Special Needs Trust

THE SPECIAL NEEDS TRUST

THIS TRUST AGREEMENT is made this day of , 20 , by and between and , as Grantors and as original co-Trustees.

WITNESSETH:

WHEREAS, we, and , as Grantors, desire to establish, as the original co-Trustees, a trust of the property described on Schedule A attached hereto and made a part hereof, with the expectation and intent that this trust, as further funded from time to time by lifetime and testamentary gifts, will provide for our son, , extra and supplemental care, maintenance, support and education in addition to and over and above the benefits may otherwise receive as a result of his handicap or disability from any local, state or federal government, or from any other public or private agencies, any of which provide services or benefits to or for the benefit of persons who are handicapped or disabled. It is our express purpose that the trust estate be used only to supplement other benefits received by or paid on behalf of .

NOW, THEREFORE, we hereby transfer to the trustees of this trust the property listed on Schedule A;

TO HAVE AND TO HOLD the same and all other property which we, as the co-Trustees, and our Successor Trustee, may at any time hold or acquire (all of which is referred to collectively as the “Trust Estate”);

IN TRUST, NEVERTHELESS, for the following uses and purposes and subject to the terms and conditions set forth.

ARTICLE I

NAME AND BENEFICIARIES OF TRUST

The trust hereby created shall be known as the “ TRUST”. This trust shall be for the benefit of .

ARTICLE II

TRANSFERS TO TRUST

The Trustors and others may transfer property to the corpus of this Trust at any time, including by will. The Trust may receive property from life insurance, designated beneficiary accounts, and other trusts.

ARTICLE III

TRUST ADMINISTRATION AND DISTRIBUTION

A. Expenditures for . The Trustee shall pay to or apply for the benefit of such sums out of the income or principal of the Trust Estate as the Trustee, in the Trustee’s sole discretion, considers necessary or appropriate for special needs.

“Special needs” shall include but not be limited to, spending money, small visual and/or audio equipment for entertainment purposes, vacations, expenses for a traveling companion if requested or necessary, entertainment expenses and transportation costs; provided, however, that the Trustee is under no obligation to expend principal or income for such needs.

B. Duty to Seek Support. We declare that it is our intent, as expressed herein, that because is disabled and unable to maintain and support himself independently, the Trustee shall seek support and maintenance from all available public resources.

C. Undistributed Income. Any net income not distributed by the Trustee shall be accumulated and added to principal.

D. Non-Productive Property. The Trustee may invest in and hold property that is used as the principal residence, furniture, automobile, and other items meeting the “special needs” of despite the fact that such property is nonproductive of income.

E. Restriction on Corpus. It is further our intention that no part of the corpus of the trust created herein shall be used to supplant or replace public assistance benefits.

F. Provisions on Termination. In the event that it is determined that this trust renders ineligible to receive any governmental assistance benefits, then the Trustee shall terminate this trust and distribute the remaining principal and accrued income.

G. Payment of Death Expenses. Upon the death of the Trustee, in the Trustee’s discretion, may pay all or a portion of any one or more of the expenses of ’s last illness, funeral, burial, administration, probate and taxes.

H. Final Distribution. Upon the death of , the undistributed balance of his trust shall thereupon be distributed, subject to Article V, in equal shares to designated remainder beneficiaries.

ARTICLE IV

FAILURE OF DESCENDANTS

If there shall be a time when assets remain in any trust for which, but for this article, no beneficiary is living, then at such time the Trustee shall distribute such assets to our then living heirs-at-law.

ARTICLE V

BENEFICIARIES UNDER AGE 21

If any beneficiary is under the age of 21 years, the portion to which such beneficiary would otherwise have been entitled shall be distributed to the Trustee to be held in trust for the benefit of such beneficiary.

ARTICLE VI

STATEMENT OF INTENT

A. Priority and Guidance. In making investments and discretionary distributions for beneficiaries, the Trustee may be guided by the following examples of possible distributions of property.

1. Support. Distributions for support may include food, clothing, transportation, shelter and similar needs.

2. Medical Care. Distributions for medical care may include medical insurance, medical and dental fees, equipment and drugs, hospital and nursing home care, private nurses and companions, and psychiatric care and counseling.

