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10 Cards in this Set
- Front
- Back
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Trust Defined
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A trust is a fiduciary relationship where the title is divided between the trustee who has legal
title and the beneficiary who has beneficial title. |
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Parties to a trust
1. settlor 2. Trustee 3. beneficiaries |
Parties to a Trust
o Settlor -the person who creates the trust o Trustee -the person managing the trust o Beneficiary - Those whom the trust benefits |
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Charatible Trusts
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Not subject to the Rule against Perpetuities
• They have to be for the good of the community at large • Must be for a charitable purpose Religion, Medicine, Science, Government (parks. Research, education Most honorary trusts do not qualify as charitable trust • Must be in favor of a reasonably large number of unidentifiable beneficiaries • Cy Pres-when a specific charitable purpose can no longer be accomplished, it may be reformed under cy pres ("as nearly as possible"). Court first determines the intent of the settlor • If there is a broad intent found then the trust will be reformed There is a strong tendency to uphold charitable gifts, and to keep such gifts in the charitable domain rather than the private domain by finding that cy pres should be applied |
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Resulting Trust
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Arises as an operation of law in one of two situations:
Where an express trust fails or makes an incomplete disposition, or Where a person pays purchase price and causes the property to be taken in the name of another person who is not the natural object of the bounty of the purchaser • Also known as a purchase money resulting trust |
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Constructive Trust
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There must be unjust enrichment - where justice allows
Confidential relationship, promise by transferee, reliance on the promise and unjust enrichment for the transferee |
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Creation of a Trust
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1. intent
2. delivery 3. trust property 4. trust beneficiaries 5. written instrument 6. execution |
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Creation of a Trust
intent |
No particular form of words is necessary
• The sole question is whether the grantor manifested an intention to create a trust • Some to vest legal ownership in one person for another declaration showing intent • There is a corresponding intent to impose duties |
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Creation of a Trust
Delivery |
Delivery of the subject matter of the trust with the intent to pass title to the trustee
• Transfer of an interest in deed or writing Transfer can be created gratuitous or contractual • Delivery of the trust property must occur during the settlor's/grantor's lifetime |
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Creation of a Trust
Trust Property |
Must be some property interest on which the trust relationship can be imposed
• Res can be any type of property so long as it is in existence and can be transferred • If there is no certain and identifiable trust property there is no trust |
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Creation of a Trust
Trust Beneficiaries |
Trust must be in favor of ascertainable beneficiaries
Immediate family includes children, grandchildren and their issue, but not aunts, uncles, nieces and nephews (nothing lateral) • A beneficiary has standing to bring suit • The trust may be may be private or charitable but they must be sufficiently ascertainable A private express trust must be for ascertainable beneficiary's A class of beneficiaries may be designated if sufficiently definite • If the beneficiary designation does not specifically describe an individual or group, the trust fails. A charitable trust cannot be for the benefit of identifiable private individuals • If not for a specifically identifiable charitable agency, it must be in favor of a reasonably large class of indefinite beneficiaries Absent a statute, pets cannot be the beneficiary of a trust • FL has such a statute. • Also known as an honorary trust A beneficiary's interest is assignable as long as it is not a spendthrift trust. |
