Express Trusts Flashcards
Are oral trusts valid?
Yes. It must include “Trust words” expressing intent to create a trust. there are exceptions for statute of frauds and a devise. A minority disagrees
What are express trusts?
Trusts in which an owner expressly indicates the intent to create a trust.
When must a trust be in writing?
- Statute of Frauds (conveying real property)
- A trust is created in a will (devise)
What is precatory language?
Language that expresses a donor’s hope or wish that the property is used in a certain way. It does not create a trust. It is ambiguous.
What is the Trust Res?
Property that is in the trust. There cannot be an empty trust unless it is a pour over trust.
What is a valid trust purpose?
Any purpsoe that is not illegal or contrary to public policy ie. discrimination.
What is the requirement for beneficiaries?
There must be an ascertained beneficiary
- can be unborn children
- can be class gifts
- can be charitable trusts
What is the requirement for a charitable trust?
Must have a charitable purpose. Benefitting the community at large or a particular segment. Can be for the government.
How does the rule against perpetuities affect charitable trusts?
It does no apply.
What is the Cy Pres Doctrine?
A court can modify a trust with a general charitable purpose if the trust’s charitable purpose is no longer possible.
- make the new charitable purpose as close as possible to the original purpose.
What happens if there is not a general charitable purpose and the specific charitable purpose is no longer available?
The property goes to a resulting trust and goes back to the settlor’s estate.
What are the two ways to create a trust?
- Intervivos transfer (during life)
- Testamentary transfer (according to a will)
What instruments can create an inter vivos transfer?
Declaration of Trust - Settlor declares herself the trustee of property for beneficiaries
Deed of Trust - Settlor conveys property to the trustee and is not the beneficiary
