Elements and Limits on Creation and Duration of Interests Self-Quiz

 

 

 

 

 

 

 

 

 

 

Joseph gives $500 each month to his sister-in-law, Ali. Joseph then devises his property to his children, Lizzie and Marisol, but states: “I request that Lizzie and Marisol . . . pay to Ali $500 as long as she shall live.” Joseph did not create a trust for Ali’s benefit.
True
False
Jean-René (JR) tells Britney that he intends to purchase 10,000 shares of Vivendi stock and, when he does, to hold them in trust for her. Two weeks later, JR purchases the stock. JR created a trust for Britney’s benefit.
True
False
Colin’s father died three months ago. Colin was the sole beneficiary of his father’s will. Not long thereafter, Colin created a trust with respect to “any property I may inherit from my father.” The trust is for the benefit of his children. Colin effectively created a trust.
True
False
In January 2003, Colin decided to establish a trust with respect to “any property I may inherit from my father.” At the time of this declaration, his father was still alive. Colin’s father died in March 2003. Colin was the sole beneficiary of his father’s will. In May 2003, Colin again mentioned his intention of creating such a trust. The trust is for the benefit of his children. The effective date of the trust is:

Choice 1 January 2003.
Choice 2 May 2003.
Choice 3 March 2003.
Choice 4 Colin’s actions did not create a trust.
Susan’s will leaves certain land in trust for her son, Quentin. She named her brothers, Tyrone and Fabian, as the co-trustees. When Susan died five years later, Tyrone had predeceased her. Her younger brother, Fabian, was 16 years old at the time. What happens with the trust?
Choice 1 The trust will fail.
Choice 2 Fabian becomes the sole trustee.
Choice 3 The court will appoint someone other than Fabian to be the trustee.
Genie established a trust, giving the trustees the power “to dispose of my property to my children, family and friends as they shall select.” Which class of beneficiaries is definite and ascertainable?
Choice 1 Genie’s family.
Choice 2 Genie’s children.
Choice 3 Genie’s friends.
Xavier leaves his estate in trust, the income to be shared equally among his three children, Renata, Irene and Portia “until my youngest grandchild reaches the age of 25.” At that time, 1/3rd of the corpus is to be split among Renata and her children, 1/3rd is to be split among Irene and her children and 1/3rd is to continue in trust for Portia (who has no children). There is no residuary provision in the will, if the above bequest fails for any reason. Which gift DOES NOT violate the Rule against Perpetuities?
Choice 1 The gift of corpus to Renata and her children.
Choice 2 The continued trust interest for Portia.
Choice 3 The gift of corpus to Irene and her children.
Tamora established a trust for the benefit of her son, Marcel: “to Maurice in trust for Marcel.” Although Marcel was 22 years old at the time of the trust creation, he was very irresponsible with his money. Tamora’s trust would be considered a spendthrift trust.
True
False

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