Bill Text: AZ SB1536 | 2011 | Fiftieth Legislature 1st Regular | Introduced

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Bill Title: Trusts; creation; qualifications

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-02-02 - Referred to Senate JUD Committee [SB1536 Detail]

Download: Arizona-2011-SB1536-Introduced.html

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REFERENCE TITLE: trusts; creation; qualifications

 

 

 

 

State of Arizona

Senate

Fiftieth Legislature

First Regular Session

2011

 

 

SB 1536

 

Introduced by

Senator Melvin

 

 

AN ACT

 

Amending section 14-10402, Arizona Revised Statutes; relating to the Arizona trust code.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 14-10402, Arizona Revised Statutes, is amended to read:

START_STATUTE14-10402.  Requirements for creation

A.  Except as provided in section 14-5409, a trust is created only if all of the following are true:

1.  The settlor has capacity to create a trust.

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 14‑10408.

(c)  A trust for a noncharitable purpose, as provided in section 14‑10409.

4.  The trustee has duties to perform.

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 or other person 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.

D.  If a trust is created in this state, the trust documents must be drafted by a person who is an active member of the state bar of Arizona and who has a current securities and exchange commission series 6 or higher license that allows the person to remove assets from this state or to write equity indexed annuities, or both. END_STATUTE