charitable trusts

Question 1

three differences in charitable trust

Answer 1

1. indefinite beneficiaries
2. perpetual
3. cy pres doctrine applies

Note: RAP doesn’t apply

Question 2

charitable purpose

Answer 2

must have a purpose considered to benefit the public
1. relief of poverty
2. advancement of education or religion
3. promotion of health
4. accomplishment of government purposes

Question 3

indefinite beneficiaries

Answer 3

court can select a charitable purpose or beneficiary if not is specified as long as consistent with intent

Question 4

cy pres

Answer 4

when charitable trust is impracticable, unlawful, impossible to achieve, or wasteful the court can select an alternative under cy pres “as near as”

Question 5

honorary trusts

Answer 5

trust that is not for a charitable purpose and has not private beneficiaries.

Trustee on honor carries out (usually for a pet)

Question 6

trust for care of animal

Answer 6

is valid and terminates when animal dies

Question 7

trusts arising as a matter of law

Answer 7

1. resulting: based on presumed intent
2. constructive: used to prevent unjust enrichment

Question 8

Three types of resulting trusts

one that arises as a matter of law

Answer 8

three types
1 . purchase money resulting trusts
2. resulting trusts arising on failure of express trust and
3. resulting trusts arising from incomplete disposition of trust assets**

Question 9

resulting trust on failure of express trust

Answer 9

circumstances: conveyed under express trust and 1. the trust is void or unenforceable or 2. beneficiary is dead or can’t be located

Question 10

when is a resulting trust not implied

Answer 10

1. trust instrument specifically or implicitly provides for disposition of trust
2. settlor was given consideration for original transfer
3. settlor created the trust for an illegal purpose
4. cy pres is applicable in cases of charitable trusts

Question 11

resulting tust implied from excess corpus

Answer 11

arises when trust purpose is fully satisfied and some trust property remains

Question 12

purchase money resulting trust

Answer 12

presumed whenever X furnishes consideration for the acquisition of real or personal property but with X’s consent title is taken in the name of Y

Question 13

constructive trusts

Answer 13

flexible equitable remedy to prevent unjust enrichment resulting from wrongful conduct like fraud

must be requested with clear and convincing evidence
requires particular property as the trust res

Question 14

constructive trust arising from theft or conversion

Answer 14

Y steals property from X, title remain in X but if Y uses it to acquire other items, Y takes tile to the items and holds them in constructive trust for X

Question 15

constructive trust arising from fraud, duress

Answer 15

Y hold constructive trust

Question 16

constructive trust from homicide

Answer 16

slayer statute if Y kills X and is convicted Y holds any property acquired from X by will in favor of whoever would taken the property had Y predeceased X