§ 18-4-27 - Validity of trusts.
SECTION 18-4-27
§ 18-4-27 Validity of trusts. – (a) A trust which is otherwise valid and which has been created by a writteninstrument, including, but not limited to, a trust in which the principal iscomposed in whole or in part of real property, shall not be held invalid forany one or more of the following reasons:
(1) Because the settlor, or another person, or both, possessthe power to revoke, amend, alter, or modify the trust in whole or in part;
(2) Because the settlor, or another person, or both, possessthe power to appoint, by deed or will, the persons and organizations to whomthe income shall be paid or the principal distributed;
(3) Because the settlor, or another person, or both, possessthe power to add to, or withdraw from, the trust all or any part of theprincipal or income at one or at different times;
(4) Because the settlor, or another person, or both, possessthe power to remove the trustee or trustees and appoint a successor trustee ortrustees;
(5) Because the settlor has retained the right to receive allor part of the income of the trust during his or her life or for any part ofhis or her life; or
(6) Because the settlor is the sole trustee and the solecurrent beneficiary of the trust during his or her lifetime.
(b) This section shall apply to all trusts created by writteninstrument, except where the validity of the trust is in issue in a casepending on August 11, 1995.
(c) The doctrine of merger shall not apply to invalidate anotherwise valid revocable or irrevocable trust unless the legal title to thetrust property and the entire beneficial interest, including future andcontingent beneficial interests, become irrevocably united in one person who isnot under an incapacity.
(d) If the beneficiary of a spendthrift trust having theentire beneficial interest in the trust property becomes without his or herconsent the sole trustee, the beneficiary may procure the appointment of a newtrustee and have the trust reconstituted.
(e) Nothing contained in this section shall affect thevalidity of those accounts, including, but not limited to, bank accounts, shareaccounts, deposits, certificates of deposit, savings certificates, and othersimilar arrangements, previously or subsequently established at any bank,savings and loan association, or credit union by one or more persons, in trustfor one or more other persons.