Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Anti-Money Laundering Specialist Certification (CAMS) exam. Study with multiple choice questions, each with hints and explanations. Boost your chances of success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


In the context of trusts, what defines an Express Trust?

  1. An implicit agreement between parties

  2. A trust created verbally by the settlor

  3. A trust clearly documented by the settlor

  4. A trust that arises from the law rather than the intent of the settlor

The correct answer is: A trust clearly documented by the settlor

An Express Trust is characterized by its clear documentation and intention from the settlor to create the trust for specific purposes. This means that the terms and conditions of the trust are explicitly outlined and agreed upon, providing a clear framework for how the trust operates, what assets are included, who the beneficiaries are, and the responsibilities of the trustee. The express nature of this type of trust distinguishes it from others, such as implied trusts or those arising by operation of law, where the terms may not be explicitly stated or documented. Having a written or clearly articulated understanding helps prevent ambiguity and potential disputes regarding the trust's intent and administration. By ensuring that a trust is thoroughly documented, it reinforces its legitimacy and provides a clear reference for all parties involved, which is essential for effective management and enforcement of the trust’s terms.