EXPRESS TRUSTS:
–    No oral trusts of land – see Statute of Frauds
–    Oral trusts of personalty normally ok, but see Prop 112.004
•    Real and personal property must be in writing EXCEPT personalty trust under 112.004(1), (2) is valid
–    Settlor not trustee and no beneficiary is trustee
–    Defective gifts:
•    Pye – defective gift = declaration of trust but Richards overturns and common law now
–    Stashes
•    Test for determining
–    Separation of benefits/burdens – legal/equitable title
•    If transfer both no longer have trust, just have owner
•    “Doctrine of Merger” – trustee FBO trustee as beneficiary
–    This is never a trust – can also terminate a valid trust
–    Only one trustee with 100% beneficiary
–    Manifestation of Intent to Create Trust:
•    McKinsey – Precatory words
–    Words are precatory only NOT commanding
•    Levin
–    Trust is create – “desire” = word of command
–    Intent is determined from 4 corners of will
–    Extrinsic evidence
–    “Equitable charge” <> trust
–    Not holding in trust but holding title subject to $2400 annual payment
–    Trust v. Contract (“Insurance trust”)
•    Pierowich:
–    Courts sometimes allow invasion of principal
–    Can’t invade because will be stealing from B to pay A (in multi-beneficiary situation)
–    Different beneficiary and remainderman
–    Invasion normally only with single beneficiary
–    Decided contract not trust
–    K test – if meets these two, overrides “in trust”
–    No paying all proceeds – just 3.5% (fixed)
–    No segregation of assets
Totten Trusts
•    Savings bank trusts, tentative trusts, trust accounts, ~ POD accounts
•    Really trust substitutes because *
–    E.g. X, trustee for Y (no statutory formalities)
–    * X is owner of everything during lifetime – 438c
–    Can change anything at any time, revoke, etc.
–    SoW inapplicable to Totten Trusts – 441
–    Parallel – POD (X, POD Y0
•    Rodgers
–    Just have to show manifestation of intent to revoke?
•    §§440, 447 – oral and will revocation not possible
•    §442 – inadequate assets re: Totten Trusts:
–    Estate can go after Totten beneficiary to pay estate debts, lawyer, taxes, family allowances
–    Very similar to UPC
•    Farmers Loan
–    Failed gift <> trust
–    Just assign 2.3 million to trust (present assignment)
•    Property required
–    Prop 112.005
–    Property on testator’s death – expectancy befor edeath
–    Life insurance property even if person alive because it’s a contract
–    Life Insurance Trust
•    Beneficiary is trust
•    Funded (additional property)
•    Unfunded (just life insurance)
•    3.49-3 – Insurance Code
–    Property
–    Can be unfunded trust