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REFERENCE TITLE: trusts; creation; qualifications |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SB 1536 |
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Introduced by Senator Melvin
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AN ACT
Amending section 14-10402, Arizona Revised Statutes; relating to the Arizona trust code.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 14-10402, Arizona Revised Statutes, is amended to read:
14-10402. Requirements for creation
A. Except as provided in section 14-5409, a trust is created only if all of the following are true:
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 section 14‑10408.
(c) A trust for a noncharitable purpose, as provided in section 14‑10409.
4. The trustee has duties to perform.
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 or other person 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.
D. If a trust is created in this state, the trust documents must be drafted by a person who is an active member of the state bar of Arizona and who has a current securities and exchange commission series 6 or higher license that allows the person to remove assets from this state or to write equity indexed annuities, or both.