NYLE NY Trusts, Wills & Estates 3

Question 1

Under New York EPTL 7-1.17, what are the requirements for a valid revocable (living) trust?

Accepted Answer

A written instrument signed by the settlor designating a trustee, identifying trust property, and stating the trust purposes and beneficiaries

Answer

Under EPTL 7-1.17, a lifetime trust of property must be in writing, signed by the settlor, identify the trustee and beneficiaries, describe the trust property, and set forth the trust terms.

Question 2

Under EPTL 11-1.1, what are a fiduciary's (executor/administrator/trustee) primary duties?

Accepted Answer

Duty of loyalty, duty of prudent administration, duty to account, and duty to act impartially among beneficiaries

Answer

Fiduciaries owe duties of loyalty (acting in beneficiaries' interests), prudent administration (managing assets reasonably), accounting (reporting to beneficiaries and the court), and impartiality among beneficiaries.

Question 3

Under New York law, on what grounds may a will be contested?

Accepted Answer

Lack of testamentary capacity, undue influence, fraud, improper execution, or revocation

Answer

A will may be contested on grounds including lack of testamentary capacity, undue influence, fraud, duress, improper execution (failure to comply with EPTL 3-2.1), and prior revocation.

Question 4

Under the New York Prudent Investor Act (EPTL 11-2.3), what investment standard applies to trustees?

Accepted Answer

A trustee must invest as a prudent investor would, considering the purposes, terms, and circumstances of the trust, with emphasis on total portfolio risk and return

Answer

EPTL 11-2.3 requires trustees to invest and manage trust assets as a prudent investor would, considering the trust's purposes and circumstances, with the overall portfolio evaluated for risk and return.

Question 5

Under SCPA 2307, how are fiduciary commissions (compensation) calculated in New York?

Accepted Answer

On a statutory sliding scale based on the value of the estate: 5% on the first $100,000, 4% on the next $200,000, 3% on the next $700,000, 2.5% on the next $4,000,000, and 2% on amounts over $5,000,000

Answer

SCPA 2307 provides a statutory commission schedule on a declining percentage basis tied to the value of property received and distributed.

NYLE - New York Law Exam Practice Test

NYLE - New York Law Exam Practice Test

NYLE NY Trusts, Wills & Estates 3