Gerry W. Beyer
This book is designed for law school courses covering trusts. The cases, problems, and questions are drawn extensively from Texas materials and attempt to provide the student with a comprehensive understanding of how trust creation, administration, and enforcement are handled in Texas. Resulting trusts, constructive trusts, and trust accounts are also discussed.
Professor Gerry W. Beyer received his J.D., summa cum laude, from the Ohio State University and his LL.M. and J.S.D. degrees from the University of Illinois. Professor Beyer joined the faculty of the Texas Tech University School of Law in June 2005 as the Governor Preston E. Smith Regents Professor of Law. Previously, Prof. Beyer taught at the St. Mary’s University School of Law from 1981 to May 2005 and has served as a visiting professor at several other law schools including Boston College, Southern Methodist University, the University of New Mexico, and Santa Clara University. Prof. Beyer is the author of numerous other books including Wills, Trusts, and Estates: Examples & Explanations.
The owner of property may create a trust by transferring that property in a unique fashion. First, the owner must divide the title to the property into legal and equitable interests and, second, the owner must impose fiduciary duties on the holder of the legal title to deal with the property for the benefit of the holder of the equitable title.
Read Trust Code § 111.004(18).
The trustee holds legal title to the trust property. The trustee has all of the responsibilities related to property ownership but receives none of the benefits, except possibly a fee for trustee services. In carrying out ownership responsibilities, a trustee is under a duty to perform as a fiduciary, i.e., the trustee must use reasonable care when dealing with the trust property and maintain the utmost degree of loyalty. If a trustee’s conduct falls beneath these standards, the trustee will be personally liable, i.e., subject to civil and perhaps even criminal liability.
Read Trust Code § 111.004(2).
The beneficiary holds the equitable interest in the trust property. The beneficiary may also be called a donee, grantee, or cestui que trust. The beneficiary has the right to enforce the trust. The beneficiary is entitled to the benefits of the trust property as set forth in the trust instrument but typically has little or no control over the trust or the trust property.
Questions
1. Settlor transferred both legal and equitable title to Daughter. Does a valid trust exist?
2. Settlor created a valid trust by transferring legal title to Daughter and equitable title to Son. Thereafter, Daughter transferred legal title to Son. Does a valid trust still exist?
Read Trust Code § 111.004(14).
The settlor is the person who is responsible for the creation of the trust by supplying the i
