Validity of a Trust Flashcards
Express Trusts
Private Express Trust
Charitable Trusts (made for a charitable purpose)
Trusts Implied by Law
Resulting Trust: when intent to create trust recognized by law
Constructive Trust: equitable remedy for unjust enrichment, transfers ownership from wrongful party to rightful party.
Valid Trust
A trust is valid if the following elements are present:
(i) it has a trustee
(ii) it has a beneficiary
(iii) it has trust property
(iv) the settlor had a present intent and capacity to create a trust
(v) the trust is created for a valid purpose.
Will a court fail a trust solely bc there is no trustee?
A court will not allow a trust to fail solely bc there is no trustee
Can the same person be the sole trustee and the sole beneficiary?
The same person cannot be the sole trustee and sole beneficiary. The trust terminates in that case.
Who is the trustee?
A trustee manages the trust property and holds it for the benefit of the beneficiaries. A trust will not fail if a specific trustee is not appointed or it the trustee refuses to serve.
The court will simply appoint one.
What does the beneficiary need to be in a private express trust?
In a private express trust, a beneficiary must be definite and ascertainable. (not needed in a charitable trust)
Present Intent and capacity to create trust:
The settlor must have the capacity to create a trust and must intend to create a trust. No specific words are needed.
Trust property
Trust property can include any presently exiting interest in property that is able to be transferred (eg a future interest like a remainder).
Delivery of trust property = not required for a testamentary trust or if the settlor creates a self-declaration of trust.
Valid Trust purpose
The trust purpose must not be illegal or against public policy.
