Suggested Time to Complete: 36 minutes
Betty’s Trust Instrument – Difficult
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This question should be answered using three IRAC structures. Please include all relevant key words in your answer.
Betty executes a trust instrument to allow “Anne or one of my other friends to live in my beach house.” She designates her sister Lucy as the trustee and instructs her to maintain the house, pay the property taxes, and ensure that someone is able to live comfortably in the house. However, Anne refuses to live in the beach house or even step foot on the property, which she believes is haunted. Lucy contacts another one of Betty’s friends, Suzie, who agrees to live in the house. However, before Suzie can move into the house, Lucy resigns as trustee.
Is the trust invalid?
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To answer this question, you should think about and discuss whether Betty named an ascertainable beneficiary of the trust, whether the trust is invalid because the beneficiary did not accept the trust property, and whether the trust is invalid because the trustee resigned.
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