Fill and Sign the Arizona Trust Form

THE __________________________ (Name) FAMILY RESIDENCE TRUST TRUST AGREEMENT made by _____________________________________ (Name of Person setting up Trust and owning Residence ) of _______________________________ _____________________________________ (street address, city, county, state, zip code) , hereinafter called the Settlor , and ___________________________ (Name of Trustee ) of ____________________________________________________________________________ (street address, city, county, state, zip code , hereinafter called the Trustee . ARTICLE ONE. NAME This Trust shall be designated the “____________________________ (Name) FAMILY RESIDENCE TRUST ” and is dated _____________________ (Date) . ARTICLE TWO. PURPOSE The purpose of this Trust is to hold title of the Settlor 's residential real estate at ____________________________________________________________________________ (street address, city, county, state, zip code) , to grant a life estate in that Residence to the Settlor , and to retain ownership of the Residence after the Settlor 's death in or der to provide for the use of the Residence by any children of the Settlo r that are designated by Settlor to use said Residence or are lawfully entitled to use said Residence by law or the terms of this Trust. ARTICLE THREE. TRUSTEE __________________________ (Name of Trustee) of __________________________ ____________________________________ (street address, city, county, state, zip code , shall serve as initial Trustee of this Trust . In the event of his or her resign ation, removal, death, or inability to serve as Trustee , then __________________________ (Name of Successor Trustee) of __________________________________________________________________ ____________ (street address, city, county, state, zip code , shall serve as successor Trustee of this Trust . No Trustee shall be liable for any loss or damage resulting from decisions made or acts taken by it in good faith, and no successor Trustee shall be liable for the acts of a predecessor. ARTICLE FOUR. USE OF RESIDENCE DURING SETTLOR 'S LIFETIME A. During the lifetime of the Settlor , she shall be entitled to the exclusive use and occupancy of the entire residential real estate, with the same rights and obligations as the holder of a life e state. During her lifetime, the Settlor shall be responsible for paying the costs of all real property taxes, casualty insurance premiums, utilities, and maintenance or repairs, to the extent such expenses are not covered by income of the Trust . B. If the Settlor fails to pay for all real property taxes, casualty insurance premiums, utilities, and maintenance or repairs incurred for or by the residential real estate, any child of the Settlor may pay such expenses from their own funds. Any child who a dvances payment of such expenses shall be entitled to reimbursement from the ___________________ (Name) FAMILY RESIDENCE TRUST either before or after the death of the Settlor . C. If the Settlor fails to pay for all real property taxes, casualty insurance premiums, utilities, and maintenance or repairs incurred by or for the residential real estate, and if no child of the Settlor pays such expenses, then the Trustee shall sell the residential rea l estate at its fair market value. In such event, the children of the Settlor shall have the option to pu rchase described in Article Ten of this Trust agreement. D. After any sale of the Residence under this Article, this Trust shall continue for the remainder of the Settlor 's lifetime, and the Settlor shall retain her interest as income beneficiary of the Trust . ARTICLE FIVE. USE OF RESIDENCE AFTER DEATH OF SETTLOR After the death of the Settlor , the Trustee shall permit the use and occupancy of the residential real estate in accordance with the following provisions: _______________________ (Name of Person) of _____________________________ ______________________________________ (street address, city, county, state, zip code , shall have the exclusive right to occupy the Residence on the Settlor 's residential real estate, for the entire lifetime of ____________________________ (Name of Person) . After the death of ________________________ (Name of Person) or in the event he or she discontinues his or her occupancy of the Residence , the Trustee may permit any other descendant of the Settlor to occupy the main Residence for any period of time authorized by the Trustee . ARTICLE SIX. PAYMENT OF EXPENSES AFTER DEATH OF SETTLOR A. The Trustee shall pay from the income of the Trust , and if the income is inadequate, then from any liquid assets of the Trust , all expenses related to the ownership and use of the residential real estate of the Settlor , including property taxes, insurance, maintenance, repairs, and utilities. B. If the income and liquid assets of the Trust are insufficient to pay the expenses related to the ownership and use of the residential real estate, then the Trustee shall provi de for payment of such expenses in the following manner: The occupant of the Residence shall pay all expenses related to the main Residence , including the real property