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Wills & Trusts > Trusts > Flashcards

Trusts Flashcards

1
Q

Express Trust

A

Created when person has the intent to create a trust and complies w requisite formalities

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2
Q

Valid Express Trust

A 
Settlors intent to create
Trust Property
Ascertainable beneficiary exists
Trustee has duties to perform
No same person as trustee & beneficiary
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3
Q

Settlors intent

A

Split of legal and equitable title
Enforceable duties imposed on trustee
Present donative intent

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4
Q

Split of title

A

Splitting of legal and equitable title

Sole trustee cannot be sole beneficiary

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5
Q

Trust Property

A

Must be ascertainable w certainty

Can be any property that one can transfer

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6
Q

Beneficiary

A

Can be anyone that can obtain and hold title

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7
Q

Honorary trust

A

Set up to benefit non-human, non-charitable purpose

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8
Q

Purpose

A

Any lawful purpose

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9
Q

Inter vivos Trust

A

Declaration of trust

Conveyance in trust

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10
Q

Declaration of Trust

A

Settlor and trustee the same

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11
Q

Conveyance in trust

A

Settlor transfers title

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12
Q

Testamentary Trust

A

Created upon settlor’s death

Provisions included in valid will

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13
Q

Trustee

A

Fiduciary
Must have duties/powers
Capacity to take and hold title and manage property

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14
Q

Pour over trust

A

Devises property to previously existing trust
Doesn’t create, but transfers to
Can’t be testamentary trust
Look to property at death, not execution

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15
Q

Testamentary Secret Trust

A

Settlor and beneficiary agree but will doesn’t indicate agreement
Beneficiary may be entitled to constructive trust

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16
Q

Testamentary Semi-Secret Trust

A

Gift says “in trust” but doesn’t indicate beneficiaries or terms
Trust fails

17
Q

Discretionary Provisions

A

Trustee can exercise power and discretion to make good faith determinations regarding when and how much to be distributed

18
Q

Spendthrift Provisions

A

Beneficiary cannot transfer interests AND creditor cannot reach beneficial interest
Ineffective if settlor is beneficiary

19
Q

Support Provision

A

Limited to health, education, maintenance, & support

Standard of support- beneficiary accustomed std of living

20
Q

When does a trust end?

A

According to its own terms
Settlor can modify/revoke unless expressly irrevocable
Operation of law- purpose fulfilled, illegal, impossible, change circumstances

21
Q

Trustees Express Powers

A

In trust instrument
Statute
Case law

22
Q

Trustee Powers

A

MUST manage exclusively for benefit of ALL beneficiaries AND administer the trust in good faith pursuant to the terms & purpose of trust

23
Q

Requirement if more than one trustee?

A

Majority of trustees required to act

24
Q

Trustee’s Mandatory Power

A

“You must pay A X amount per month”

25
Q

Trustee Discretionary Power

A

Reasonably prudent person reviewed under abuse of discretion

26
Q

Trustee Duties

A 
Follow Terms
Duty of Loyalty 
Duty of Good Faith
Duty to Keep Accurate Records
Duty to Exercise Care
27
Q

Prudent Investor Rule

A

Trustee act as a prudent investor

Court takes the portfolio approach in determining breach

28
Q

Remedy

A

Beneficiary can seek $ damages and removal of trustee

29
Q

Personal Liability of Trustee to 3d Party

A

Only liable for torts if personally at fault

30
Q

Charitable Trusts

A

Doesn’t need clearly ascertainable beneficiaries
Purpose of accomplishing substantial social benefit
General charitable intent
NO RAP

31
Q

Doctrine of Cy Pres

A

Allows court to modify terms “as near as possible” to original intent
Available if:
Property in trust for charitable purposes AND settlor manifested general charitable intent

32
Q

Resulting Trust

A

Arises by implication from settlor’s conduct

Only applicable for settlor or successors in interest

33
Q

Constructive Trust

A

Equitable remedy
Must plead and prove in court
Requires particular property and conduct must arise in connection to property

Wills & Trusts (2 decks)

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