Asked by Farhan Malik on Jun 18, 2024
Verified
Which of the following is a false statement regarding trusts?
A) A settlor may revoke a trust at any time.
B) Settlors may create trusts to prevent individuals from getting access to certain assets.
C) Trusts may be set up to make "awards" to family members who make significant contributions in certain fields, such as education, science, law, or medicine.
D) A trust document may state that the trust will terminate when an event happens, such as when the remainderman reaches a certain age.
E) A court can place assets of a partnership in a constructive trust if it discovers that one partner is engaging in fraudulent or unconscionable conduct that might negatively affect the interests of another partner.
Constructive Trust
A legal remedy imposed by a court to prevent unjust enrichment by transferring property from the person who unjustly benefits to the rightful owner.
Settlor
The individual who creates a trust by legally transferring assets into it, setting the terms for its management and distribution.
Revoke
To take back or withdraw an offer, right, or privilege.
- Define the purpose and layout of trusts, incorporating express, implied, and constructive trusts.
Verified Answer
YF
Yolanda FullardJun 24, 2024
Final Answer :
A
Explanation :
A settlor may not always revoke a trust at any time, as this depends on whether the trust is revocable or irrevocable. Revocable trusts can be altered or terminated by the settlor during their lifetime, while irrevocable trusts, once established, generally cannot be changed or revoked.
Learning Objectives
- Define the purpose and layout of trusts, incorporating express, implied, and constructive trusts.