§ 30-4-2-10 — Capacity of settlor

Indiana § 30-4-2-10

• Jurisdiction: Indiana
• Art. 4: TRUST CODE
• Ch. 2: Rules Governing the Creation of Trusts

Text

(a) If a trust is created by a will, the settlor's
capacity that is required to create the trust is determined by the
applicable probate law.
(b) The capacity of a settlor that is required to create, amend,
revoke, or add property to a revocable trust is the same as the capacity
of a testator that is required to make a will.
(c) To create or add property to an irrevocable trust, the settlor or
transferor must be of sound mind and have a reasonable understanding
of the nature and effect of the act and the terms of the trust.
(d) To direct the actions of the trustee of a trust, the settlor or other
person must:
(1) have the capacity to hold and deal with property for the
settlor's or person's own benefit;
(2) be at least eighteen (18) years of age; and
(3) be of sound mind.
Formerly: Acts 1971, P.L.416, SEC.3. As amended by
P.L.238-2005, SEC.24.