Quick and dirty Trusts

Question 1

What to do if the wrong person is named as the B?

Answer 1

Ask the court to reform the terms to comport with intent. Need to show a mistake of fact or mistake of law by clear and convinving evidence. Can do this even if the terms are unambiguous!.

Question 2

Pour over trust requirements

Answer 2

must identify the trust in the will.
Trust terms must be set out in document that is not a will.
Does not matter that the trust predated its funding. TRust can be executed before, concurrently with or after the exeuction of the will.

Question 3

Cy pres doctrine: what are the inquiries

Answer 3

1. first see if the charitable trust purpose can no longer be carried out.
2. then see if S had general or specific charitable intent.
   If general charitable intent, the trust does not fail, the property does not revert and the court applies cy pres

Question 4

Cy Pres: indications of general charitable intent

Answer 4

Read in favor of upholding the trust. other factors include absence of reverter clause and other gifts over to charity.

Question 5

Even if the S had specific charitable intent, cy pres can still be used to save the trust because

Answer 5

The distribution of trust prop to non-charitable B prevails over cy pres only if

1. Trust prop reverts to S, who is still living or
2. Less than 50 years have elapsed since trust was created.

Question 6

How to answer Q about testatmentary trust

Answer 6

T Trust is a trust that is created by a will and does not take effect until T dies.

1. Look at the validity of the will
2. Then the requirements for a trust.

Question 7

Pet care trusts

Answer 7

Specifically recognizes these. Gives court discretion to reduce amount of property in the trust if amount substantially exceeds the amount needed. The reduction treated as unexpended trust property

Question 8

Doctrine of Election

Answer 8

A person elects to take benefits under a trust is precluded from challenging the validity of the trust. –maybe exception for fraud, undue influence and duress

Question 9

When can creditors reach trust interest?

Answer 9

Spendthrift: exceptions for child support, alimony, state of MI, the US, and for creditor who provides services for the trust. Satisfied from distributions as they become due.
Discretionary trust fund: have to wait.