Trust and Estate Law Flashcards

What is the primary role of a trustee in a trust arrangement?

Answer: To manage assets for beneficiaries

A trustee has a fiduciary duty to manage the trust assets in the best interest of the beneficiaries, according to the terms of the trust.

Which document legally initiates the creation of a trust?

Answer: Trust deed

A trust deed, also known as a declaration of trust, is the formal legal document that sets out the terms and conditions of the trust.

What happens to a revocable trust upon the death of the settlor?

Answer: It continues and becomes irrevocable

A revocable trust typically becomes irrevocable upon the settlor’s death, meaning its terms can no longer be changed.

Which of the following best describes a testamentary trust?

Answer: A trust created by a will upon death

A testamentary trust is created through a will and only takes effect after the death of the person making the will (the testator).

Which party holds legal title to trust property?

Answer: Trustee

In a trust, the trustee holds legal title to the property and is responsible for managing it in accordance with the trust's terms.

What is the role of the executor in estate administration?

Answer: To distribute estate assets according to the will

An executor is appointed to carry out the terms of a will, including gathering assets, paying debts, and distributing the estate to beneficiaries.