Trust

Question 1

Elements of valid trust

Answer 1

Present intent to create

Settlor (over 18 w legal capacity)

Valid legal purpose

Trust property

Oral trust okay but if land then writing 2 Ws

Ascertainable benes

Trustee

Question 2

Spendthrift

Answer 2

Prevent voluntary or involuntary transfer of benes interest.

Creditors cannot reach unless the assets have already been distributed

Gov creditors can get at assets

Question 3

Charitable trust

Answer 3

No ascertainable benes

Charitable goal

May be perpetual

Question 4

Cy pres doctrine

Answer 4

When charitable trust is complete or impractical then court can choose a different charitable purpose consistent with settlors intent

Question 5

Discretionary trust

Answer 5

Trustee has broad discretion to distribute assets to benes. Benes cannot ask for what they want or need. All decisions follow intent of settlor

Question 6

Pour over trust

Answer 6

Contents of will pour over to a trust

Trust established before or at the time will was created. Trust identified at will and terms in writing

Question 7

Removing trustee

Answer 7

Incapacity

Breach of trust

Unfit

Question 8

Remedies

Answer 8

Ratify action

Sue for surcharge for loss of assets

Question 9

Judicial Terminating/modifying

Answer 9

Trust purpose fulfilled, impractical, illegal, impossible, circumstance inconsistent with purpose of trust

For irrevocable, trustee or bene can terminate if trust not in the best interest of the bene (court looks at intent of settlor)(can’t do it if trust expressly prohibits)

Question 10

Non judicial modi or termi

Answer 10

Trustee and all benes agree that trust no longer serves material purpose. Unless expressly prohibited