A. Creation of Lifetime Trusts

Question 1

What is required for Trust?*

Answer 1

1) Property
- Real property (land)
- Tangible personal property (household goods)
- Intangible personal property (cash/bank accounts/investments)

2) Lawful purpose

3) ALL parties
- Grantor
- Trustee
- Beneficiary

Question 2

What happens if Creator becomes/may become sole Trustee/Beneficiary?

Answer 2

If there is another Beneficiary => Trust is NOT merged/invalid

Question 3

What is required for Lifetime Trust?*

Answer 3

1) Person/Entity
2) Intention to create trust
3) At least 1 definite + ascertainable Beneficiary (NOT Trustee)
4) Grantor (delivers corpus to Trustee)
5) In writing
6) Executed by Creator + Trustee
7) Acknowledged like real estate deed for recording OR Executed in presence of + signed by 2 Witnesses

Question 4

What is required for validly funded Trust?*

Answer 4

Tangible personal property
- Assets must be transferred through either Recording deed/Completing stock certificate registration

Intangible personal property
- Grantor must assign asset to trust in writing

Bank accounts/investments
- Re-title/register in name of trust

UNLESS

• Life insurance
• Pension trusts
• Pour-over trusts