2011 Mee Trusts & Future Interests Dc

Front 1

What is a Trust?

Back 1

A fiduciary relationship in which the trustee holds legal title to property subject to an equitable obligation to protect or use the property for benefit of a beneficiary. (who holds equitable title)

Front 2

Should Equitable Title and Legal Title be Held by One Individual in a Trusts?

Back 2

No merging of the two destroys the trusts.

The Separation of Equitable Title and Legal Title is an essential element of a Trusts.

Front 3

Relationships that are NOT trusts:

Back 3

1) Agency Relationship
2) Debtor - Creditor
3) Bailment

Front 4

Classification of Trusts:

Back 4

1) Express Trusts
2) Trusted by Operation of Law

Front 5

Types of Express Trusts:

Back 5

1) Public Trusts
2) Public / Charitable Trusts

Time Class:
1) Inter Vivos (While Living)
2) Testamentary

Front 6

Types of Trusts Created by Operation of Law:

Back 6

1) Resulting Trusts - Intent to create IMPLIED in law.

2) Constructive Trusts - Equitable devices to remedy fraud or unjust enrichment

Front 7

Creation of an Express Trusts:

Back 7

Declaration in Trusts: When Settlor retains legal title but transfers equitable title.

Conveyance in Trusts - Settlor transfers legal title but retains equitable title.

Front 8

Required Elements of an Express Trusts:

Back 8

1) CAPACITY to Create
2) INTENT to Create
3) Specific Trusts PROPERTY
4) Sufficient ID of BENEFICIARY
5) Proper Trusts PURPOSE

CIPBP

Front 9

Voluntary vs. Contractual Creation

Back 9

Voluntary Conveyance - created without consideration (by declaration or transfer) sealed by delivery of deed or personal property

Voluntary Declaration - Must show clear intent, if oral then NOTICE required.

Contractual - Requires consideration (court enforces upon failure)

Front 10

Testamentary vs. Inter Vivos Writing Requirements

Back 10

Testamentary - Writing Required

Inter Vivos - Orally (If involving personal property) or Written

Front 11

Oral Trusts can be Defeated by?

Back 11

1) Voidable by Trustor
2) Enforceable after Part Performance (Equitable Estoppel)

Front 12

Does the Statute of Frauds apply to Trusts created by Operation of Law?

Back 12

No

Front 13

If the beneficiary of a Inter Vivos Trusts dies BEFORE the creation of the trusts does it fail?

Back 13

YES (Depending on Anti-Lapse Statutes)

Front 14

Does the Ascertainable Beneficiary Rules apply to Charitable Trusts?

Back 14

NO

Front 15

Revocation of Express Trusts

Back 15

1) Presumed IRREVOCABLE
2) If written, court will look if creator RESERVED power to revoke
3) If unwritten, PRESUMED irrevocable, but evidence may be presented to show otherwise
4) Unless Express means of revocation are stated, any means is fine
5) Creditors CAN NOT compel revocation
6) Sole beneficiary can revoke own trusts at any time

Front 16

If a Settlor did not retain the right of revocation, how else can the trust be terminated?

Back 16

1) Consent of ALL Beneficiaries (Beware INCAPACITY)

Front 17

Duties of Trustee

Back 17

1) Duty to Collect, Preserve, and Segregate Trusts Property
2) Duty to Make Property Productive (Reasonable Prudent Person Standard)
3) Duty to Account
4) Duty of LOYALTY
5) Duty to Act IMPARTIALLY

Front 18

What is a Power of Appointment?

Back 18

Power created by donor of property, which enables another individual to designate transferees of the property and shares they receive.

Front 19

General vs. Special Power of Appointment

Back 19

General - Where donee of power may appoint to anyone.

Special - Donee is limited by the donor's selection of the ultimate takers.

*INTENT Required to Create

Front 20

Power of Appointment by Will vs. Any Time

Back 20

By Will = Testamentary

Any Time = Presently Exercisable (Or Inter Vivos)

Front 21

Upon Death of Donee (General vs. Special)

Back 21

General - Likely passes to Donee's estate to continue trursts

Special - Likely to dismantle trusts and given residual to those ultimate takers equally.