Nebraska Revised Statute 30-3828
- Revised Statutes
- Chapter 30
- 30-3828
30-3828.
(UTC 402) Requirements for creation.
(UTC 402) (a) A trust is created only if:
(1) the settlor has capacity to create a trust and meets one of the following requirements:
(A) the settlor is eighteen years of age or older; or
(B) the settlor is not a minor;
(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 30-3834; or
(C) a trust for a noncharitable purpose, as provided in section 30-3835;
(4) the trustee has duties to perform; and
(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 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.
Source
- Laws 2003, LB 130, § 28;
- Laws 2024, LB1195, § 8.
- Effective Date: July 19, 2024
Annotations
A beneficiary must be "definite." A class of beneficiaries is not indefinite merely because it consists of a changing or shifting group, the number of whose members may increase or decrease.- Typical examples of definite classes for trust beneficiaries are "children" or "grandchildren," the "issue" or "descendants," or the "heirs" or "next of kin" of a designated person.- In re William R. Zutavern Revocable Trust, 309 Neb. 542, 961 N.W.2d 807 (2021).
The provision in subsection (b) of this section that a "beneficiary is definite if the beneficiary can be ascertained now or in the future" did not change the common-law rule that the beneficiary must be ascertainable from the trust instrument. Newman v. Liebig, 282 Neb. 609, 810 N.W.2d 408 (2011).