13 Summary of California Law (10th), Trusts

 

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<d1.o n="I. ">INTRODUCTION

<d2.o n="A. " sec="1] ">Nature and Classification of Trusts.

<d2.o n="B. ">Other Relationships Distinguished.

<d3.o n="1. " sec="2] ">In General.

<d3.o n="2. " sec="3] ">Debt, Security Device, or Impound Account.

<d3.o n="3. " sec="4] ">Equitable Charge.

<d3.o n="4. " sec="5] ">Interest Subject to Condition.

<d3.o n="5. " sec="6] ">Pension or Deferred Compensation Plan.

<d2.o n="C. " sec="7] ">Public and Statutory Trusts.

<d2.o n="D. ">Tentative Trust in Bank Deposit.

<d3.o n="1. " sec="8] ">Nature of Trust.

<d3.o n="2. " sec="9] ">Adoption of Doctrine in California.

<d3.o n="3. " sec="10] ">Elements of Trust.

<d3.o n="4. " sec="11] ">Distinction: Absolute Trust.

<d2.o n="E. " sec="12] ">Restatement.

<d2.o n="F. " sec="13] ">Uniform Acts.

<d2.o n="G. ">Conflict of Laws.

<d3.o n="1. " sec="14] ">Validity of Trust.

<d3.o n="2. " sec="15] ">Construction of Instrument.

<d3.o n="3. " sec="16] ">Administration of Trust.

<d2.o n="H. ">The Trust Law.

<d3.o n="1. " sec="17] ">Law Revision Commission Report.

<d3.o n="2. " sec="18] ">Enactment.

<d3.o n="3. " sec="19] ">Principal Changes.

<d3.o n="4. ">Scope and Application of Trust Law.

<d4.o n="(a) " sec="20] ">General Rule: Application to All Trusts.

<d4.o n="(b) " sec="21] ">Exceptions: Prospective Application.

<d4.o n="(c) " sec="22] ">Subjects Covered or Excluded.

<d4.o n="(d) " sec="23] ">Other Provisions Governing Trusts.

<d3.o n="5. " sec="24] ">Role of Common Law.

<d1.o n="II. ">CREATION OF EXPRESS TRUST

<d2.o n="A. ">In General.

<d3.o n="1. " sec="25] ">Methods of Creation.

<d3.o n="2. " sec="26] ">Essential Elements.

<d3.o n="3. " sec="27] ">Matters Not Essential.

<d2.o n="B. ">Statute of Frauds.

<d3.o n="1. " sec="28] ">Express Trust in Real Property.

<d3.o n="2. ">Oral Trust in Personal Property.

<d4.o n="(a) " sec="29] ">General Law and California Cases.

<d4.o n="(b) " sec="30] ">Trust Law.

<d2.o n="C. " sec="31] ">Trust Property.

<d2.o n="D. ">Trust Intent.

<d3.o n="1. " sec="32] ">In General.

<d3.o n="2. ">Precatory Words.

<d4.o n="(a) " sec="33] ">Words Ineffective To Create Trust.

<d4.o n="(b) " sec="34] ">Words Addressed to Executor.

<d4.o n="(c) " sec="35] ">Words Interpreted as Creating Trust.

<d2.o n="E. ">Trust Purpose.

<d3.o n="1. " sec="36] ">In General.

<d3.o n="2. " sec="37] ">Rule Against Accumulations.

<d3.o n="3. " sec="38] ">Definiteness of Purpose.

<d2.o n="F. ">Beneficiary of Private Trust.

<d3.o n="1. " sec="39] ">In General.

<d3.o n="2. " sec="40] ">Beneficiaries Must Be Ascertainable.

<d3.o n="3. " sec="41] ">Class or Trustee'&apos;s Selection.

<d3.o n="4. " sec="42] ">Disclaimer by Beneficiary.

<d3.o n="5. " sec="43] ">Honorary Trust.

<d1.o n="III. ">TRUSTEES

<d2.o n="A. ">In General.

<d3.o n="1. " sec="44] ">Capacity and Selection.

<d3.o n="2. " sec="45] ">Nonprofit Charitable Corporation as Trustee.

<d3.o n="3. " sec="46] ">Appointment by Court or Beneficiaries.

<d3.o n="4. " sec="47] ">Acceptance.

<d3.o n="5. " sec="48] ">Bond.

<d3.o n="6. " sec="49] ">Rejection.

<d3.o n="7. " sec="50] ">Resignation.

<d3.o n="8. ">Removal.

<d4.o n="(a) " sec="51] ">General Law and California Cases.

<d4.o n="(b) " sec="52] ">Trust Law.

<d3.o n="9. " sec="53] ">Vacancy in Office.

<d3.o n="10. . " sec="54] ">Cotrustees.

<d2.o n="B. ">Compensation and Indemnification.

<d3.o n="1. ">Compensation.

<d4.o n="(a) " sec="55] ">Where Instrument Does Not Specify.

<d4.o n="(b) " sec="56] ">Where Instrument Specifies.

<d4.o n="(c) " sec="57] ">Notice of Increase.

<d4.o n="(d) " sec="58] ">Dual Compensation as Trustee and Attorney.

<d3.o n="2. ">Indemnity.

<d4.o n="(a) " sec="59] ">In General.

<d4.o n="(b) " sec="60] ">Attorneys'&apos; Fees and Costs.

<d2.o n="C. ">Duties.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="61] ">Trust Law Revision.

<d4.o n="(b) " sec="62] ">Administration of Trust.

<d4.o n="(c) ">Loyalty.

<d5.o n="(1) " sec="63] ">General Law and California Cases.

