A legally valid trust has six requirements; one of which is that the settlor must intend to create a trust. For a court to recognize this requirement, the settlor must have manifestation of intent. The court will first look to the trust document where the terms should embody the settlor’s intent. If this language is not available, the court could look at extrinsic evidence; however, courts usually do not like to consider this. If allowable, the court will look at the relationship between the settlor and beneficiaries, age, legal competence, and personal situations.
See David M. Goldman, Manifestations of Intent by Settlor, Florida Estate Planning Lawyer Blog, November 1, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
