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.