Requirements for creation

15-5-402. Requirements for creation. (1) A trust is created only if: (a) Either: (I) The settlor has capacity to create a trust and indicates an intention to create a trust; or (II) A statute, judgment, or decree authorizes creation of a trust; (b) 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 15-5-408; or (III) A trust for a noncharitable purpose, as provided in section 15-5-409; (c) The trustee has duties to perform; and (d) 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. Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1160, � 1, effective January 1, 2019.