1. Requirements. 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, as provided in section 408; or
(3) A trust for a noncharitable purpose, as provided in section 409;
D. The trustee has duties to perform; and
E. The same person is not the sole trustee and sole beneficiary.
2. Definite beneficiary. A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
3. Power to select beneficiary; failure of power. 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.