55-544.02 - Requirements for creation.
§ 55-544.02. Requirements for creation.
A. A trust is created only if:
1. The settlor has capacity to create a trust; or when the trust is createdby the settlor's agent under a power of attorney, which expressly authorizesthe agent to create a trust on the settlor's behalf;
2. The settlor or his agent indicates an intention to create the trust;
3. The trust has a definite beneficiary or is:
a. A charitable trust;
b. A trust for the care of an animal, as provided in § 55-544.08; or
c. A trust for a noncharitable purpose, as provided in § 55-544.09;
4. The trustee has duties to perform; and
5. The same person is not the sole trustee and sole beneficiary.
B. A beneficiary is definite if the beneficiary can be ascertained now or inthe future, subject to any applicable rule against perpetuities.
C. A power in a trustee to select a beneficiary from an indefinite class isvalid. If the power is not exercised within a reasonable time, the powerfails and the property subject to the power passes to the persons who wouldhave taken the property had the power not been conferred.
(2005, c. 935; 2010, cc. 455, 632.)