Also known as: direct trusts · express trust
Written by attorneys · grounded in primary & secondary sources — see below
An express trust created by the direct and express declaration of the settlor rather than by operation of law or implication. The trust instrument must impose enforceable duties on the trustee for the benefit of identified beneficiaries or purposes.
Daniel Diaz served as personal representative of his uncle's estate. He sold estate real property to his own spouse without court approval or independent appraisal. The sale price fell well below market value, causing a substantial loss to the estate. The court held Daniel liable to the heirs for the resulting damages to the same extent as a trustee of an express trust.
Destiny Davis executed a written instrument directing Diamond Manufacturing to hold ten percent of annual profits in a segregated account for the sole purpose of funding employee retirement benefits. The company later argued the arrangement was merely a contractual bonus plan outside the Uniform Trust Code. The court applied the Code because the instrument created an express trust requiring administration in the manner of an express trust.
Select any source to read its text and confirm it supports the definition.
Diego Duarte transferred real property to a trustee with directions to manage it and convey the premises to his heirs at law upon his death. The instrument also permitted the trustee to reconvey the property to Diego at any time. While Diego remained alive, his daughter attempted to convey her remainder interest to a creditor. The court held that the daughter possessed no alienable interest because the direct trust remained subject to the settlor's retained power of revocation.
Damian Decker's will directed the executor to raze his residence and sell the lot, with proceeds added to the residuary estate. Neighbors sued to enjoin the destruction, claiming it would violate restrictive covenants and create a nuisance. The court refused to enforce the condition because the direct trust imposed a capricious purpose that harmed the community without advancing any settled charitable or private objective.
A direct trust requires an express declaration by the settlor that imposes fiduciary duties on the trustee. Resulting and constructive trusts arise by implication or equity without any such declaration.
Yes. The Code applies to all express trusts, charitable or noncharitable, including those created by a settlor's written declaration that requires administration in the manner of an express trust.
Under the Uniform Probate Code, a personal representative who improperly exercises power over estate assets is liable to interested persons for resulting loss to the same extent as a trustee of an express trust.
No. When the settlor retains the power to reconvey the property and terminate the trust, the beneficiary's interest remains subject to that power and is not presently alienable.
Yes. When the trust purpose is capricious and harms the community without serving any settled objective, a court may decline to enforce the condition even though the instrument creates an express trust.
…reach the same conclusion. The direction to the trustee is the superfluous expression of a duty imposed by law. “Where an express trust is created, every legal estate and interest not embraced in the trust, and not otherwise disposed of, shall remain in or revert to, the person creating the trust or his heirs” (Real Prop.…