3. Education. Distributions for education may include attendance at preparatory, religious, undergraduate, graduate, professional and vocational schools, and may include tuition, room, board, books, transportation and other living and incidental expenses.

4. Best Interests. Distributions for the best interests of a beneficiary may include distributions to enable a beneficiary to purchase an automobile, make a down payment on a home, travel, or make gifts to descendants or for charitable purposes.

B. Consideration of Beneficiary’s Resources and Tax Consequences. The Trustee may consider the income and resources of such beneficiary from all sources known to the Trustee, and the tax consequences resulting from any decision to accumulate or to distribute income or principal.

ARTICLE VII

TRUSTEES

A. Appointment of Successor Trustees. If we shall both resign or otherwise fail to act as the Trustee, then shall serve as Trustee.

If shall be removed, resign or otherwise fail to act as the Trustee of any trust, then shall serve as a Trustee.

B. Resignation and Removal of Trustees. A Trustee may resign at any time, without cause, by executing and delivering to the other Trustees a written instrument to that effect.

C. Accountings. Upon the written request of any income beneficiary, the Trustee shall furnish such beneficiary with an account showing the receipts, disbursements and inventory of such trust since the most recent account for such trust.

D. Title. The title to the Trust Estate of any trust shall vest forthwith in any successor Trustee.

E. Approval of Accounts. With the approval of a majority in number of the income beneficiaries, a successor Trustee may accept the account rendered by and the property received from a predecessor Trustee.

F. Exoneration of Trustees for Acts of Others. No Trustee shall be liable for the acts or failures to act of any agent appointed with due care.

G. Exoneration of Trustees. No Trustee acting in good faith shall be liable for any loss, liability, expense or damage to the trust estate of any trust occasioned by such Trustee's acts or failures to act.

H. Waiver of Qualification and Bond. No Trustee shall be required to qualify or take an oath before any court or public official. No bond or other security shall be required.

I. Compensation. Any corporate Trustee shall be entitled to compensation for services. Any individual Trustee shall be entitled to reasonable compensation. Any child of mine shall serve without compensation.

J. Authority of Representative. Whenever a beneficiary is under a legal disability, the guardian of such beneficiary’s estate or person shall receive all notices and accounts and execute all receipts.

ARTICLE VIII

TRUSTEE’S RIGHTS AND DISCRETIONS

A. Rights and Discretions. We give to the Trustee the rights and discretions set forth below.

1. Retention of Real Estate Holdings. We hereby specifically authorize the retention of any real estate holding which we own or which is held by this Trust at our death.

2. Foreclosure of Mortgages. To foreclose, as an incident to the collection of any bond or note, any deed of trust or mortgage securing such bond or note.

3. Creation of Land Trusts. To convey real estate to Trustees under trust agreements relating to real estate.

4. Lending of Funds. To lend money to our estate, to any beneficiary or to any other person, upon such terms and with such security, if any, as the Trustee considers advisable.

5. Borrowing of Funds. To borrow funds from any person and to secure any such loan by mortgage, deed of trust or pledge.

6. Obligations. To renew or extend the time of payment of any obligation, including taxes, and to pay, adjust, settle, compromise, arbitrate or contest any claim or demand.

7. Depreciation. To establish or not to establish reasonable reserves for rehabilitation, major repairs, replacements and losses in value.

8. Consent to Reorganizations. To consent to the reorganization, consolidation, merger, dissolution or liquidation of any corporation in which such trust may have any interest.

9. Division and Allocation of Assets. To make division or distribution in kind, or partly in kind and partly in money, and to allocate or distribute undivided interests or different assets.

10. Location of Assets and Situs of Trust. To keep any property at any place or places in the United States or abroad, and to change the situs of any trust.

11. Bank Accounts. To open and maintain one or more checking or savings accounts with any bank or financial institution.

12. Abandonment of Property. To abandon any property which the Trustee considers to be worthless or not of sufficient value to warrant keeping or protecting.

13. Insurance. To carry insurance against such hazards, including public liability, in such amounts as the Trustee considers advisable.

