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Proper Formation - Trusts
- a beneficiary
- Trust property
- Intention on the part of the settlor to creat a trust
- a valid trust purpose
- Transfer of property during his lifetime to a trustee.
- The settlor often retains the power as the trustee or co-trustee.
- The economic benefits will pass at the settlors death to a named beneficiary without the formalities of a will. Because the settlor is ofter named as a the trustee of the trust during his lifetime, he still retains control over the assets
Cannot be revoked unless there is an express power to revoke in the original trust instrument
Trust will not fail emrely because of the trustee's death, incapacity, resignation, or removal.
A successor trustee will be appointed in order to carry out the testator's intent, excpet where it clearly appears the trust is to continue only so long as oringal trustee serves (rare).
If none is named, court will apoint to cary one.
No compraable right (as in wills) for a spouse to serve as a trustee of a trust
Does not require the same legal formalities as a will because it is not considered a testamentary disposition.
transfers property to a trust and forms the intent to create a trust
administers the trust and implements its terms. He holds legal title to the trust.
enjoys the benefits of the trust property and has that power to enforce trust
Has all legal and equitable rights, the interests merge into direct ownership
Where trust is located or where trustee resides