55-544.02 - Requirements for creation. - Virginia Statutes

§ 55-544.02. Requirements for creation.

A. A trust is created only if:

1. The settlor has capacity to create a trust; or when the trust is createdby the settlor's agent under a power of attorney, which expressly authorizesthe agent to create a trust on the settlor's behalf;

2. The settlor or his agent 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 § 55-544.08; or

c. A trust for a noncharitable purpose, as provided in § 55-544.09;

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 inthe future, subject to any applicable rule against perpetuities.

C. A power in a trustee to select a beneficiary from an indefinite class isvalid. If the power is not exercised within a reasonable time, the powerfails and the property subject to the power passes to the persons who wouldhave taken the property had the power not been conferred.

(2005, c. 935; 2010, cc. 455, 632.)