Arnold and Alice Peasgood have three adult sons: Arnold, Jr., Andrew and Alex. Arnold, Jr. and Alex are both married and have two children. Andrew has been married three times, has three children (one with each wife), and has recently moved back home to his parent's house after loosing his house to foreclosure. The Peasgoods have a very substantial estate. Arnold recently passed away, leaving Alice as the executor of his estate. Alice has come to the office to talk about making some gifts to her sons, and possibly creating a trust for Andrew, and Andrew's three children, Denise, Jonathan and Annemarie. Andrew tends to spend money without thinking. His mother is concerned that he will never save enough to own a home, pay for his children's college education, or retire. Alice wants to give all of her sons yearly gifts, but wants to control the money that goes to Andrew so that he can use some during his lifetime, but some will be saved for his children. She thinks that she and Arnold Jr. should be trustees, but when she dies, Arnold Jr. can take over.

Please respond to the following questions:

1. Should the trust be revocable or irrevocable?

2. Can Alice serve as a Trustee?

3. Who will be the beneficiaries ?

4. What additional information needs to be discussed with Alice? Please include the specific questions you would ask Alice.

5. Draft a proposed form of trust for Alice.