- Legal Title 2 Trustee
- Trustee manages & controls
- Trustee has duty 2 protect trust princ.
- Equit. Title 2 Benefic.
- Can have C/A in ct. of equity if trustee breaches
- Settlor / Grantor
- Gives prop. 2 trust
- Has no C/A if trustee breaches
- Could B own trustee
- CA default is revocable which is min.
- Can have tax adv's if irrevocable trust
- Dif. Types
- Inter vivos if transf. 2 trust during life
- Private exp. trust
- Testamentary trust created by will
- Irrevocable by default everywhere
- Oral trust of personalty ok in CA
- Rsn 2 Create Trust
- Obtain trustee 4 investment mgmt
- Successive ownership / dynastic
- Tax adv's
- Protect benefic.
- Avoid probate
- Creditor proof
- Charitable arr.
- Trustee's Pwr
- Grantor's discretion 2 set up trust 2 let trustee
invade princ. / not
- C/L default gives no mgmt pwrs 2 trustee
- Gen'ly canned investment trust has trustee's
pwr 2 manage / invest
- Categ's of Trust
- Rules of Construction 2 Det. Categ's
- Common meaning of words relied on
- Words like wish / hope probably not bind
- Bossy words like "shall" demo. intent
- Very specif. gifts probably trust
- Fin'al status of parties
- If status of alleged donee is fid. probably trust
- Abs. Gift
- Abs. Gift w/Prayerful Lang. w/No Legal
- Precatory words facially not binding
- Trust & Reqts
- Need present intent 2 create trust
- Prop. / res / corpus / princ.
- Trust comes 2 existence when prop. passes
- Duty 2 earmark trust asset clearly & segregate
- Not trust prop.
- Hope / expectancy
- If nontransf'able like soc. sec. / lottery
- Creditor can't reach trust prop. if trustee bankr.
- If trust prop. merged w/trustee's prop. then
benefic. becomes gen. creditor
- Might B breach of trust & partial destruction
of trust 4 bank 2 invest in same bank
- Transf. / 4 ways 2 create trust
- Settlor decl's 2 B trustee
- Transf. by will / inter vivos trust
- K 4 enforceable oblgn 2 B held in trust / present
intent 2 create trust by K
- Exercising donee's pwr of appt'ment
- Trustee needs active duties
- Stt of uses of 1535 converted passive arr. into
legal estates except 4
- All personalty
- Non-freehold int. in realty leases
- Uses on use
- Active uses which led 2 trust law
- Totten Trust
- Bank acct w/trust 4 somebody else
- Not real trust but pretend it's real so can skip
- Now consid'ed revocable trust & implied nec.
- Revoke if
- W/draw, it's partial revoke
- Death of benefic., then compl. revocation
- Will can revoke exp'ly / impliedly
- Creditors can reach
- Not care abt. stt. of uses, Wills Act, / that
silent trusts R irrevocable gen'ly
- Presume irrevocable if creator tells benefic.
/ gives bank bk 2 benefic.
- Failed Attempt 2 Make Trust
This material is copyrighted by the author. Use of the material
for profit is expressly prohibited without the written
permission from the author.
Go Back to Law
Ms. Haeji Hong
December 17, 1997