Wills Trusts and Estates Flashcards
7 cards from real OK BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Wills Trusts and Estates flashcards as text
Which of the following is required to create a valid private express trust?
Answer: Intent, identifiable trust property, ascertainable beneficiaries, and a lawful purpose
A private express trust requires settlor intent, a res, ascertainable beneficiaries, and a valid purpose; a trustee will be supplied if missing.
A settlor creates a trust 'for my friends.' The trust most likely fails because:
Answer: The beneficiaries are not ascertainable
'Friends' is too indefinite a class, so the trust fails for lack of ascertainable beneficiaries.
A spendthrift clause in an Oklahoma trust generally prevents:
Answer: Beneficiaries from voluntarily or involuntarily transferring their interests before distribution
A spendthrift provision bars a beneficiary's creditors and assignees from reaching the interest before it is distributed.
A trustee of an Oklahoma trust invests all trust assets in a single speculative stock, which loses value. The trustee most likely breached:
Answer: The duty of prudent investment, including the duty to diversify
Under prudent investor principles, a trustee must diversify investments and manage the portfolio with reasonable care and caution.
A trustee purchases trust property for himself at fair market value without court approval or beneficiary consent. This is:
Answer: A breach of the duty of loyalty regardless of fairness, under the no-further-inquiry rule
Self-dealing by a trustee is a per se breach of loyalty, and fairness of the price is no defense under the no-further-inquiry rule.
Which trust may a settlor generally modify or revoke at any time during life?
Answer: A revocable inter vivos trust
A revocable living trust remains subject to the settlor's power to amend or revoke while the settlor is alive and competent.
A charitable trust for a specific school fails when the school closes. A court applying cy pres will:
Answer: Redirect the trust to a similar charitable purpose if the settlor had general charitable intent
Cy pres lets a court substitute a charitable purpose as near as possible to the original when the settlor had general charitable intent.