Terms in this set (9)

5 elements required for express trust:
1. Settlor with capacity to convey
2. a present intent to create trust relationship
3. competent trustee with duties
4. definite beneficiary
5. and the same person is not the sole trustee and sole beneficiary

There must also be a present disposition in trust of specific property then owned by the settlor, and the trust must have a valid trust purpose. Consideration if not required.
- Settlor must have capacity
- Present intention to create trust (must be manifested while S owns property and prior to conveyance; must intend trust to take effect immediately; precatory expressions)
- Trustee (acceptance of trusteeship; TEE must have duties; qualifications of TEE; compensation & reimbursement; removal of TEE; disclaimer or resignation by TEE; successor TEEs; merger of title where sole TEE is also sole B)
- Beneficiaries (qualified B; capacity; incidental and indirect Bs; notice to and acceptance by B; anti-lapse statutes; divorce; definiteness of Bs under private trust; resulting trust remedy)
- Trust property (no res--no trust; trust property must be existing interest in existing property; property that S has power to convey can be subject to trust; trust red must be segregated from other property; debtor cannot hold own debt in trust; unenforcement gratuitous promise cannot be trust res)
- Trust purposes- invalid if it is (1) illegal, (2) contrary to PP, (3) impossible to achieve, or (4) intended to defraud S's creditors or based on illegal consideration. If a condition attached to an interest if against PP: (a) S's alternative desire controls if expressed; (b) if the illegal condition is a condition subsequent, the condition is invalidated but trust valid; (c) if illegal condition is condition precedent, preferred view is to hold interest valid unless there is evidence that S's wish would be to void to B's interest altogether if condition unenforceable.
>> Uniform Statutory Rule Against Perpetuities
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