Question 1(2 points)

Which judicial remedy can a beneficiary use to be compensated monetarily (either directly or through the trust) for a trustee's breach of trust?

Question 1 options:

Civil lawsuit to compel the trustee to reimburse the trust for any loss or depreciation in value of the trust property

Removal of the trustee and appointment of a new trustee

An injunction to compel the trustee to do or refrain from doing the act that would constitute the breach of trust

Suing for specific performance

Question 2(2 points)

Which is NOT considered valid grounds for the removal of a trustee?

Question 2 options:

Lack of capacity

Resignation of the trustee

Commission of a crime

Showing favoritism to one or more beneficiaries

Question 3(2 points)

The court may appoint or replace a trustee in all of the following circumstances EXCEPT:

Question 3 options:

The trustee is incompetent

The named trustee declines the position.

The trustee dies.

The named trustee is also a co-beneficiary.

Question 4(2 points)

Which of the following is NOT an essential element of a trust?

Question 4 options:

A sale or gift of property

One or more beneficiaries

Real or personal property

One or more trustees

Question 5(2 points)

Which duty prohibits a trustee from personally profiting from his/her position as trustee (other than the compensation allowed by contract or law)?

Question 5 options:

Duty to take possession of and preserve trust property

Duty of loyalty

Duty to prevent the investment of the trust property

Duty to make payments of income and principal to the named beneficiaries

Question 6(2 points)

Which of the following is a type of implied trust?

Question 6 options:

Testamentary trust

Private trust

Active trust

Constructive trust

Question 7(2 points)

Which is NOT a subcategory of express trusts?

Question 7 options:

Inter vivosor testamentary trusts

Private or public trusts

Active or passive trusts

Implied or nonimplied trusts

Question 8(2 points)

Which is NOT a type of resulting trust?

Question 8 options:

Failed trust

Purchase-money resulting trust

Implied trust

Excessive endowment trust

Question 9(2 points)

Which function CANNOT be performed by a pour-over will?

Question 9 options:

It can allow the testator to name a personal guardian for minor children.

It can dispose of property that the testator neglected to add to the trust before death.

It can dispose of property acquired by the testator through gifts, inheritance, or good fortune shortly before death.

It can be used independently as a substitute for a will.

Question 10(2 points)

Which is NOT an advantage of using a revocable living trust as a substitute for a will?

Question 10 options:

The need for court-appointed guardians for minors is eliminated.

Publicity is avoided.

The settlor maintains ownership of assets.

A living trust is not under the control or supervision of the probate court.