§ 72-38-402 — Requirements For Creation

72-38-402 . Requirements for creation. (1) A trust is created only if:
(a) the settlor has capacity to create a trust;
(b) the settlor indicates an intention to create the 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 72-38-408 ; or
(iii) a trust for a noncharitable purpose, as provided in 72-38-409 ;
(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 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.
(4) A conservation easement created or conveyed under Title 76, chapter 6, does not create a charitable trust unless the settlor expresses a clear intention in the conservation easement instrument to create or convey the conservation easement as a charitable trust.

Legislative History

En. Sec. 51, Ch. 264, L. 2013.