Property and Purpose

Question 0

What must occur in order to create a trust

Answer 0

title to trust res must pass to the trustee

if 3rd party, there must be actual transfer of title to 3rd party

if himself, they must be retitled as held by settlor as trustee

Question 1

Methods of placing property in trust

Answer 1

inter vivos transfer of title to trustee
declare himself in writing trustee over property
create a trust in a will
enter into enforceable contract with another who is obligated to transfer property to a trustee

Question 2

Property that can be used as a trust res

Answer 2

vested possessory interest
contingent non-possessory future interest
equitable interest in another trust
interest in a contract

Question 3

Interests that cannot be used as trust res

Answer 3

mere expectation in prospective estate of another
expectation of future earnings not supported by contract
debt owed to the trustee

Question 4

Definite nature of trust res

Answer 4

trust res must be identifiable

Question 5

ascertainable beneficiaries

Answer 5

private trusts cannot be validly created without definite and ascertainable beneficiaries

must have the ability to enforce terms of the trust

Question 6

minors and incompetents ability to enforce trust

Answer 6

can appoint a guardian ad litem to enforce rights under a trust

Question 7

Non-human Beneficiaries

Answer 7

animals cannot be beneficiaries except as specifically allowed by statue

Question 8

Requirements of Beneficiaries

Answer 8

presently ascertainable - named or capable of being objectively determined without undue difficulty

may be ascertainable at a future time when their interests are to vest
subject to RAP

Question 9

Members of a class interests are determined

Answer 9

at the time the interest vests

there must be a reasonably objective basis for determining members

Question 10

Impermissibly vague class

Answer 10

for all of my friends without more would be too vague

‘family’ or ‘relatives’ is interpreted as settlor’s heirs

Question 11

incidental beneficiaries

Answer 11

are not beneficiaries under the trust

Question 12

Definite and Ascertainable beneficiaries and Charitable trusts

Answer 12

rule does not apply

Question 13

Valid Trust Purposes

Answer 13

may be created for any purpose except
illegal
perpetrates a fraud
contrary to public policy

Question 14

Trust provision encouraging beneficiary to refrain from marrying
or obtain a divorce

Answer 14

invalid

except restraints on remarriage are ordinarily upheld

Question 15

trust condition that terminates interest if beneficiary subsequently becomes divorced

Answer 15

generally valid

Question 16

Trust provisions that is a partial restraint on marriage

Answer 16

may be valid if reasonable

Question 17

Destruction of Property

Answer 17

trust provisions calling for the destruction of property are invalid as against public policy

wherever possible court will delete objectionable provision and retain balance of trust