Formal requirements of a trust Flashcards
who holds legal title in trust
trustee
- has all ownership rights, including duty to manage, invest, insure, safe guard etc)
who has equitable title under trusts
B’s
what are the requirements to have a valid trust
1) settlor
2) delivers
3) title to TRUST PROPERTY to a
4) TRUSTEE
5) for the benefit of ASCERTAINABLE BENEIFCARIES with
6) INTENT TO CREATE A TRUST
7) for a lawful purpose
is consideration needed to form a trust
NO
requirements for settlor
at least 18 years old
delivery requirement for trust
inter-vivos trusts that names 3rd party as trustee, the mere intent to create a trust, or a gratuitous promise to create a trust, is NOT SUFFICIENT.
- must have delivery with INTENT TO CONVEY LEGAL TITLE to trustee
trust property requirements
need SPECIFIC INTEREST IN PROPERTY
- subject matter of trust must be certain and IDENTIFIABLE
who are the only people who can manage a charitable trust
only banks and trust companies can serve as trustees of charitable trusts
can someone be forced to be a trustee
NO.
will a trust ever fail for lack of trustee
NO.
- the court will appoint a suitable successor to execute the trust
what consitutes acceptance of trustee
1) trustee’s signature, signifying acceptance of the trust
2) acceptance by conduct
In IL can a trustee resign w.o going to court
Yes, just need to give timely written notice to the setllor (if living) any co-trustee, and B’s entitled to receive distributions of income
can B’s bring an action to remove trustee siting conflicts
NO. unless B’s can show conflicts prevent trustee from carrying out duties, or that trustee has breached a material term of trust
does merely naming a person trustee who does not have any powers create a trust
NO
- if named trustee has no powers or active duties to perform, no trust arises b/c TRUSTEE MUST OWE DUTIES TO SOMEONE
what is the requirement for beneficiaries
must be ASCERTAINABLE, definite
- applies to RAP
