OH Bar Wills Trusts and Estates 3

Question 1

Which elements are required to create a valid private express trust in Ohio?

Accepted Answer

Intent, trust property, ascertainable beneficiaries, and a lawful purpose

Answer

Under the Ohio Trust Code, a valid trust requires a settlor with capacity and intent, definite trust property, ascertainable beneficiaries (with charitable and animal-trust exceptions), and a lawful purpose.

Question 2

Under the Ohio Trust Code, a trust is presumed to be what unless the terms expressly provide otherwise?

Accepted Answer

Revocable by the settlor

Answer

R.C. 5806.02 follows the UTC rule that a trust is revocable unless its terms expressly state it is irrevocable, reversing the common-law presumption.

Question 3

A settlor creates a spendthrift trust for his daughter in Ohio. Which creditor can nevertheless reach the daughter's interest?

Accepted Answer

A claimant with a court order for child support against the daughter

Answer

Under R.C. 5805.02, spendthrift provisions are generally enforceable, but exception creditors such as those holding child or spousal support orders can reach the beneficiary's interest.

Question 4

An Ohio trustee invests the entire trust corpus in a single speculative stock. Which fiduciary standard has the trustee most likely violated?

Accepted Answer

The prudent investor rule's duty to diversify

Answer

The Ohio Uniform Prudent Investor Act requires trustees to diversify investments and evaluate decisions in the context of the whole portfolio unless the trust provides otherwise.

Question 5

A trust instrument names no trustee, and the named trustee later dies. What happens to the trust under Ohio law?

Accepted Answer

The trust continues; a court or the trust's mechanism appoints a successor trustee

Answer

A trust will not fail for want of a trustee; under the Ohio Trust Code a successor is appointed per the trust terms or by the court.

(OH Bar) Ohio Bar Exam Practice Test

(OH Bar) Ohio Bar Exam Practice Test

OH Bar Wills Trusts and Estates 3