Trusts Shortlist (Flemmings) Flashcards
Memorize Approach/Understand Concepts/Memorize Issues (33 cards)
What are the types of trusts?
1) Express/Private, 2) Testamentary, 3) Elements
What is an Inter Vivos Trust?
A trust where the settlor transfers assets during their lifetime.
What is a Testamentary Trust?
A trust that ‘speaks at death’ and passes under a will.
What are the elements of a trust?
a) Intent, b) Purpose, c) Res, d) Ascertainable Beneficiary, e) Trustee
What is required for the settlor’s intent?
Must be express verbally or through conduct at the time of ownership.
What is the purpose of a trust?
May not be for illegal purposes or violate public policy.
What is required for the res of a trust?
Must be identified (real or personal); if a third party is trustee, it must be delivered.
What happens if a trustee is not identified?
The court will appoint one; if the trustee is the only beneficiary, it results in merger.
What is required for a beneficiary?
Must be ascertainable and not violate the Rule Against Perpetuities (RAP).
What is a resulting trust?
Occurs when there is no beneficiary; the res is in favor of the settlor.
What is a charitable trust?
Does not require an ascertainable beneficiary.
What are class gifts?
Must be a sufficiently definite class.
What is a Pour Over Will?
A will that pours over assets into an inter vivos trust.
What is a Secret Trust?
A trust where the settlor’s intent is not named in the will but is based on an oral promise.
What is a Semi-Secret Trust?
A will mentions a trust but does not identify a beneficiary or terms of the trust.
What is a Spendthrift Trust?
Prohibits a beneficiary’s interest from creditors.
What is a Support Trust?
Pays a necessary sum for the beneficiary’s support.
What is a Discretionary Trust?
Gives the trustee discretion to apply or withhold payments to the beneficiary.
What is a Blended Trust?
Created for a group of persons where everyone’s interest is inseparable.
What is a Protective Trust?
Pays out income regularly but becomes a discretionary trust.
What is the Cy Pres Doctrine?
Used when a charitable purpose is impossible; it allows for the next best use.
What is an Honorary Trust?
A non-charitable trust for a specific purpose with no beneficiary having standing to enforce.
What is an Operation of Law Trust?
A court-imposed trust to prevent unjust enrichment.
What are the authorities in trust supervision?
Express Terms and Implied Terms.
