2. TRUSTS: CREATION, TYPES, AND CHARACTERISTICS

3. Definition of a Trust A trust is a legal device that separates the benefits of property ownership from the burdens of property ownership

4. Basic Paradigm of a Trust Trustee A Life Estate B Remainder

5. Trust as Gift Intent Delivery Acceptance

6. THREE REQUIREMENTS FOR EVERY TRUST Settlor Trustee One or more beneficiaries

7. SETTLOR Declaration of trust Transfer in trust 18 years or older

8. TRUSTEE 18 years or older Bank or trust company with trust powers Other institutions granted trust powers by statute

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

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

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

12. Trust Will Not Fail for Want of A Trustee

13. Beneficiaries Income beneficiaries Beneficiaries of Corpus Mixed beneficiaries

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

15. 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?

16. Language of Intent Use of word “trust” Precatory language

17. 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?

18. 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

19. Equitable Remedy Trusts Resulting Trusts Reversions Purchase money resulting trusts

20. Equitable Remedy Trusts Constructive Trusts Fraud Mistake Undue influence Breach of a confidential relationship

21. Necessity of Trust Property Brainard v. Commissioner

22. Intent to Create a Trust Speelman v. Pascal

23. 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?

24. 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

25. 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?

26. 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”

27. Mandatory vs. Discretionary Trusts

28. Discretionary Trusts Marsman v. Nasca

29. 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?

30. Protective Trusts Discretionary trusts Spendthrift Trusts Support Trusts

31. Creditors’ Rights A creditor can have no greater rights in trust property than the creditor’s debtor had in the property

32. Spendthrift Trusts Shelley v. Shelley

33. US v. O’Shaughnessy

34. Modification and Termination of Trusts In re Trust of Stuchell

35. Modification and Termination of Trusts In re Estate of Brown

36. Modification and Termination of Trusts In re Estate of Brown

37. Charitable Trusts Shenandoah Valley National Bank v. Taylor

38. Charitable Trusts Shenandoah Valley National Bank v. Taylor

39. Charitable Trusts Shenandoah Valley National Bank v. Taylor

40. Charitable Trusts-Cy Pres In re Neher

41. Charitable Trusts-Cy Pres In re Estate of Buck

42. Charitable Trusts-Cy Pres In re Wilson