Page 26 - Book10E

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Let’s Review
As mentioned earlier, a living trust can be a useful and practical tool for some people, but not necessarily for others. Take this brief “True or False” quiz to review the purposes, concepts, and principles of a living trust. Answers are found at the end of the quiz.
1. _____ A trust is a legal arrangement where one person (the “grantor”) gives control of his property to a trust, which is administered by a trustee for the benefit of the beneficiary.
2. _____ Living trusts are designed to give you some control while you are alive over what happens to your assets in the event of your death and to help you avoid potential hassles and headaches for your loved ones.
3. _____ A living trust is essentially the same as a will.
4. _____A living trust is often viewed as an alternative to a will, in which a person’s assets are transferred to the trust during his or her lifetime and distributed at the time of death.
5. _____ You cannot serve as the trustee of your living trust.
You must select another person or an institution to be the trustee.
6. _____ If you die and don’t have a will, the probate court in your state determines what happens to your estate and your minor children.
7. _____ You can transfer ownership of your property and your assets into a living trust.
8. _____ If you’re the trustee of your living trust, you don’t need to name a successor trustee to distribute the assets at your death.
How to Make Sure Living Trusts are Trustworthy
Answers: 1) T; 2) T; 3) F; 4) T; 5) ;F; 6) T; 7) T; 8) F