Version b
Written evidence of terms; definite terms; validity of inter vivos
trust; existence of trust beneficiaries; creation of trust by exercise
of power of appointment
Note: This version of section effective 1-1-2006. See also
preceding version of this section, effective until 1-1-2006.
Sec. 1. (a) A trust in either real or personal property is enforceable
only if there is written evidence of its terms bearing the signature of
the settlor or the settlor's authorized agent.
(b) Except as required in the applicable probate law for the
execution of wills, no formal language is required to create a trust,
but its terms must be sufficiently definite so that the trust property,
the identity of the trustee, the nature of the trustee's interest, the
identity of the beneficiary, the nature of the beneficiary's interest and
the purpose of the trust may be ascertained with reasonable certainty.
(c) It is not necessary to the validity of a trust that the trust be
funded with or have a corpus that includes property other than the
present or future, vested or contingent right of the trustee to receive
proceeds or property, including:
(1) as beneficiary of an estate under IC 29-1-6-1;
(2) life insurance benefits under section 5 of this chapter;
(3) retirement plan benefits; or
(4) the proceeds of an individual retirement account.
(d) A trust created under:
(1) section 18 of this chapter for the care of an animal; or
(2) section 19 of this chapter for a noncharitable purpose;
has a beneficiary.
(e) A trust has a beneficiary if the beneficiary can be presently
ascertained or ascertained in the future, subject to any applicable rule
against perpetuities.
(f) A power of 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.
(g) A trust may be created by exercise of a power of appointment
in favor of a trustee.
(Formerly: Acts 1971, P.L.416, SEC.3.) As amended by
P.L.132-1992, SEC.1; P.L.238-2005, SEC.21.
Last modified: May 27, 2006