30-3827. (UTC 401) Methods of creating trust.

(UTC 401) A trust may be created by:

(1) transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death;

(2) except as required by a statute other than the Nebraska Uniform Trust Code, declaration by the owner of property that the owner holds identifiable property as trustee; or

(3) exercise of a power of appointment in favor of a trustee.

Source:Laws 2003, LB 130, § 27.

Annotations

Under subsection (1) of this section, a trust may be created in life insurance death benefits. In re Trust of Rosenberg, 273 Neb. 59, 727 N.W.2d 430 (2007).

30-3827.01. Contracts concerning trusts.

A contract to make a trust, or not to revoke a trust, if executed on or after January 1, 1977, shall only be established by: (1) Provisions of a will or a trust stating the material provisions of the contract; (2) an express reference in a will or trust to a contract and extrinsic evidence proving the terms of the contract; or (3) a writing signed by the decedent evidencing the contract. The execution of a joint trust does not create a presumption of a contract not to revoke the trust.

Source:Laws 2026, LB838, § 21.
Operative Date: July 18, 2026

30-3827.02. Penalty clause for contest.

A provision in a trust purporting to penalize any interested person for contesting the trust or instituting other proceedings relating to the trust is unenforceable if probable cause exists for instituting proceedings.

Source:Laws 2026, LB838, § 22.
Operative Date: July 18, 2026

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

(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.

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).

30-3829. (UTC 403) Trusts created in other jurisdictions.

(UTC 403) A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:

(1) the settlor was domiciled, had a place of abode, or was a national; or

(2) except with respect to Nebraska real estate, (A) a trustee was domiciled or had a place of business; or (B) any trust property was located.

Source:Laws 2003, LB 130, § 29.

30-3830. (UTC 404) Trust purposes.

(UTC 404) A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries.

Source:Laws 2003, LB 130, § 30.

30-3831. (UTC 405) Charitable purposes; enforcement.

(UTC 405) (a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.

(b) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained.

Source:Laws 2003, LB 130, § 31.

30-3832. (UTC 406) Creation of trust induced by fraud, duress, or undue influence.

(UTC 406) A trust is void to the extent its creation was induced by fraud, duress, or undue influence.

Source:Laws 2003, LB 130, § 32.

30-3833. (UTC 407) Evidence of oral trust.

(UTC 407) Except as required by a statute other than the Nebraska Uniform Trust Code, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms, or an amendment or revocation of an oral trust, may be established only by clear and convincing evidence.

Source:Laws 2003, LB 130, § 33.