taxes, casualty insurance premiums, utilities, and maintenance or repairs. C. If the income and liquid assets of the Trust are insufficient for the payment of all expenses related to the ownership and use of the Settlor 's residential real estate, and if the occupant of the Residence fails to pay such expenses, then the Trustee shall terminate the occupancy rights of the beneficiary who fails to pay such expenses, and evict such beneficiary from occupancy. ARTICLE SEVEN. APPLICATION OF NET INCOME A. During the lifetime of the Settlor , the Trustee shall distribute to the Settl or any net income of the Trust remaining after paying all expenses related to the ownership and use of the Residence and any other administrative expenses of the Trust . B. After the death of the Settlor , any income of the Trust remaining after paying all expenses related to the ownership and use of the Residence and any other administrative expenses of the Trust shall be accumulated by the Trust and added to principal. ARTICLE EIGHT. DISCLAIMER BY SETTLOR In the event the Sett lor files a written disclaimer with the Trustee of his or her life estate and income interest in this Trust at any time, then the Trustee shall thereafter administer this Trust as if the Settlor were deceased. ARTICLE NINE. TERMINATION OF TRUST AFTER DEATH OF SETTLOR A. Early Termination by Trustee . If the income and liquid assets of the Trust are insufficient to pay all expenses related to the ownership and use of the residential real estate, and if the beneficiaries of the Trust do not pay s uch expenses, then the Trustee may, in its sole discretion, sell the residential real estate. Prior to the sale of the real estate by the Trustee , the beneficiaries of the Trust shall have the option to purchase described in Article Ten . If no beneficiary exercises the option to purchase, the Trustee shall sell the Residence at the best price obtainable within a reasonable market period, considering real estate market conditions prevailing at that time. B. Early Termination by Beneficiar ies. If at any time during the term of this Trust (after the death of Settlor) all beneficiaries who have the present right to occupy the Residence notify the Trustee in writing that they want the residential real estate sold and the Trust terminated, the Trustee shall comply with such direction. Prior to the sale, the beneficiaries of the Trust shall have the option to purchase the Residence described in Article Ten. If no beneficiary exercises the option to pu rchase, the Trustee shall sell the real estate at the best price obtainable within a reasonable market period, considering real estate market conditions prevailing at that time. C. Termination of Trust After Death of Settlor . After the death of the Settlor , the Trustee sha ll sell the residential real estate and terminate this Trust . Prior to the sale of the real estate by the Trustee , the benefic iaries of the Trust shall have the option to purchase described in Article Ten . If no beneficiary exercises the option to pu rchase, the Trustee shall sell the real estate with reasonable dispatch and at the best price obtainable, considering real e state market conditions prevailing at that time. D. Distribution of Sale Proceeds. In the event of the sale of the residential real estate during the lifetime of the Settlor , the sale proceeds shall be reinvested and shall continue to be held in this Trust for the benefit of the Settlor . In the event of the sale of the residential real estate and after the death of the Settlor , the Tr ustee shall distribute the assets of the Trust in equal shares among ___ ____ _________ and ______ ____ ______. If any of these remainder beneficiaries predeceases this distr ibution, the share of such predeceased beneficiary shall be distributed to his or her issue, by right of representation. ARTICLE TEN. OPTION TO PURCHASE A. In the event of any sale of the residential real estate held by this Trust , the Trustee shall hire a certified real estate a ppraiser, at the expense of the Trust , to provide an appraisal of the real estate. The Trustee shall deliver a copy of the a ppraisal to each surviving child of the Settlor and to the issue of any deceased child of the Settlor . B. __________________________ (Name of Person) shall have the first option to purchase the real estate held by the Trust , and he or she shall have sixty (60) days from receipt of the appraisal to notify the Trustee in writing of his or her exerc ise of the option to purchase the real estate at its a ppraised value. If _________________________ (Name of Person) fails to exercise his or her option to purchase, then ___________________________ (Name) or if she is deceased , __________________________ (Name) of ___________________________ _________________________________________ address, city, county, state, zip code , shall have the next option to purchase the real estate. __________________________ (Name) shall have thirty (30) days from the expiration or release of his or her option, but in no event less than sixty (60) days from receipt of the appraisal, to give written notice to the Trustee of his or her exercise