Introduction To Trust

Question 1

Trust

Answer 1

An arrangement under which the trustee holds legal title of the property for the benefit of the beneficiary.

Trustee has the burden and beneficiary has the benefit of property ownership.

Trustee is subject to fiduciary standars, he is not privileged to use the trust property as his own.

Question 2

Trust

Delivery

Answer 2

1) requirement does not apply to self-declaration of trust or testamentary trust.
2) But for inter vivos trust w. third party trustee, there must be delivery of subject matter of the trust.

Question 3

Elements of a trust

Answer 3

1) Intent
2) Trustee
3) Trust Property
4) Definiete beneficiary
5) Valid Trust Purpose

Question 4

Elements of a Trust

1) Intent

Answer 4

1) Manifest by WORDS or CONDUCT or WRITING
2) Must manifest while settlor OWNS property
3) precautionary expression (limited)

Question 5

Types of Trusts

Answer 5

Express Trust — Express intention
Resulting Trust— presumed intention
Constructive Trust — equitable remedy

Question 6

2) Trustee

Elements of a Trust

Answer 6

Testamentary Trust
= Failure to name a will not defeated

Inter vivous
= Because of the necessity of a present and effective transfer in order to create a trust deed, the absence of the trustee may result in an attempt intervivous dialing for want of delivery.

• fails for no transfer- not no trustee.

Question 7

Qualified Trustee

Answer 7

1) Capacity to Acquired or hold title for benefit
2) Admin Capacity
3) Statutory limitation or rights to serve trust

Question 8

The requirement of Trust Property

Trust Property

Answer 8

1) need property
2) Trust property must be existing interest in existing property
3) Property that settlor has power to convey can be subject of trust
4) Trust must be separate from other property
5) Debtor cant hold own debt in trust
6) Unenforceable gratuitous promise cabe be trust res