Creating Trusts

Question 1

What are requirements for creation of a valid trust?

Answer 1

1. settlor has requisite capacity
2. settlor expresses present intent to create trust
3. delivery of specific trust property
4. ascertainable beneficiary
5. active duties imposed on trustee
6. proper trust purpose
7. trustee

Question 2

What is required for delivery of specific trust property

Answer 2

-trust property must be delivered to trustee with intent to delivery the property immediately
-must have some certainty regarding what specifically is the trust property

Question 3

Requirements for ascertainable beneficiaries

Answer 3

-beneficiaries must be determinable when the trust is to be distributed
-must have som objective standard and reasonable basis to identify the beneficiaries

Question 4

For what purposes can a trust be created

Answer 4

Trust can be created for any purpose except those that are illegal, fraudulent or against public policy