§ 59-12-02 — (402) Requirements for creation

North Dakota § 59-12-02

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-12: Creation, Validity, Modification, and Termination of Trust

Text

1. A trust is created only if the settlor has capacity to create a trust, the settlor indicates
an intention to create the trust, the trust has a definite beneficiary or is a charitable
trust, a trust for the care of an animal, as provided in section 59-12-08, or a trust for a
noncharitable purpose, as provided in section 59-12-09; the trustee has duties to
perform; and 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.