Formation Requirements

Question 1

Requirements for Trust Formation

Answer 1

Settlor deliver trust property and legal title to Trustee with Intent to create trust.

Must be for lawful purpose, no consideration necessary.

Question 2

Trust Property

Answer 2

Must be certain and identifiable

Question 3

Trustee

Answer 3

Must have legal capacity, there is no failure of the trust for lack of trustee. Trustee can be appointed and Settlor can be Trustee.

Question 4

Requirements for Resignation of the Trustee

Answer 4

Court Approval, Must give accounting of property initially received, receipts and disbursements, proper no on hand plus liabilities.

Question 5

Removing Trustee

Answer 5

If beneficiaries can show conflict prevents trustee from carrying out duties OR trustee has breached a material term of the trust.

Question 6

Beneficiaries of a Trust

Answer 6

Must be definite and ascertainable, their interest must vest (RAP)

Question 7

Resulting Trust

Answer 7

Not a trust, term court uses to describe the situation where a trust fails for some reason.

trust property goes to beneficiaries.

Question 8

Precatory Language

Answer 8

Non-binding language, does not impose an enforceable obligation.

Question 9

Lawful Purpose

Answer 9

Trust can be for furthering commission of a crime or call for destruction of property or be against public policy.