Simplification of Inter Vivos Trust Instruments-From Incorporation by Reference to the Uniform Custodial Trust Act and Beyond

Abstract:     
The trust is a fundamental part of the American legal system, and, like much of this system, the creation of a trust can be a long, complicated, and expensive process. The costs of this process thus limit the number of people able to sustain such expenses. To make the benefits of trusts more widely available, legislative enactments simplifying the process or reducing the length of such documents have emerged. One such statutory creation is the Uniform Custodial Trust Act (UCTA). Also on the fringe of emergence is the statutory inter vivos trust form. This article traces the evolution of inter vivos trust instruments, beginning with a review of the early legislative steps taken to simplify trust instruments. Subsequently, the article focuses in depth on the UCTA, with an analysis of how well the Act effectuates the purposes for which inter vivos trusts are typically created. Also addressed is the potential use of statutory fill-in-the-blank forms for inter vivos trusts. The author concludes with the recommendations that (1) all state legislatures should enact the UCTA and that (2) all state legislatures should give serious consideration to statutory fill-in forms for inter vivos trusts.

Keywords: Uniform Custodial Trust Act, inter vivos trust, forms

JEL Classifications: K11, K19, K39

Accepted Paper Series