(1) A trust is created only if: (a) the settlor has capacity to create a trust, which standard of capacity shall be the same as for a person to create a will; (b) the settlor indicates an intention to create the trust or a statute, judgment, or decree authorizes the creation of a trust; (c) the trust has a definite beneficiary or is: (i) a charitable trust; (ii) a trust for the care of an animal, as provided in Section 75-2-1001; or (iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001; (d) the trustee has duties to perform; and (e) the same person is not the sole trustee and sole beneficiary.

(a) the settlor has capacity to create a trust, which standard of capacity shall be the same as for a person to create a will;

(b) the settlor indicates an intention to create the trust or a statute, judgment, or decree authorizes the creation of a trust;

(c) the trust has a definite beneficiary or is: (i) a charitable trust; (ii) a trust for the care of an animal, as provided in Section 75-2-1001; or (iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001;

(i) a charitable trust;

(ii) a trust for the care of an animal, as provided in Section 75-2-1001; or

(iii) a trust for a noncharitable purpose, as provided in Section 75-2-1001;

(d) the trustee has duties to perform; and

(e) the same person is not the sole trustee and sole beneficiary.

(2) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(3) 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.