Requirements of Intent and Valid Purpose Flashcards
T’s will contains a bequest of $100,000 “to A to be used for the education of Pete and Repeat.” Does A hold the $100,000 in trust for T’s two children?
Yes a trust - Did not use the word trust, but not critical, we intend a trust, We put legal title in ones name with a duty to manage for others (That is what T did here)
-A is the trustee
-T is the Settlor and
Pete and Repeat are the beneficiaries, the $ must only be used for their education and A must see that the $$ is used in that manner
Does this devise a trust? “To A, it is my wish and my desire that he look after X and Y.”
No this language is for suggestive and not definitive use, so there is no legal duty here
T’s will contains a bequest to BANK as trustee for the benefit of daughter Jean, “provided, however, that should Jean ever marry, she shall forfeit her entire interest in this trust.” Is this a valid arrangement?
The trust is good, but the forfeiture condition is void, it violates public policy because it puts an unreasonable restraint on marriage
In trust “to pay the income to my husband Mark until such time as he remarries; thereafter principal to my daughter Jean. Valid condition?
Yes - The purpose of the provision is fundamentally different, not meaning to prevent Mark from Marrying, rather trying to provide for him until he does
- What are provisions that would not be considered as valid?
- “I make no provision for my son Peter because I disapprove of his marriage outside of our religious faith.
- Provisions which encourage divorce or the commission of crimes and provisions restraining the right to procreate or the free practice of religion (this just applies if the trust has been given)
- This is not a problem, because it is not a condition, we can decline to provide for anyone in my will for any reason, the reason is irrelevant, what I cant do is give you something and then jerk it away from you
