Trusts and Fiduciary Relationships Quiz

Trusts typically involve unilateral control over assets.

Trustees are obligated to act in the best interests of the beneficiaries.

Probate courts typically handle disputes related to trusts.

The settlor is the individual who establishes the trust.

Constructive trusts are designed to rectify situations of unjust enrichment or fraud.

Fiduciary duty in trusts involves the obligation to act in the best interests of the beneficiaries.

Fiduciary relationships focus on prioritizing the interests of a third party.

The settlor usually holds the power to alter or terminate a revocable trust.

Revocable trusts offer flexibility as they can be modified or terminated, unlike irrevocable trusts.

Loyalty in fiduciary duty involves prioritizing the interests of the beneficiaries.

Trustees in discretionary trusts have the authority to distribute assets among beneficiaries.

A resulting trust is one that arises implicitly from the actions of the involved parties.

Spendthrift trusts safeguard trust assets from creditors seeking to claim them.

The 'prudent person' rule pertains to making sound investment decisions in fiduciary relationships.

The trust deed specifies the terms and conditions of a trust agreement.

Spendthrift provisions protect trust assets from creditors seeking to seize them.

Charitable remainder trusts provide income to beneficiaries for a specified period, with the remainder going to a charitable organization.

The unclean hands doctrine permits courts to set aside transactions tainted by conflict of interest.

Protectors serve as independent third parties overseeing the actions of trustees in certain trust structures.

'Cy-pres' is a legal principle permitting courts to modify charitable purposes when necessary.