STUDY GUIDE ONLY STUDY ONLY:

2. In trust law, what is the difference between legal and equitable title?

3. In what ways can a trust be created?

4. What are the essential elements of a valid trust?

5. What are the qualifications required for a person to become a settlor, the creator of a trust?

6. Why would a settlor create a revocable trust, and what are the advantages of making the trust irrevocable?

7. What are the standard powers and duties of a trustee who, like a personal representative, is a fiduciary?

10. May a settlor be the sole trustee and sole beneficiary of a trust? Explain.

11. Does a trust always have to be in writing? Explain.

12. Are there any limits on the kind of property that can be placed in trust? Explain.

13. How are trusts terminated?

Case Problem # 1

Suki Nakajima, a widow in failing health, intends to leave her estate equally to her adult children, a daughter, Tomoko, and a son, Hito. Suki has two concerns. With good reason, she lacks confidence that Hito can manage property because of his irresponsible spending habits, and she does not want any property she gives to Tomoko to pass to Tomoko's husband. Suki writes, but does not sign, a letter to her best friend, Tomura, requesting that he manage money for the benefit of her two children, and asking him, if he agrees, to sign and return the letter. After receiving the letter back from Tomura with his signature and acceptance, Suki mails a cashier's check for $200,000 to Tomura. Answer and explain the following:

A. Is Suki's letter a valid holographic will?

B. Is the use of the wordstrustortrusteein a formal written document necessary to create a valid trust?

C. Does Suki's letter create aninter vivos(living) trust? SeeIn re Barker's Estate, 82 Misc.2d 974, 370 N.Y.S.2d 404 (1975).

D. Ifa trust exists, must it be written and signed to be valid?