14. Accumulations of Income. To exercise all rights, powers and discretions with respect to all accumulations of income held in such trust.

15. Termination of Trusts. To exercise all rights, powers and discretions after the termination of such trust and until the same is fully distributed.

16. Determination of Income and Principal. To determine the manner of ascertainment of income and principal and the allocation or apportionment between income and principal of all receipts and disbursements.

17. Appointment of Special Trust. To appoint or remove from time to time by written instrument any individual or qualified corporation as special Trustee.

18. Nonliability for Compliance with Environmental Laws. The Trustee shall not be personally liable for claims arising from compliance with environmental laws.

19. Refusal of Addition. To decline to make the addition of property directed to be added to any trust and to instead administer the property as a separate trust.

20. All Necessary Acts. To perform all other acts which the Trustee considers advisable for the advantageous management, investment and distribution of such trust.

B. Merger of Trusts. If at any time the Trustee is holding any trust for the primary benefit of any persons, the Trustee may consolidate such trusts and hold them as a single trust.

C. Small Trust Termination. If the value of any trust does not warrant the cost of continuing the same in trust, the Trustee may distribute the remaining principal and accrued and undistributed income equally to the remainder beneficiaries.

D. Individual as Trustee. Whenever an individual is serving as a Trustee, he or she shall not make or participate in certain Trustee decisions involving self-benefit or early termination.

ARTICLE IX

PERPETUITIES

Any trust which has not vested within 21 years after the death of the last of us to die shall not be held in further trust, but at the expiration of that period shall be distributed, absolutely and in fee simple, equally to the income beneficiaries.

ARTICLE X

EXONERATION OF THIRD PERSONS

No person dealing with any Trustee shall be responsible for the application of any purchase money or other thing of value paid or delivered to it and a receipt of any Trustee shall be effective to fully discharge and release any such person from all liabilities.

ARTICLE XI

PROTECTION FROM CLAIMS

Except as provided below, to the extent permitted by law, no income or principal distributable or to become distributable shall be subject in any manner to being anticipated, assigned, charged, encumbered or transferred by any person deriving any right thereto.

ARTICLE XII

VIRGINIA TRUSTEES

If at any time any Trustee designated or appointed is not a resident of Virginia, then the Trustee shall serve as the Trustee and appoint a Virginia resident as Special Trustee.

ARTICLE XIII

REVOCABILITY AND BINDING EFFECT OF AGREEMENT

This Trust Agreement shall be revocable and shall extend to and be binding upon our executors and representatives.

ARTICLE XIV

MISCELLANEOUS PROVISIONS

A. Counterparts and Copies. This Trust Agreement may be signed in several counterparts each of which shall have the rank and dignity of an original.

ARTICLE XV

CONSTRUCTION PROVISIONS

A. Trustees. The terms “Trustee” and “Trustees” mean the person or persons, whether named herein or selected in any other manner, acting as such from time to time.

B. Descendants. The term “descendants” means children and more remote lawful descendants of the designated ancestor.

C. Income Beneficiaries. The terms “income beneficiary” and “income beneficiaries” mean the person or persons who receive, or in the Trustee’s discretion may receive, the net income of a trust.

D. Gender and Number. The masculine, feminine and neuter genders shall be considered to include all genders, and the singular, the plural and vice versa.

E. Per Stirpes Distribution. Whenever property is required to be distributed per stirpes, the stirpes shall begin with the children of such designated person.

F. Survivorship. A person shall be considered to have predeceased and not to have survived another if he or she shall die within 30 days after the death of such other person.

G. Governing Law. All questions pertaining to the validity, construction and administration of this Trust Agreement shall be determined in accordance with the laws of the Commonwealth of Virginia.

H. Headings. The headings are inserted solely for convenient reference and shall be ignored in the construction of this Declaration of Trust.

STATE OF VIRGINIA, CITY/COUNTY OF , to-wit:

The foregoing instrument was acknowledged before me this day of , 20 , by and as Grantors and co-Trustees.

SPECIAL NEEDS TRUST

SCHEDULE A

1. $10.00 cash.

2. Real estate as listed on attached deed.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.