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 A Life Estate B Remainder

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

Basic Paradigm of a Trust A Life Estate R B Remainder A Trustee D Trustee

Basic Paridigm of a Trust A Life Estate R A Trustee D Trustee B sells remainder to A A Remainder

Basic Paradigm of a Trust A Life Estate R A Remainder A Trustee

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

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’s debtor had in the property

Spendthrift Trusts Shelley v. Shelley

US v. O’Shaughnessy

Modification and Termination of Trusts In re Trust of Stuchell

Modification and Termination of Trusts In re Estate of Brown

Modification and Termination of Trusts In re Estate of Brown

Charitable Trusts Shenandoah Valley National Bank v. Taylor

Charitable Trusts Shenandoah Valley National Bank v. Taylor

Charitable Trusts Shenandoah Valley National Bank v. Taylor

Charitable Trusts-Cy Pres In re Neher

Charitable Trusts-Cy Pres In re Estate of Buck

Charitable Trusts-Cy Pres In re Wilson