                                 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&#8217;s agent under a power of attorney, which expressly
   authorizes the agent to create a trust on the settlor&#8217;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 &#xA7; 64.2-726; or
   				c. A trust for a noncharitable purpose, as provided in &#xA7; 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.