Trust Creation Flashcards
1
Q
Trust Formation - A valid express trust requires:
A
- Definitive beneficiary;
- Settlor with capacity;
- Intent to create a trust;
- Trustee named;
- Valid trust purpose;
- Trust Property; AND
- Compliance with any State formalities
2
Q
A trust is not created until
A
It receives valid property
3
Q
Beneficiaries can be
A
Can be natural persons, corporations, or organizations
4
Q
Trustees cannot…
A
Be the SOLE trustee and SOLE beneficiary
5
Q
Precatory Language
A
Words such as “hope” or “request” that only express a settlor’s desire;
DO NOT create a valid trust or legal obligation
6
Q
Future Promises
A
A promise to create a trust in the future is unenforceable UNLESS:
the promise is a valid contract
7
Q
A trust is NOT created by:
A
Precatory language & future promises
