REVOCABLE TRUST AGREEMENT
This AGREEMENT is made and entered into this the day of ,
20 , by and between , and adult resident of , County,
, hereinafter called the “Grantor” and , ,
, hereinafter called the “Trustee”.
W I T N E S S E T H
In consideration of the mutual covenants and agreements herein contained, it is agreed by and between the parties hereto as follows:
The Grantor hereby assigns, conveys, and delivers to the Trustee the property listed on Schedule A, attached hereto and made a part hereof, receipt of which is hereby acknowledged.
The Trustee agrees to hold the trust property subject to the terms and conditions of this Agreement.
The Grantor or any other person or entity may, at any time and from time to time, deposit with the Trustee additional cash, securities, policies of insurance, or other property, by
any means whatever, by conveying and assigning such assets to the Trust or by causing the Trust to be named as beneficiary of any insurance policy.
This trust shall be known as “ TRUST”.
Should the trust be divided into separate shares, each such trust shall be designated and known by the name of the beneficiary or beneficiaries of each respective share.
The beneficiary of this trust shall be the Grantor.
The Trustee shall hold, administer and distribute the funds of the trust under the following provisions:
A. The Trustee may distribute to or for the benefit of the beneficiary as much of the net income as the Trustee deems advisable for the education, support, maintenance and health of the beneficiary; or for any medical, hospital or other institutional care which any beneficiary may require. These distributions shall be made in such proportions, amounts, and intervals as the Trustee determines in his sole discretion. The Trustee shall distribute to or for the benefit of the Grantor such amounts of the net income as the Grantor so requests. Any income not distributed shall be added to principal and shall be distributed according to the provisions of this Article.
B. In addition to the income distributions, the Trustee may distribute to or for the benefit of the beneficiaries as much principal as the Trustee deems advisable for the education, support, maintenance and health of the beneficiary; or for any medical, hospital or other institutional care which any beneficiary may require. The Trustee shall distribute to or for the benefit of the Grantor such amounts of the principal as the Grantor requests.
C. This trust shall continue for the lifetime of the Grantor. Upon the death of the Grantor, the trust shall continue for the benefit of the children and other descendants of
the Grantor if any or shall be terminated as provided herein.
D. Following the death of the Grantor, when the administration of his estate has been completed and all estate taxes have been paid, the Trustee shall distribute to the estate of the Grantor all assets of the trust and this trust shall terminate. If the Grantor dies testate said trust assets shall be distributed in accordance with the terms of the Last Will and Testament of Grantor.
E. Notwithstanding any other provisions herein to the contrary, if in the sole and complete judgment of the Trustee, a beneficiary (at any time such beneficiary would otherwise be entitled to receive a distribution of principal from the trust estate) shall not have manifested the ability which would qualify such beneficiary prudently to use and conserve the principal of the trust estate provided to be distributed to such beneficiary, the Trustee is fully authorized and directed to withhold and defer the delivery and conveyance of any part or all of such principal distribution until the Trustee shall deem such beneficiary to be qualified to prudently use and conserve such assets. Any principal so retained shall continue to be administered as an integral part of the beneficiary’s trust estate and may thereafter, in the discretion of the Trustee, be paid over and delivered to such beneficiary in whole or in part and from time to time as and when the Trustee has determined such beneficiaries are qualified to prudently use and conserve the assets so distributed.
F. None of the principal or income of this trust shall be liable for the debts or obligations of any beneficiary or be subject to seizure by creditors of any beneficiary. No beneficiary shall have any power to sell, assign, transfer, encumber or in any manner to anticipate or dispose of any part of his or her interest in the trust funds or the income produced from the funds.
G. If all of the persons and classes designated as beneficiaries of this trust die prior to the distribution of all trust assets, upon death of the survivor of them, the assets shall be distributed to the heirs at law of the Grantor.
- Unless otherwise provided herein, the terms “trust” and “trusts” may be used interchangeably and shall mean all trusts created by this instrument. Any trust created hereby is a private trust.
B. The Trustee shall not be required to make physical division of the properties of any trust created herein, except where necessary, but may keep the trusts in one
(or more) consolidated fund. The Trustee shall maintain books of account containing accurate records of separate principal, income and expense of each trust.
