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27 Cards in this Set

  • Front
  • Back
What are the requirements to create a valid trust?
1. Intent by the settlor to presently create a trust
2. Trust property
3. One or more beneficiaries
4. Trustee
What is needed to establish undue influence?
Product of influence was trust that wouldn't have been executed but for the influence
How can the inference against creation of a trust be overcome?
1. Directions are definite and precise
2. Directions are addressed to executor/administrator
3. Failure to impose trust results in unnatural disposition
4. Extrinsic evidence shows transferor had been supporting intended beneficiary prior to executing instrument
What happens if a trustee dies?
The trust goes to the successor they name or the court appoints a successor
What are the grounds for removing a trustee?
1. Serious breach of trust
2. Legal or practical incapacity
3. Unfitness such as drunkenness, extreme old age, and other practical inability
4. Refusal to post bond/account
5. Existence of significant conflict of interest
6. Trustee's insolvency
7. Extreme friction/hostility between trustee and beneficiaries
Does a trust of tangible property need to be in writing?
No.
Does a trust of real property need to be in writing?
Yes.
A pays B to make a trust for A in future. B acquires the property for the trust, but makes no manifestation of intent to create a trust. What happens?
Trust automatically created.
When are beneficiaries not necessary to the validity of a trust?
1. Charitable trusts (enforceable by state attorney general)
2. Honorary trusts (for animals and to maintain graves)
If a trust's beneficiaries are not identified, what happens?
If susceptible to identification when interests are to come into enjoyment, OK. Otherwise, fails.
Can a settlor say "hey, trustee, you pick"?
Yes.
What is a spendthrift trust?
A trust that precludes the beneficiary from voluntarily/involuntarily transferring interest. Creditors are precluded from reaching it.
Can you sell your interest in a trust?
Yes, if not a spendthrift trust and if the interest is not conditioned on survival.
Can a creditor reach trust assets?
Yes, to the extent of the beneficiary's interest, if not a spendthrift trust.
After distribution, can creditors reach trust funds?
Yes, even if they're spendthrift.
What makes a charitable trust special?
1. Must have indefinite beneficiaries
2. May be perpetual
3. Cy pres doctrine applies
What must the purpose of a charitable trust be?
Benefitting the public
Who are the official beneficiaries of a charitable trust?
The community at large
Does an individual eligible for the benefits of a charitable trust have standing to enforce the terms?
No.
Who has standing to enforce the terms of a charitable trust?
The state attorney general.
What is the cy pres doctrine?
When a charitable purpose selected by the settlor is impractical, if the court finds the settlor had a general charitable purpose rather than a specific purpose to help only the named charity, it will select an alternative charity.
Can you penalize someone for contesting the trust?
No.
Can you convey homestead property away from your spouse without asking them?
No.
What are the duties of trustees?
1. Loyalty
2. No comingling
3. No delegation of functions a reasonably prudent person wouldn't delegate
What is the exception to not being able to delegate your trustee duties?
Can delegate investment/management functions that a prudent trustee could delegate if use reasonable care/skill/caution in
1. Selecting agent
2. Establishing scope/terms of delegation
3. Periodically reviewing agent's actions to monitor performance/compliance
When can you seek judicial modification of a trust based on change in circumstances?
1. Purposes fulfilled/illegal/impossible
2. Because of changed circumstances not known to/anticipated by settlor, compliance would defeat/impair accomplishment of material purpose of trust
How does the rule against perpetuities work in Florida?
1. Must vest/terminate within 21 years after death of individual then living
2. Vests/terminates within 360 years after creation
(Doesn't apply to charitable trusts.)