Trust Law Flashcards

Beneficiary Remainder

• A beneficiary remainder is someone who receives the remaining trust property or assets after a specific time frame.

Time Frame

• The specific time frame does not need to be explicitly defined, as long as it is certain to occur.
• The recipient's death is an acceptable, albeit unspecified, time frame because it is inevitable.
• Other events can trigger the transfer of property, such as obtaining a diploma.

Rule Against Perpetuities

• If a set time for property transfer cannot be imagined within a lifetime plus 21 years, the trust is invalid due to violating the rule against perpetuities.

Examples of Invalid Time Frames

• Using marriage as a trigger for trust distribution could create a perpetuity issue since marriage may never occur.

Trusts and Beneficiaries

• A grantor can appoint a trustee (e.g., Soren) and a beneficiary (e.g., Evan) for Evan's lifetime.
• A remainder beneficiary (e.g., Berry) would then receive the trust assets after Evan's death.