REVOCABLE LIVING TRUST AGREEMENT
THIS REVOCABLE LIVING TRUST AGREEMENT, (hereinafter Trust ), is being made
on this the ______day of________________________, 20_____, by and between
___________________________________ (Name of Settlor) of ___________________
(Name of County) County, State of Connecticut, hereinafter referred to as the Settlor ,
whether one or more, and the Trustee designated below and shall be governed and
administered in accordance with the following terms and provisions:
ARTICLE I
NAME OF TRUST
1. NAME OF TRUST: This trust may be referred to as THE __________________
___________________ (Name) REVOCABLE LIVING TRUST.
ARTICLE II
IDENTIFICATION
2. SETTLOR AND BENEFICIARY: The Settlor of this trust is
_________________________________ (Name of Settlor) , who presently resides at
________________________________________________________________________
(street address, city, county, state, zip code) . The Beneficiary of the Trust during the
lifetime of the Settlor is _____________________________________ (Name of Settlor) ,
the Settlor .
ARTICLE III
TRUSTEE APPOINTMENT
3. TRUSTEE APPOINTMENTS: T he Settlor hereby appoints
______________________________ (Name of Settlor) , the Settlor , as Trustee of this
Trust. If the Settlor is unable to serve as Trustee for any reason, then the Settlor hereby
appoints ________________________________________ (Name of Successor Trustee)
as Successor Trustee. If neither the first or second Trustee is able to serve as Trustee for
any reason, then the Settlor hereby appoints ___________________________________
(Name of Alternate Successor Trustee) as Successor Trustee. The Trustee shall have all
powers as provided in this agreement and the laws of the State of Connecticut. The
principal place of administration of this trust is the Settlor’s place of residence, regardless
of the residence of the Trustee. Any power vested in three or more trustees may be
exercised by a majority, but a trustee who has not joined in exercising a power is not
liable to the beneficiaries or to others for the consequences of the exercise, and a
dissenting trustee is not liable for the consequences of an act in which he or she joins at
the direction of the majority of the trustees if the dissenting trustee expressed his or her
dissent in writing to any of his or her co-trustees at or before the time of the joinder. If
two or more trustees are appointed to perform a trust and any of them is unable or refuses
- 1 -
to accept the appointment or, having accepted, ceases to be a trustee, the surviving or
remaining trustees shall perform the trust and succeed to all the powers, duties, and
discretionary authority given to the trustees jointly. In the event a vacancy in the office of
Trustee occurs and there is no successor trustee, the existing Trustee, if one, and the
beneficiaries, or the beneficiaries, if there is no trustee, may agree to a non-judicial
change in the trustee by amendment to this Trust agreement.
ARTICLE IV
ASSETS OF TRUST
4. ASSETS OF TRUST: All rights, title, and interest in and to all real and personal
property, tangible or intangible, listed on the attached Exhibit A, is hereby assigned,
conveyed and delivered to the Trustee for inclusion in this Trust.
5. ADDITIONS TO TRUST PROPERTY: Additional property may be conveyed
to the Trust by the Settlor or any other third party at any time. Settlor may execute such
other documents as is necessary to effectuate the assignment of property to this Trust.
6. RIGHTS TO TRUST ASSETS: Except as specifically provided herein, the
Beneficiaries of this trust shall have no rights to any assets of the trust.
7. HOMESTEAD EXEMPTION: Settlor reserves the right to use, occupy and
reside upon any real property placed in this Trust as their permanent residence during
their lives. Settlor shall have the right to reside in the property rent free and without
charge except for the payment of the following: (1) all mortgages costs and expenses (2)
all property taxes, and (3) reasonable expenses of upkeep and maintenance. Settlor shall
retain the legal right to use and benefit from the property in all respects. It is the intent of
this provision to retain for the Settlor the requisite beneficial interest and possessor right
in and to such real property needed to retain their qualification for any exemption, freeze
of tax rates and/or valuation granted to any individual or individuals so qualifying.
ARTICLE V
TRUSTEE POWERS AND OTHER PROVISIONS
8. POWERS: The Settlor does hereby grant to the Trustee all powers necessary to
deal with any and all property of the Trust as freely as the Settlor could do individually.
The Trustee shall at all times and in all actions act as a fiduciary in good faith. Trustee is
hereby granted all powers contained herein and all powers conferred upon Trustee under
the applicable statutes and laws of the State of Connecticut, to the broadest extent
possible, including, but limited to all of the powers authorized by Connecticut Code
Section 45a-234 and 45a-235. All powers granted to the Trustee by this Trust Agreement
are ministerial in nature and are not intended to create or alter substantial rights. Without
limiting the foregoing general statement of powers, the Trustee powers include, but shall
not be limited to the following:
- 2 -
(A) TRUST ASSETS : The Trustee is hereby authorized and granted all
powers necessary to retain as a permanent investment of the Trust, or for
such time as the Trustee shall deem advisable, the original assets of the
Trust and all other property later transferred, devised or bequeathed to the
Trustee, without liability for loss or depreciation resulting from such
retention.
