Unable to create Domain Trust in DSfW

After the domain trust password expired, the customer tried to reset the domain trust password but each attempt failed.  After this failure, the customer removed the domain trust and tried to recreate it by going into MMC -> Domains and Trusts.  This failed as well with the following error:
   

Verify that a domain password policy and a default password policy is present inside the domain, specifically in the Password Policies.System.<DomainName> location.  The code looks for a password policy to be here and to be assigned to the domain and to the users within the domain.  If there isn't one found in this location, the above mentioned error will occur and the domain trust will fail.

No password policy found in the default DSfW domain location.