75B-2-402. Requirements for creation.
(1) A trust is created only if: the settlor has capacity to create a trust, which standard of capacity shall be the same as for a person to create a will; the settlor indicates an intention to create the trust or a statute, judgment, or decree authorizes the creation of a trust; the trust has a definite beneficiary or is: a charitable trust; a trust for the care of an animal, as provided in Section; or 75-2-1001 a trust for a noncharitable purpose, as provided in Section; 75-2-1001 the trustee has duties to perform; and 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.