(B) NONPRODUCTIVE ASSETS: The Trustee is hereby granted all powers
and authority necessary to hold uninvested cash, and to retain, acquire, and
hold unproductive realty or personalty for any periods deemed advisable
by the Trustee, even though the total amount so held is disproportionate
under trust investment law or would not be permitted without this section.
(C) INVESTMENT POWERS: The Trustee is hereby granted all powers
necessary to invest and reinvest any and all of the property of the Trust in
any and all types of property, security or other asset deemed by the
Trustee to be in the best interests of the Trust as a whole, without
limitation or regard to yield rates or income production.
(D) SECURITIES: The Trustee is specifically authorized, in his or her
discretion, to maintain brokerage margin accounts, to buy, sell or transfer
options, warrants, puts, calls, commodities, futures contracts, and
repurchase contracts, and to exercise any options, rights, and conversion
privileges pertaining to any securities held by the Trustee as Trust assets.
(E) ADDITIONAL PROPERTY: The Trustee is specifically authorized to
receive additional property from any source and to hold and administer
this property as part of the Trust Estate.
(F) SELL AND LEASE: The Trustee is hereby granted all powers necessary
to sell, convey, lease, transfer, exchange, grant options to purchase or
otherwise dispose of any Trust asset on any terms deemed by the Trustee
to be in the best interests of the Trust, to execute and deliver deeds, leases,
bills of sale, and other instruments of whatever character, and to take or
cause to be taken all action deemed necessary or proper by the Trustee in
furtherance of this authority.
(G) INSURANCE: The Trustee is specifically authorized to insure Trust
property and assets with any insurer against any hazards, foreseeable or
unforeseeable, including public liability, and to use insurance proceeds to
repair or replace the asset insured, at the discretion of the Trustee. In
addition, the Trustee may carry or purchase life insurance on the life of
any Trust beneficiary, and may exercise or release any rights with regard
to such policy.
- 3 -
(H) BORROWING AND LENDING: The Trustee is specifically authorized
to lend Trust funds to any borrower, on any terms deemed advisable, and
to change the terms of these loans at any time and for any reason. This
authorization includes the power to extend loans beyond maturity with or
without renewal and without regard to the existence or value of any
security, and to facilitate payment, to change the interest rate, to consent to
the modification of any guarantee, and to forgive loans in their entirety.
The Trustee is further granted all powers necessary to borrow whatever
money the Trustee deems desirable for any Trust on any terms from any
lender, and to mortgage, pledge or otherwise encumber as security any
assets of the borrowing Trust.
(I) MODIFICATION OF TERMS: The Trustee is specifically authorized,
incident to the exercise of any power, to initiate or change the terms of
collection or of payment of any debt, security, or other obligation of or
due to any Trust, upon any terms and for any period, including a period
beyond the duration or the termination of any or all Trusts.
(J) CLAIMS: The Trustee is hereby granted all powers necessary to
compromise, adjust, arbitrate, sue on, defend, or otherwise deal with any
claim, upon whatever terms the Trustee deems advisable, against or in
favor of any Trust, and to abandon any asset the Trustee deems of no
value or of insufficient value to warrant keeping or protecting. The
Trustee is further authorized, in his or her sole and absolute discretion, to
refrain from paying taxes, assessments, or rents, and from repairing or
maintaining any asset; and to permit any asset to be lost by tax sale or
other proceeding.
(K) DISTRIBUTIONS: The Trustee is specifically authorized to distribute
any shares of the Trust in cash or in property, or partly in each, and the
Trustee's valuations of and selection of assets upon making distribution
shall, if made in good faith, be final and binding on all beneficiaries.
(L) NOMINEE: The Trustee is specifically authorized to hold any or all of
the Trust assets, real or personal, in the Trustee's own name, the name of
any Co-Trustee, corporation, partnership, or any other person as the
Trustee's nominee for holding the assets, with or without disclosing the
fiduciary relationship. A corporate Trustee does hereby have the power
necessary to appoint a Trustee to administer property in any jurisdiction in
which it shall fail to qualify.
