Wills Trusts and Estates Flashcards

Under Virginia law, which element is NOT required for a valid express trust?

Answer: A written trust instrument

Virginia does not require all trusts to be in writing; oral trusts of personal property may be enforceable, though writing is advisable for real property.

Under Virginia's Uniform Trust Code, the trustee's duty of loyalty requires the trustee to:

Answer: Act solely in the interests of the beneficiaries

Va. Code § 64.2-763 codifies the duty of loyalty, requiring trustees to administer the trust solely in the beneficiaries' interests.

Under Virginia law, a valid spendthrift provision in a trust:

Answer: Prevents creditors from reaching a beneficiary's interest before distribution

Va. Code § 64.2-743 recognizes spendthrift provisions that restrain both voluntary and involuntary transfers of a beneficiary's interest before distribution.

Under Virginia's prudent investor rule, a trustee investing trust assets must:

Answer: Consider the portfolio as a whole and diversify

Virginia's prudent investor standard (Va. Code § 64.2-780) requires trustees to consider the total portfolio and diversify unless special circumstances justify otherwise.

Which of the following creditors CAN reach a beneficiary's interest in a spendthrift trust in Virginia?

Answer: A beneficiary's ex-spouse seeking court-ordered child support

Va. Code § 64.2-743(D) provides exceptions to spendthrift protection for claims for child support, spousal support, and certain government claims.

A trustee in Virginia breaches the duty of loyalty by:

Answer: Hiring the trustee's own law firm to provide legal services to the trust without consent

Self-dealing — such as engaging the trustee's own firm — constitutes a conflict of interest that violates the duty of loyalty under Va. Code § 64.2-763.

Under Virginia's Uniform Trust Code, a noncharitable irrevocable trust may be modified or terminated by:

Answer: Consent of the settlor and all beneficiaries if the modification is not inconsistent with a material purpose

Va. Code § 64.2-729 allows modification or termination with consent of the settlor and all beneficiaries if doing so does not frustrate a material purpose of the trust.