Trusts

Question 0

How does a trust divide interest? (2 parts)

Answer 0

1) beneficiaries
2) legal interests (the trustees)
Note: these sell, mortgage, etc. to provide for the beneficiaries who they owe a fiduciary duty to. They can in no way benefit from the trust. They are paid based on the size of the trust.

Question 1

How are trusts used?

Answer 1

To control property.

Often used instead of Life Estates

Question 2

Define: fiduciary duty

Answer 2

The duty to act in the benefit of someone else rather than themselves