CODE OF VIRGINIA

REQUIREMENTS FOR CREATION (§ 64.2-720)

A. A trust is created only if:

   1.  The settlor has capacity to create a trust; or when the trust is created
   by the settlor’s agent under a power of attorney, which expressly
   authorizes the 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 § 64.2-726; or

      c.  A trust for a noncharitable purpose, as provided in § 64.2-727;

   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 in the
future, subject to any applicable rule against perpetuities.

C. 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.

HISTORY: 2005, c. 935, § 55-544.02; 2010, cc. 455, 632; 2012, c. 614.