FIRST CONCEPT: PRIVATE EXPRESS TRUST Flashcards Preview

Trusts > FIRST CONCEPT: PRIVATE EXPRESS TRUST > Flashcards

Flashcards in FIRST CONCEPT: PRIVATE EXPRESS TRUST Deck (46)
Loading flashcards...
1

Define a private express trust (You need to memorize)

A fiduciary relationship with respect to property whereby one person, the trustee, holds legal title for the benefit of another, the beneficiary, and which arises out of a manifestation of intent to create it for a legal purpose.

2

What is the corpus of the trust?

Any presently existing interest in property that can be transferred

3

What are 5 examples of what can be part of the corpus of a trust?

fee simple
a future interest such as a contingent remainder
a life insurance policy
bonds
stocks

4

What kind of interests cannot be the subject matter of a trust?

Illusory interests cannot be the subject matter of a trust.

5

What kinds of interests are illusory?

[a] Future profits to a business.
[b] A debt that settler owes beneficiary is not property and cannot be the corpus of a trust; a debt is a liability, not property.
[c] A mere expectancy: what settlor expects to inherit or receive as a gift because a mere expectancy is not property.

6

Who Can Be the Beneficiary of a Private Express Trust?

Any ascertainable person or group of people can be the beneficiary of a private express trust. Person includes a legal person

7

Is a corporation a legal person?

Yes

8

Is a unincorporated association a legal person?
Under common law?
Under Modern Law?

[a] Common law: unincorporated associations could not be the beneficiary of a private express trust.
[b] Modern law: an unincorporated association can be the beneficiary of a private express trust.

9

Are class gifts valid for a trust?

Yes

10

Are class gifts that are too big valid? Why or why not?

No, it is not valid if it cannot be administered

11

Is a a child conceived when the interest was created and later born an ascertainable person?

Yes

12

O conveys to bank and trust to A, but if liquor is ever sold, then to B. What result?

B's interest is stricken, because of the RAP. A has a fee simple

13

Does a trust need to have a trustee?

Yes

14

Will a court allow a trust to fail if the trust does not have a trustee or a trustee refuses to serve?

No, The court will appoint a trustee

15

Who holds legal title when the trust does not yet have a trustee appointed by the court?

The settlor or the settlor's estate will hold legal title.

16

There must be _________ intent made by the settlor.

present

17

Does the settlor need to use the words trust, trustee or beneficiary to make a trust?

No

18

are precatory words( words of wish or hope) sufficient to create a trust?

No

19

S gives $100,000 to his brother, with “the direction and order that he use it for my sister.” Is there a trust here?

Yes

20

S gives $100,000 to his brother, with “the hope and desire that he use it for my sister.” is there a trust here?

No, precatory words (hope or wish) by themselves are not sufficient to create a trust.

21

S gives $100,000 to his brother, with “the hope that he use it for my sister.” S was supporting his sister before transferring the money to the brother, but stopped supporting his sister after the money was transferred to the brother. is there a trust here? Why or why not?

Maybe, precatory words and parol evidence may equal a trust.

Here, because S stopped supporting sister after the transfer to the brother would be probative to show that S intended the money to be used in trust for the benefit of the sister, and that S was merely using his words imprecisely and did intend to create a trust.

22

If you conclude that the words are precatory and the parol evidence is not sufficient to cause a trust to be created, then then who owns the property?

the transferee in fee simple

23

Do trust of personal property have to be in writing?

No

24

Do trusts of real property have to be in writing?

Yes, because of the statute of frauds

25

If a settlor wants to createa trust upon his death, what is needed?

He must comply with the local probate code and a part of his will must ave a provision for a testamentary trust.

26

I devise blackacre to bank to hold in trust for the benefit of my son for his life. What is this an example of?

A testamentary trust.

27

If settlor wants to create a trust to take effect during his lifetime, there are two ways to accomplish this What are they called?

Transfer in Trust and Declaration in Trust.

28

What must the settlor do to create a transfer in trust of real property?

the settlor must execute and deliver a deed transferring title to the trustee.

29

What must the settlor do to create a transfer in trust of real property?

For a trust of personal property, there must
be delivery to the trustee of the trust property at the time settlor manifests the intent to create the trust. The delivery can be actual, symbolic or constructive

30

Is the promise to deliver the corpus in the future a delivery?

No