MT Bar Wills Trusts and Estates 2

Question 1

A revocable living trust in Montana differs from a will primarily in that:

Accepted Answer

It avoids probate and takes effect during the grantor's lifetime

Answer

A revocable living trust is effective during the grantor's lifetime, allowing assets to pass to beneficiaries without probate, unlike a will which operates only at death through probate.

Question 2

Under Montana trust law, a trustee's fiduciary duty includes:

Accepted Answer

Loyalty to beneficiaries and prudent management of trust assets

Answer

Montana trustees owe the duties of loyalty (acting in beneficiaries' best interests) and prudent administration (managing assets as a prudent investor would).

Question 3

In Montana, a spendthrift trust provision protects a beneficiary's interest by:

Accepted Answer

Restricting creditors from reaching the beneficiary's interest before distribution

Answer

A spendthrift clause restricts both voluntary assignment by the beneficiary and involuntary attachment by creditors of the beneficiary's interest before it is distributed.

Question 4

Under Montana's UPC, the personal representative of an estate has the duty to:

Accepted Answer

Collect the decedent's assets, pay valid debts, and distribute the remainder to beneficiaries

Answer

A Montana personal representative must marshal estate assets, pay taxes and creditor claims, and then distribute the remaining estate to heirs or beneficiaries as directed by the will or intestacy laws.

Question 5

Under Montana's anti-lapse statute, when a beneficiary predeceases the testator:

Accepted Answer

The gift passes to the deceased beneficiary's descendants if they are a relative of the testator

Answer

Montana's anti-lapse statute saves gifts to deceased relatives of the testator by substituting the deceased beneficiary's descendants to take the gift.

MT Bar - Montana Bar Exam Practice Test

MT Bar - Montana Bar Exam Practice Test

MT Bar Wills Trusts and Estates 2