VA Bar Wills Trusts and Estates 3

Question 1

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

Accepted Answer

A written trust instrument

Answer

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.

Question 2

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

Accepted Answer

Act solely in the interests of the beneficiaries

Answer

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

Question 3

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

Accepted Answer

Prevents creditors from reaching a beneficiary's interest before distribution

Answer

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

Question 4

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

Accepted Answer

Consider the portfolio as a whole and diversify

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(VA Bar) Virginia Bar Exam Practice Test

(VA Bar) Virginia Bar Exam Practice Test

VA Bar Wills Trusts and Estates 3