Introduction to Trusts Flashcards
Who owns legal title to a trust?
Trustee
Who has an equitable interest in a trust?
Beneficiary
What is a principal vs an income?
Principal: original trust property and any increase in value.
Income: Money invested by the trust
When can a revocable trust be revoked?
Up until the settlor’s death.
What is a settlor?
Person who creates trust.
What is an irrevocable trust?
Under majority and UTC: presumed revocable unless trust says otherwise.
Under minority rule: presumed to be irrevocable unless the trust says otherwise
What is a mandatory vs. discretionary trust?
Mandatory: Trustee must make distributions from the trust.
Discretionary: Trustee may make distributions in her discretion.
What is a remedial trust?
A legal remedy created by operation of law.
Does RAP apply to trusts?
Yes.
Will a trust fail for lack of trustee?
No
Who can be a trustee?
Bank, person, trust company.
Are pet trusts valid?
In most jurisdictions, no.
