Vermont Statutes Title 14 Sec. 402
Terms Used In Vermont Statutes Title 14 Sec. 402
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
§ 402. Requirements for creation
(a) A trust is created only if:
(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 408 of this title; or
(C) a trust for a noncharitable purpose, as provided in section 409 of this title;
(4) the trustee has duties to perform; and
(5) the same person is not the sole trustee and sole beneficiary of all beneficial interests.
(b) A settlor is deemed to have the capacity to create a trust if:
(1) the trust is created by an agent of the settlor under a power of attorney as described in subdivision 401(5) of this title; and
(2) the settlor had capacity to create a trust at the time the power of attorney was executed.
(c) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(d) 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. (Added 2009, No. 20, § 1; amended 2009, No. 92 (Adj. Sess.), § 6.)