A trust stated orally or in writing, with the terms of the trust definitely prescribed.

A trust stated orally or in writing, with the terms of the trust definitely prescribed.

• A. Simple
• B. Holographic
• C. Express
• D. Complex

Answer: (C)

This item is testing how a trust is created. An express trust comes from the settlor’s explicit declaration of a trust, either orally or in writing, with clear and definite terms about who holds the property, who benefits, and how the trust will be managed. The phrase that the terms are definitely prescribed signals that there is a precise, express description of the trust’s duties and beneficiaries, which is the hallmark of an express trust. By contrast, simple versus complex describe how benefits are distributed rather than how the trust is created, and holographic refers to a specific handwritten form of a trust instrument rather than the basic criterion of express creation. So the description fits an express trust.

This item is testing how a trust is created. An express trust comes from the settlor’s explicit declaration of a trust, either orally or in writing, with clear and definite terms about who holds the property, who benefits, and how the trust will be managed. The phrase that the terms are definitely prescribed signals that there is a precise, express description of the trust’s duties and beneficiaries, which is the hallmark of an express trust. By contrast, simple versus complex describe how benefits are distributed rather than how the trust is created, and holographic refers to a specific handwritten form of a trust instrument rather than the basic criterion of express creation. So the description fits an express trust.