TRUSTS: CREATION, TYPES, AND CHARACTERISTICS Definition of a Trust A trust is a legal device that separates the benefits of property ownership from the.

TRUSTS: CREATION, TYPES, AND CHARACTERISTICS

Definition of a Trust

A trust is a legal device that separates the benefits of property ownership from the burdens of property ownership

Basic Paradigm of a Trust

Trustee

ALife Estate

BRemainder

Trust as Gift Intent Delivery Acceptance

THREE REQUIREMENTS FOR EVERY TRUST

Settlor Trustee One or more beneficiaries

SETTLOR Declaration of trust Transfer in trust 18 years or older

TRUSTEE 18 years or older Bank or trust company with trust

powers Other institutions granted trust

powers by statute


ALife Estate R B

Remainder

ATrustee

DTrustee

Basic Paridigm of a Trust

ALife Estate R

ATrustee

DTrustee

B sells remainder to A

ARemainder


ALife Estate R A

Remainder

ATrustee

Trust Will Not Fail for Want of A Trustee

Beneficiaries Income beneficiaries Beneficiaries of Corpus Mixed beneficiaries

Given a choice between being a trustee or a beneficiary, be a beneficiary

Jimenez v. Lee What are the facts of this case? Why might father prefer to be a

custodian, rather than a trustee? What does the court hold?

Language of Intent

Use of word “trust” Precatory language

Hebrew University v. Nye What are the facts of this case? In Hebrew #1, why does the court

find the trust fails In Hebrew #2, why does the court

find there was a gift Court was willing to fudge the gift

rules, but not the trust rules. Why?

Unthank v. Rippstein What are the facts of this case? What does the court hold? Review the words in the letter. What

argument could you make that: He did intend letter to be a holographic

will? He intended to declare a trust

Equitable Remedy Trusts Resulting Trusts

Reversions Purchase money resulting trusts

Equitable Remedy Trusts Constructive Trusts

Fraud Mistake Undue influence Breach of a confidential relationship

Necessity of Trust Property

Brainard v. Commissioner

Intent to Create a Trust

Speelman v. Pascal

Clark v. Campbell What did T’s will provide? What was the first argument to

sustain the provision? The second? How might T have accomplished the

goal today?

In re Searight’s Estate What are the facts of this case? What does the court hold? Is the court correct? UPC 2-907

For up to 21 years or life of animal, whichever is shorter

Iowa Code 633.2105• Trust for care of animal living at settlor’s death is

valid. It terminates when no living animal is covered by its terms

Hieble v. Hieble What are the facts of this case? What does the court hold? If mom’s purpose in making the

transfer was to avoid probate, what else might she have done?

Olliffe v. Wells What are the facts of this case?

To A to distribute in such manner as in his discretion appears best calculated to carry out my wishes

Desire to create trust and not create beneficial interest in A

Since terms of trust undisclosed it is a void semisecret trust.

What if testator left her entire estate outright to A but A had promised to hold the property for the benefit of B? This is a “secret trust”

Mandatory vs. Discretionary Trusts

Discretionary Trusts

Marsman v. Nasca

Marsman v. Nasca What are the facts of this case? What lessons do you learn from this

case? Why was the conveyance to Sally

and Richard upheld? Why isn’t Farr personally liable?

Protective Trusts Discretionary trusts Spendthrift Trusts Support Trusts

Creditors’ Rights

A creditor can have no greater rights in trust property than the creditor’sdebtor had in the property

Spendthrift Trusts

Shelley v. Shelley

US v. O’Shaughnessy

Modification and Termination of Trusts

In re Trust of Stuchell


In re Estate of Brown


In re Estate of Brown

Charitable Trusts

Shenandoah ValleyNational Bank v.

Taylor

Charitable Trusts


Taylor

Charitable Trusts


Taylor

Charitable Trusts-Cy Pres

In re Neher


In re Estate of Buck


In re Wilson

TRUSTS: CREATION, TYPES, AND CHARACTERISTICS Definition of a Trust A trust is a legal device that separates the benefits of property ownership from the.

Documents