3B:31-19. Requirements for creation.
3B:31-19. Requirements for Creation.
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:
(a) a charitable trust;
(b) a trust for the care of an animal, as provided in N.J.S.3B:31-24; or
(c) a trust for a noncharitable purpose, as provided in N.J.S.3B:31-25;
(4) the trustee has duties to perform; and
(5) the same person is not the sole trustee and sole beneficiary of all beneficial interests.
b. A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to the provisions of section 14 of P.L.1999, c.159 (C.46:2F-10) or any other applicable rule against perpetuities.
c. A power in a trustee to select a beneficiary from an indefinite class is valid if exercised within a reasonable time and is not void as provided in section 14 of P.L.1999, c.159 (C.46:2F-10) or any other applicable rule against perpetuities or restraint on alienation. If invalid, 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.
d. A written instrument which creates a trust or transfers property to a trust shall not be invalid or ineffective because the transferee is identified as the trust rather than the trustee thereof.
L.2015, c.276, s.1.