Creation, Validity, Modification, and Termination of TrustsCreation and Validity of Trusts
Section § 15200
This section explains the different ways a trust can be established under certain conditions. A trust can be set up by the property owner declaring they hold the property as trustee, transferring property during their lifetime or upon their death to someone else as trustee, by using a power that appoints another person as trustee, or by making a binding promise to create a trust.
Section § 15201
This law states that for a trust to be officially established, the person creating it, known as the settlor, must clearly express their intention to do so.
Section § 15202
A trust can only be established if there is property or assets available to be placed into it.
Section § 15203
You can create a trust for any goal as long as it's lawful and aligns with public interests.
Section § 15204
This law says that a trust won't be considered invalid just because it was created for a broad or unclear purpose, as long as you can reasonably understand how the trust's assets will be used to fulfill that purpose.
Section § 15205
For a non-charitable trust to be valid, it must have a beneficiary. The trust document must clearly identify who the beneficiary is, or at least give enough details so that the beneficiary can be recognized. Alternatively, the document can give the trustee or someone else the authority to choose the beneficiary using a specified criteria or at their discretion.
Section § 15206
This law section states that a trust involving real estate must be documented in specific ways to be valid. It needs to be in writing and signed either by the trustee or their authorized agent, the person who is creating the trust (settlor) or their authorized agent, or it must be validated by legal processes that happen automatically.
Section § 15207
This section explains that if you want to prove an oral trust involving personal property, you need strong evidence that's clear and convincing. Just having the person who created the trust (the settlor) say it happened isn't enough by itself. Any mention of a trust document actually refers to the proof that was needed to establish the trust in the first place.
Section § 15208
You don't need to give something in return to set up a trust, but if you promise to set up a trust in the future, that promise only counts if it's part of a valid contract.
Section § 15209
This law states that a trust isn't considered invalid or ended when certain conditions exist after the person who created the trust (settlor) dies. It applies in two cases: first, if there is one person who set up the trust, acts as the trustee, and is the only beneficiary while they're alive. Second, if there are multiple people who set up the trust, with one or more acting as trustees, and the trust benefits one or more of these people while they're alive.
Section § 15210
This law states that if you create a trust involving real estate, you can officially record it at the county recorder's office where the property is located.
Section § 15211
This section states that a trust set up for a noncharitable corporation, unincorporated society, or any legal noncharitable purpose can only be legally carried out by the trustee for a maximum of 21 years. This rule applies even if the trust doesn't have a specific beneficiary who can enforce or end it, and even if the trust was intended to last longer.
Section § 15212
This section allows people to create a trust to care for their pets after they die. The trust ends when the last pet that was alive at the person's death dies, unless the trust says otherwise. The money in the trust must be used only for the pet's benefit, not for the trustee's personal use. When the trust ends, any leftover money is distributed as specified in the trust, or it goes to the person's heirs. If no trustee is named, or if no one can serve as trustee, a court will appoint one. Anyone concerned about the pet's welfare can ask the court to make sure the trust is managed correctly. Financial reports must be provided to beneficiaries unless the trust is small (under $40,000), in which case court filing may not be required. Any person specified in the trust, or any animal charity, may check on the pet, its living conditions, or the trust's financial records. The trust cannot be ended early and is not affected by certain other sections of the law. 'Animal' here means pets or domestic animals the trust is meant to help.