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15 Cards in this Set
- Front
- Back
What are the three requirements to modify a trust? |
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What is the Claflin Doctrine? |
The material purpose of the trust comes first,overriding any specific directions in the trust. |
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What is the two-level modification test? |
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What are the four requirements for Uneconomical Trust Termination? |
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What are the three sources of a Trustee's power? |
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What are the six main things a Trustee can do? |
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What are the three things a trustee cannot do? |
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What is Trustee liability for continuing a business? |
Liable for losses unless court approval to continue business |
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What are the five prohibitions on self dealing? |
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What are the two affirmative duties on self-dealing? |
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What are the beneficiary's two options when Trustee breaches duty? |
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What is the no further inquiry rule? |
Breach of a fiduciary duty by engaging in self-dealing is anautomatic wrong and no further inquiry need be made.
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What is the rule for action against a 3rd party when there is self-dealing? |
If trustee engages in a prohibited transaction, such as self-dealing, and sells trust property to a third party, the beneficiary cannot sue the purchaser of property from the trustee if that purchaser was a bona fide purchaser (BFP) for value without notice. |
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What is the rule for indirect action for self-dealing? |
Third parties that are a relative of trustee or business to which trustee is an officer are never BFPs |
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What are the four things an exculpatory clause cannot shield a trustee from? |
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