SP21 Wills Jordan CH12 M PDF

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ECC Law, Inc. Attorneys and Counselors at Law Memorandum TO: Professor Dulaney FROM: Kealie Jordan, Paralegal Student DATE: April 8th, 2021 RE: CH12-M Answer the following Review Questions at the end of CH12: 2, 4, 7, 13 (cite the pg number for your answer if applicable).

1. 2. In trust law, what is the difference between legal and equitable title? a. Legal Title (of a trust) i. The form of ownership of trust property held by the trustee giving the trustee the right to control and manage the property for another’s benefit, i.e., the holder of the equitable title. (pg. 410) b. Equitable title (of a trust) i. The right of the party who holds the equitable title of beneficial interest to the benefits of the trust. (pg. 410) 2. 4. What are the essential elements of a valid trust? a. Each trust has the following elements: i. (1) a settler who creates the trust. ii. (2) one or more trustees who administer and manage the trust. iii. (3) one or more beneficiaries who receive the benefits (income and/or principal) and enforce the trust; and iv. (4) real or personal property that must be transferred to the trust. (pg. 415) 3. 7. What are the standard powers and duties of a trustee who, like a personal representative, is a fiduciary? a. A trustee's powers will relate to the scope of the trustee's authority with regard to the three primary functions — investment, distributions and administration. Specific powers may also relate to the trustee's ability to receive and retain trust property, to contract on the trust's behalf, and to handle the affairs of businesses or other specific assets owned by the trust. b. The three primary functions of a trustee are: i. To make, or prudently delegate, investment decisions regarding the trust assets; ii. To make discretionary distributions of trust assets to or for the benefit of the beneficiaries; and iii. To fulfill the basic administrative functions of administering the trust 4. 13. How are trusts terminated? SP21_Wills_Jordan_CH12_M

a. A trust may be terminated in the following ways: i. In accordance with the trust’s terms (Restatement [Third] of Trusts §§ 63, 61) ii. By the completion of the trust’s valid purpose (Restatement [Third] of Trusts § 65) iii. By revocation by the settlor when allowed by the terms of the trust FA20_Wills_Hurtado_CH12_M Page 1 of 2

(Restatement [Third] of Trusts § 63) iv. By merger of all interests (legal and equitable) in the same person (Restatement [Third] of Trusts §§ 65, 69) v. On the request of all the beneficiaries when there is no express purpose that requires continuation of the trust (Restatement [Second] of Trusts § 337)

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