Types of Trusts

Question 1

Types of Trusts Acronym

Answer 1

Patron Saint Sam Supports Sassy Disciples By Praying Charitably Honorably and Openly

Pour-over will
Secret/semi-secret
Spendthrift
Support
Discretionary
Blended/protective
Charitable
Honorary
Operation of law (resulting/PMR/constructive)

Question 2

Beneficiary rights to compel distributions - types of trusts

Answer 2

1. C has no greater rights than Debtor/B
2. Mandatory
3. Absolute discretion
4. Discretionary with standards
5. Necessaries - creditors can attach.

CD-MAD-N (Creditor Debtor Mandatory Absolute Discretionary Necessaries Protective)

Question 3

Spendthrift trust

Answer 3

1. Bars B’s creditors from attaching trust property (involuntary alienation); nor can
2. B sell or gift away their interest (voluntary alienation);
3. Both must be present for valid spendthrift C protection.
4. Substance Over Form
5. C can still attach for Child support, Alimony, and Necessaries
6. Support trust is spendthrift by default, B gets necessaries.

VISOFANS (Voluntary Involuntary Substance Over Form Alimony Necessaries Support)

Question 4

Pour-over will

Answer 4

1. Testator names T of pre-existing (or concurrent) trust as B of probate estate;
2. incorporated by reference in the will
3. Must be a valid will (ADUMS-NETAD).

TNT-PET-ADUMS-NETAD (Testator Names Trust Pre-Existing Trust…will validity)

Question 5

Charitable trust

Answer 5

1. Manifest intent;
2. Res
3. Charitable purpose (poverty, health, education, religion, public benefit);
4. No RAP.

MIRPHERP (Manifest Intent Res Poverty Health Education Religion Public)

MIRCAR (Manifestation Intent Res Charitable Not Ascertainable RAP)

Question 6

Secret/semi-secret trusts

Answer 6

1. T intends for property to pass to B even though B not in the will
2. Constructive trust will form
3. Extrinsic evidence permissible
4. Semi-secret not enforceable

NIWCES (Not In Will Constructive Exrinsic Semi)