FOUNDATIONS OF COMMON LAW
What type of law is based on long-standing customs, court decisions, and judicial principles
rather than written statutes?
What is Common Law?
What do we call the person who receives benefits from a trust?
Who is the Beneficiary?
Which IRS section recognizes 508(c)(1)(A) organizations as tax-exempt?
What is IRS Code 508(c)(1)(A)?
What does Black’s Law define as a duty to act for another’s benefit?
What is a Fiduciary Duty?
A trustee follows the trust instructions exactly as written. What duty are they fulfilling?
What is the Duty of Obedience?
What happens to assets once they are placed inside an irrevocable trust?
What is they become the legal property of the trust and are managed by the trustee?
What principle in Common Law requires judges to follow previous court rulings in similar cases?
What is Stare Decisis?
What do we call a trustee who shares equal responsibility with another trustee in managing the
trust?
What is a Co-Trustee?
Which statute outlines exemptions from filing requirements for certain organizations?
What is USC 6033(a)?
What is the legal right to use, control, and dispose of property?
What is Ownership?
A beneficiary asks for early access to principal, but the trust forbids it. What must the trustee
do?
What is deny the request?
What must exist for a trust to remain legally valid?
What is a purpose, a trustee, property, and a beneficiary?
What principle states that laws must apply equally to all people, leaders included?
What is the Rule of Law?
What is a beneficiary entitled to receive according to the trust instructions?
What are trust distributions?
Which code section addresses charitable contribution deductions for trusts and estates?
What is 26 USC 170(b)?
What term describes a wrongful act or breach of duty causing harm?
What is a Tort?
A family disputes who owns property inside a trust. What determines the answer?
What is the trust document?
What protection does an irrevocable trust offer against personal debts or legal claims?
What is asset protection?
What are rights that exist naturally and are not created by government?
What are Natural Rights?
Why can’t a beneficiary manage or control assets inside an irrevocable trust?
What is because the trustee is the one legally responsible for managing the trust?
Which law recognizes a trust as a separate taxable entity for income tax purposes?
What is 26 USC § 641?
What does Black’s Law define as the legal ability to enter a binding agreement?
What is Capacity?
A successor trustee steps in after the original trustee becomes unavailable. What principle
allows this?
What is continuity of trust administration?
What clause prevents beneficiaries from selling or assigning their interest in the trust?
What is a Spendthrift Clause?
What historical document introduced the idea that even rulers must follow the law?
What is the Magna Carta?
Who becomes responsible for managing the trust only after both the trustee and co-trustee can
no longer serve?
Who is the Successor Trustee?
Which section defines legal entities, including trusts, for tax classification?
What is 26 USC § 7701(a)?
What equitable remedy prevents someone from gaining unfair benefit at another’s expense?
What is Unjust Enrichment?
Why can’t one person create a trust, manage it, and be the sole beneficiary without separation?
What is because the trust becomes a sham or alter-ego trust with no legal separation?
What do we call a trust that appears valid but fails because the person who created it still tries to
control everything and own everything?
What is a sham trust?