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Trusts • Creation of Trusts
TRUSTS#009
Legal Definition
A trust may be created when one declares themself the trustee. For real property, there must be a writing, but for personal property there is no delivery issue (look to the trust intent).
Plain English Explanation
Let's break this down. "Inter vivos" is Latin for "between the living," which means something done while someone is alive (in contrast, a "testamentary trust" is one that is created upon the death of someone). A "declaration in trust" is a trust that is created by someone where they make themselves the trustee. Thus, an "inter vivos declaration in trust" is when Bob creates a trust while he is still alive where he names himself the trustee.
Hypothetical
Hypo 1: Bob owns 4 Bitcoins. One day, Bob declares that he is holding his 4 Bitcoins in trust for Sam. Result: Bob has created an inter vivos declaration in trust. This may seem weird, but let's go through the elements:
(1) a settlor or trustor - Bob is the settlor.
(2) a trustee - Bob is also the trustee.
(3) delivery - Bob already owns the Bitcoins, so they need not be delivered to him;
(4) intent - Bob appears to be in sound mind, and thus his intent is evidenced by his explicit declaration;
(5) trust property (res) - here, the Bitcoin are res.
(6) beneficiaries - Sam has been identified as the beneficiary; and (7) a valid trust purpose - we don't have a clear purpose, but Bob simply wanting to be nice to Sam is valid.
(1) a settlor or trustor - Bob is the settlor.
(2) a trustee - Bob is also the trustee.
(3) delivery - Bob already owns the Bitcoins, so they need not be delivered to him;
(4) intent - Bob appears to be in sound mind, and thus his intent is evidenced by his explicit declaration;
(5) trust property (res) - here, the Bitcoin are res.
(6) beneficiaries - Sam has been identified as the beneficiary; and (7) a valid trust purpose - we don't have a clear purpose, but Bob simply wanting to be nice to Sam is valid.
