(1) A trust is created only if: (a) the settlor has capacity to create a trust, which standard of capacity shall be the same as for a person to create a will; (b) the settlor indicates an intention to create the trust or a statute, judgment, or decree authorizes the creation of a 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 Section 75-2-1001; or (iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001; (d) the trustee has duties to perform; and (e) the same person is not the sole trustee and sole beneficiary.
(a) the settlor has capacity to create a trust, which standard of capacity shall be the same as for a person to create a will;
(b) the settlor indicates an intention to create the trust or a statute, judgment, or decree authorizes the creation of a 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 Section 75-2-1001; or (iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001;
(i) a charitable trust;
(ii) a trust for the care of an animal, as provided in Section 75-2-1001; or
(iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001;
(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.
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