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Duncan Bennett, a single parent, wants to leave his entireestate to his only child, Asia. He knows Asia is extravagantand often spends her money foolishly;

  1. Duncan Bennett, a single parent, wants to leave his entireestate to his only child, Asia. He knows Asia is extravagantand often spends her money foolishly; therefore, he establishes a trust with a spendthrift provision "to protectAsia from her own mismanagement and wasteful habitsin spending money." The trust also provides that Asiacannot transfer, pledge, or assign her interest in the trustincome or principal in any manner and that such interestis not to be subject to any of Asia's creditors' claims byattachment, garnishment, execution, or other process oflaw. Answer the following:

A. Are spendthrift trusts valid in all states?

B. Would this trust be valid in Nevada? If so, cite thestatute.

C. If one of Asia's creditors supplies her with propertyitems that are obviously "necessaries," can thatcreditor reach (obtain) Asia's trust income despite thespendthrift clause? See Erickson v. Bank of California,97 Wash.2d 246, 643 P.2d 670 (1982).

2. Zari purchased 20 acres of land from Deon. Since Zari wasimmediately leaving the country to serve in the PeaceCorps for two years and was unable to attend the closing,she asked Deon to deed the property to her close friend, Kaleehja. Deon conveyed the property by deed to Kaleehja in her name. When Zari returns, Kaleehja refuses toturn over the property and claims the property was a giftto her from Zari. Zari denies the property was a gift anddemands that Kaleehja return the property. Answer andexplain the following:

A. Since real property (land) is involved in this case,does the Statute of Frauds apply?

B. In this case, can parol evidence be used to determine whether a resulting trust is established?

C. If Zari and Kaleehja go to court, what methods mighta court use to decide whether Kaleehja's claim iscorrect?

D. If it goes to court, in your opinion, which party wouldwin this case? See Rainey v. Rainey, 795 S.W.2d 139 (Tenn.App. 1990).

E. If Zari had died while in the Peace Corps, would theproperty belong to Kaleehja?

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