Barbri Trusts Questions and Answers

A Trust is . . . Ans- A conveying relationship Settlor Ans- Creator of the trust. Can also be called Grantor, Donor, Trustor Trustee Ans- A trustee holds legal title to specific property under a fiduciary duty to manage, invest, safeguard, and administer the trust assets and income for the benefit of designated beneficiaries. What are the basic classifications of Trusts? (2) Ans- (1) Express Trusts (2) Operation of Law Trusts What are the kinds of Express Trusts? (3) Ans- 1. Private (traditional) 2. Charitable (any trust that confers substantial benefit on society) 3. Honorary (no ascertainable beneficiary, confers no benefit, but meets Settlor's goal.) What are the types of Operation of Law Trusts? Ans- 1. Purchase Money Resulting Trust 2. Resulting Trust from Failed Express Trust 3. Constructive Trust (equitable remedy) How do you create an Inter Vivos Trust? Ans- A living trust is created in two steps. 1. Declaration of trust (Settlor and Trustee can be the same person.) 2. Transfer/Conveyance of Trust