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6 Cards in this Set
- Front
- Back
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What is an honorary trust? |
A trust which has no ascertainable beneficiary and confers no substantial benefit on society. An honorary trust is simply a goal of the settlor. The trustee is not required to carry out the settlor's goal, but has the power to do so. |
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If the trustee of an honorary trust refuses to serve, what happens? |
The trust fails and the property returns to the settlor. |
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Do honorary trusts violate the Rule Against Perpetuities? |
Yes. Because there is no measuring life for these trusts, they virtually always violate the Rule Against Perpetuities. What is typically left over is a "resulting trust". |
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What is a Totten Trust? |
A Totten trust is also called a tentative bank account trust, which is where the named beneficiary takes whatever is left in the account at the death of the owner of the account. |
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A Totten trust is a misnomer because it is _______________________. |
"Not a true trust." It is more like a will substitute. |
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Does the trustee or settlor in a Totten trust have to do something to elevate the Totten trust into a full private express trust? (Thus meaning there are fiduciary duties involved) |
There must be a manifestation of trust intent. |
