TEST #1 - ANSWERS
1. What is the typical trust naming convention?
[insert trustee name], as trustee of the [NAME OF TRUST] dated [insert date].
2. How do you know who owns the following?
Asset Type Ownership Document
Bank Account Deposit Agreement
Personal Property none typically
3. John & Jane Doe come to the office to prepare a trust. The name of the trust is the John and Jane Doe Joint Revocable Trust. You look on the trust and see it was executed on April 14, 2019. The initial trustee is a corporation called Local Trustee Corp. When filling out a beneficiary form, what is the name of the trust.
Local Trustee Corp., as trustee of the JOHN AND JANE DOE JOINT REVOCABLE TRUST dated April 14, 2019
4. John & Jane Doe own a house in their joint names and they are placing it into their joint trust. You are preparing the deed. Please answer the following:
Who is the Grantor? John Doe and Jane Doe
Who is the Grantee? Local Trustee Corp., as trustee of the JOHN AND JANE DOE JOINT REVOCABLE TRUST dated April 14, 2019
5. Same as above, except John & Jane Doe want the home in their Doe Group LLC.
Who is the Grantor? ________ John Doe and Jane Doe ____________________________
Who is the Grantee? _________Doe Group LLC____________________________________
6. Same background as #3. John Doe owns a bank account with $20,000. He changes the beneficiary to his trust.
(a) Who is the owner of the bank account before the change? John Doe (obviously)
(b) Who is the owner after the beneficiary change? John Doe – Reason being that a beneficiary change does not change ownership
(c) How could John Doe place the $20,000 into his revocable trust?
John would need to go to his financial institution and open a new account in his name. He would then transfer the funds from the account in his name into the new trust account.
(d) If John were to become mentally incapacitated before he had a chance to move the funds into his trust, what are Jane’s two legal options.
Option #1: If John had Power of Attorney for Property contact the agent. Typically, a person names his spouse as agent, so Jane is likely the agent. She can take the POA to bank and transfer the funds.
Option #2: If no POA, Jane will need to petition in Guardianship Court to be John’s guardian.
(e) If John become mentally incapacitated after the transfer into the trust, who would control the trust?
Local Trustee Corp would continue as trustee unless trust specifies otherwise. Note, if John were the trustee, then it would be his successor trustee.