Trusts Essays Rule Statements Flashcards
a resulting trust is
an indirect trust that is implied by the court based on the nature of the transaction or the intention of the parties
a resulting trust arises when
1) an express trust fails in whole or in part,
2) a settlor makes an incomplete disposition of the trust property and there is excess corpus, or
3) a purchaser pays the purchase price of the property and causes title to be taken in another’s name (purchase money resulting trust)
A purchase money resulting trust arises when
a purchaser, prior to or at the time of purchase, pays for a certain property or assumes payment for all or part of the purchase price but causes title to be taken in another’s name
purchase must prove that he paid the purchase price by clear and convincing evidence and that he did not pay the money in the capacity of a lender or agent.
Additionally, the parties cannot be related
a spendthrift trust is
one that contains a provision prohibiting voluntary and involuntary transfer of a beneficiary’s interest
a creditor of a beneficiary may not compel
a distribution that is subject to the trustee’s discretion
a trustee will not be liable for the acts of a co-trustee if
he did not join in the action and he exercised reasonable care in: 1) preventing the breach of trust, or 2) compelling the co-trustee to redress the breach
a third party can sue the trust estate on the contract by
bringing an action against the trustee in his representative capacity
the third party may sue the trustee personally only if
the trustee, in entering into a contract, failed to reveal his representative capacity
a trust for the care of an animal alive during the settlor’s lifetime is
valid, enforceable by someone named in the trust instrument or appointed by the court. Terminates when animal dies
if through the passage of time or changed circumstances the named beneficiary of a charitable trust goes out of existence, under the doctrine of cy pres the court may
redirect the trust to a purpose as near as possible to the charitable endeavor initially contemplated by the settlor
a will may validly devise property to the trustee of a trust, regardless of the existence of the corpus of the trust, if
the trust is identified in the testator’s will and its terms are set forth in a written instrument, other than a will, executed before, concurrently with, or after the execution of the testator’s will
a pour over gift is
a testamentary gift to an inter vivos trust, permits the integrated disposition of testamentary assets with a trust created during the testator’s lifetime. Even if trust is amended, pour over gifts become part of it as it exists at testator’s death
an inter vivos trust created on or after July 1, 2006 is revocable and amendable by the settlor unless
the trust terms expressly state that the trust is irrevocable and cannot be amended
a revocable trust can be revoked or amended either by substantial compliance with the method provided in the trust,or
or if no method is provided, by any method manifesting clear and convincing evidence of the settlor’s intent
a revocable trust is/is not part of a decedent’s gross estate
is, because at the time of his death he had the right to amend or alter it
