NYLE Trusts, Wills & Estates 5

Question 1

Under New York law, a self-dealing transaction by a trustee (e.g., selling personal property to the trust) is:

Accepted Answer

Voidable at the election of the beneficiaries unless authorized by the trust instrument or court order

Answer

Self-dealing transactions by a trustee violate the duty of loyalty and are voidable, not automatically void, but require beneficiary consent or court approval to be valid.

Question 2

Under EPTL § 11-1.1, an executor's power to sell estate real property without court approval is granted:

Accepted Answer

Only if the will expressly grants such power

Answer

Under EPTL § 11-1.1, an executor has the power to sell real property only if the will expressly grants that power; otherwise, court authorization is required.

Question 3

A New York decedent names her unmarried partner of 10 years as sole beneficiary of her will. Her adult son challenges the will claiming undue influence. The most important factor courts examine is whether:

Accepted Answer

The beneficiary had a confidential relationship with the decedent and actively participated in the will's preparation

Answer

New York courts focus on whether the alleged influencer had a confidential relationship with the testator and was active in procuring the will, which creates an inference of undue influence.

Question 4

Under New York EPTL § 7-3.4, a trustee's power to make loans to a beneficiary from trust principal is:

Accepted Answer

Permitted only if the trust instrument specifically grants this power

Answer

A trustee may make loans to beneficiaries only if the trust instrument expressly grants that power; it is not among the default trustee powers.

Question 5

Under New York law, a 'pour-over will' works in conjunction with a revocable inter vivos trust to:

Accepted Answer

Transfer probate assets into an existing trust at the testator's death

Answer

A pour-over will directs probate assets into a pre-existing revocable living trust at death, consolidating administration under the trust.

NYLE - New York Law Exam Practice Test

NYLE - New York Law Exam Practice Test

NYLE Trusts, Wills & Estates 5