Trust Validity

Question 1

Elements of a valid trust

Answer 1

There are 5 elements of a valid trust:

1. Intent
2. Identifiable Corpus (property)
3. Ascertainable beneficiaries
4. Proper Purpose
5. Mechanics and formalities

Question 2

UTC - Express Private Trust Elements

Answer 2

1. Settlor with the capacity to convey
2. Present intent to create a trust relationship
3. A trustee with duties
4. A definite beneficiary
5. The same person is not the sole trustee and sole beneficiary

Question 3

Settlors Present Intent

Answer 3

• The settlor’s intent must be clear and they must understand the nature of their act.
• Writing is not required unless SOF

Question 4

Competent Trustee

Answer 4

The settlor must name a competent trustee, however, the failure to do so will not cause the trust to fail. One will be appointed.

Question 5

Definite Beneficiary

Answer 5

At the time of trust creation settlor must:

1. Identify the beneficiary by name, or
2. Sufficiently describe how beneficiaries will be ascertained

Question 6

Present disposition of specific property

Answer 6

The settlor has to specifically identify the property they want to place in the trust or it must be ascertainable with certainty from its description

Question 7

Valid Trust Purpose

Answer 7

the trust must be for a valid purpose, it cannot be for an illegal, impossible, or contrary to public policy