Bar: Wills and Trusts Exam Test
Questions With 100% Accurate
Answers 2025-2026 Updated.
Charitable Trusts - Answer Purpose must benefit the public
Must have indefinite beneficiaries
May be perpetual (RAP does not apply)
Enforceable by attorney general, not settlor or beneficiaries
Cy pres: if settlor's intended purpose is impracticable, unlawful, wasteful then court substitutes
a new charitable purpose
Honorary Trusts - Answer not for charitable purpose, but not private beneficiaries who can
enforce the trust (e.g. trust for pets, graves, etc.)
Under UTC, enforceable for 21 years.
Spendthrift Trusts - Answer provides that beneficiary may not voluntarily or involuntarily
transfer his interest.
not valid if settlor is also a beneficiary
Discretionary Trusts - Answer Trustee has discretion to pay or withhold income or principal.
Support Trust - Answer Cannot be assigned or reached without spendthrift clause
Powers of Trustee - Answer 1) power to sell and lease unless limited by trust instrument
2) power to incur expenses--necessary and ordinary management expenses allowed; power to
improve property usually not inferred
3) power to borrow money must be granted in trust instrument
, Duties of Trustee - Answer 1) care-standard is that of a reasonably prudent person managing
own property
2) loyalty--no self dealing
a) cannot buy assets from or sell assets to trust
b) cannot borrow from trust or loan to trust
c) cannot personally gain through position
d) corporate trustee cannot buy their own stock (but can retain)
e) if duty breached, beneficiary may:
i. set aside transaction
ii. recover profit
iii. or ratify the transaction
f) settlor can waive self dealing restrictions
3) duty to separate trust property--no commingling with own property or other trusts' property
a) commingled property lost or destroyed presumed to be trustee's
b) if commingled assets increase in value, presumed to be trust assets
c) if commingles assets decrease in value, presumed to be trustee's
4) duty to perform personally--cannot delegate administration of trust
5) duty to preserve property and make it productive
a) investments must be prudent; trustee must use reasonable care, skill, and caution
i) trustee must diversify investments
ii) investment decisions may be delegated if a prudent trustee would do so
Trustee's Liability - Answer 1) liable to beneficiaries for breach of trust
2) losses from one breach may not be offset against gains from another
3) defenses--laches or express or implied consent to the breach by beneficiaries
4) exculpatory clauses relieving trustee of all liability or liability for bad faith, intentional breach,
or recklessness are void
Questions With 100% Accurate
Answers 2025-2026 Updated.
Charitable Trusts - Answer Purpose must benefit the public
Must have indefinite beneficiaries
May be perpetual (RAP does not apply)
Enforceable by attorney general, not settlor or beneficiaries
Cy pres: if settlor's intended purpose is impracticable, unlawful, wasteful then court substitutes
a new charitable purpose
Honorary Trusts - Answer not for charitable purpose, but not private beneficiaries who can
enforce the trust (e.g. trust for pets, graves, etc.)
Under UTC, enforceable for 21 years.
Spendthrift Trusts - Answer provides that beneficiary may not voluntarily or involuntarily
transfer his interest.
not valid if settlor is also a beneficiary
Discretionary Trusts - Answer Trustee has discretion to pay or withhold income or principal.
Support Trust - Answer Cannot be assigned or reached without spendthrift clause
Powers of Trustee - Answer 1) power to sell and lease unless limited by trust instrument
2) power to incur expenses--necessary and ordinary management expenses allowed; power to
improve property usually not inferred
3) power to borrow money must be granted in trust instrument
, Duties of Trustee - Answer 1) care-standard is that of a reasonably prudent person managing
own property
2) loyalty--no self dealing
a) cannot buy assets from or sell assets to trust
b) cannot borrow from trust or loan to trust
c) cannot personally gain through position
d) corporate trustee cannot buy their own stock (but can retain)
e) if duty breached, beneficiary may:
i. set aside transaction
ii. recover profit
iii. or ratify the transaction
f) settlor can waive self dealing restrictions
3) duty to separate trust property--no commingling with own property or other trusts' property
a) commingled property lost or destroyed presumed to be trustee's
b) if commingled assets increase in value, presumed to be trust assets
c) if commingles assets decrease in value, presumed to be trustee's
4) duty to perform personally--cannot delegate administration of trust
5) duty to preserve property and make it productive
a) investments must be prudent; trustee must use reasonable care, skill, and caution
i) trustee must diversify investments
ii) investment decisions may be delegated if a prudent trustee would do so
Trustee's Liability - Answer 1) liable to beneficiaries for breach of trust
2) losses from one breach may not be offset against gains from another
3) defenses--laches or express or implied consent to the breach by beneficiaries
4) exculpatory clauses relieving trustee of all liability or liability for bad faith, intentional breach,
or recklessness are void
