信托法Trusts剖析Word文档下载推荐.docx

信托法Trusts剖析Word文档下载推荐.docx

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II.RequirementsforavalidTrust

A.Expresstrusts:

1.Defined:

alegaldevicethatallowsanownerofpropertytomaketransfersofpropertyandtohavethoseassetsmanagedonbehalfofsomeoneelse.（ratherthanhavethebeneficiarymangethemoneybyhimselforherself）

a.Settlorhasthelegaltitletomanagethemoney,andthebeneficiaryhaveequitabletitletoenjoythedistributionsfromthetrust.

2.2kindsofexpresstrusts:

a.Lifetimetrust,setupduringthelifetimeofthepersonwhocreatedthetrust--settlorofthtrust（AKAintervivostrust）

b.Testamentarytrust,setupinthesettlor'

swill.

3.8requirementsofavalidtrust

a.Settlor（AKAcreator）whomakesa

b.Deliveryoflegaltitleto

c.Property（res,corpusorprincipal）toa

d.Trusteewhoholdslegaltitleforthebenefitosa

e.Beneficiary（orBeneficiaries）with

f.Intenttocreateatrustfor

g.alawfulpurpose

h.Inavalidlyexecuteddocument

vNOTE:

noconsiderationisrequiredtocreateatrust.

1）Settlor:

Thesettlorcanbeanyone18orolder,withthecapacitytoenterintoKs

2）Delivery:

titledassetsmustbeformallytransferredtothetrusteefordeliverytobevalid.

a）themereintenttocreateatrust,oragratuitouswrittenpromisetocreateatrust,isnotenough.I

i）Increatingalifetimetrust:

（1）titledassets–forassetswhosetitleisevidencedbyadocument,（e.g.–realestate,stocksandbonds,etc.）,legaltitlemustbeformallytransferredtothetrustee（whetherthetrusteeisathirdpartyorthesettlorhimself）.

（a）Hypo:

Therewasnodeliverywithouttransferofthetitleofthestockcertificates.

（2）otherassets–transfermustbebyawrittenassignmenttothetrustee.

ii）Testamentarytrusts–“delivery”requirementdoesnotapplytotestamentarytrusts,willslawcontrols.

3）Property（RES）:

tohaveatrust,legaltitletospecificpropertymustbeformallytransferredtothetrustee.

vThesubjectmatterofthetrustmustbecertainandidentified.

vIfthereisnotrustproperty,thereisnotrust.

a）Thepropertycanbealmostanything,butmustbepropertythatthesettlorowns,notjustmereexpectancyofownershipinthefuture.

i.Expectancyinterestinanother’swillisnotproperty.Hejusthashope

b）Itmustbeidentifiableproperty,notsubjecttofuturedetermination.

i.Cannotcreatetrustwith“whatevermoneyorpropertythatIcancontributeoverthenext10years”（thisispromisetocreateatrustinthefuture,notsupportedbyconsideration）

1.butifwrittenpromisetocreatetrustofproperty（tobereceivedinfuture）issupportedbyconsideration,undercontractprincipals,trustautomaticallyarisesuponreceiptoftheproperty

4）Trustee:

a）Foralifetimetrust,almostanyonecanbeatrusteesincenocourtinvolvementisneededforsuchtrusts.

b）Foratestamentarytrustcreatedundercourtsupervision,anyonecanbeatrusteeexceptwhocan'

t:

i.Thoseunder18

ii.Judiciallydeclaredincompetents

iii.Convictedfelons

iv.Thoseincapablebecauseofdrunkenness,dishonesty,wantofunderstanding,orimprovidence.

c）Nonresidentaliencanserveasfiduciary（testamentarytrustee,orexecutororadministratorofadecedent'

sestate）if

i.relatedtodecedent（decedent'

sspouse;

grandparentordescendantofgrandparentofdecedentordecedent'

orspouseofanyoftheabovepersons）;

and

ii.NYresidentmustserveasco-fiduciary

NOTE:

NOtrusteverfailsforlackofatrustee.Iftheintenttocreateatrustisclearlymanifestedbutnotrusteeisnamed（orthenamedtrusteediesorresignswithnoprovisionforasuccessor）,thecourtwillappointasuitabletrusteetocarryoutthetrustpurposes

5）Beneficiaries:

a）Foraprivate（non-charitable）trust,beneficiariesmustbedefiniteandascertainable,NOambiguity.

b）Ifambiguous,thetrusteeholdsinaresultingtrustfortheresiduarybeneficiaryofawill（orintestateheirsinabsenceofavalidwill）

c）EXCEPTION:

abeneficiarylistedassomeone'

s"

family"

or"

nextofkin"

ISconsidereddefiniteandascertainable,andthetrustdoesnotfail.Consulttheintestacystatutesforthenamesofthepersonswhofitthedescriptioninthetrust.

i.Intestacy:

whenadecedentdieswithoutavalidwillandtheirestatepropertyisdistributedpursuanttoastatestatue.

