Express Trusts: Private Express Trusts

Question 1

Private Express Trust

Answer 1

Clearly states intention of settlor to transfer property to a trustee for the benefit of one or more ascertainable beneficiaries

Question 2

Private Express Trust Elements

4

Answer 2

(1) Intent
(2) Trust Property
(3) Trust Purpose
(4) Beneficiaries

Question 3

Private Express Trust Elements: Intent

Answer 3

Settlor must INTEND to make a gift in trust

Must have a WRITING signed by settlor

Precatory language does NOT create a trust

Question 4

Private Express Trust Elements: Trust Property

Answer 4

Need some piece of trust property

Trust property must be:

(1) IDENTIFIABLE; and
(2) SEGREGATED

Question 5

Private Express Trust Elements: Trust Purpose

Answer 5

Trust cannot exist without a valid trust purpose

Can be for any purpose as long as it is not:

(1) ILLEGAL; or
(2) Contrary to PUBLIC POLICY

NOTE: A testator cannot transfer funds for the sole purpose of avoiding spouse’s elective
share

Question 6

Private Express Trust Elements: Beneficiaries

Answer 6

Must have ascertained beneficiary

Exceptions:

(1) Unborn children
(2) Class gifts
(3) Charitable Trusts