Trusts, Wills & Estates Flashcards

Under New York EPTL 7-1.12, a 'supplemental needs trust' (SNT) is primarily designed to:

Answer: Provide for a disabled beneficiary without disqualifying them from government benefits

A supplemental needs trust preserves a disabled beneficiary's eligibility for Medicaid and SSI by holding assets that supplement, rather than replace, government benefits.

A testator's will was signed with two witnesses, but one witness was a beneficiary under the will. Under New York EPTL § 3-3.2, the result is:

Answer: The witness-beneficiary forfeits any bequest exceeding what they would have received as an intestate heir

Under EPTL § 3-3.2, the will remains valid, but an interested witness may only take the lesser of the bequest or the intestate share they would have received.

Under New York's intestacy statute (EPTL § 4-1.1), if a decedent is survived by a spouse and two children, what does the surviving spouse receive?

Answer: $50,000 plus one-half of the residue

Under EPTL 4-1.1(a)(1), when the decedent leaves a spouse and children, the surviving spouse receives $50,000 plus one-half of the residue; the children share the other half.

A trustee of a New York trust invests trust assets exclusively in highly speculative cryptocurrency, resulting in significant losses. Under the New York Estates, Powers and Trusts Law, the trustee has most likely violated:

Answer: The prudent investor rule

The prudent investor rule requires trustees to invest and manage assets as a prudent investor would, considering risk and return in relation to the trust's objectives; speculative single-asset concentration violates this standard.

Under New York EPTL 5-3.3, if a testator is survived by issue or a parent who contest a bequest to charity, the charitable bequest:

Answer: Is upheld only up to one-half of the net estate

EPTL 5-3.3 limits charitable dispositions where the testator leaves surviving issue or a parent: if such a person (who would benefit pecuniarily) contests, the charitable gift is upheld only up to one-half of the net estate after debts and expenses. The old death-bed time limit no longer applies.

A New York decedent dies leaving a will that does not mention his child born after the will was executed. Under EPTL § 5-3.2, this pretermitted child:

Answer: Is entitled to an intestate share unless the omission was intentional

EPTL § 5-3.2 protects after-born children by giving them an intestate share unless the will shows the omission was intentional or the testator provided for the child outside the will.

Under New York law, a 'Totten trust' (payable-on-death bank account) can be revoked by the depositor during their lifetime by:

Answer: Withdrawing the funds or executing a will that specifically revokes it

A Totten trust is revocable during the depositor's lifetime by withdrawing the funds, closing the account, or by a specific testamentary revocation naming the account.