A decedent's transfer of $10,000 to a trustee, to be held in trust for A, will fail to create a valid trust if:

Question

Quizplus · Accepted Answer

In order for a trust to be valid, there must be a beneficiary, a trustee, and some property or asset to be held in trust. However, for the trust to be valid, the trustee must also have an active duty to manage the property in some manner, rather than simply holding it. Therefore, choice B is the correct answer as it describes a requirement for a valid trust. The other choices are not necessarily relevant to the validity of the trust (although lack of consideration might affect the enforceability of the trust and lack of a family relationship might affect potential challenges to the trust). The opportunity to renounce the trust is not a requirement for validity.

A Decedent's Transfer of $10,000 to a Trustee, to Be