§ 3-3.7 Testamentary disposition to trustee under, or in accordance with

terms of existing inter vivos trust

(a) A testator may by will dispose of or appoint all or any part of
such testator's estate to a trustee of a trust, the terms of which are
evidenced by a written instrument executed by the testator, the testator
and some other person, or some other person, including a trust
established for the receipt of the proceeds of an annuity or pure
endowment contract, or of a thrift, savings, pension, retirement, death
benefit, stock bonus, or profit-sharing plan or system or a funded or
unfunded life, group life, industrial life or accident and health
insurance trust (although the person establishing such trust has
reserved any or all rights of ownership of the insurance contracts),
regardless of whether any assets have been transferred to the trust
prior to the death of the testator; provided that the trust instrument
is identified in the will and is executed by the person establishing the
trust prior to or contemporaneously with the execution of the will and,
unless such person is the sole trustee, by at least one trustee thereof
prior to the death of the testator, in the manner required by the laws
of this state for the recording of a conveyance of real property or, in
lieu thereof, in the presence of two witnesses who shall affix their
signatures to the trust instrument.

(b) The testamentary disposition or appointment is valid, even though:

(1) The trust instrument is amendable or revocable, or both, provided,
however, that the disposition or appointment shall be given effect in
accordance with the terms of the trust instrument, including an
amendment thereto, as they appear in writing on the date of the
testator's death and, where the testator so directs, including
amendments to the trust instrument after his or her death, if the
instrument evidencing such amendment is executed and acknowledged in the
manner provided for in paragraph (b) of 7-1.17.

(2) The right is reserved in such trust instrument (A) to exercise any
power over any property transferred to or held in the trust or (B) to
direct during the lifetime of the person establishing the trust or any
other person, the persons and organizations to whom or in whose behalf
the income shall be paid or the principal distributed.

(3) The trust instrument or any amendment thereto was not executed and
attested in accordance with the formalities prescribed by 3-2.1.

(c) The property so disposed of or appointed by will becomes a part of
the trust to which it is given, and title thereto vests in the trustee
to be administered and disposed of in accordance with the terms of the
trust instrument.

(d) Any disposition or appointment to the trustee made by a testator
who died prior to the effective date of this section, which would be
invalid under the applicable law of this state pre-existing the
effective date of this section, shall be construed to create a
testamentary trust under and in accordance with the terms of the trust
instrument which the testator originally intended should embrace the
property disposed of or appointed, as such terms appear in such trust
instrument at the date of the testator's death.

(e) A revocation or termination of the trust before the death of the
testator shall cause the disposition or appointment to fail, unless the
testator has made an alternative disposition.