信托法Trusts.doc

PAGE  PAGE 19 Trusts Overview Express trusts – arise from the expressed intention of the owner of property to create the relationship Private – one or more ascertainable persons as beneficiaries, subject to RAP Charitable – cannot be for the benefit of identifiable beneficiaries, can be perpetual Implied or imposed trusts – not exactly trusts, but court-imposed equitable remedies Constructive trusts – simply a name for an equitable remedy the court imposes in cases involving (i) fraud, (ii) unconscionable conduct, (iii) unjust enrichment Resulting trusts – the remedy the court uses when an attempt to create a trust fails Trust-like mechanisms – ways to hold property designate somebody to take it without writing a will E.g. Joint bank accounts with rights of survivorship; Totten Trusts; custodial gifts to minors NOTE: trust law applies ONLY to express trusts . The express trust is the only real trust; the other two are just equitable remedies Requirements for a valid Trust Express trusts: Defined: a legal device that allows an owner of property to make transfers of property and to have those assets managed on behalf of some one else.(rather than have the beneficiary mange the money by himself or herself) Settlor has the legal title to manage the money, and the beneficiary have equitable title to enjoy the distributions from the trust. 2 kinds of express trusts: Lifetime trust, set up during the lifetime of the person who created the trust--settlor of th trust(AKA inter vivos trust) Testamentary trust, set up in the settlors will. 8 requirements of a valid trust Settlor(AKA creator) who makes a Delivery of legal title to Property(res, corpus or principal) to a Trustee who holds legal title for the benefit os a Beneficiary(or Beneficiaries) with Intent to create a trust for a lawful purpose In a validly executed document NOTE:no consideration is required to create a trust. Settlor: The settlor can be anyone 18 or older, with the capacity to enter in