(M) FORECLOSURE: The Trustee is specifically authorized to foreclose on
any mortgage, to bid on the mortgaged property at the foreclosure sale, or
acquire mortgaged property from the mortgagor without foreclosure, and
- 4 -
to retain or dispose of the property upon any terms deemed advisable by
the Trustee.
(N) ENCUMBRANCES: The Trustee may pay off any encumbrance on any
Trust asset and may invest additional amounts of money in the asset, as
the Trustee deems appropriate, to preserve the asset or to increase its
productivity.
(O) VOTING: The Trustee may vote stock for any purpose, either in person
or by proxy, may enter into a voting trust, and may participate in corporate
activities related to a trust in any capacity as permitted by law, including
service as officer or director.
(P) REORGANIZATION: The Trustee is hereby granted all powers
necessary to unite with other owners of property similar to any property
held in this Trust in carrying out the foreclosure, lease, sale, incorporation,
dissolution, liquidation, reincorporation, reorganization, or readjustment of
the capital or financial structure of any association or corporation in which
any Trust has a financial interest; to serve as a member of any protective
committee; to deposit Trust securities in accordance with any plan agreed
upon; to pay any assessments, expenses, or other sums deemed expedient
for the protection or furtherance of the interests of the beneficiaries; and to
receive and retain as Trust investments any new securities issued pursuant
to the plan, even though these securities would not constitute authorized
Trust investments without this provision.
(Q) PURCHASE FROM ESTATE OR TRUST: The Trustee is specifically
authorized to purchase property of any type, whether real or personal,
from a Settlor or beneficiary's estate or Trust for their benefit upon such
terms and conditions, price and terms of payment as the Trustee and the
respective personal Representative shall agree upon, and may hold any
property so purchased in Trust although it may not qualify as an
authorized Trust investment except for this provision, and may dispose of
such property as and when the Trustee shall deem advisable.
(R) ASSISTANTS AND AGENTS: The Trustee is hereby granted all powers
necessary to employ any person or persons the Trustee deems advisable
for the proper administration of any Trust, including but not limited to:
attorneys-at-law, accountants, financial planners, brokers, investment
advisors, realtors, managers for businesses or farms, technical consultants,
attorneys-in-fact, agents and any other consultants and assistants.
(S) RESERVES: The Trustee is hereby authorized to set aside and maintain
reserves for the payment of present or future expenses, including but not
limited to: taxes, assessments, insurance premiums, debt amortizations,
repairs, improvements, depreciation, obsolescence, maintenance, fees,
- 5 -
salaries and wages, as well as to provide for the effects of fluctuations in
gross income, and to equal or apportion payments for the benefit of
income beneficiaries under the Trust.
(T) MANAGEMENT OF REALTY: The Trustee is specifically authorized
to deal with real and personalty, including oil, gas, and mineral rights in
any manner lawful to an owner on any terms and for any period, including
periods beyond the duration or termination of any Trusts.
(U) BUSINESS: With respect to any business that is part of or may become
part of any Trust, no matter how such business may be organized, the
Trustee is hereby granted the authority to:
a. hold, retain and continue to operate such business solely at the risk of
the Trust estate and without liability to the Trustee for any resulting
losses;
b. incorporate, dissolve, liquidate, or sell such business at any time and
upon any terms as the Trustee deems advisable. In exercise of this
authority, the Trustee may obtain a qualified appraisal, although the
Trustee is not obligated in any way to seek other offers in contracting
for sale to any person including another shareholder, trust, or
beneficiary; mortgage, pledge or otherwise encumber any assets of any
Trust to secure loans for any business purposes;
c. engage in the redemption of stock and to take such actions as are
necessary to qualify the redemption under IRC Sections 302 or 303
and the applicable requirements of state law.
d. create a special lien for the payment of deferred death taxes under IRC
Section 6324, or similar provisions of state law.
e. create, continue, or terminate an S-Corporation election.
Except as otherwise provided herein by provisions inconsistent therewith, the Trust shall
be administered by the Trustee in accordance with the provisions of the Revised Uniform
Income and Principal Act, 45a-542 through 45a-542ff.
9. AUTHORITY TO ACT: The approval of any court, the Settlor, or any
beneficiary of any Trust created by this Trust shall not be required for any dealings with
the Trustee of this Trust, and any person so dealing with the Trustee of this Trust shall
assume that the Trustee has the same power and authority to act as any individual does in
the management of his or her own affairs. Further, upon presentation of a copy of this
page and any other page of this Trust, any person shall accept same as conclusive proof
of the terms and authority granted by this Trust, and shall assume that no conflicting
terms or directions are contained in any of the omitted pages.
