Which statement correctly describes the essential elements needed to create a trust?

• A. The trust must have a settlor who can also be trustee.
• B. The trust only requires the intent to create a trust and a will.
• C. The required elements are intent, property, and beneficiaries.
• D. A trust must be delivered to the court.

Answer: (C)

Creating a trust hinges on three elements: intent to create a trust, property to be held in trust (the res), and identifiable beneficiaries. The settlor must have a present intent that the property be held and managed for someone else’s benefit under a fiduciary arrangement. There must be something of value to place in the trust, otherwise there’s nothing for the trustee to manage. And there must be beneficiaries who will benefit from the arrangement, with their interests defined or at least ascertainable. A trustee is typically named to administer the trust, but having a trustee is not required to be present at the moment of creation. A trust can be created during life or by will, and court involvement isn’t required for creation. So, the statement that the essential elements are intent, property, and beneficiaries best describes what’s needed to create a trust.