trusts: Ascertainable beneficiaries; pet and other non charitable purpose trusts; probate v non-probate

Question 1

clark (ascertainable beneficiaries)

The testator bequeathed all his personal property to trustees to distribute to his friends, but did not specify the beneficiaries.

Answer 1

the term “friends” is too broad and lacks statutory meaning, making it impossible to identify specific beneficiaries. The trustees’

a private trust will fail if the class of beneficiaries is not limited by specific criteria, making the beneficiaries definite and ascertainable.

Question 2

what is an argument for trust creation in clark (ie the ones where he told his trustees to give the property to his friends)

Answer 2

1. intnent to create trust? – . Speaks of them as trustees (strong evidence)
   ‘ i bequeath to my trustees… in trust”
2. is there specfic trust property? – Yeah, via the gen description of all the tangible property
3. Are there ascertainable beneficiaries?
   Is ‘friends’ ascertainable?
   He knows who his friends are but he’s dead!

Question 3

are class lables in a trust generally going to be held as ascertainable beneficaries

Answer 3

yes, because there is usually statutory definitions of class labels (ie heirs and other familial relationships) so courts will be able to figure it out

Question 4

why is it so important that we know who the beneficiaries are?

Answer 4

in order for there to be limited abuse via the trustees, beneficaries are allowed to sue if the trustees abuse their fiduciary power

In order for his to happen, we need to know who has standing to sue the trustee

So this element ensures that we know who has standing to enforce the trust

Question 5

If we have an attempted trust that fails, what do we do?

Answer 5

When an express trust fails the outcome is a RESULTING TRUST

So the trustee holds the property not for themselves, they just give it back to decedent’s estate

Question 6

what is the power of appointment and how does it differ from a trust

Answer 6

It’s like a trust; the donor can give discretion to someone else

Key diff – the party to whom the donor gives discretion has no fiduciary duties

In a power of appointment the person can do whatever they want; no personal liability
So no requirement for ascertainable beneficiary here

Question 7

does the law of trusts have formalities ? how does it change if its a testamentary will (ie a trust in a will)

Answer 7

no; we require intent to create a trust but there is no strict way to show that

but if its a WILL creating a trust, then you need the will formalities

Question 8

what is an honorary trust (ie like what the court in searight with the dog decided to do)

Answer 8

the transferee is not under a legal obligation to carry out the settlor’s stated purpose.

Question 9

searight’s estate (the one where they tried to make the dog the beneficiary of the trust)

Giving property in trust for the benefit of the dog
I give my dog (personal property) and 1000 dollars to be used for the care and keep

why is this not a valid trust?

Answer 9

dogs can’t be a beneficiary to a trust
A dog can’t sue

Question 10

what is the upc statuory pet trust

Answer 10

a trust for a pet animal or certain other non charitable purposes is valid, but the court is allowed to reduce the amount of the trust property if its excessive

Question 11

what is a statutory purpose trust

Answer 11

A trust may be created for a . . . noncharitable but otherwise valid purpose . . . . The trust may not be enforced for more than [21] year.”

The most common example of a trust for a specific noncharitable purpose is a trust for the care of a cemetery plot.”

Question 12

quick recap – what type of property is getting transfered in a will? who is the intermediary?

Answer 12

general property
the probate court/personal rep

Question 13

what are the five major types of will substitutes

Answer 13

the revocable intervivos trust
life insurance
pay on death accounts
transfer on death accounts
pension accounts

Question 14

describe the pod/tod accounts

Answer 14

A owns account, and on bank application places ownership in the account to B upon A’s death
Only the funds in the account
Bank accounts, retirement accounts
Bank as the intermediary

Question 15

what kind of property is transfered in pod/tod? who is the intermediary

does the beneficary get anything during donors life

Answer 15

specfic – ie only the funds in the account

bank or the financial instution

doesnt get anything during beneficary life

Question 16

describe the revocable trust ; what kind of property is transferd and who serves as intermediatry

Answer 16

Using the trust in place of will
Trusts can be revocable
Settlor has all the power
Any property interest can be transferred

Ie its the will substitute most like a will in that the property transfer is general

trustee as the intermediary