§ 36C-4-402. Requirements for creation. - North Carolina Statutes

§ 36C‑4‑402. Requirements for creation.

(a)        A trust is createdonly if:

(1)        The settlor hascapacity to create a trust;

(2)        The settlorindicates an intention to create the trust;

(3)        The trust has adefinite beneficiary or is:

a.         A charitable trust;

b.         A trust for the careof an animal, as provided in G.S. 36C‑4‑408; or

c.         A trust for anoncharitable purpose, as provided in G.S. 36C‑4‑409;

(4)        The trustee hasduties to perform; and

(5)        The same person isnot the sole trustee and sole beneficiary.

(b)        A beneficiary isdefinite if the beneficiary can be ascertained now or in the future, subject toany applicable rule against perpetuities.

(c)        A power in atrustee to select a beneficiary from an indefinite class is valid. If the poweris not exercised within a reasonable time, the power fails, and the propertysubject to the power passes to the persons who would have taken the propertyhad the power not been conferred. (2005‑192, s. 2.)