Requirements for a Valid Trust

Question 1

Intent Requirement

Answer 1

Intent - Intent to create a trust must be manifest in terms of creating enforceable duties that take effect at trust commencement.

Question 2

Property Requirement

Answer 2

• Identifiable and specifically described
• No trust property - no trust
• Need not be tangible, bit it must be a true property interest

Question 3

Ascertainable Trust Beneficiaries

Answer 3

Private and honorary trusts must have ascertainable beneficiaries in order to be valid.

• Charitable trusts do not share this requirement
• Beneficiaries must be indefinite in charitable trust.

Question 4

Resulting Trust

Answer 4

If a trust fails for want of ascertainable beneficiaries, then a resulting trust will occur where the property results back to settlor’s estate and passes according to the residuary clause or to intestate succession.
May arise upon:
1. Failure of an express trust; or
2. The trust purposes were accomplished and trust assets remain; and
3. Purchase money resulting trust