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Statutes Text

Article - Estates and Trusts




§14.5–402.

    (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:

            (i)    A charitable trust;

            (ii)    A trust for the care of an animal, as provided in § 14.5–407 of this subtitle; or

            (iii)    A trust for a noncharitable purpose, as provided in § 14.5–408 of this subtitle; and

        (4)    The trustee has duties to perform.

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

    (c)    (1)    A power in a trustee or in another person under the terms of the trust to select a beneficiary from an indefinite class is valid.

        (2)    If the power described in paragraph (1) of this subsection is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons that would have taken the property had the power not been conferred.