- 6 -
ARTICLE VI
TRUST ADMINISTRATION DURING LIFE OF SETTLOR
10. MANAGEMENT OF TRUST PROPERTY: All property of the Trust shall be
managed by the Trustee at the direction of the Settlor . The Trustee shall collect all
income of the Trust, and shall pay from the income such amounts and to such persons as
the Settlor may from time to time direct. In the absence of direction from the Settlor , the
Trustee may accumulate the net income of the Trust, or may disburse any portion of the
net income to or for the benefit of the Settlor . The Trustee is also authorized to pay from
the principal of this Trust any and all amounts necessary for the health or maintenance of
the standard of living of the Settlor .
11. INCAPACITY OF SETTLOR: During any period of incapacitation of the
Settlor , as defined by this Trust Agreement, the Successor Trustee may apply or expend
all or a part of the income and principal of this Trust, or both, for the health and
maintenance of the Settlor , in his or her accustomed manner of living. Provided sufficient
resources exist for the care and maintenance of the Settlor , during any period of
incapacity of the Settlor , the Successor Trustee is further authorized to make distributions
to or for the benefit of any issue of the Settlor who has no other financial resources and
who requires said distribution for their health or support. The Successor Trustee shall
consider all financial resources available to a beneficiary, including, but not limited to,
the ability of said beneficiary and his or her spouse, if any, to earn a living prior to
making an invasion of this Trust. Under no circumstances may a Successor Trustee
exercise this power for his or her own benefit.
12. RESERVATION OF RIGHTS: Except during periods of incapacitation as
defined by this Trust Agreement, upon delivery to the Trustee of a written instrument,
signed and acknowledged by the Settlor , the Settlor does herby reserve during his or her
lifetime the following rights:
(A) To revoke this Trust Agreement in its entirety and to
recover any and all remaining property of the Trust after payment of all
Trust administration expenses,
(B) To alter or amend this instrument in any and every
particular at any time and from time to time,
(C) To change, at any time and from time to time, the
identity or number, or both, of the Trustee and/or Successor Trustee,
(D) To withdraw from the operation of this Trust, at any
time and from time to time, any or all of the Trust property.
ARTICLE VII
- 7 -
DISTRIBUTIONS DURING LIFETIME OF SETTLOR
13. GENERAL DISTRIBUTIONS: The following options are available to the
Trustee regarding the distribution of principal or income to or for a beneficiary:
(A) Payments may be made directly to the beneficiary as an allowance, in such
amounts as the Trustee may deem advisable;
(B) Payments may be made to the Guardian of the beneficiary.
(C) Payments may be made to a relative of the beneficiary upon the agreement
of such relative to expend such income or principal solely for the benefit
of the beneficiary. Said agreement may include a custodianship under the
Uniform Transfers (or Gift) to Minors Act of any state.
(D) The Trustee may expending such income or principal directly for the
beneficiary. After making a distribution as provided above, the Trustee
shall have no further obligation regarding the distribution.
(E) In making distributions of income or principal, the Trustee shall be
mindful of the Beneficiaries health, education, support, maintenance,
comfort and general welfare needs.
14. RESIDENCE: A residence may be purchased or otherwise obtained by the
Trustee for the benefit of an income beneficiary of any Trust for use by the beneficiary
and his or her family. Rent shall not be charged to said beneficiary and expenses of
maintaining such residence may be borne by the Trust, the beneficiary, or partly by each,
as the Trustee may deem proper.
15. OTHER PAYMENTS: At the request of any Settlor in writing, the Trustee shall
make lump sum or periodic payments to any third party designated by such Settlor .
ARTICLE VIII
TRUST ADMINISTRATION AFTER SETTLOR’S DEATH
16. TRUSTEE: Upon the death of the Settlor , the Successor Trustee shall continue
to administer the assets of this Trust, as well as any other property received by this Trust
from any source, and shall distribute said assets as provided herein.
17. BENEFITS PAYABLE TO TRUST: Upon the death of the Settlor , the Trustee
is hereby authorized to take any and every action necessary to collect any and all benefits
payable to the Trust, including but not limited to proceeds from life insurance policies,
retirement plans, or IRA’s. The Trustee is further authorized to collect any and all tax
refunds, health insurance proceeds, refunds under any contract, death benefits, or any
other item payable to the Settlor ’ s estate.
- 8 -
18. LIABILITIES OF SETTLOR’S ESTATE: Prior to the distribution of any
assets of this Trust, the Trustee may, at his or her sole and absolute discretion, pay to the
Settlor estate, from the principal or income of the Trust, any or all of the Settlor Just
debts, funeral expenses, and administration expenses of the Settlor ’ s estate.
Alternatively, the Trustee may, but is not obligated to, pay such expenses directly.
