Dan Daytona has created a revocable contingent trust to handle his financial affairs when and if he becomes incompetent. He has named his brother as trustee and has given his brother a durable springing power of attorney to use in funding the trust.   Which of the following statements regarding this trust arrangement are correct?   Dan has given his brother a general power of appointment.   Dan’s brother can use the durable power of attorney at any time.   Dan will not owe a gift tax when the trust is funded.   Dan’s brother can use the durable power of attorney to place any remaining assets in the trust at Dan’s death to avoid probate.   III only   I and III only   II and IV only   I, II, and IV only

(please correct answer and question information)

3. John is president and sole shareholder of Photo, Inc.  Photo, Inc. wishes to borrow money, but to do so, the bank requires John to orally guarantee to repay the loan if Photo, Inc. cannot.  Examine the validity of John’s oral guarantee.

Your client and his wife plan to purchase a new home. They want a form of property ownership that: will transfer title at death outside the probate process; will allow each spouse, while alive, to have a vested one-half interest in the property; guarantees that the surviving spouse will receive the property when the other spouse dies; and allows lifetime disposition by one spouse of their property interest without requiring the consent of the other spouse. Assuming that all the forms of ownership below are available in the state where the property is located, what is the form of titling that will best achieve all of their objectives?     A) Community property     B) Tenancy by the entirety     C) Joint tenants with right of survivorship     D) Tenants in common

Which of the following statements are correct regarding the characteristics of a conservatorship (guardianship of the estate) used to care for an incompetent person's property? I. the powers of the conservator are set forth in either a revocable living trust or a contingent standby trust. II. the conservator may have to file annual reports regarding the status of the assets under his care. III. the conservator may be required to post a performance bond. IV. the conservator has a fiduciary duty to care for the incompetent person's property. A) I, II, III, and IV B) I and II C) II, III, and IV D) I and IV