Danielle Establishes a Trust with Richard as Protector

question 10

Multiple Choice

Danielle establishes a trust with Richard as protector. The trust is in favour of Danielle's wife Rebecca for her life, and on her death on trust for the three children of Danielle and Rebecca. The trust provides additionally that the protector may add or remove beneficiaries.
Which of the following statements most accurately describes the potential for varying the trust to give Rebecca access to some of the capital of the trust?

• A) Rebecca and the three children (provided they are adults) could agree that the trust should be terminated by dividing the fund into four equal shares, one share for each of them.
• B) The trustees could advance part of the capital of the trust to one or more of the children, with Rebecca's consent, as part of a bargain that the child or children would give Rebecca a share of what they receive.
• C) Rebecca could release her life interest, and the protector could release his right to add objects to the discretionary trust, thereby accelerating the interests of the children who, provided they are adults, could agree to the capital being shared with Rebecca.
• D) Nothing can be done to give Rebecca a right to the capital.

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Definitions:

Description

The act of detailing or explaining the characteristics, features, or aspects of something.

Operational Definition

A clear, detailed description of how variables in a study are measured or categorized.

Independent Variable

The factor in a study that the investigator alters to examine its impact on the dependent variable.

Inferential Statistics

A branch of statistics that deals with drawing conclusions about a population based on a sample.