75-7-402 - Requirements for creation.
75-7-402. Requirements for creation.
(1) A trust is created only if:
(a) the settlor has capacity to create a trust, which standard of capacity shall be the sameas for a person to create a will;
(b) the settlor indicates an intention to create the trust or a statute, judgment, or decreeauthorizes the creation of a trust;
(c) the trust has a definite beneficiary or is:
(i) a charitable trust;
(ii) a trust for the care of an animal, as provided in Section 75-2-1001; or
(iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001;
(d) the trustee has duties to perform; and
(e) the same person is not the sole trustee and sole beneficiary.
(2) A beneficiary is definite if the beneficiary can be ascertained now or in the future,subject to any applicable rule against perpetuities.
(3) A power in a trustee to select a beneficiary from an indefinite class is valid. If thepower is not exercised within a reasonable time, the power fails and the property subject to thepower passes to the persons who would have taken the property had the power not beenconferred.
Repealed and Re-enacted by Chapter 89, 2004 General Session