Trusts & Estates

Question 1

duty of loyalty (trustee)

Answer 1

• duty of utmost loyalty and good faith to benes in obligations
• prohibited from self-dealing in any manner, even in good faith, with trust assets
• precluded from obtaining personal benefit other than fees

Question 2

duty of care (trustee)

Answer 2

• must exercise care in admin of trust
• degree of care, skill, and prudence as reasonably prudent businessperson wrt own affairs & property
• reasonable steps to protect and preserve the trust estate
• obtain necessary insurance

Question 3

duty to administer trust according to applicable law (trustee)

Answer 3

• administer trust according to applicable law
• uniform principal and income act: all ordinary expenses (incl repairs) allocated to trust income
• extraordinary repairs allocated to principal

Question 4

what is an “extraordinary repair” (trusts)

Answer 4

one necessitated by an unusual or unforeseen occurrence beyond usual or regular kind

Question 5

when & why does a testator need testamentary intent

Answer 5

• when making a will
• to validate a will

Question 6

meaning of “testamentary intent” for will validation

Answer 6

document intended to dictate distribution of t’s property post-death

Question 7

how does a court determine testamentary intent

Answer 7

• examining document
• testator’s words and actions
• circumstances of will’s execution

Question 8

when is testamentary capacity needed

Answer 8

when creating a will (i.e, at execution)

Question 9

how old do you need to be to have testamentary capacity

Answer 9

18 or older

Question 10

what does t need an awareness of to have testamentary capacity

Answer 10

expected heirs (natural objects of bounty)

Question 11

what does t need to understand and comprehend to have testamentary capacity?

Answer 11

• property’s full extent
• legal implications of creating a will

Question 12

attested will

Answer 12

a formal attested will needs testamentary intent and capacity from the testator, and must adhere to statutory formalities: be in writing, signed by the testator, acknowledged by the testator in the presence of at least two witnesses who sign the document during the testator’s lifetime, and recognized by the witnesses as the testator’s will.

Question 13

holographic will

Answer 13

under the UPC, a holographic will or codicil, a handwritten and unattested will, may be considered valid, even if not traditionally witnessed, as long as the signature and the material provisions are in the testator’s handwriting. the testator’s testamentary intent and capacity are also required.

Question 14

revocation by subsequent instrument

Answer 14

a will can be partially or fully revoked by a subsequent will, a codicil, or by implication. revoking instruments, such as a codicil or holographic will, must follow the original will’s formalities during execution.