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Trusts (Creation (Settlor's Capacity - Analyse similar to…
Trusts
Creation
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Intent - Present intent to create a trust now, not in the future. No particular words required (even "Trust"), just a manifestation of intent to create a trust.
Trustee - Must have the mental capacity to administer the trust. Cannot be a minor or mentally incompetent person. Corporations are allowed to be trustees. A settlor can create a trust and name herself a trustee.
Res-Trust Property - Settlor places title to the trust property and delivers to the trustee by:
- inter vivos transfer
-a testamentary trust
Identifiable Beneficiary - Except for charitable trusts, trust must have definite or ascertainable beneficiaries. Beneficiaries are equitable owners of trust property.
Proper Purpose - Virtually any purpose except an illegal purpose, a purpose that violates the RAP, or contrary to Public Policy
Statute of Frauds/Statute of Wills, if Necessary.
Types
Express Trusts
Arise through Intent
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Charitable Trusts: Resemble private express trusts but have some significant, distinguishing characteristics
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Definition: A fiduciary relationship where the trustee holds legal title to property with a duty to manage, invest, safeguard, and administer the trust assets and income for the benefit of designated beneficiaries, who hold equitable title.
Trusts terminate automatically at the end of trust terms or when the purpose of the trust has been accomplished.