<d5.o n="(2) " sec="64] ">Trust Law.

<d4.o n="(d) " sec="65] ">Deal Impartially With Beneficiaries.

<d4.o n="(e) " sec="66] ">Avoid Conflict of Interest.

<d4.o n="(f) " sec="67] ">Control and Preserve Property.

<d4.o n="(g) " sec="68] ">Make Property Productive.

<d4.o n="(h) " sec="69] ">Dispose of Improper Investments.

<d4.o n="(i) " sec="70] ">Keep Property Separate and Identified.

<d4.o n="(j) " sec="71] ">Enforce Claims and Defend Actions.

<d4.o n="(k) " sec="72] ">Use Special Skills.

<d4.o n="(l) " sec="73] ">Delegate Powers Appropriately.

<d4.o n="(m) " sec="74] ">File Change of Ownership Statement.

<d3.o n="2. ">Standard of Care.

<d4.o n="(a) " sec="75] ">In General.

<d4.o n="(b) ">Uniform Prudent Investor Act.

<d5.o n="(1) " sec="76] ">General Law and California Cases.

<d5.o n="(2) " sec="77] ">Restatement and Uniform Act.

<d5.o n="(3) " sec="78] ">Law Revision Commission Report.

<d5.o n="(4) " sec="79] ">Nature and Scope of Rule.

<d5.o n="(5) " sec="80] ">Standard of Care.

<d5.o n="(6) " sec="81] ">Duties of Trustee.

<d5.o n="(7) " sec="82] ">Delegation.

<d3.o n="3. ">Duty To Report and Account.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="83] ">General Law and California Cases.

<d5.o n="(2) " sec="84] ">Law Revision Commission Report.

<d4.o n="(b) ">Duty To Report to Beneficiaries.

<d5.o n="(1) " sec="85] ">Scope of Requirement.

<d5.o n="(2) " sec="86] ">Notice of Changes Affecting Irrevocable Trust.

<d4.o n="(c) ">Duty To Account to Beneficiaries.

<d5.o n="(1) " sec="87] ">Scope of Requirement.

<d5.o n="(2) " sec="88] ">Contents of Account.

<d4.o n="(d) " sec="89] ">Exceptions to Duties To Report and Account.

<d2.o n="D. ">Powers.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="90] ">Law Revision Commission Report.

<d4.o n="(b) " sec="91] ">Nature and Scope of Powers.

<d4.o n="(c) " sec="92] ">Incidental Powers.

<d4.o n="(d) ">Deviation From Trust Restrictions.

<d5.o n="(1) " sec="93] ">In General.

<d5.o n="(2) " sec="94] ">When Deviation Will Be Denied.

<d3.o n="2. ">Discretionary Powers.

<d4.o n="(a) " sec="95] ">In General.

<d4.o n="(b) ">Where Absolute Power Is Conferred.

<d5.o n="(1) " sec="96] ">California Cases.

<d5.o n="(2) " sec="97] ">Trust Law.

<d4.o n="(c) " sec="98] ">Power To Invade Corpus.

<d4.o n="(d) " sec="99] ">Use of Power To Discharge Holder'&apos;s Obligations.

<d3.o n="3. ">Specific Powers.

<d4.o n="(a) ">Property.

<d5.o n="(1) " sec="100] ">Collecting and Holding Property.

<d5.o n="(2) " sec="101] ">Purchase, Sale, and Exchange.

<d5.o n="(3) " sec="102] ">Management, Maintenance, and Development.

<d5.o n="(4) " sec="103] ">Leases and Encumbrances.

<d4.o n="(b) " sec="104] ">Participating in Business.

<d4.o n="(c) " sec="105] ">Investments.

<d4.o n="(d) ">Deposits.

<d5.o n="(1) " sec="106] ">In General.

<d5.o n="(2) " sec="107] ">Deposit in Affiliated Institution.

<d4.o n="(e) " sec="108] ">Corporate Shares and Memberships.

<d4.o n="(f) " sec="109] ">Securities.

<d4.o n="(g) " sec="110] ">Borrowing Money.

<d4.o n="(h) " sec="111] ">Payment, Settlement, and Release of Claims.

<d4.o n="(i) " sec="112] ">Payment of Taxes and Expenses.

<d4.o n="(j) " sec="113] ">Loans and Distributions to Beneficiaries.

<d4.o n="(k) " sec="114] ">Hiring Agents.

<d4.o n="(l) " sec="115] ">Actions and Proceedings.

4. [§" sec="116] ">Notice of Proposed Action.

<d2.o n="E. ">Liability to Beneficiaries.

<d3.o n="1. ">Liability for Breach of Trust.

<d4.o n="(a) " sec="117] ">What Constitutes Breach of Trust.

<d4.o n="(b) " sec="118] ">Liability for Acts of Agent.

<d4.o n="(c) " sec="119] ">Liability for Acts of Cotrustee.

<d4.o n="(d) " sec="120] ">Liability for Acts of Predecessor.

<d3.o n="2. ">Remedies for Breach of Trust.

<d4.o n="(a) " sec="121] ">In General.

<d4.o n="(b) " sec="122] ">Compelling Performance of Duty.

<d4.o n="(c) " sec="123] ">Enjoining Threatened Breach.

<d4.o n="(d) " sec="124] ">Action for Damages.

<d4.o n="(e) " sec="125] ">Receiver or Temporary Trustee.

<d4.o n="(f) " sec="126] ">Removal of Trustee.

<d4.o n="(g) " sec="127] ">Setting Aside Action of Trustee.

<d4.o n="(h) " sec="