Question

1. Which of the following is true with respect to a living revocable and living irrevocable trust?

1. Whereas an irrevocable trust is subject to a durable power of attorney, a revocable trust is not.
2. They are both subject to the claims of the grantor's creditors upon the grantor's death.
3. Whereas the assets of a revocable trust are subject to the claims of the grantor's creditors upon the grantor's death, the assets of an irrevocable trust are not.

2. Asher, a brain surgeon, is married Katie, a rocket scientist. Before they got married, Asher and Katie purchased a large tract of land as an investment. According to the deed, each party had an equal interest, with right of survivorship. Two years into their marriage, a credit card creditor of Asher’s successfully sues Asher and attempts to attach the property to satisfy the debt. Which of the following is true?

1. The credit can attach the entire property, because by marrying Asher, his debt became the debt of Katie as well.
2. The creditor cannot attach the property at all because Asher and Katie are married.
3. The creditor can attach the property to satisfy Asher's debt out of Asher's share of the property.

Answer 1

1) (a) Whereas an irrevocable trust is subject to a durable power of attorney, a revocable trust is not.

Explanation - Irrevocable trust created under the power of antorny. A durable power of attorney,. which is denied by the right of the principle. Whereas, revocable trust is not a durable power of attorney.

2) (a) The credit can attach the entire property, because by marrying Asher, his debt became the debt of Katie as well.

Explanation - According to right of survivorship. The successor or successors is liable for the property. after the person's death. Because Asher take the loan. Company have the right to recover the loan. If the couple have the joint savings or property. Company is liable to recover his money by selling the person's property.