Non-Trusts (called trust but are fakers!)

Question 1

Def- Honorary Trusts

Answer 1

• Where no human being is the beneficiary of a private (i.e. non-charitable) trust, the trust fails as a valid private trust b/c you need human being beneficiaries.
• the money falls into the residuary estate

Question 2

Exceptions to ban on honorary trusts

Answer 2

1- Pet trusts (NY EPTL allows)- a valid pet trust can last for no longer than the duration of the animal’s lifetime; someone designated in the will, or appointed by the court, can enforce the trust and make sure its purposes are carried out

2- Cemetery Trusts- trusts for perpetual care and maintenance of cemeteries and burial plots are classified as charitable and are thus allowed and can be indefinite w/o RAP problems

Question 3

Def- Constructive Trusts

Answer 3

• flexible equitable remedy designed to disgorge unjust enrichment that results from wrongful conduct
• trustee’s only duty is to convey the property to the person who, in equity, should have the property

Question 4

Purchase Money Resulting Trust:

• what is it?
• do we have them in NY?

Answer 4

• Equitable Remedy
• arises when a purchaser buys property and has title put in someone else’s name who is not a relative; later purchaser claims no gift was intended and asks title holder for title to the property and title holder refuses. MOST states would find this situation to create a PMRT which allows purchaser to compel title holder to give up title.
• 5 states INCLUDING NEW YORK do not recognize PMRT!!

Question 5

NY Exception to the no-PMRT rule

Answer 5

If there is CCE that the grantee had expressly or impliedly promised to reconvey the land to the purchaser, then a CONSTRUCTIVE TRUST can be imposed to benefit the purchaser