Express & Implied Trusts

Question 1

Private trust

Answer 1

is expressly created by one party for the benefit of 1 or more beneciaries

Question 2

Charitable Trust

Answer 2

Created with charitable purpose for an unnamed group of people in order to promote some aspect of public good

Question 3

Private Trust vs Charitable Trust

Answer 3

Private Trust

• which requires ascertainable beneficiaries, charitable trust does not

Charitable Trust

• Enforcement of the trust is done by AG
• MUST be created for charitable purpose for tax benefits
• R.A.P does not apply

Question 4

Doctrine of Cy Pres

Answer 4

• Only applies to charitable trusts
• If there is a general purpose attached to the trust, and that purpose becomes unobtainable, the court can consider changing the charitable purpose to a different purpose to keep the trust alive

Question 5

Implied trusts

Answer 5

• Are involuntary and imposed by law
• Two types:
  
  1. Resulting Trust
  2. Constructive Trust

Question 6

Resulting Trust

Answer 6

• Is the consequence of a failed trust
  
  • When a private express trust fails, the funds revert back to the original settlor or his heirs

Question 7

Constructive Trust

Answer 7

• A judicial remedy for wrongdoing;
• occurs in the event of undue influence, fraud, or slayer statute
  
  • Goes to the wrongdoer just long enough so that wrongdoer can devise it to another

Question 8

4 Elements for a Vaild Trust

Answer 8

1. Settlor
2. Trustee
3. Beneficiaries
4. Corpus

Question 9

Settlor

Answer 9

• Creates the trust
• All trusts must have a settlor, except implied trusts

Question 10

Trustee

Answer 10

• Holds legal title to the trustee
• Is selected by the settlor to be administator of the trust funds

Question 11

Beneficiary

Answer 11

Hold equitable title

Hold trustee to his fiduciary duty

Question 12

Corpus

Answer 12

Trust property that is in existence when the trust is created.

Without a corpus, the trust is “dry” and it fails