2.  Holds equitable title.  Enforces fiduciary duties against trustee.  Capacity = ability to take and hold property.

3.  Must be clearly ascertainable.  Problems 1-3, page 81

4.  Multiple beneficiaries allowed:  Concurrent  Successive

5.  Trust lacking a human beneficiary or charitable purpose.  Care for pet  Say masses  Erect monuments

6.  Traditional approach = invalid  Not private as no human beneficiary  Not charitable as lacking charitable purpose

7.  Modern trend  Pets = 45 states plus D.C. recognize statutory pet trusts ▪ Trust Code § 112.037  Other purposes = allowed under UPC and UTC ▪ No equivalent provision in Trust Code.

8.  No equitable title but benefits from the trust nonetheless.  Typically, unable to enforce trust.  Perhaps fit as “interested person” under “affected by” language of § 111.004(7).

9.  Cannot exert dominion, control, or accept benefits.  May “cherry pick” (partial disclaimers allowed).  Irrevocable and unconditional

10.  Formalities:  In writing.  Acknowledged (notarized).  Delivered to trustee not later than 9 months after the later of: ▪ Date of trust creation ▪ Beneficiary reaching age 21 ▪ If future interest, date it indefeasible vests

11.  Passage of property  Under specific terms of trust (“If A disclaims, then the property passes to X.”)  Under terms of trust as if beneficiary predeceased trust creation.

12. [same as we learned for disclaiming as a beneficiary of a will]

13.  Issue arises if beneficiary is married.  Assume trust is not created by one or both spouses.

14.  Principal distributions  Beneficiary’s separate property (gift)

15.  Undistributed trust income  Not yet able to classify until beneficiary has a right to demand distribution.

16.  Discretionary income distributions  Separate.

17.  Mandatory income distributions  Commentators disagree and case law not definitive.

18.  When statute applies:  Divorce on or after September 1, 2005.  Trust is written.  Trust is revocable.  Settlor named his/her spouse (or other ex- relative) as beneficiary or trustee.  Trust is silent as to impact of divorce.

19.  Statutory revocation of the following provisions:  Ex-spouse as beneficiary.  Ex-spouse as trustee.  Other ex-relatives as beneficiary.  Other ex-relatives as trustee.

20.  Effect  Property passes as if ex-spouse or ex-relative disclaimed.  Fiduciary designations interpreted as if ex- spouse or ex-relative died before marriage terminated.

21.  Presumption = able to transfer:  Inter vivos (by gift or sale)  At death (via intestacy or by will)

22.  Restrictions:  Life Interest – Beneficiary only received a life interest.  Spendthrift provision – Beneficiary prohibited from transferring.

23.  Priority of Assignments  Note 1, page 86  English view = notice necessary to complete the assignment as against a subsequent assignee  American view = first assignee prevails