14-10402. Requirements for creation
A. Except as provided in section 14-5409, a trust is created only if all of the following are true:
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 14-10408.
(c) A trust for a noncharitable purpose, as provided in section 14-10409.
4. The trustee has duties to perform.
5. The same person is not the sole trustee and sole beneficiary.
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 other person 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.
Section: Previous 14-10201 14-10202 14-10203 14-10204 14-10205 14-10301 14-10401 14-10402 14-10403 14-10404 14-10405 14-10406 14-10407 14-10408 14-10409 NextLast modified: October 13, 2016