...formation now." Which statement is most accurate? This question tests trustee duties to inform and account. Uniform Trust Code section 813
Citations: Uniform Trust Code section 813
Trustee asked Beneficiary to sign a release approving Trustee's purchase of trust property. Trustee told Beneficiary the price was fair but did not disclose that Trustee was the buyer, that Trustee had obtained a lower p...
Citations: Uniform Trust Code section 1009
Trustee breached the duty of loyalty by directing trust business to Trustee's separate company. The trust paid $40,000 more than a reasonable market price, and Trustee's company earned $25,000 in net profit from the tran...
Citations: Uniform Trust Code section 1002
Trustee lacks investment experience and hires Adviser to manage the trust portfolio. Trustee does not check Adviser's credentials, gives no written investment objectives, and ignores monthly reports showing speculative t...
Citations: Uniform Trust Code section 807
Trustee repeatedly used trust funds for personal expenses, failed to account, and ignored court orders to provide records. The beneficiaries seek surcharge and removal. Trustee argues that removal is impossible because S...
Citations: Uniform Trust Code section 706, Uniform Trust Code section 1001
Trustee sold a trust-owned warehouse to himself for $500,000. Trustee did not seek court approval and did not disclose that he was the buyer until after closing. An appraisal obtained after the sale showed the warehouse...
Citations: Uniform Trust Code section 802
Trustee wrongfully withdrew $200,000 from the trust and used the money as the down payment on a condominium titled in Trustee's individual name. The condominium later increased in value. The beneficiaries can identify th...
Citations: Uniform Trust Code section 1001, Common-law tracing principles
A trust directs Trustee to pay income to Dana for life and distribute principal to Quinn at Dana's death. Trustee is deciding whether to shift the portfolio into high-dividend bonds or growth stocks. The trust instrument...
Citations: Uniform Trust Code section 803
A trust instrument states, "Trustee is not liable for mistakes in judgment made in good faith." Trustee later intentionally hides a conflict of interest and transfers trust assets to a business Trustee owns. Beneficiarie...
Citations: Uniform Trust Code section 1008
Trust directs Trustee to pay income to Aunt Lila for life, then distribute principal to Settlor's grandchildren. Trustee is Settlor's friend. For six years, Trustee sent Lila checks but provided no accountings to Lila or...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 813, 1001, and 1005
Trust provides: "Pay income to my spouse, Rosa, for life. Trustee may distribute principal to Rosa as needed for health and support. At Rosa's death, distribute remaining principal to my children, Ben and Callie." Truste...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 803, 814, 1001, and 1002
Trust requires Trustee to maintain a family farm unless all adult beneficiaries consent to a sale. The trust also states, "Trustee shall not be liable for mistakes in judgment made in good faith." Without seeking consent...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 801, 1001, 1002, and 1008
Galen transferred $400,000 to City Bank "as trustee to invest and distribute income equally to my children, Lina and Omar, for 10 years, then distribute principal equally to them." City Bank signed a receipt but later de...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 402 and 704
...valid trust instrument and transferred $300,000 to Trust Company "as trustee for my grandchildren." The instrument imposed investment and distribution duties. Trust Company declined to serve before making any distributi...
Citations: Uniform Trust Code section 704
...ust instrument did not direct retention of the stock. For four years, Trustee kept the entire position without reviewing the beneficiaries' needs, market risk, taxes, or alternatives. The stock then fell sharply. Which s...
Citations: Uniform Trust Code section 804, Uniform Prudent Investor Act principles
...principal to Felix's children at his death. The trust instrument gave Trustee "broad investment discretion" but did not waive fiduciary duties. At funding, 85 percent of the trust consisted of stock in one publicly trade...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 804, 807, 1001, and 1002, Uniform Prudent Investor Act principles
...use, Mira, for life, remainder to Settlor's children, Noah and Priya. Trustee, who is Settlor's cousin, owned 40 percent of a struggling real estate company. Without telling any beneficiary about her ownership, Trustee c...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 802, 1001, and 1002
...ol. I trust you to do what is right." The letter did not use the word trustee, impose duties, state distribution standards, or require account separation. Grandmother kept the portfolio in her own name until death. What...
Citations: Uniform Trust Code section 402
A musician's will leaves $200,000 to Trustee "to distribute among my most loyal fans, in Trustee's absolute discretion." The will provides no way to determine who qualifies as a loyal fan and states no charitable purpose...
Citations: Uniform Trust Code section 402
...n instrument stating, "I hold my investment account ending in 9900 as trustee. During my life I may use the income for myself, and at my death the remaining account shall be distributed to my nephew Eli." Dana never reti...
Citations: Uniform Trust Code sections 401 and 402
Harper's will leaves $80,000 to Trustee "to care for my cat Juniper for the rest of Juniper's life." Harper owned Juniper when Harper signed the will and when Harper died. The state follows the modern UTC-style rule for...
Citations: Uniform Trust Code section 408
Owen's will left $600,000 to Trustee. The will directed Trustee to use $250,000 "for my true friends who stood by me, in whatever amounts Trustee thinks fair"; $250,000 "to fund scholarships for graduates of County High...
Citations: NCBE MEE Subject Matter Outline, Trusts and Estates, Uniform Trust Code sections 402, 405, and 408
Owner executed a deed conveying Blackacre "to Paula, as trustee for Paula." No other person has any present or future interest, and the instrument gives Paula complete power to use, sell, or keep Blackacre for herself. W...
Citations: Common-law merger doctrine, Uniform Trust Code section 402
...ater executed a valid will stating, "I leave my probate estate to the trustee of my revocable trust, to be administered under that trust." At death, Testator owned a car in Testator's sole name with no beneficiary design...
Citations: Uniform Probate Code pour-over principles
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