1. Trust Purposes

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

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

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

5. 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

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

7. Discrimination
Note 1, page 542

8. Defrauding Creditors
Uniform Fraudulent Transfer Act (Texas version)

9. 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?