I. Terminology Flashcards
Trust
All five elements necessary:
fiduciary arrangement in which
- a SETTLOR
- transfers PROPERTY
- to a TRUSTEE and
- expresses INTENT
- to benefit identifiable BENEFICIARIES
Settlor
the person(s) who transfer property in to the trust
the creator
Trustee
the person(s) given legal title to the property
Must hold and manage the property in accordance to the trust document’s instructions
Beneficiary
the person(s) given an equitable ineterest in the proeprty
Property
is identifiable and specifically described and some over which trustee has legal title
Intent
Must have intent to create a trust, which must be manifest in terms of creating enforceable duties taking effect once the trust commences
Types of Trusts
1) Express
2) Implied
Express Trusts
Created purposefully by the settlor and are in writing
Implied Trusts
Created by the courts and are classified as 1) resulting trusts and 2) constructive trusts
Categories of Trusts
- Private
- Charitable
- Honorary
Private Express Tursts
- Creates a trust with personal assets to be distributed to self or other person with whom you have a personal relatinoship with resulting in whatevers left being held in remainder for idnetified individual(s)
Charitable Trusts
- Trusts created by an individaul or entity for the benefit of a charitable organization for a charitable purpose
Honorary Trusts
- Trusts created to maintain or take care of certain things (e.g. trust set up to take care of a dog after owner’s death)
Inter Vivos Trusts
- Trusts created DURING the settleor’s lifetime. May be created by
- DECLARATION OF TRUST: settlor declares a trust OR
- DEED OF TRUST: transfers property with inent to create trust
Testamenary Trusts
- created in settlro’s VALID WILL
