Trusts

Question 1

Trust validity

Answer 1

For a trust to be valid, there must be a settlor who, intending to create a trust for a valid purposes, delivers the trust property to the trustee to hold for the benefit of one or more beneficiaries.

Question 2

What if there are no assetrs?

Answer 2

If there a no trust assets at the time of execution, a trust arises in the future if the assets come into existence and the settlor manifests anew intent to create the trust. This is not required if the promise is supported by consideration.

Question 3

When is a will gift to a trust valid? (pour overs)

Answer 3

Under the traditional view, a will creates a valid pour over to a revocable trust only when the trust is in existence or executed at the time of the will’s execution. However, the prevailing view is that a will may devise property to a trustee of an established trust or one that will be established during the testator’s lifetime. (Prior to execution of will, but before testator’s death)