Trust is legal device allowing owner of property to transfer property and have it managed.
Person who creates is the SETTLOR, who gives legal title, to a TRUSTEE, to manage the money, and the beneficiaries have EQUITABLE title to enjoy the distributions from the trust.
Delivery (formal transfer) of title to
Property (identified; already owned) to a Trustee (competent, given duties) for benefit of a Beneficiary (def. & ascertainable) with Intent (non-precatory) to create trust for
Lawful purpose (not crime; no destruction of property; no condition against public policy)
in Validly Executed Doc.
* Failure to appt trustee OK; ct will.
• If beneficiaries ambiguous, trustee holds for residuary.
--> BUT, "Family," "next of kin" IS SUFF. Definite/Ascertainable -- Consult Intestacy.
• If trustee given no duties; its passive trust, no trust at all.
• Precatory lang. not suff. ("I'd like trust"). CONTEXT-SPECIFIC (ALL The language; ALL the facts)
• E.g. of condition invalid for violating public policy: restricting marriage or promoting divorce. BUT if purpose can be found that is valid, then whole trust is valid. Also, restricting marriage to religion is OK.
• EXECUTION: Must be in writing, signed by settlor and trustee, and EITHER: (i) Acknowledged by notary, OR (ii) Signed by 2Ws.