6）Intent:

a）settlormustintendtocreateanenforceableobligation;

precatory（non-binding）languageisnotenough.

i.Eg:

"

wouldlike"

isprecatorylanguageanddoesnotimposeanenforceableobligation.

b）Trustmustbegivendutiestoperform;

iftrusteehasnodutytoperformitiscalledapassivetrust,whichisnotrustatall.

vJustuse"

trust"

doesnotshowtheintenttocreateatrust;

lookatallofthelanguageandallofthefactstodetermineintent.

7）Lawfulpurpose

a）atrustcannotcallforcommissionofacrime

b）atrustcannotcallfordestructionofproperty

c）Atrustcannothaveaconditionagainstpublicpolicy.

i.Trustsrestrictingmarriageorpromotingdivorce.

1.Butifapurposecanbefoundthatisnotoffensivetopublicpolicythenitisvalid（e.g,atrustthatgivesincometoaspouseuntilthatspouseremarriesisok）

ii.Marriagerestrictionstomembersofacertainreligionorethnicgrouparevalidaspermissiblepartialrestraintsonmarriage.

1.E.g:

trustconditiononsonfindajewishwife.Validb/chestillhasafairlywidechoice.

8）Trustexecution:

mustbeinwriting,signedbybothsettlorandtrustee,andeither:

（i）acknowledgedbyanotarypublic,OR

（ii）signedby2witnesses

III.Typesoftrusts:

●ALLtrustsarepresumedtobeirrevocable,unlessthetrustexplicitlyauthorizesrevocation.

A.Revocablelifetime/intervivostrusts

1.Themainrequirement:

atleastonebeneficiarywhoisnotthesettlor;

settlorcannotbethesolebeneficiarywhenalsonamedthesoletrustee.

2.thesettlorcanplaymanyroles:

a.canbeatrustee

b.anincomebeneficiaryforlife.

c.Settlor'

sestatecanbeoneofthebeneficiariesoftheprincipalsolongasthereisatleastoneotherbeneficiary.

d.Settlorcanretainthepowertoterminateoramendthetrust.

3.Reasonstohavearevocablelifetime/inter-vivostrust:

a.Managesassetsefficiently,particularlyusingaprofessionaltrustee

b.Helpsplanforpossibleincapacitybyavoidingguardianship

c.Avoidsprobateprocess

（i）Nopartoftheprincipalofatrustgoesthruthesettlor'

sestateinprobate.---

（a）PROBATE:

theprocessofprovingawill,orhavingitdeclaredvalidandeffectivefollowingthedeathofthetestator.（testamentarytrust）

4.Reasonsnottohavearevocablelifetimetrust:

a.Doesnotavoidtaxes

b.Ifasettlorkeepsanincomeinterest,orkeepsapowertorevoke,thefulltrustassetswillbeincludedinthesettlor'

sgrossestateforfederalestatetaxpurposes.

B."

pour-over"

gifts:

1.Testamentarygifts（giftsmadeinawill）toanexistingrevocabletrustareok.

a.Thiscalledapour-overgift.

b.Suchagiftavoidswillformalitiesinthetrust.

c.Trustcanbechangedduringthelifetimeofthsettlorinwaythatareeasierthanchangingawill

d.Keyrequirementsfora"

pour-over"

gifttoatrusttobevalid

（i）Thetrustmustbeinexistence,OR

（ii）Executedconcurrentlywiththewill

（a）WillexcutedonJan.3,trustdocumentexecutedonJan10th.invalidb/ctrustwasnotexecutedbeforeorconcurrentlywithwill

v2point:

e."

pourover"

isnotlimitedtotrustscreatedbythesettlor,butitcanbetoanyexistingtrust,includingthoseexecutedbyotherpersons.

f.Pour-overgiftsarevalidevenifthetrustwasunfundedoronlypartiallyfunded,duringsettlor'

slifetime.

2.Lifeinsuranceproceeds:

a.2waysaninsuredcanmakelifeinsuranceproceedspayabletoatrust:

（i）Insuredcancreateanunfundedrevocableinsurancetrust,andnamethetrusteeofthetrustaspolicybeneficiary.

（a）Unfundedinsurancetrustsarevalidatedbystatute（andcanbetherecipientofa"

pourover"

gift）,eventhoughthereisnoresuntilaftertheinsuredsettlordiesandtheinsuranceproceedsarepaidtothetrustee（thiswouldresultinadditionallegalfeesforpreparationofatrust）

（ii）HavethetrustbeatestamentarytrustandhavethelifeinsurancepolicyKnamethe"

trusteenamedinmywill"

asthelifeinsurancepolicybeneficiary.

b.Proceedsofsavingsaccountsorpensionplanscanbehandledthesamewayaslifeinsuranceproceeds.

C.TottenTrust（bankaccounttrust）

1.Definition:

theTottenTrustisabankaccountinthedepositor'

sname"

astrusteefor"

anamedbeneficiary.

a.Hypo:

Aopenabankaccount"

AastrusteeforB"

2.Key:

a.depositormakesdepositsandwithdrawalsthroughoutherlifetime

b.Beneficiaryhasnobeneficialinterestduringthedepositor'

slifetime,butgetwhateverintheaccount