Types of Trusts

Question 1

Types of Trusts Acronym

Answer 1

Patron Saint Sam Supports Sassy Disciples By Praying Charitably Honorably and Openly

Pour-over will
Secret/semi-secret
Spendthrift
Support
Discretionary
Blended/protective
Charitable
Honorary
Operation of law (resulting/PMR/constructive)

Question 2

Beneficiary rights to compel distributions - types of trusts

Answer 2

1. C has no greater rights than Debtor/B
2. Mandatory
3. Absolute discretion
4. Discretionary with standards
5. Necessaries - creditors can attach.

CD-MAD-N (Creditor Debtor Mandatory Absolute Discretionary Necessaries Protective)

Question 3

Spendthrift trust

Answer 3

1. Bars B’s creditors from attaching trust property (involuntary alienation); nor can
2. B sell or gift away their interest (voluntary alienation);
3. Both must be present for valid spendthrift C protection.
4. Substance Over Form
5. C can still attach for Child support, Alimony, and Necessaries
6. Support trust is spendthrift by default, B gets necessaries.

VISOFANS (Voluntary Involuntary Substance Over Form Alimony Necessaries Support)

Question 4

Pour-over will

Answer 4

1. Testator names T of pre-existing (or concurrent) trust as B of probate estate;
2. incorporated by reference in the will
3. Must be a valid will (ADUMS-NETAD).

TNT-PET-ADUMS-NETAD (Testator Names Trust Pre-Existing Trust…will validity)

Question 5

Charitable trust

Answer 5

1. Manifest intent;
2. Res
3. Charitable purpose (poverty, health, education, religion, public benefit);
4. No RAP.

MIRPHERP (Manifest Intent Res Poverty Health Education Religion Public)

MIRCAR (Manifestation Intent Res Charitable Not Ascertainable RAP)

Question 6

Secret/semi-secret trusts

Answer 6

1. T intends for property to pass to B even though B not in the will
2. Constructive trust will form
3. Extrinsic evidence permissible
4. Semi-secret not enforceable

NIWCES (Not In Will Constructive Exrinsic Semi)

Question 7

Approach to Trusts

Answer 7

1. Type of trust?
2. Who is trustee?
3. Who are Bs?
4. What is the res?
   Then….
   a. Trustee acting properly?
   b. B’s ascertainable and definite, and if not, why and how do they take?
   c. Trust property being distributed how it should be?
   d. Special trust, how so, and why?
   e. Modification by trust document, parties, or the court?