Mr.Rolleck writes a will placing his estate in a trust upon his death.He names a local bank as trustee to administer the trust and invest its assets.The trust provides that when his grandson reaches the age of 23,the trust will terminate,and his grandson will be given legal title to the assets.Mr.Rolleck dies when the grandson is 12 years old.At the age of 23,the grandson inherits the title to the assets.What kind of trust did Mr.Rolleck create in this scenario?

Question

Quizplus · Accepted Answer

Mr. Rolleck created a testamentary trust, which is established through a will and takes effect only after the death of the grantor. The fact that the trust was established upon Mr. Rolleck's death and that his grandson did not receive legal title to the assets until a specified age indicates that this is a testamentary trust. An inter vivos trust, on the other hand, is established during the lifetime of the grantor. A constructive trust arises when a person wrongfully obtains or holds property, while a resulting trust is based on the presumption that the grantor intended for the trustee to hold the property for the benefit of the grantor or someone else. Neither of these types of trust apply in this scenario.

MrRolleck Writes a Will Placing His Estate in a Trust