CONSIDERATION

General Rule Consideration is not required for creation of a valid trust. § 112.003 A trust is a conveyance; not a contract. Problem 1, p. 33

Promise to Create Trust in Future Consideration is needed to enforce a promise to create a trust in the future. § 112.003 Problem 2, p. 33

Promise as Trust Property If trust property is a promise, it needs to be supported by consideration to have value. Question: Settlor transfers my promise to give settlor $1,000 on December 1 to the trustee of a trust. Is this trust property?