C.R.S. § 15-5-402: Requirements for creation.

(1) A trust is created only if:

(a) Either:

(I) The settlor has capacity to create a trust and indicates an intention to create a trust; or

(II) A statute, judgment, or decree authorizes creation of a trust;

(b) The trust has a definite beneficiary or is:

(I) A charitable trust;

(II) A trust for the care of an animal, as provided in section 15-5-408; or

(III) A trust for a noncharitable purpose, as provided in section 15-5-409;

(c) The trustee has duties to perform; and

(d) The same person is not the sole trustee and sole beneficiary.

(2) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(3) 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.