For a trust to be administered properly, the trustor and trustee have to prove its certainty to the courts in Indiana. This means proving that the trust is accurate and has reasonable intentions. While creating a trust, the trustor has to make several requirements for the trustee.
Criteria of certainty
A trust is valid when it meets three types of criteria. First, the trustor must show a reasonable intention to create a trust. Second, the purpose of the trust must be defined. In addition, the beneficiaries are clearly defined, or the trustees must have ways of ascertaining them. A trustee who cannot meet the basic standards for certainty cannot handle the trust and probate administration correctly.
Essential terms of a trust
The terms of a trust must be written and defined with the identities of the trustor, trustee and beneficiaries. The nature of the trustee’s interests and the beneficiary’s interests must be defined with reasonable certainty.
In addition, a trustee can receive the ability to select a beneficiary and create a trust. A trust does not need to be created from a will. However, the trustor or the attorney-in-fact must sign it to make it valid.
Choosing the right estate administrator
Last, the person who is named as the trustee has to sign the document. The signature ensures a commitment to carry out the duties of the estate owner. However, the named person has the right to reject the role and assume no liability. If the trustee accepts the role, this person makes a vow to preserve the trust in the court and jurisdiction where the estate is being administered.
