Study Guide Only: Study Only:

STUDY GUIDE ONLY: STUDY ONLY:

5. What are spendthrift and sprinkling trusts, and why would a settlor create them?

7. What are some of the most common reasons or purposes for creating trusts?

8. Give three examples of trust restrictions that are "reasonable restraints" and do not violate public policy.

10. What is the court's position on a trust that has all its required elements but lacks a trustee? Explain.

11. Why are living trusts today often considered to be more desirable than wills? Which do you prefer? Why?

12. What are the major disadvantages of revocable living trusts?

13. How are real and personal property transferred into a living trust?

15. What are some of the uses of an irrevocable living trust?

16. Explain five responsibilities of a trustee in a post-death administration of a trust.

17. Why would a parent with a beneficiary receiving needs-based governmental assistance establish a special needs trust versus a general irrevocable living trust?

Case Problem 2

Zari purchased 20 acres of land from Deon. Since Zari was immediately leaving the country to serve in the Peace Corps for two years and was unable to attend the closing, she asked Deon to deed the property to her close friend, Kaleehja. Deon conveyed the property by deed to Kaleehja in her name. When Zari returns, Kaleehja refuses to turn over the property and claims the property was a gift to her from Zari. Zari denies the property was a gift and demands that Kaleehja return the property. Answer and explain the following:

1. Since real property (land) is involved in this case, does the Statute of Frauds apply?
2. In this case, can parol evidence be used to determine whether a resulting trust is established?
3. If Zari and Kaleehja go to court, what methods might a court use to decide whether Kaleehja's claim is correct?
4. If it goes to court, in your opinion, which party would win this case? SeeRainey v. Rainey, 795 S.W.2d 139 (Tenn.App. 1990).
5. If Zari had died while in the Peace Corps, would the property belong to Kaleehja?