[ §554D-402] Requirements for creation.

229 words·~1 min read·/hi/554d-402

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A trust is created only if:

(1)The settlor has capacity to create a trust;

(2)The settlor 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 section 554D-408; or

(C)A trust for a noncharitable purpose, as provided in section 554D-409; and

(4)The trustee has duties to perform.

(b)A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(c)A power in a trustee, or in another person under the terms of the trust, to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

(d)Notwithstanding subsection (a)(1), a trust created by an agent under power of attorney is valid if:

(1)The trust is created by an agent of the settlor under a power of attorney that specifically authorizes the creation of a trust; and

(2)The settlor had capacity to create a trust when the power of attorney was executed. [L 2021, c 32, pt of §2]