of the option to purchase the real estate from the Trust at its appraised value. C. If _______________________ (Name) and ______________________ (Name) waive their options to purchase or fail to exercise their o ptions to purchase, then the other surviving children of the Settlor , or the issue of any deceased child of the Settlor , shall have the next option to purchase the real estate owned by the Trust . All such beneficiaries shall have thirty (30) days from the expiration or waiver of the option period held by _________________ _ (Name) and _____________________ (Name) , but in no event less than sixty (60) days from receipt of the appraisal, to give written notice to the Trustee of the exercise of the o ption to purchase. If more than one beneficiary exercises the option to purchase the Residence , they shall purchase the Residence in proportion to their distributive shares under this Trust . D. Any purchase of the real estate under this option shall be completed within fo rty - five (45) days after the beneficiary gives written notice to the Trustee of the exercise of the option. The purchase shall be in cash, but any beneficiary may receive credit towards the purchase price equal to his or her distributive share of the Trust . ARTICLE ELEVEN. TERMINATING DISTRIBUTION TO MINOR BENEFICIARY If a distribution of any share of this Trust upon its termination is payable to a beneficiary who is under the age of twenty -one (21), then the share of such beneficiary shall be transferred to a custodian to be designated by the Trustee under the State’ Uniform Transfers to Minors Act. The custodian shall hold the custodial property under the Act until the minor attains the age of twenty -one (21) years. ARTICLE TWELVE. SPENDTHRIFT PROVISION The interests of the beneficiaries are created for their personal enjoyment, protection and welfare and shall not be susce ptible to assignment, anticipation, hypothecation or seizure by legal process. If the Trustee believes that the interest of a benefi ciary is threatened to be diverted from the purpose for which it was created, the Trustee shall withhold any income and principal which it is authorized to distribute to the beneficiary and shall apply it in such manner as it considers a dvisable for the care, comfort, maintenance, education or general welfare of the beneficiary. Such distributions to the beneficiary may be resumed when the Trustee considers the diversion is no longer effective or threatened. This provision shall not be con strued to extend the term of any Trust . ARTICLE THIRTEEN. BOND AND LIABILITY OF TRUSTEE The Trustee shall not be liable for any loss or depreciation in the value of the Trust estate occurring by reason of error in judgment in making any sale, investment, or reinvestment, or in continuing to hold in Trust any property herewith or hereafter transferred to the Trustee , or any investment or reinvestment hereafter made, unless the Trustee failed to act in good faith or with reasonable care. No Trustee expressl y named herein shall be required to furnish any bond or security for the performance of its duties hereunder. ARTICLE FOURTEEN. RESIGNATION OF TRUSTEE AND APPOINTMENT OF SUCCESSOR A. Any Trustee may resign or decline to act by giving written notice to the current adult income beneficiaries of this Trust . The Settlor shall have the right to remove and replace any Trustee of this Trust during her lifetime. After the death of the Settlor , the childr en of the Settlor then surviving shall have the power to remove the Trustee then acting by a written notice of removal signed by all children of the Settlor other than any child who is then acting as Trustee . B. Upon the resignation, removal, or death of all Trustee s named in this Trust agreement, the children of the Settlor then surviving shall unanimously appoint as Trustee any corporation authorized to administer Trust s or any individual. Ho wever, in the event o f the removal of the acting Trustee , the consent or approval of the removed Trustee shall not be required for appointment of the successor. C. Each successor Trustee shall have the powers and discretions granted in this agreement to its predecessor. No succe ssor Trustee shall have a duty to audit or investigate the administration accounts of a predecessor Trustee . No successor Trustee shall be liable for any act, omis sion, or default of a predecessor Trustee . D. If there is a corporate Trustee and it is merged with or transfers substantial all of its assets to another corporation, or is in any other manner reorganized or reincorporated, then the resulting corporation or transferee corporation shall be the Trustee . ARTICLE FIFTEEN. POWERS OF TRUSTEE The Trustee and any successor Trustee shall have the following powers, duties, and discretion, in addition to those now or hereafter conferred by statute or case law in t he State of Arizona . A. To retain any property as transferred to the Trustee by the Settlor , without liability for any loss, even though the Trustee would not purchase the property as a Trust investment and though to retain it might violate sound investment diversific ation principles. B. To