Prof. Peter Tiersma
TYPES OF EXPRESS TRUSTS:
I. In terms of creation:
a. testamentary (created by will; goes into effect at settlor’s death)
b. living (inter vivos; goes into effect during life of settlor)
1. created by declaration (settlor makes self trustee)
2. created by deed/transfer into trust (settlor is not trustee)
II. In terms of discretion of trustee over distribution of income and principal:
a. mandatory (also includes unitrusts)
b. discretionary (also includes support trusts)
c. hybrid (spray or sprinkle trusts)
[in addition, these trusts may have a disabling restraint, so they can also be called “spendthrift” trusts]
III. In terms of purpose:
a. private (also called noncharitable or benevolent trusts)
b. charitable
IV. In terms of funding:
a. independently funded (by putting property into trust, or via will)
b. funded via pourover clause in a will (“pourover trusts”)
TRUSTS IMPOSED BY LAW:
a. resulting trusts (including purchase money resulting trusts)
b. constructive trusts
THINGS THAT LOOK LIKE TRUSTS, OR ARE CALLED TRUSTS, BUT ARE NOT:
a. honorary trusts
b. secret or semisecret trusts
c. equitable charges