An express trust is a type of trust established by a person, known as the settlor, who clearly intends to create it. This trust is formed through a direct declaration of the settlor's intent, indicating how the property within the trust should be managed. While express trusts are typically documented in writing, they can also be created verbally. This type of trust is often referred to as a direct trust.
Express trusts are commonly used in various legal contexts, including estate planning, asset management, and charitable giving. They allow the settlor to specify how their assets should be distributed or managed after their death or during their lifetime. Users can create express trusts using legal forms available through services like US Legal Forms, which provide templates drafted by attorneys to ensure compliance with state laws.
Here are a couple of examples of abatement:
Example 1: A parent creates an express trust to manage their child's inheritance until they reach adulthood. The trust document specifies how the funds should be used for education and living expenses.
Example 2: A business owner establishes an express trust to ensure that the profits from their business are distributed to a charitable organization. The trust outlines the conditions under which the funds are to be released to the charity. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Allows for oral express trusts under certain conditions. |
| New York | Requires written documentation for express trusts to be enforceable. |
| Texas | Recognizes express trusts but has specific requirements for the declaration. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Express Trust | A trust created by the explicit intent of the settlor. | Requires clear declaration and intent. |
| Implied Trust | A trust created by the court based on circumstances. | Does not require explicit intent; based on fairness. |
| Constructive Trust | A remedy imposed by a court to prevent unjust enrichment. | Not created by the settlor; court-ordered. |
If you believe an express trust may be relevant to your situation, consider the following steps:
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| Attribute | Details |
|---|---|
| Creation | By express declaration of the settlor |
| Documentation | Typically written, but can be oral in some states |
| Beneficiaries | Must be clearly identified |
| Legal Capacity | Settlor must have legal capacity to create a trust |