Gifts/Trusts

Question 1

Inter vivos Gifts

Answer 1

transfer of property from one person to another without paying anything

Question 2

What does the law of gifts require?

Answer 2

(1) intent
(2) delivery
(3) acceptance

Question 3

Trusts

Answer 3

A way of sharing and splitting ownership. Trusts may be inter vivos, created during the lifetime of the settlor, or testamentary, created in the settlor’s will.

Question 4

Two types of Trusts

Answer 4

(1) private trusts
(2) charitable trusts

Question 5

Charitable trusts

Answer 5

intended to serve the interests of the community at large and need not have an ascertainable beneficiary.

Question 6

Private trusts

Answer 6

intended to serve the personal goals or beneficiaries of the settlor.

Question 7

Trustee (Legal title)

Answer 7

Fiduciary. The right to manage the trust property.

Question 8

Beneficiary (Equitable title)

Answer 8

Has the right to receive the benefits of the property.

Question 9

Settlor

Answer 9

The owner of property who creates a trust.

Question 10

Trust Corpus and examples

Answer 10

Actual property is called the trust corpus. It is any identifiable property such as land, or a bank account.

Question 11

Purposes of a Trust (Sabbeth)

Answer 11

1. Trusts are fundamental devices in property today;
2. Trusts help with wealth maximization;
3. Trusts are less positive in they could shield access from creditors;
4. Tax benefits from trusts; and
5. Personal management of things. (trusts to children).

Question 12

Revocability of a Trust Principle

Answer 12

the trust can be revocable or not. The settlor, trustee, or beneficiary can end or change the trust at any time during the settlor’s lifetime or make it irrevocable after their death.

Question 13

Phillips v. Estate of Holzman (RULE)

Answer 13

If the trustee refuses to use it for the intended purpose, a resulting trust arises in favor of the settlor’s estate, which can require return of the trust property.

Question 14

Evans v. Abney (RULE)(settlor would have rather the whole trust failed then to have park integrated)

Answer 14

The Fourteenth Amendment is not violated by the application of neutral and nondiscriminatory state trust laws that result in the termination of a trust due to its unconstitutional discriminatory purpose, even if this results in the loss of a public facility.
- Sabbeth words: This case is not about private or public property BUT it’s about the government’s role is during this transaction.

Question 15

Cy Pres or (Equitable reformation)

Answer 15

If the purpose selected by the settlor is no longer possible or reasonable to achieve, rather than permit the trust to fail, courts may apply the doctrine of cy pres, to apply the trust to other purposes that seem consistent with the grantor’s intent.
- In such cases, the AG of the state where the trust is located has standing to represent the interest of the public in enforcement of the trust.