35-15-402 - Requirements for creation. - Tennessee Statutes

35-15-402. 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 § 35-15-408; or

          (C)  A trust for a noncharitable purpose, as provided in § 35-15-409;

     (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.

[Acts 2004, ch. 537, § 24.]