Which term describes a trust that is formed to carry out the grantor's explicit written goals for distributions and beneficiaries?

Which term describes a trust that is formed to carry out the grantor's explicit written goals for distributions and beneficiaries?

• A. Implied Trust
• B. Resulting Trust
• C. Trust Agreement
• D. Express Trust

Answer: (D)

The key idea is how the trust is created by the grantor’s intent expressed in writing. An express trust is formed when the grantor clearly lays out, in a written instrument, the exact terms for how assets are to be held, who will be the beneficiaries, and how and when distributions should be made. This explicit written plan distinguishes an express trust from other types. The document that memorializes those terms is the trust agreement or declaration, but the label that fits the description “formed to carry out the grantor’s explicit written goals for distributions and beneficiaries” is an express trust. Implied trusts, in contrast, arise from behavior or circumstances showing a trust-like relationship without written terms, and resulting trusts arise by operation of law when there is no express trust to govern the disposition of assets.

The key idea is how the trust is created by the grantor’s intent expressed in writing. An express trust is formed when the grantor clearly lays out, in a written instrument, the exact terms for how assets are to be held, who will be the beneficiaries, and how and when distributions should be made. This explicit written plan distinguishes an express trust from other types. The document that memorializes those terms is the trust agreement or declaration, but the label that fits the description “formed to carry out the grantor’s explicit written goals for distributions and beneficiaries” is an express trust.

Implied trusts, in contrast, arise from behavior or circumstances showing a trust-like relationship without written terms, and resulting trusts arise by operation of law when there is no express trust to govern the disposition of assets.