What describes a legal purpose of a trust?

• A. Valid trust purpose
• B. Trust property
• C. Testamentary instrument
• D. Ademption

Answer: (A)

The main idea being tested is that a trust must be created for a lawful, enforceable purpose. A valid trust purpose means the settlor’s goal is legal, definite, and possible to carry out. If the purpose is illegal, against public policy, or too vague to enforce, the trust isn’t valid because there’s nothing legitimate for the trustee to administer on behalf of the beneficiaries. When the purpose is lawful, the trustee’s duties— managing and distributing assets according to the terms—are enforceable in court.

Trust property refers to the assets placed into the trust, which are essential to administer but don’t define the purpose itself. A testamentary instrument describes a trust created by a will (at death), not the fundamental purpose of the trust. Ademption concerns what happens to specific bequests if the property isn’t part of the estate, not the trust’s purpose.