Charitable Trust, pour over wills, miscellaneous trusts

Question 1

Definition of charitable trust

Answer 1

Any trust which confers a substantial benefit upon society

Question 2

Creation of charitable trust

Answer 2

1) manifestation of trust intent 2) at testator’s death by will or during settlor’s lifetime by declaration of trust or by transfer in trust 3) of a presently existing interest in property that can be transferred 4) for a charitable purpose

Question 3

Charitable trust beneficiary

Answer 3

None named b/c society as a whole is beneficiary. While individual can receive the BENEFIT, the focus is on society as a whole (professor chair example)

Question 4

Small group v. big group beneficiaries creates a private trust or charitable?

Answer 4

argue both sides (small trust=private, but even few people being helped out benefits society as whole, reduces poverty)

Question 5

Rule against perpetuities

Answer 5

does not apply to charitable trusts

Question 6

Cy Pres:

Answer 6

When court intervenes to make trust as close to the settlor’s goals as possible (ONLY DONE WITH CHARITABLE TRUST).
Court looks at settlor’s GENERAL intent to charitable interest. If it was a SPECIFIC intent, cy pres can’t be used

Question 7

Pour-over wills:

Answer 7

Settlor creates an inter-vivos trust, with provision in will devising all the property to the trustee of the trust

Question 8

Miscellaneous Trusts:

Answer 8

Honorary trusts, Totten Trusts

Question 9

Honorary trusts

Result:

Answer 9

A trust that has no ascertainable beneficiary and confers no substantial benefit upon society (further fox hunting)
Result: can fail if trustee refuses to comply (then goes in favor of settlor)
ALWAYS violate RAP because there’s no life in being measuring life

Question 10

Totten Trust

Answer 10

Just when decedent leaves whatever is in a bank account. NOT a trust b/c trustee owes no real fiduciary duty to beneficiary. CAN be elevated to trust if they show manifestation of intent to create trust