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.
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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. |
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.
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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.
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