Trust Creation

Question 1

A valid trust requires?

Answer 1

1) a settlor with capacity
2) an intent to create a trust
3) a competent trustee
4) a definitive beneficiary
5) a valid trust purpose
6) trust property
7) compliance with requisite formalities

Question 2

Beneficiaries

Answer 2

Is the person entitled to trust assets or profits.

natural persons, corporations, organizations

Question 3

Settlor

Answer 3

Is the person who creates the trust

Question 4

Trustee

Answer 4

is the person who holds the assets of the trust for the benefit of the beneficiaries & manages the trust

Question 5

What is a trust?

Answer 5

A trust is a fiduciary relationship between the trustee(s) and the trust beneficiaries. When a trust is created, title to the property is divided between legal and equitable title.

Question 6

Express Trust

Answer 6

Is created when a person has the intent to create a trust and complies with the requisite formalities

Question 7

Implied Trust

Answer 7

is created by conduct, regardless of whether there was intent to create a trust.

Question 8

Oral Creation of Trust

Answer 8

A trust can be created orally by the settlor if its terms are established by clear and convincing evidence.

Question 9

Precatory Language

Answer 9

Statement that merely express a settlor’s desire regarding disposition of his property.

Such words do NOT create a legal obligation to act in accordance with that desire and will NOT create a valid trust.

“I hope” or “I wish”

Question 10

Trust for Benefit of “Friends”

Answer 10

Is indefinite beneficiaries. And trustee cannot distribute to any member of that class

Question 11

Trust Property

Answer 11

the res
the property that makes up the trust as a whole
1) must be described with certainty, or
2) ascertainable with certainty from description

Question 12

Lack of Trustee

Answer 12

The trust will not fail solely for lack of a trustee.

A court may appoint a trustee if the settlor did not name a trustee or the trustee dies, resigns, or is removed