KRS 386B.4-020: Requirements for creation.

(1) A trust is created only if:

(a) The settlor has capacity to create a trust;

(b) The settlor indicates an intention to create the trust;

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

1. A charitable trust;

2. A trust for the care of an animal under KRS 386B.4-080; or

3. A trust for a noncharitable purpose under KRS 386B.4-090;

(d) The trustee has duties to perform; and

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

(2) A power in a trustee to select a beneficiary from an indefinite class is valid. If the

power is not e xercised 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.