Julie has executed a written trust for the benefit of her 20-year-old son, Sam. Her uncle Bill, who is an accountant, will be the trustee and provide distributions for Sam. The distributions are limited to the income from trust assets (although Julie can terminate or change the conditions of the trust). Sam's death will result in the trust terminating and the principal and undistributed income being distributed according to a separate provision of the trust. 1) Who has legal title to trust assets? 2) Who has equitable title to trust assets? 3) The trust is a(n): A. Resulting Trust B. Constructive Trust C. Express Trust D. None of the Above 4) The Trust is a(n) A. Revocable Inter Vivos Trust B. Revocable Testamentary Trust C. Irrevocable Inter Vivos Trust D. Irrevocable Testamentary Trust For Questions 5-8 John has agreed to be the trustee for his brother's trust and has waived personal compensation for doing so. John's duties in managing the assets of the trust include buying and selling real estate. John will be traveling overseas for the next six months making it difficult to manage the trust. 5) Can Jonathon hire someone to manage the trust while he is away? Explain. 6) Suppose a tract of commercial property in the trust has not increased in value for the past seven years, and Johnathon would like to sell the property and invest the proceeds to generate income for the trust (something that is consistent with prior investing of the trust). Can John hire someone to appraise the property? Explain 7) Suppose the fair market value of the land in question #6 is $25,000. Can John purchase the land for himself for $25,000? Explain. 8) Suppose the fair market value of the land in question #6 is $25,000, but John received a bid for $30,000 from a legitimate buyer. Can John purchase the land for himself for the fair market value? Explain. Question 9 (2 points) 9) In Mary Mack's will she gives the residue of her estate to the Mary Mack Revocable Trust to be administrated and distributed in accordance with the terms of the trust effective at her death. This is an example of a(n) A. Resulting Trust B. Constructive Trust C. Inter Vivos Trust D. Pourover Will Questions 10 - 12 (4 points each) 10)Jose created a trust to distribute monthly income of the trusts' assets to him and his son, Louis. Jose was the trustee and named Louis as successor trustee. No changes were made to the trust. When Jose died and Louis became sole trustee, what was the effect on the trust? Explain. 11)William's grandmother has a will to leave $30,000 to each of his 5 grandchildren. One of the grandchildren, Hank, is disabled and receives government benefits. What should Hank do to prevent Hank from losing his benefits by receiving the inheritance? Explain your answer. 12) Sarah and Steve have been married for five years. They have no children together. Steve has an estranged child from a previous marriage, and Sarah has two children from a previous marriage. She wants to be able to provide income from her assets to Steve if she dies before him, but she wants her children to ultimately receive the assets. What is the best way for Sarah to achieve this? Explain your answer. Questions 13 &14 (10 Points Each) 13) Layla and Marco divorced in 2020. The judgment of the divorce decree required both Layla and Marco to carry a life insurance policy for the benefit of their 8-year-old minor child, Joseph, for $150,000. The policy was to name the other parent as trustee for the benefit of Joseph and remain in effect so long as either Marco or Layla had an obligation to support Joseph. A clause also provided that if either party failed to carry the policy and died, a constructive trust would be imposed over the proceeds of any other policy that named a different beneficiary, and the trustee would be allowed to make appropriate distributions from the constructive trust for Joseph's benefit. Layla died in 2022 while both parents still had an obligation to support Joseph, then 10 years old. Layla did not have the required insurance policy naming Marco as the trustee for the benefit of Joseph. Marco discovered that Layla did have an insurance policy that covered more than $150,000, but it had named her new husband as the sole beneficiary. Marco sued requesting that a constructive trust for $150,000 of the proceeds of that policy. Will Marco likely prevail? Explain your answer. 14) Isac's grandfather established an irrevocable trust for his benefit when he was 18 years old. The trustee was required to distribute the net proceeds of the trust to Isac twice a year or upon request of Isac. Isac could not assign or transfer any of his interests in the trust and could not invade the principal until he was 30 years old. However, the principal of the trust could be invaded for the purposes of "maintenance, support and education of Isac" at the sole discretion of the trustee. The trust included a legally enforceable spendthrift clause. At 20 years old, Isac was responsible for a car accident. Carol, a passenger in his car, sued him and obtained a judgment for $75,000. To satisfy the judgment, Carol moved to attach Isac's interest in the trust that was established by Isac's grandfather for his benefit. Will Carol succeed? Explain your answer.