Overview

Question 1

What is a trust?

Answer 1

A type of transfer that reflects the splitting of legal from equitable title

It is a fiduciary relationship where the trustee holds legal title for the benefit of the beneficiary, who holds equitable title.

Question 2

What are the two main types of trusts?

Answer 2

Express Trusts and Implied Trusts

Express trusts are created intentionally, while implied trusts arise by operation of law.

Question 3

What are the sub-types of Express Trusts?

Answer 3

• Private Express Trusts
• Charitable Trusts

Private express trusts benefit private beneficiaries, while charitable trusts are for charitable purposes.

Question 4

What are the sub-types of Implied Trusts?

Answer 4

• Constructive Trusts
• Resulting Trusts

Constructive trusts are imposed to fix wrongdoing, while resulting trusts arise irrespective of wrongdoing.

Question 5

What is a Private Express Trust?

Answer 5

Created to benefit private, non-charitable beneficiaries

These trusts are specifically designed for individuals rather than charitable causes.

Question 6

What is a Charitable Trust?

Answer 6

Created for a charitable purpose or to benefit qualified charitable beneficiaries

Charitable trusts differ from private express trusts in their objectives.

Question 7

What is a Constructive Trust?

Answer 7

Imposed to deprive a wrongdoer from retaining improperly obtained property

Constructive trusts serve as an equitable remedy in cases of wrongdoing.

Question 8

What is a Resulting Trust?

Answer 8

Imposed irrespective of wrongdoing when circumstances require it

Resulting trusts often occur when a settlor fails to transfer full equitable title.

Question 9

Fill in the blank: A trust is a fiduciary relationship where one party (the _______) holds legal title to property for the benefit of another.

Answer 9

trustee

Question 10

True or False: Charitable trusts benefit private individuals.

Answer 10

False

Charitable trusts are designed to benefit charities or charitable purposes.

Question 11

What is meant by a grantor’s reversion in law?

Answer 11

Essentially a resulting trust in equity

It occurs when a settlor transfers full legal title but fails to transfer full equitable title.

Question 12

What is the primary purpose of an Express Trust?

Answer 12

To benefit private or charitable beneficiaries

Express trusts are intentionally created for specific beneficiary classes.