dj chapter 8 to 9

8/11/2019 Dj Chapter 8 to 9

1/41

TRUSTS:CREATION, TYPES,

AND


2/41

AND

Definition of a Trust

A trust is a legal devie t!at se"arates t!e#enefits of "ro"ert$ o%ners!i" fro& t!e

#urdens of "ro"ert$ o%ners!i"


3/41

'asi Paradig& of a Trust

Trustee

A

Life Estate

B

Remainder


4/41

Trust as (ift

Intent

Deliver$

Ae"tane


5/41

THREE RE)UIRE*ENTS +OREERY TRUST

Settlor

Trustee

One or &ore #enefiiaries


6/41

SETT-OR

Delaration of trust

Transfer in trust

./ $ears or older


7/41

TRUSTEE

./ $ears or older

'an0 or trust o&"an$ %it! trust

"o%ers Ot!er institutions granted trust

"o%ers #$ statute


8/41


A

Life Estate R

B

Remainder

A

Trustee

D

Trustee


9/41

'asi Paridig& of a Trust

A

Life Estate R

A

Trustee

D

Trustee

B sellsremainder

to A

A

Remainder


10/41


ALife Estate

RA

Remainder

A

Trustee


11/41

Trust 1ill Not +ail

for 1ant of ATrustee


12/41

'enefiiaries

Ino&e #enefiiaries

'enefiiaries of Cor"us

*i2ed #enefiiaries


13/41

(iven a !oie

#et%een #eing a


14/41

Jimenez v. Lee 1!at are t!e fats of t!is ase3

1!$ &ig!t fat!er "refer to #e a

ustodian, rat!er t!an a trustee3 1!at does t!e ourt !old3


15/41

-anguage of Intent

Use of %ord 4trust5

Preator$ language


16/41

He#re% Universit$ v6 N$e

1!at are t!e fats of t!is ase3

In He#re% 7., %!$ does t!e ourt

find t!e trust fails In He#re% 78, %!$ does t!e ourt

find t!ere %as a gift

Court %as %illing to fudge t!e giftrules, #ut not t!e trust rules6 1!$3


17/41

Unthank v. Rippstein 1!at are t!e fats of t!is ase3

1!at does t!e ourt !old3

Revie% t!e %ords in t!e letter6 1!atargu&ent ould $ou &a0e t!at: He did intend letter to #e a !ologra"!i

%ill3 He intended to delare a trust


18/41

E9uita#le Re&ed$ Trusts

Resulting Trusts Reversions

Pur!ase &one$ resulting trusts


19/41

E9uita#le Re&ed$ Trusts

Construtive Trusts +raud

*ista0e Undue influene

'rea! of a onfidential relations!i"


20/41

Neessit$ of Trust Pro"ert$

Brainard v.

Commissioner


21/41

Intent to Create a Trust

Speelman v. as!al


22/41

Clark v. Camp"ell 1!at did Ts %ill "rovide3

1!at %as t!e first argu&ent to

sustain t!e "rovision3 T!e seond3

Ho% &ig!t T !ave ao&"lis!ed t!e

goal toda$3


23/41

In re Searig!ts Estate

1!at are t!e fats of t!is ase3 1!at does t!e ourt !old3

Is t!e ourt orret3 UPC 8;

+or u" to 8. $ears or life of ani&al, %!i!everis s!orter

Io%a Code ?@@68.=B Trust for are of ani&al living at settlors deat! is

valid6 It ter&inates %!en no living ani&al is overed#$ its ter&s


24/41

Hie#le v6 Hie#le


1!at does t!e ourt !old3

If &o&s "ur"ose in &a0ing t!etransfer %as to avoid "ro#ate, %!atelse &ig!t s!e !ave done3


25/41

Olliffe v6 1ells

1!at are t!e fats of t!is ase3 To A to distri#ute in su! &anner as in !is disretion

a""ears #est alulated to arr$ out &$ %is!es

Desire to reate trust and not reate #enefiialinterest in A

Sine ter&s of trust undislosed it is a voidse&iseret trust6

1!at if testator left !er entire estate outrig!tto A #ut A !ad "ro&ised to !old t!e "ro"ert$for t!e #enefit of '3 T!is is a 4seret trust5


26/41

*andator$ vs6 Disretionar$Trusts


27/41

Disretionar$ Trusts

#arsman v. $as!a


28/41

*ars&an v6 Nasa


1!at lessons do $ou learn fro& t!is

ase3 1!$ %as t!e onve$ane to Sall$

and Ri!ard u"!eld3

1!$ isnt +arr "ersonall$ lia#le3


29/41

Protetive Trusts

Disretionar$ trusts

S"endt!rift Trusts

Su""ort Trusts


30/41

Creditors Rig!ts

A !reditor !an have no

%reater ri%hts in trust

propert& than the !reditor's

de"tor had in the propert&


31/41

S"endt!rift Trusts

Shelle& v. Shelle&


32/41

US v6 OS!aug!ness$


33/41

*odifiation andTer&ination of Trusts

(n re Trust of Stu!hell


34/41


(n re Estate of Bro)n


35/41


(n re Estate of Bro)n


36/41

C!arita#le Trusts

Shenandoah *alle&$ational Bank v.

Ta&lor


37/41

C!arita#le Trusts


Ta&lor


38/41

C!arita#le Trusts


Ta&lor


39/41

C!arita#le Trusts;C$ Pres

(n re $eher


40/41


(n re Estate of Bu!k


41/41


(n re +ilson

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