Trust Requisites Flashcards
What is a trust?
A written arrangement under which the trustee holds legal title to property for the benefit of beneficiaries.
A trustee is subject to a ______ duty.
Fiduciary
T’s will contains a bequest of $100k “to A to be used for the education of Pete and Repeat.” Does A hold the $100k in trust for T’s two children? Why or why not?
Yes. Trust was intended here.
When is a trust “intended”?
When legal title is put in A’s name for B’s benefit.
T’s will contains the following language accompanying a bequest to A: “To A, it is my wish and my desire that he look after X and Y.” Does A hold the bequest in trust for X and Y?
No. This is a precatory language of suggested use. It is still A’s gift.
In order to have a trust, there must be a _____ ______ ___ _______ to which the trustee’s duties relate.
Specific interest in property.
F writes a trust instrument naming X as trustee. F does not transfer any assets into the trust but instead names the trust (i.e., Trustee “as trustee”) as beneficiary under several of his insurance policies. Has a valid trust been created? Why or why not?
Yes. Statutes or case decisions in most state provide that an otherwise empty trust is valid if it is named the direct beneficiary of a life insurance policy or a pension plan death benefit. In PA and some other states, the statute also applies to a trust that is named the direct beneficiary of the settlor’s will.
An otherwise empty trust will be held valid if it is named . . .
The direct beneficiary of a life insurance policy or a pension plan death benefit.
A private trust must have what?
Ascertainable beneficiaries
A charitable trust must be intended for who?
A reasonably large and unidentifiable segment of the public at large.
Are “friends” ascertainable beneficiaries?
No
Can a trust have more than 1 trustee?
Yes
Will a trust fail for want of a trustee?
No
If no trustee named, then what?
Court will appoint a suitable trustee
