§ 36C-4-402. Requirements for creation.
§ 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.)