sell at public or private sale, contract to sell, grant options to buy, convey, transfer, exchange, partition, dedicate, lease or grant easements for a t erm within or extending beyond the terms of the Trust , repair, improve, remodel, demolish or abandon, any real or personal property of the Trust . C. To borrow money, and mortgage or pledge Trust property. D. To invest in bonds, common or preferred stoc ks, options, notes, real estate mortgages, common Trust funds, shares of any investment company or Trust , or other securities, and real or personal property. E. To allot to any Trust an undivided interest in property, make joint investments for two or more Trust s hereunder, di stribute property in cash or in kind, or partly in each, and to determine the value of any property so allotted or distributed. F. To exercise in person or by proxy all voting and other rights, powers and privileges, and take all steps to realize all benefits, with respect to stocks or other securities. G. To pay all expenses incurred in the administration of the Trust , including reasonable compensation to the Trustee , and employ and pay reasonable compensation to agents and counsel, including investment counsel. H. To create out of income reasonable reserves for depreciation and depletion. I. To accept additional property from a ny person and administer it as a part of the Trust . J. To deal with the fiduciary of any other estate or Trust , even though the fiduciary is a Trustee hereunder. K. To compromise or abandon any claim or demand in favor of or against the Trust . L. To do all other acts necessary to accomplish the proper management, investment and distribution of the Trust . ARTICLE SIXTEEN. ACCOUNTING TO INCOME BENEFICIARIES AND REMAINDER BENEFICIARIES The Trustee shall render at least annually to the income beneficiaries under this Trust a statement of account showing in detail all receipts, disbursements, and distributions of both principal and income from the Trust since the last such stat ement. Unless the accou nt is objected to in writing within sixty (60) days from its rendition, the account shall be deemed approved as stated. The approval of the account by the beneficiaries, and the guardians or legal representatives of benef iciaries under legal disability, sh all be final and binding on all persons who are then or thereafter may become entitled to share any of the Trust principal or income. ARTICLE SEVENTEEN. DEFINITION OF ISSUE The words child , grandchild , and issue , and other terms indicative of descent, shall exclude adopted persons and shall include only persons legitimately born, except for the following instances: 1. A person adopted while he or she is under the age of eighteen (18) years shall be considered le gitimately born to the adopting parent or parents and shall not be considered an adopted person; 2. A person born out of wedlock shall be considered legitimately born to the natural mother unless a decree of adoption terminates her rights as parent during her life; and 3. A person born out of wedlock shall be considered legitimately born to the natural father only if he: a. Marries the child's natural mother; b. Adopts the child at any time or carries out any legal procedure to confirm the legitimate st atus of the child; or c. Acknowledges in an irrevocable signed instrument delivered to the Trustee while both the child and the natural father are living that the child is to be considered legitimately born for purposes of this instrument. ARTICLE EIGHTEEN. TESTAMENTARY POWER OF APPOINTMENT The Settlor reserves the power to alter the distribution of the remainder interests in this Trust among her descendants or such persons who at any time were married to a descendant of the Settlor , in such proportions and subject to such Trust s, powers, and conditions as the Settlor may provide and appoint in her Last Will and Testament duly admitted to probate, specifically referring to and exercising this power. ARTICLE NINETEEN. IRREVOCABLE TRU ST This Trust may not be amended or revoked by the Settlor . Witness my signature this the __________________ (date) . _________________________ _______________ _______ Name and signature of SE TTLOR State of Arizona County of __ ___ _____________ The foregoing instrument was acknowledged before me this _____ day of _________ ___ ___, 20______ , by _________________________ (Name of Settlor) . _________________________________ NOTARY PUBLIC Print Name: ______________________ My Commission Expires: ____________________ ACCEPTANCE OF TRUSTEE THE UNDERSIGNED, BEING THE TRUSTEE NAMED IN THIS INSTRUMENT, DOES HEREBY AGREE TO ACT IN SUCH CAPACITY AND FURTHER AGREES TO ABIDE BY ALL THE TERMS, CONDITIONS, AND PROVISIONS OF THIS TRUST AGREEMENT. NAME OF TRUSTEE : ____________________________ _________ __________ __________ Signature of Trustee State of Arizona County of _________ __ ______ The foregoing instrument was acknowledged before me this _____ day of ____________, 20______ , by __________________________ (Name of Trustee) . _________________________________ NOTARY PUBLIC Print Name: ______________________ My Commission Expires: ____________________