Trusts-Bar Exam

An arrangement under with the trustee hold legal title to propertyfor the benefit fo the beneficiaries. Trustee has burdens and beneficiaries have benefits of property ownership. Trustee is subject to fiduciary standards; he is not privileged to use trust property as his own.

1) Creator (settlor)
2) delivers
3) legal title of trust assets (the res)
4) to trustee
5) for the benefit of beneficiaries
6) with intent to create trust
7) for valid purpose (just means not against public policy)

Does not apply to self-delcaration of trust ("I delcare myself trustee" or testamentary trust (one that takes effect when T dies). But for intervivos trust with 3rd party trustees, there must be delivery of subject matter of the trust

You do not need to explicitly use the word "trust" to show intent to make a trust. Just need to give legal title of property to someone for benefit of another. BUT need more than just a suggestive use for the property--"To A, it is my which and desire that he look after X and Y." is not enough, unless you give more specifics on how that money should be sued to "look after" them.

Just means not against public policy. Cannot have unreasonable restraints on marriage. Sometimes can have some restraint--like "to pay the income to my husband Mark until he remairres, then to my daughter" is fine.
Also, provisions which encourage divorce or the commission of crimes and those restraining the right to procreate or restraining the free practice of religion are against public policy.

The corpus/principa/subject matter of the trust. Must be certain and identifiable.

This is an attempted self-declaration trust.
It is not valid b/c A has not separated out any specific bit of property for the trust. B could declare himself the trustee of the debt owed to him by A, for teh benefit of see b/c this would be an account receivable and is an interest in property. It is intangible, but sufficient to support a trust.

Usually created when a settler creates a trust with a mere expectancy (i.e., a future interest in property that will eventually ripen). Once that interest ripens, the trust does not arise until the settler REAFFIRMS his intent by words or conduct. IF there is consideration, then under contract proinciples the trust atuomtacilly attaches when the property is recieved.

Trust does not fail if trustee named in instrument dies or if one is not named. The court will appoint a suitable trustee. EXCEPTION: if court finds settlor intended for the trust powers to be personal to the named trustee, then the trust fails if that person is not capable of serving. (Very rare)

Yes! Statutes or case decisions in most states provide that an otherwise empty trust is valid if it is named the direct beneficiary of a life insurance policy or a pension plan death benefit, or if the trust is named a beneficiary of the settlor's will.

Private trust must have ascertainable beneficiaries. Charitable trusts must not have ascertainable Bs. They must be for a charitable purpose and must be afor a reasoanbly large and unidentfiable segment of the public at large.

"Friends" is not an ascertainable group. The traditional rule is that this instrument does not give the truestee a valid power of appointment.
Majority rule today: The special power of appointment argument can be made and Lemuel can appoint the money to his friends. If he doesn't exercise this, the money will revert to the settlor's estate.

It is a trust for the care of pets and graves. At common law, were void b/c violate the RAP. However, under UTC this trust is valid for the life of the pets.

Yes! As long as he is not the sole beneficiary and the sole trustee.

Yes, they are valid even though the settlor retains the right to revoke, alter, or amend the trust, keeps an income interest or other interst in the turst as B, retains a power of appointment over the trust corpus or retains every day control over the trust either by nameing herself trustee or by retianing veto power over the trustee's decisions.