ATO Conference Quiz Question Title * 1. What is a reason why you might seek trust modification Change the term of the trust Broaden or authorize specific investment authority Restrict distributions Add spendthrift provisions All of the above OK Question Title * 2. By which date must a Trust be created to modify a trust judicially in accordance with settlor’s intent? Trust created after March 2005 Trust created anytime Trust created before December 2000 Trust created after July 1, 2007 under the new Trust Code OK Question Title * 3. When can you modify a trust judicially for the best interest of the beneficiaries? Trust created in September 2004 with a 360 years rule against perpetuities period and a trust provision expressly prohibiting judicial modification Trust created in March 2005 with 21 years rule against perpetuities period and a trust provision expressly prohibiting judicial modification Trust created in December 2000 with a 21 years rule against perpetuities period and a trust provision expressly authorizing judicial modification Trust created in August 2007 with a 90 years rule against perpetuities period and a trust provision expressly prohibiting judicial modification OK Question Title * 4. How does the Horgan v. Cosden case potentially change trust modification? It doesn't It requires that all beneficiaries provide written consent to terminate a trust judicially It stands for the proposition that the Settlor’s intent is paramount, and overcomes any interest by the beneficiaries to terminate the trust prematurely It requires that any trust modification look beyond the plain language of the trust OK Question Title * 5. An irrevocable trust cannot be modified through non-judicial modification unless the settlor has died. True False OK Question Title * 6. Which of these cannot be accomplished in a non-judicial settlement agreement? Changing a trust’s principal place of administration Determining a trustee’s compensation Settlement not otherwise able to be approved by a court under Florida law Approval of trustee accounting Approval of trustee accounting OK Question Title * 7. Which of the following would a court not be required to consider when exercising its discretion to modify a trust? Spendthrift provisions Relevant extrinsic evidence Terms and purposes of the trust Facts and circumstances surrounding the creation of the trust The date the revocable trust was signed OK Question Title * 8. What does the Florida Rule Against Perpetuities have to do with the availability of trust modification? Nothing (hooray!) The Florida Rule Against Perpetuities period used in a trust will determine whether a trust can be modified judicially in accordance with the settlor’s intent The Florida Rule Against Perpetuities period used in a trust will determine whether a trust created on December 31, 2000 can be modified judicially for the best interest of the beneficiaries The Florida Rule Against Perpetuities period used in a trust will determine whether a trust created on December 31, 2001 can be modified non-judicially The Florida Rule Against Perpetuities period used in a trust will determine whether a trust created on December 31, 2001 can be modified through a non-judicial settlement agreement OK Question Title * 9. Which of the following trust provisions would prevent judicial modification of a trust? Irrevocability clause A living settlor’s right to revoke the trust Spendthrift clause Objection by a beneficiary OK NEXT
