Which type of trust is created by the expressed intentions of the grantor and evidenced by written documents setting forth the goal for use of the trust monies, the terms and conditions of distribution, and identification of the beneficiaries?

• A. Express Trust
• B. Implied Trust
• C. Resulting Trust
• D. Substitute Trustee

Answer: (A)

An express trust is formed when the grantor clearly intends to create a trust and that intention is captured in a written instrument. The document lays out the purpose for using the trust funds, the terms and conditions for distributing those funds, and who the beneficiaries are. In other words, the trustee holds and manages property strictly according to the grantor’s explicit instructions.

This is different from an implied trust, which arises by behavior or circumstances that show the parties’ intent to create a trust even without a written declaration. A resulting trust also stems from the way a transfer was made—by operation of law to prevent unjust enrichment or because the transfer didn’t fully reflect the intended arrangement—rather than from an express written statement of purpose and terms. A substitute trustee is not a type of trust at all; it refers to a person appointed to stand in for another trustee, not to the form in which a trust is created.