Section 30-4-2-1 - Written evidence of terms; definite terms; validity of inter vivos trust; existence of trust beneficiaries; creation of trust by exercise of power of appointment(a) A trust in either real or personal property is enforceable only if there is written evidence of the terms of the trust bearing the signature of any of the following persons:(2) The settlor's authorized agent.(3) An adult who is not an ineligible person under subsection (b) and who signs the trust's written terms: (A) at the settlor's direction; and(B) in the direct physical presence of the settlor. If an adult signs at the settlor's direction under subdivision (3), the written evidence of the trust's terms must identify that adult signer, must state that the adult is signing at the direction of the settlor and in the settlor's direct physical presence, and must state that the adult signer is not a relative of the settlor, is not a trustee named in the trust's terms, and is not entitled to any beneficial interest or power of appointment under the trust's terms.
(b) The following persons are ineligible to sign the written terms of a trust at the direction of the settlor under subsection (a)(3):(1) A trustee named in the trust's written terms.(2) A relative of the settlor.(3) A person who is entitled to receive a beneficial interest in the trust or a power of appointment under the trust's written terms.(c) Except as required in the applicable probate law for the execution of wills, no formal language is required to create a trust, but the terms of the trust must be sufficiently definite so that the trust property, the identity of the trustee, the nature of the trustee's interest, the identity of the beneficiary, the nature of the beneficiary's interest, and the purpose of the trust may be ascertained with reasonable certainty.(d) It is not necessary to the validity of a trust that the trust be funded with or have a corpus that includes property other than the present or future, vested or contingent right of the trustee to receive proceeds or property, including: (1) as beneficiary of an estate under IC 29-1-6-1;(2) life insurance benefits under section 5 of this chapter;(3) retirement plan benefits; or(4) the proceeds of an individual retirement account.(e) A trust created under: (1) section 18 of this chapter for the care of an animal; or(2) section 19 of this chapter for a noncharitable purpose; has a beneficiary.
(f) A trust has a beneficiary if the beneficiary can be presently ascertained or ascertained in the future, subject to any applicable rule against perpetuities.(g) A power of 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.(h) A trust may be created by exercise of a power of appointment in favor of a trustee.Amended by P.L. 185-2021,SEC. 16, eff. 4/29/2021.Amended by P.L. 56-2020,SEC. 9, eff. 7/1/2020.Amended by P.L. 51-2014, SEC. 19, eff. 7/1/2014.(Formerly: Acts1971 , P.L. 416, SEC.3.) As amended by P.L. 132-1992, SEC.1; P.L. 238-2005, SEC.21.