W6 - Trusts

Question 1

When is a trust created?

Answer 1

When an owner transfers equitable title, but retains legal title

Question 2

What is equitable title?

Answer 2

the right to enjoy and benefit from the property

Question 3

What is an express trust?

Answer 3

one person holds legal title as a trustee while another person has the equitable/beneficial title

Question 4

What defines a trustee?

Answer 4

has legal title to all of the trust property with rights which may include disposition, management, administration, and possession

Question 5

If a trustee goes bankrupt, what happens to the property held in trust?

Answer 5

Nothing. they are separate estates

Question 6

Is it possible to be trustee and beneficiary at the same time?

Answer 6

Yes

Question 7

What is a resulting trust?

Answer 7

An arrangment RESULTING in one person holding property for the benefit of another, and gives them legal title, but does not intend for that person to have an equitable interest in the property

Question 8

How do resulting trusts happen?

Answer 8

If an express trust arrangement does not account for all actual property. Legal and equitable title would split

Question 9

Equitable trusts are ___, except when_

Answer 9

Presumed, except when gratuitous transfers between family members

Question 10

What is a constructive trust?

Answer 10

A trust that exists despite no overt intention to create a trust. Used by courts to ensure a fair result in cases wherein a person who does not have title to property has made significant contributions to the property