Foundations of Common Law
What is the unwritten body of law based on customs and court rulings called?
What is Common Law?
What makes a trust 'irrevocable'?
What is that it cannot be changed or terminated without beneficiary consent?
What fiduciary duty requires trustees to always act in good faith for beneficiaries?
What is the Duty of Loyalty?
What is a 'Fiduciary?'
What is a person bound to act for another’s benefit, with loyalty and good faith?
A client places life insurance in a trust to protect it from creditors. What trust type is this?
What is an Irrevocable Life Insurance Trust or ILIT?
Under Common Law, what does ownership of property depend on?
What is lawful title and possession?
What principle means 'to stand by what has been decided'?
What is Stare Decisis?
Who is the person who creates the trust and transfers assets into it?
Who is the Grantor, also known as the Settlor or Trustor?
What must trustees avoid when handling trust assets?
What is self-dealing or conflicts of interest?
What does 'Corpus' of a trust mean?
What is the property or principal that makes up the trust’s assets?
The trustee invests trust funds in their cousin’s company. What rule is violated?
What is the Duty to Avoid Conflicts of Interest?
What is the legal term for a person’s right to use and enjoy their property without interference?
What is the Right of Enjoyment?
What is the key difference between Common Law and Civil Law systems?
What is Common Law relies on judicial precedent, while Civil Law depends on written codes?
What is one major advantage of an irrevocable trust?
What is asset protection from creditors and estate taxes?
What standard measures a trustee’s care and skill in managing the trust?
What is the Prudent Person Rule?
What is 'Equity' according to Black’s Law Dictionary.
What is fairness or justice as applied in law?
A grantor transfers property but keeps the right to revoke the trust. Is it irrevocable?
What is no, it is a revocable trust?
What Common Law doctrine protects people from losing property without fair process?
What is Due Process of Law?
What term describes the idea that everyone is subject to the law, including government officials?
What is the Rule of Law?
What is required for a trust to be legally enforceable?
What is intent, identified property (res), trustee, and beneficiary?
What happens if a trustee mismanages the trust?
What is they can be removed and held personally liable for losses?
What is 'Consideration'?
What is something of value exchanged between parties to form a binding agreement?
A beneficiary argues the trust is invalid because the grantor lacked mental capacity. What concept
applies?
What is Lack of Capacity?
What legal principle states 'He who seeks equity must do equity'?
What is the Doctrine of Clean Hands?
What foundational document heavily influenced American Common Law principles?
What is the Magna Carta of 1215?
What happens to control of assets once they are placed in an irrevocable trust?
What is control being legally transferred to the trustee?
What is the purpose of a successor trustee?
What is to take over if the original trustee dies, resigns, or becomes incapacitated?
What is 'Constructive Notice.'
What is legal presumption that information was known because it was publicly available?
The trust continues managing property after the grantor’s death. What does this demonstrate?
What is that the trust operates as a separate legal entity?
What Common Law concept ensures that no one can transfer rights they don’t legally own?
What is Nemo dat quod non habet, meaning 'No one gives what they do not have'?