Trusts

Question 1

Elements of a TRUST

Answer 1

1. SETTLOR w/ capacity to convey title to T’ee
2. INTENTION to create trust
3. 1 or more definite BENEFICIARIES
4. a TRUSTEE w/ duties to perform
5. same person isn’t SOLE T’ee and SOLE Beneficiary

Question 2

Is writing req’d to make trust?

Answer 2

No, even if real property involved

Question 3

Does VA recognize oral trusts?

Answer 3

Yes, requires CLEAR & CONVINCING E

Question 4

Is an I/V trust revocable and/or amendable?

Answer 4

Yes, unless trust terms expressly provide otherwise

Question 5

What is a CONSTRUCTIVE TRUST?

Answer 5

A FLEXIBLE EQUITABLE REMEDY imposed to prevent unjust enrichment as a result of fraud, undue influence, breach of F/D, mistake and the like.

Question 6

What is constructive trustee’s only duty?

Answer 6

To convey the property to the person who would have owned the property but for the wrongful conduct.

Question 7

What is a spendthrift provision?

Answer 7

A provision that RESTRAINS THE TRANSFER OF A BENEFICIARY’S INTEREST

Question 8

Can a creditor reach trust assets (if they have j’ment against beneficiary)?

Answer 8

As long as NO SPENDTHRIFT, ct may authorize cr’or to reach beneficiary’s interest by attachment of present or future distributions.

But cr’or CANNOT REACH TRUST CORPUS