(1) A trust is created only if all of the following apply:

    (a) The settlor has capacity to create a trust.

    (b) The settlor indicates an intention to create the trust.

    (c) The trust has a definite beneficiary or is either of the following:

    (i) A charitable trust.

    (ii) A trust for a noncharitable purpose under section 7409 or a trust for the care of an animal under section 7408.

    (d) The trustee has duties to perform.

    (e) The same person is not the sole trustee and sole beneficiary.

    (2) A trust beneficiary is definite if the trust beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

    (3) A power in a trustee to select a trust beneficiary from an indefinite class is valid only in a charitable trust.