C. In making distributions to beneficiaries from a trust created hereby, and especially where a beneficiary is a minor or incapable of transacting business due to incapacity
or illness, the Trustee may make distributions either (a) directly to the beneficiary, (b) to the legal or natural guardian of the beneficiary, (c) to a relative or guardian of the person of the beneficiary who has custody and care of the beneficiary, upon agreement of such person to expend such income or principal solely for the benefit of the beneficiary, or (d) by applying the
payments for the benefit of the beneficiary by paying expenses directly. In any event, the Trustee shall require such reports and take such steps as the Trustee deems necessary to assure
and enforce the application of such payments for the exclusive benefit of the beneficiary. The Trustee shall have the power and authority to determine if a beneficiary is incapacitated and such
determination shall be final and conclusive.
D. If at any time in following the directions of this trust the Trustee is required to distribute outright to a beneficiary who is a minor or who is under any other legal disability, all or any part of the principal of a trust created herein, the Trustee is directed to continue to hold and manage the share of the beneficiary in trust for the beneficiary’s benefit until the beneficiary attains age twenty-one (21) or until such other legal disability is removed. Until distribution is made, the Trustee is directed to expend such part of the income and/or principal of the share belonging to that beneficiary as the Trustee deems necessary to provide for the proper education, support, maintenance, health and medical care of the beneficiary.
E. At the end of each taxable year of the trust, the Trustee shall determine the taxable income of the trust. At any time prior to the expiration of sixty-five (65) days following the end of each taxable year of the trust, the Trustee may distribute to the income beneficiaries all or any portion of the taxable income so determined, if such action is desirable
in light of the overall tax situation of the trust and the beneficiaries and the standards for distributions set forth herein.
F. The interest of every beneficiary of any trust created herein shall vest within the period prescribed by the Rule against Perpetuities. Upon vesting, any trust property
held by the Trustee shall be distributed to the current income beneficiary or beneficiaries of the trust property (or to his or her legal guardian or other personal representative) as though such income beneficiary had reached the age at which final distribution was required.
A. The Trustee shall not be required to enter into any bond as Trustee, to obtain the approval of any Court for the exercise of the powers and discretion granted herein,
or to file with any Court any periodic or formal accounting of the administration of any trust. If at any time the Grantor is not serving as Trustee, the Trustee so serving shall render annual accounts to the Grantor or to the other beneficiaries (or to the guardian of any beneficiary who is a minor) of the trust. No persons paying money or delivering property to the Trustee shall be required to see to its application. The receipt of the Trustee shall be a complete acquittance and discharge therefor.
B. The Trustee or any successor Trustee may resign at any time by giving the beneficiaries of the trust written notice specifying the desired effective date of such resignation, which date shall be at least thirty (30) days after the date of the notice. The notice may be sent by personal delivery or by registered mail.
C. If such Trustee resigns or becomes unable to serve, regardless of the cause, ________ shall serve as Trustee. The Trustee may appoint the Successor Trustee or a bank or other financial institution to serve as Co-Trustee or custodian for the Trust. If such an appointment is made, the Trustee and the institution shall enter into a specific agreement outlining the duties of the institution. The Trustee also remove or replace the institution upon thirty (30) days written notice.
D. The resignation of any Trustee shall become effective upon the qualification of the successor Trustee and submission of a full accounting by the resigning Trustee; however, the successor Trustee and the adult beneficiaries (or the guardian of any minor beneficiary) may agree to waive such an accounting. The Successor Trustee shall execute an appropriate instrument evidencing the appointment as Successor Trustee.
E. Any successor Trustee shall be vested with all the rights, powers, duties and discretion herein conferred upon the original Trustee.
F. Any bank or financial institution serving as Trustee shall receive reasonable compensation based on the services it is required to perform. Any individual serving as Trustee shall receive reasonable compensation based on the then current hourly rates being charged in ________, _______, for services comparable to those rendered by the individual Trustee.
Compensation and expenses shall be paid regularly and shall be shown on the Trustee’s annual
G. Unless otherwise provided, in referring to the Trustee, any masculine terminology also includes the feminine and neuter or vice versa and any reference in the singular shall also include the plural or vice versa.
The Trustee named herein shall have the continuing, absolute discretion and power to deal with any property, real or personal, held in trust. Such power may be exercised independently without prior or subsequent approval of any judicial authority. No person dealing with the Trustee shall be required to inquire into the propriety of actions the Trustee may take. Without limiting the generality of the foregoing, the Trustee and any successor hereunder shall have the following specific powers and authority in addition to and not in substitution of powers conferred by law.
A. The Trustee shall have all of the specific powers, duties and liabilities set forth in , as now enacted or hereafter amended, except as herein modified.
