Sec. 10. (a) If a trust is created by a will, the settlor‘s capacity that is required to create the trust is determined by the applicable probate law.

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Terms Used In Indiana Code 30-4-2-10

  • Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
  • Person: has the meaning set forth in IC 30-2-14-9. See Indiana Code 30-4-1-2
  • Probate: Proving a will
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
  • Settlor: means a person who establishes a trust including the testator of a will under which a trust is created. See Indiana Code 30-4-1-2
  • Testator: A male person who leaves a will at death.
     (b) The capacity of a settlor that is required to create, amend, revoke, or add property to a revocable trust is the same as the capacity of a testator that is required to make a will.

     (c) To create or add property to an irrevocable trust, the settlor or transferor must be of sound mind and have a reasonable understanding of the nature and effect of the act and the terms of the trust.

     (d) To direct the actions of the trustee of a trust, the settlor or other person must:

(1) have the capacity to hold and deal with property for the settlor’s or person’s own benefit;

(2) be at least eighteen (18) years of age; and

(3) be of sound mind.

Formerly: Acts 1971, P.L.416, SEC.3. As amended by P.L.238-2005, SEC.24.

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