Trust Creation

Question 1

Trust Creation Acronym

Answer 1

Two Vicious Monkeys Play Tennis With Iquanas
Trust defined
Validity
Manifestation of intent
Purpose
Testamentary
Will
Inter vivos trust

Question 2

Trust validity (elements of)

Answer 2

1. Manifestation of intent to create (no writing unless realty);
2. Existing trust res;
3. Ascertainable beneficiaries; and
4. Delivery or declaration.

MIRAD

Question 3

Trust

Answer 3

D-SEBLeT (Disposition Separates Equitable Bs Legal T)

1. Disposition of property which;
2. Separates Equitable to Bs and Legal title to T;
3. T manages for benefit of Bs.

Question 4

Testamentary Trust

Answer 4

1. Will must be valid;
2. Testator must have Capacity;
3. Testamentary Intent; and
4. Formalities followed.

CIF

Question 5

Will validity

Answer 5

1. Adult, of sound mind, Duress, Undue influence, Mental infirmament, Suspicious circumstances;
2. Know nature and extent of property and testamentary act;
3. 2 disinterested Ws or holographic.

ADUMS-NETAD

Question 6

Proper trust purpose

Answer 6

1. Destruction of property
2. Religion
3. Illegal
4. Public policy
5. Marriage

DRIP-M

Question 7

Manifestation of intent to create a trust

Answer 7

1. Substance over form (no particular words);
2. Expression by S for T to hold for B;
3. Not Precatory.

SOFEP (Substance Over Form Expression Precatory)

Question 8

Revocable Inter Vivos Trust (RVIT)

Answer 8

1. Lifetime transfer Economic Benefits pass without Will Formalities;
2. Revocable during S’s Lifetime;
3. PIRAT

LEB-WiWF-RiLS-PIRAT (Lifetime Economic Benefits Without Will Formalities Revocable in Lifetime Settlor PIRAT)