§36C-4-402. Requirements for creation

(a)        A trust is created only if:

(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 G.S. 36C-4-408; or

c.         A trust for a noncharitable purpose, as provided in G.S. 36C-4-409;

(4)        The trustee has duties to perform; and

(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 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.

(2005-192, s. 2.)