A. A trust is created only if:

1. (1) the settlor has capacity to create a trust;
2. (2) the settlor indicates an intention to create the trust;

3. (3) the trust has a definite beneficiary or is:

   1. (a) a charitable trust;
   2. (b) a trust for the care of an animal, as provided in Section 4-408 [46A-4-408 NMSA 1978] of the Uniform Trust Code; or
   3. (c) a trust for a noncharitable purpose, as provided in Section 4-409 [46A-4-409 NMSA 1978] of the Uniform Trust Code;
4. (4) the trustee has duties to perform; and

5. (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: Laws 2003, ch. 122, § 4-402.

ANNOTATIONS

Effective dates. — Laws 2003, ch. 122, § 11-1106 made the act effective July 1, 2003.

Law reviews. — For article, "The New Mexico Uniform Trust Code," see 34 N.M.L. Rev. 1 (2004).