Trust Purposes

General Rule – § 112.031 “A trust may be created for any purpose that is not illegal.”

Prohibited Trustee Conduct — § 112.031 Commit a crime Commit a tortious act Commit an act contrary to public policy

Standard 1. Intent and effect (majority & Texas) 2. Use of property (minority)

Hunt v. Carroll – p. 534 If married = nothing If widow or divorce = $250/month If remarry current husband = nothing If live 20 years = entire estate

Stewart – p. 539 If x named as guardian, trust ends and property goes to others.

Discrimination Note 1, page 542

Defrauding Creditors Uniform Fraudulent Transfer Act (Texas version)

Remedy 1. If defrauding creditors, set aside conveyance to trust up to amount of claim. 2. If other improper purpose: Resulting trust (settlor regains property), or Permit trustee to retain property free of trust. How decide?