Opinion ID: 6333186
Heading Depth: 2
Heading Rank: 2

Heading: State Law Requirements to Create a Trust

Text: With this background in mind, we turn to the actions required to create a trust under South Carolina law. Before a court may find that an owner of property has created a trust under South Carolina law, the court must find the party claiming to benefit from the trust has proven several elements, two of which are particularly relevant here. First, the court must find the party creating the trust took present actions—in writing—documenting both the creation of a trust and the placing of specified property in it. Subsection 62-7-401(a)(1)(ii) of the South Carolina Code (2022) provides there must be a written declaration signed by the owner of property that the owner holds identifiable property as trustee. While the actions to create a trust must be proved by some writing signed by the party creating the trust, S.C. Code Ann. § 62-7-401(a)(2), the court can look to more than one writing in determining whether a trust has been created, Foster v. Foster, 393 S.C. 95, 98, 711 S.E.2d 878, 879 (2011) (citing Ramage v. Ramage, 283 S.C. 239, 322 S.E.2d 22 (Ct. App. 1984)); see also Ramage, 283 S.C. at 244, 322 S.E.2d at 26 (stating the statute of frauds is not violated by piecing together the trust instrument from the various documents which were intended to create the trust). Second, the court must find the documents creating the trust indicate the owner had the present intent for the writings to create a trust for the particular beneficiary. S.C. Code Ann. § 62-7-402(a) (2022) (providing among four other requirements that A trust is created only if: . . . (2) the settlor indicates an intention to create the trust).