Version b
Capacity of settlor
Note: This version of section effective 1-1-2006. See also
preceding version of this section, effective until 1-1-2006.
Sec. 10. (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.
Last modified: May 27, 2006