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Trusts - Coggle Diagram
Trusts
Creation
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Intent: present intent to create a trust now, not in the fututre. no particular words require, not even trust; just manifestation of intent to create a trust.
Trustee: must have mental capacity to administer the trust. cannot be a minor or a mentally incompetent person. corporations are allowed to be a trustees. state statutes may impose additional requirements on corporations as trustees. a settlor can create a trust naming herself as trustee.
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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 rule against perpetuities, or a purpose contrary to public policy
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Types
express
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charitable trusts: resemble private express trusts but have some significant and distinguishable characteristics.
Created by:
an inter vivos trust created by a declaration of trust by the property owner, stating the trustee holds the property as trustee in trust.
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resulting
arises upon the failure of an express trust, from a purchase money resulting trust or form an incomplete disposition of trust assets.
implied
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resulting trust: places property in the hands of rightful owners when circumstances require it, even though there has not been any wrong doing on anyone's part
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modification
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beneficiaries:
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modification does not conflict with a material purpose of the trust: settlor's consent is not required
if all the beneficiaries do not agree, a court may modify or terminate a trust when:
the trust could have been modified if all beneficiaries had consented, and
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trustee: can terminate a trust when the property's value is less than $50,000 and the amount is insufficient to justify the cost of adminstration
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A trust: is 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.
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