as a trustee under the Louisiana Trust Code.

Question 4

In a Louisiana discretionary trust, the trustee's primary discretionary authority relates to:

Accepted Answer

Deciding whether and in what amounts to distribute trust income or principal to beneficiaries

Answer

In a discretionary trust, the trustee has the power to determine whether distributions will be made and, if so, in what amounts.

Question 5

Under Louisiana law, a spendthrift provision in a trust instrument generally:

Accepted Answer

Prevents the beneficiary from voluntarily transferring the interest and protects against most creditor claims

Answer

Louisiana spendthrift provisions prevent voluntary assignment by the beneficiary and shield the interest from most creditors, though certain exceptions such as support obligations may apply.

(LA Bar) Louisiana Bar Exam Practice Test

(LA Bar) Louisiana Bar Exam Practice Test

LA Bar Wills Trusts and Estates 3