Trusts

Question 1

Elements of a private express trust:

Answer 1

(1) INTENT: settlor w/ capacity to manifest present intent to transfer to trustee
(a) manifestation of intent must occur prior to or at the same time as the transfer of property

(2) PROPERTY: must have identifiable trust property ; must be described w/ reasonable certainty

(3) VALID PURPOSE: trust can be created for any purpose so long as it is not illegal or contrary to public policy and possible to achieve

(4) ID BENEFICIARIES: beneficiaries must be ascertained/identifiable by name

Question 2

How to create trust by inter vivos transfer?

Answer 2

Created during settlor’s life in either way:

(1) declaration of trust = settlor declares themself as holder of property in trust for beneficiaries and settlor serves as trustee

(2) deed of trust = settlor conveys property to trustee and does NOT serve as trustee

Question 3

What is a charitable trust?

Permitted purposes?

Answer 3

Trust w/ purpose of benefitting unascertained group of people or public at large

(1) relief of poverty
(2) advancement of education or religion
(3) good health
(4) governmental purposes
(5) other purposes benefitting community at large