Donna Transfers $200,000 of Property to an Irrevocable Trust with a Bank

question 50

Essay

Donna transfers $200,000 of property to an irrevocable trust with a bank as trustee. Donna names Toby (age 60)to receive all of the trust income for the rest of his life. At Toby's death, the property is to pass to Al or Al's estate. What kind of interest do Toby and Al possess?

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Definitions:

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time.

Bills of Exchange

Financial instruments where one party orders another to pay a fixed sum to a third party at a specified time.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law among the states.

Actual Knowledge

Direct and clear awareness of information, facts, or circumstances without any need for inference.