Trustd Flashcards
1
Q
Requirements for express trust
A
- Settlor with capacity and intent
- Trustee
- Trust property/ res
- Beneficiaries
- Valid trust purpose
2
Q
Charitable trust
A
- Purpose benefit public
- Indefinite beneficiaries
- May be perpetual- rap does not apply
- Enforceable by settlor, beneficiary, or attorney general
- Cy pres applies
3
Q
Spendthrift trust
A
- Beneficiary may not transfer interest
- Not valid if settlor also beneficiary
- Exception- gov, child, spouse
4
Q
Discretionary trust
A
- Trustee has discretion to pay or withhold principal
- Interest cannot be reached before Trustee makes payment
- Must pay creditors directly if distributes unless spendthrift
5
Q
Support trust
A
- Cant be assigned or reached even without spendthrift clause
6
Q
Modification/ termination
A
- By settlor
A. Revocable and amendable unless otherwise stated
B. Power to revoke = power to modify - By beneficiaries
A. Settlor and all beneficiaries consent
B. All beneficiaries and doesnt conflict with purpose
C. Spendthrift trusts cant be terminated without settlors consent - By trustee- if less than $50,000 and insufficient to justify administration cost
7
Q
Termination by court
A
- May modify if could have been modified by all beneficiary consent and conconsentors interests protected
- Unforeseen Circumstances threaten trust purpose
- Continuation is impracticable
- May reform if settlors intent and trust affected by mistake
8
Q
Powers of trustee
A
- Powers conferred by trust
- Powers an individual has over own property unless limited by trust
- Powers appropriate to achieve investment, management and distribution of trust property not forbidden by trust
- Powers conferred by UTC unless limited by trust
9
Q
Pour over from will to trust
A
A. Trust may be established before, during or after
B. Trust may be amendable and revocable
C. Gift is valid even if trust unfunded during lifetime
