Trusts

Question 1

Requirements for a valid trust

Answer 1

A valid trust requires a settlor, with the requisite capacity, express a present intent to create a trust (i.e. to create the trust now, not some time in the future), delivery of a specific trust property, an ascertainable beneficiary (determinable when the trust is to be distributed) active duties imposed on the trustee, a proper trust purpose, and a trustee.

Question 2

Charitable Trust

Answer 2

A charitable trust must have a charitable purpose such as the relief of poverty, the advancement of education or religion, or the promotion of health. The beneficiaries must be indefinite. The fact that there are a limited number of persons actually receiving funds does not cause a charitable trust to fail if the recipients are to be chosen from a sufficiently large and indefinite group.