Trusts Part 2 (draft)

Foreign situs trust.    A trust which owes its existence to foreign law. It is treated for tax purposes as a non-resident alien individual.”

Grantor trust.    A trust in which the grantor transfers or conveys property in trust for his own benefit alone or for himself and another.”

“Inter    vivos.    Between    the    living;    from one living person to another. Where property passes by conveyance, the transaction is said to be inter vivos, to distinguish it from a case of succession or devise.    So an ordinary gift from one person to anoth­ er is called a “gift inter vivos,” to distinguish it from a gift made in contemplation of death (mortis causa) or a testamentary gift.”

Inter vivos gift.    Gift made when donor is living and provides that gift take effect while donor is living as contrasted with testamentary gift which is to take effect on death of donor (testator).

Inter vivos transfer.    A transfer of property during the life of the owner.    To be distinguished from testamen­ tary transfers where the property passes at death.

Inter vivos trust.    Trust created during lifetime of set­ tlor and to become effective in his lifetime as con­ trasted with a testamentary trust which takes effect at death of settlor or testator.   

Inter vivos trust. Trust created by an instrument which becomes operative during the settlor’s lifetime as contrasted with a testamentary trust which takes effect on the death of the settlor.”

Express private passive trust. Such exists where land is conveyed to or held by one person in trust for another, without any power being expressly or im­pliedly given trustee to take actual possession of land or exercise acts of ownership over it, except by bene­ficiary’s direction.”

Land trust.    A land trust (as used in Illinois) is a trust in which corpus consists of real estate and in which deed to trustee appears to confer upon him full pow­ ers to deal with real estate and complete legal and equitable title to trust property. So far as public records are concerned, trustee’s powers are complete. Such powers, however, are in fact restricted by a trust agreement mentioned in the deed in trust.    Such trust agreements typically vest in beneficiary full powers of management and control.    However, beneficiary cannot deal with property as if no trust exist­ ed.    Such trusts generally continue for a definite term.”

Living trust.    An inter-vivos trust created and opera­tive during the lifetime of the settlor and commonly for benefit or support of another person.”

 

Perpetual trust.    A trust which is to continue as long as the need for it continues as for the lifetime of a beneficiary or the term of a particular charity.”
Personal trust.    Trusts created by and for individuals and their families in contrast to business or charitable trusts.”

Secret trusts. Where a testator gives property to a person, on a verbal promise by the legatee or devisee that he will hold it in trust for another person.”

“Trustor. One who creates a trust. Also called settlor.”

Voluntary trust.    An obligation arising out of a per­ sonal confidence reposed in, and voluntarily accepted by, one for the benefit of another, as distinguished from an “involuntary” trust, which is created by operation of law.    According to another use of the term, “voluntary” trusts are such as are made in favor of a volunteer, that is, a person who gives nothing in exchange for the trust, but receives it as a pure gift; and in this use the term is distinguished from “trusts for value,” the latter being such as are in favor of purchasers, mortgagees, etc. A “voluntary trust” is an equitable gift, and in order to be enforce­ able by the beneficiaries must be complete. The difference between a “gift inter vivos” and a “volun­ tary trust” is that, in a gift, the thing itself with title passes to the donee, while, in a voluntary trust, the actual title passes to a cestui que trust while the legal title is retained by the settlor, to be held by him for the purposes of the trust or is by the settlor transfer­ red to another to hold for the purposes of the trust.”

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