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North Dakota Living Trust Form (Revocable)

A North Dakota living trust is a legal instrument used to bypass the probate process when distributing a person's estate. The grantor, who creates the trust, selects a trustee to manage the trust and designates the trust's beneficiaries. A benefit of a living trust is that the grantor may serve as their own trustee and can amend or revoke the trust at any time.
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Updated June 26, 2024

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Requirements (5)

  1. Competent: The grantor must have the capacity to establish a trust.
  2. Intent: The grantor must indicate the intention to establish a trust.
  3. Definite Beneficiary: Unless it is a trust for the care of an animal or a charitable trust, the trust must have a definite beneficiary.
  4. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be both the sole trustee and the sole beneficiary of the trust.
  5. Trustee’s Duties: The trustee must have duties to perform.[1]

Registration

A living trust in North Dakota is not required by statute to be registered.

Laws

Amending/Revoking – The grantor may amend or revoke the trust, unless the terms of the trust expressly state that it is irrevocable.[2]

Bond Requirement – The trustee is only required to put forward a bond if this has been found to be necessary by the court or if this is a requirement under the terms of the trust.[3]

Certification of Trust – Unless otherwise required by law, the trustee may furnish a person with a certification of trust containing information that includes the existence and date of creation of the trust, the name of the trustee, and other relevant details.[4]

Co-Trustees – If co-trustees are unable to reach a unanimous decision, then they may act by majority decision.[5]

Contesting a Trust – With certain exceptions, an action to determine the validity of a trust must be commenced within 120 days of receiving notice from the trustee of the trust’s existence or within three years of the grantor’s death, whichever is earlier.[6]

Costs Related to the Trust – The trustee may only incur reasonable costs in administering the trust.[7]

Jurisdiction – A trust created in another state is considered valid in North Dakota if it was executed in compliance with the laws of the original state.[8]

Oral Trusts – An oral trust must be established by clear and convincing evidence, although it need not be evidenced by a trust instrument, provided that it is not a trust in relation to real property.[9]

Pet Trusts – A trust may be validly created to provide for the care of one or more animals that are alive during the grantor’s lifetime. The trust terminates upon the death of the final surviving animal.[10]

Signing Requirements – A trust in relation to real property must, with certain exceptions, be created by a written instrument that has been signed by the trustee or by the trustee’s agent.[11]

Spendthrift Provision – A spendthrift provision is valid if it restrains either the voluntary or involuntary transfer, or both, of a beneficiary’s interest.[12]

Trustee’s Compensation – If the terms of the trust do not specify the amount of the trustee’s compensation, the trustee is otherwise entitled to reasonable compensation under the circumstances.[13]

Trustee’s Duties – The trustee must prudently and impartially administer the trust in the sole interest of the beneficiaries, in good faith, and in accordance with its terms and purposes.[14]

Trustee’s Powers – In addition to the authority derived from the terms of the trust, the trustee has the power to collect, acquire, sell, exchange, partition, or otherwise change the character of trust property.[15]

Sources

  1. § 59-12-02(1)
  2. § 59-14-02(1)
  3. § 59-15-02(1)
  4. § 59-18-13(1)
  5. § 59-15-03(1)
  6. § 59-10.1-03
  7. § 59-16-05
  8. § 59-12-03
  9. § 59-12-07
  10. § 59-12-08(1)
  11. § 59-12-18(1)
  12. § 59-13-02(1)
  13. § 59-15-08(1)
  14. § 59-16-01
  15. § 59-16-16