633A.2101 . Methods of creating trusts
633A.2102 . Requirements for validity
633A.2103 . Statute of frauds
633A.2104 . Trust purposes
633A.2105 . Honorary trusts--trusts for pets
A trust may be created by any of the following methods:
1. Transfer of property to another person as trustee during the settlor's lifetime, or by will taking effect upon the settlor's death.
2. Declaration by the owner of property that the owner holds property as trustee.
3. Exercise of a power of appointment in favor of another person as trustee.
4. A promise enforceable by the trustee to transfer property to the trustee.
Transferred from § 633.2101 by the Code Editor for Code Supp. 2005 pursuant to Acts 2005 (81 G.A.) ch. 38, S.F. 379, § 54.
1. A trust is created only if all of the following elements are satisfied:
a. The settlor was competent and indicated an intention to create a trust.
b. The same person is not the sole trustee and sole beneficiary.
c. The trust has a definite beneficiary or a beneficiary who will be definitely ascertained within the period of the applicable rule against perpetuities, unless the trust is a charitable trust, an honorary trust, or a trust for pets.
d. The trustee has duties to perform.
2. 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 passes to the person or persons who would have taken the property had the power not been conferred.
3. A trust is not merged or invalid because a person, including but not limited to the settlor of the trust, is or may become the sole trustee and the sole holder of the present beneficial interest in the trust, provided that one or more other persons hold a beneficial interest in the trust, whether such interest be vested or contingent, present or future, and whether created by express provision of the instrument or as a result of reversion to the settlor's estate.
Transferred from § 633.2102 by the Code Editor for the Code Supp. 2005 pursuant to Acts 2005 (81 G.A.) ch. 38, S.F. 379, § 54.
1. A trust is enforceable when evidenced by either of the following:
a. A written instrument signed by the trustee, or by the trustee's agent if authorized in writing.
b. A written instrument conveying the trust property signed by the settlor, or by the settlor's agent if authorized in writing.
2. If an owner of property declares that property is held upon a trust, the written instrument evidencing the trust must be signed by the settlor according to one of the following:
a. Before or at the time of the declaration.
b. After the time of the declaration but before the settlor has transferred the property.
3. If an owner of property while living transfers property to another person to hold upon a trust, the written instrument evidencing the trust must be signed according to one of the following:
a. By the settlor, concurrently with or before the transfer.
b. By the trustee, concurrently with or before the transfer, or after the transfer but before the trustee has transferred the property to a third person.
4. Oral trusts that have not been reduced to writing as specified in this section are not enforceable. This section does not affect the power of a court to declare a resulting or constructive trust in the appropriate case or to order other relief where appropriate.
Transferred from § 633.2103 by the Code Editor for Code Supp. 2005 pursuant to Acts 2005 (81 G.A.) ch. 38, S.F. 379, § 54.
1. A trust is created only if it has a private or charitable purpose that is not unlawful or against public policy.
2. A trust created for a private purpose must be administered for the benefit of its beneficiaries.
Transferred from § 633.2104 by the Code Editor for Code Supp. 2005 pursuant to Acts 2005 (81 G.A.) ch. 38, S.F. 379, § 54.
1. A trust for a lawful noncharitable purpose for which there is no definite or definitely ascertainable beneficiary is valid but may be performed by the trustee for only twenty- one years, whether or not the terms of the trust contemplate a longer duration.
2. A trust for the care of an animal living at the settlor's death is valid. The trust terminates when no living animal is covered by its terms.
3. A portion of the property of a trust authorized by this section shall not be converted to any use other than its intended use unless the terms of the trust so provide or the court determines that the value of the trust property substantially exceeds the amount required.
4. The intended use of a trust authorized by this section may be enforced by a person designated for that purpose in the terms of the trust or, if none, by a person appointed by the court.
Transferred from § 633.2105 by the Code Editor for Code Supp. 2005 pursuant to Acts 2005 (81 G.A.) ch. 38, S.F. 379, § 54.