B. The Trustee may invest and reinvest in any property (real or personal) as the Trustee may deem advisable, including stock (whether listed or unlisted) and unsecured
obligations, undivided interests, interests in investment trusts, legal and discretionary common trust funds, leases, and property which is outside of the trust’s domicile, all without diversification as to kind or amount without being restricted in any way by any statute or court decision (now or hereafter existing) regulating or limiting investments by fiduciaries.
C. The Trustee shall treat all dividends payable in stock of the issuing corporation and all dividends in liquidation of all “rights” to subscribe to securities of the issuing corporation as principal, unless inconsistent with other provisions of this instrument. Any premiums and discounts on securities purchased at more or less than par shall be charged or
credited as principal. All other dividends and rights received (except those declared and payable as of a “record date” preceding the survivor of the Grantors’ death, which shall be considered and treated as principal) shall be treated as income.
D. The Trustee may borrow money upon such terms and conditions as the Trustee may determine; may execute notes, security instruments or other documents necessary to secure such loans; and may mortgage and pledge trust assets as security for the repayment thereof. Any loan which the Trustee has not repaid at the time of the termination of the trust shall be treated as a liability thereof. The assets of the trust may be distributed to the beneficiaries subject to such liability. The Trustee may loan money to any beneficiary of the trust upon such terms as the Trustee may determine advisable. Any loan which has not been
repaid at the time of the termination of the trust shall be treated as an asset thereof and shall be distributed to the beneficiaries as such.
E. The Trustee may lease any real estate for such term or terms and upon such conditions and rentals in such manner as the Trustee may deem advisable (with or without privilege of purchase), including but not limited to oil, gas and mineral leases. Any lease so made shall be valid and binding for the full term thereof even though it shall extend beyond the term of any trust created hereunder. With regard to mineral rights, the Trustee shall have the authority to execute contracts, letter agreements, farm-out agreements, operating agreements, division orders, transfer orders, and any and all other related documents as needed in relation thereto.
F. The Trustee shall have the authority to make any distribution in cash or in specific property, real or personal, or any such property, and may do so without regard to the income tax basis of specific property allocated to any beneficiary. The Trustee is also authorized to make in kind and non-pro rata distributions under this trust if practicable. Any asset distributed in kind shall be valued at its date of distribution value.
G. The Trustee may receive property by gift or by will or otherwise from any person or persons as additions to the trust created herein and may hold and administer such
property under the provisions hereof.
H. The Trustee may terminate any trust if the Trustee determines the assets of the trust are of such small value that the continued existence and operation of the trust is not in the best interest of the beneficiaries and the remainder beneficiaries are the same and have the same interest in the trust, or if the beneficiaries or interests are different, only if the beneficiaries agree to a manner of termination and distribution of trust assets. No beneficiary shall have any right to require the Trustee to exercise this power.
A. To facilitate payment of administrative expenses, debts, estate, inheritance or other death taxes by the Executor of the Estate of either Grantor, the Trustee may use all or any part of the property of this trust to the extent the Trustee determines advisable to:
1. purchase from the Executor or Administrator of Estate of the Grantor any property, real, personal or mixed, tangible or intangible and wherever situated that may comprise a part of such Estate; or
2. make loans to the Executor or Administrator of the Estate of the Grantor.
A. The trust created herein is created under, is governed by, and is to be construed and administered within and according to the laws of the State of .
B. The trust created herein is declared to be revocable. The Grantor shall have the power to alter, amend, revoke or terminate this trust or any provision thereof.
IN WITNESS WHEREOF, the Grantor and Trustee have caused this Agreement to be signed and delivered, all as of the date first above stated.
Sample acknowledgments below. Please add appropriate acknowledgment for your State.
PERSONALLY appeared before me, the undersigned authority in and for the aforesaid County and state, the within named , who acknowledged as Grantor that he signed and delivered the above and foregoing Revocable Trust Agreement on the date and for the purposes therein set forth as his voluntary act and deed.
GIVEN my hand and official seal, this the day of , 20 .
My Commission Expires:
PERSONALLY appeared before me, the undersigned authority in and for the aforesaid county and state, the within named who acknowledged as Trustee that he signed and delivered the above and foregoing Revocable Trust Agreement on the date and for the purposes therein set forth as his voluntary act and deed.
GIVEN under my hand and official seal, this the day of , .
My Commission Expires:
State Specific Trust Forms
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