Trust question

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  • #187417
    Anonymous
    Inactive

    An irrevocable testamentary trust was created by Park, with Gordon named as trustee. The trust pro­vided that the income will be paid to Hardy for life with the principal then reverting to Park’s estate to be paid to King. The trust will automatically end on the death of:

    A. Park

    B. Gordon.

    C. Hardy.

    D. King.

    C. The trust will automatically end on the death of Hardy. A trust terminates when the beneficiary has died. Hardy is the only beneficiary, so the trust expires when he passes.


    If Hardy is the only beneficiary, then what is the point of the last part, “with the principal then reverting to Park’s estate to be paid to King”? Does the principal immediately revert back to Park’s estate at the creation of the trust? This is so confusing.

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