Power to Revoke, Modify or Terminate Trusts Self-Quiz

 

 

 

 

 

 

 

 

 

 

Alyssa established a trust several years ago, for the benefit of her son, Murray. When she recently prepared her will, she included a clause that would allow her to revoke or modify the trust, since she had forgotten to add it to the trust agreement. Three months later when Alyssa attempts to modify the trust she is able to do so.
True
False

Alyssa established a trust several years ago, for the benefit of her son, Murray. She picked her brother, Delbert, to be the trustee. The trust agreement gave Delbert very limited powers in administering the trust. He had to maintain the strict formula of distributions to Murray. The trust was to terminate on its own when Murray reached the age of 30. When Murray was 24 years old, he asked Delbert to increase the income he received from the trust because he wanted to go to graduate school and needed the extra money for living expenses.
Choice 1 Delbert on his own can increase the income to Murray.
Choice 2 Delbert is prohibited from increasing the income to Murray.
Choice 3 The court will compel Delbert to increase the income to Murray
Theresa established a trust for the benefit of the issue of her brother, Milton. At the time the trust was created, Milton had three children, Arlene, Olivia and Ida. Each was to receive a certain percentage of the income from the trust. Two years after the trust’s creation, Ida wanted to terminate the trust and receive her portion of the principal. So, after getting the consent of Arlene and Olivia, she asked the trustee (her uncle Gary) to terminate the trust. Gary can terminate the trust.
True
False
Rebecca established a trust “income to Tonya for life, and on her death to distribute the principal to Wade.” Due to inflation, the amount Tonya receives is insufficient to support her. The court will allow the trustee to supplement Tonya’s income with principal.
True
False

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