Trusts, Wills & Probate Flashcards

Under the traditional common law rule against perpetuities, an interest in property is void unless it must vest, if at all, within what time period?

Answer: A life in being at creation of the interest plus 21 years

The common law rule against perpetuities voids any contingent future interest that might vest beyond a life in being at the creation of the interest plus 21 years.

What is a 'spendthrift trust'?

Answer: A trust provision restricting a beneficiary's ability to alienate their interest and shielding it from their creditors

A spendthrift trust includes a clause preventing beneficiaries from voluntarily assigning their interest and barring most creditors from reaching trust assets before distribution.

What does the distribution method 'per stirpes' mean?

Answer: By representation — each family branch takes the share the predeceased ancestor would have received

Under per stirpes, if a beneficiary predeceases the testator, that beneficiary's share passes to their own descendants, preserving distribution by family branch.

What is a 'living will' (advance healthcare directive)?

Answer: A document expressing a person's wishes regarding medical treatment if they become unable to communicate

A living will (advance directive) records an individual's preferences about life-sustaining treatment and end-of-life care for situations where they can no longer speak for themselves.

What is the 'elective share' available to a surviving spouse?

Answer: A surviving spouse's statutory right to claim a set portion of the deceased spouse's estate regardless of the will's provisions

The elective (or forced) share gives a surviving spouse the right to take a statutory percentage of the decedent's estate, preventing complete disinheritance even if the will provides otherwise.

What is 'probate'?

Answer: The court-supervised process of validating a will, paying debts, and distributing a decedent's estate

Probate is the legal process by which a court authenticates a will (or applies intestacy law), supervises payment of debts, and oversees distribution of the estate to rightful heirs.

What is the primary estate-planning advantage of a revocable living trust compared to a will?

Answer: It avoids probate, allowing assets to pass directly to beneficiaries without court involvement

Because assets in a revocable living trust are technically owned by the trust — not the individual — they pass to beneficiaries at death outside the probate process.