uniform trust code - Kansas Judicial Branch

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SECTION 403. TRUSTS CREATED IN OTHER JURISDICTIONS. A trust not created
by will is validly created if its creation complies with the law of the jurisdiction in which the trust
instrument was executed, or the law of the jurisdiction in which, at the time of creation:
(1) the settlor was domiciled, had a place of abode, or was a national;
(2) a trustee was domiciled or had a place of business; or
(3) any trust property was located.
Kansas Comment
This section is new.
UTC Comment
This section is comparable to Section 2-506 of the Uniform Probate Code, which validates
wills executed in compliance with the law of a variety of places in which the testator had a
significant contact. Unlike the UPC, however, this section is not limited to execution of the
instrument but applies to the entire process of a trust’s creation, including compliance with the
requirement that there be trust property. In addition, unlike the UPC, this section validates a trust
valid under the law of the domicile or place of business of the designated trustee, or if valid under
the law of the place where any of the trust property is located. For the requirements for creating a
trust, see Section 402.
SECTION 404. TRUST PURPOSES. A trust may be created only to the extent its
purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms
must be for the benefit of its beneficiaries.
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Kansas Comment
Section clarifies Kansas law. Rule apparently not clearly stated in Kansas case law for
private trusts. See e.g. Fry v. McCormick, 170 Kan. 741, 228 P.2d 727 (1951) (limited analysis
whether trust was void based on public policy); In re Estate of Sheets, 175 Kan. 741, 750, 267 P.2d
962 (1954) (provisions of will must be lawful in their purpose, do not contravene the prohibitions
of any statute, and do not violate any positive rule of law); Taliaferro v. Taliaferro, 260 Kan. 573,
Syl. 2, 921 P.2d 803 (1996) (trust property must be held for benefit of another person).
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