19. TAXES: Upon the death of the Settlor , a ll estate and inheritance taxes that
become due and payable upon all of the property comprising the Settlor’s gross estate,
without regard to how such property passes, shall be paid by the Trustee either to the
probate estate of the Settlor or to the appropriate tax agency. The Trustee shall have the
right of contribution as provided by Section 2207 and 2207A IRC, if applicable.
20. ADDITIONAL DISTRIBUTIONS: The Trustee is hereby authorized to pay to
the probate estate of the deceased Settlor as much of the income and principal of this
Trust as the Trustee deems necessary for any purpose, in addition to the other
distributions provided for in this Trust.
21. GIFTS: The Trustee shall, upon the death of the Settlor , make such gifts of the
tangible personal property of the Settlor held or acquired by this Trust as may be directed
by the Settlor ’s Will or any list, letter, or other writing of the Settlor permitted by the
Will of the Settlor , or as may be directed by a list, letter or other writing designated as
Schedule B of this Trust, whenever made. All costs of storing, packing, shipping and
insuring such gifts shall be paid by the Trust.
ARTICLE IX
SETTLOR’S DEATH
22. DISTRIBUTIONS UPON DEATH OF SETTLOR: Upon the death of the
Settlor , the following distributions shall be made from the property of this Trust after
payment of the Settlor ’ s just debts, funeral expenses, expenses of any last illness, and the
other distributions otherwise provided for in this Trust:
A. T he sum of ___________________________________Dollars ($____________)
shall be held in trust by said Trustee for the benefit of my surviving spouse
________________________ (name of spouse) . Said Trustee shall pay to
____________________________________ (name of spouse) during his lifetime, all of
the income of the trust in quarterly installments.
1. Upon the death of ______________________________ (name of spouse) ,
said sum that was being held in trust for _________________________________
(name of spouse) shall be held in trust by said Trustee for the benefit of two of
my children _______________________________________________________
_________________________________________ (names of children) . Said
Trustee shall pay to said two children, in equal amounts during their lifetime, all
of the income of the trust in quarterly installments. In the event the income from
this trust and the income from sources other than this trust are insufficient to pro -
- 9 -
vide for their support, maintenance and medical needs, the Trustee in its
discretion may pay to my said children out of the principal of the trust such
additional sum or sums as the Trustee shall deem neces sary for such purposes.
Upon the death of one child, the remaining child shall be the sole beneficiary.
2. Upon the death of both of said children, the entire remaining corpus and
all accrued income of this trust shall be turned over outright to, and divided
equally between the following charitable organizations:
List Charitable Organizations
B. All of the rest, residue and remainder of the assets in this Living Trust shall pass
at Settlor’s death to an educational trust for the benefit of _________________________
________________________________________________________________________
___________________________________________ (list names of beneficiaries) in the
trust form attached hereto as Exhibit B and made a part hereof by reference thereto.
C. The Trustee for any trust set up pursuant to this Article IX shall have the same
rights and powers as trustees under this trust instrument.
ARTICLE X
TRUSTEE PROVISIONS
24. THIRD PARTIES: Any person dealing in good faith with the Trustee shall deal
only with the Trustee and shall presume the Trustee has full power and authority to act on
behalf of the Trust. Court confirmation or approval of any beneficiary shall not be
required for any transaction with the Trustee. No Trustee of this trust shall be personally
liable for contracts entered into on behalf of the trust unless the Trustee fails to reveal his
or her representative capacity and identify the trust estate in the contract. Further, the
Trustee shall not be personally liable for contracts or torts in connection with the
administration of the trust unless the Trustee is personally at fault.
25. COMPENSATION: Any beneficiary of this Trust serving as Trustee shall do so
without compensation for his or her services, except that the Trustee shall be reimbursed
for reasonable expenses incurred in the administration of the Trust. Any Trustee not a
beneficiary hereunder shall be compensated at the rate customarily charged by
commercial trust companies for services as a trustee of an inter vivos trust in the State of
Connecticut, unless such compensation is waived by the Trustee.
26. BOND AND QUALIFICATIONS: Bond shall not be required of the Trustee or
any Successor Trustee. The Trustee and any Successor Trustee shall not be required to
qualify in any court and is hereby relieved of the requirement of filing any document and
accounting in any court or beneficiary.
27. SUCCESSOR TRUSTEE(S): No Successor Trustee shall be responsible for
acts of any prior Trustee. In the event a vacancy in the office of Trustee occurs and there
- 10 -
is no successor trustee, the existing Trustee, if one, and the beneficiaries may agree to a
non-judicial change in the trustee by amendment to this trust agreement. No person shall
be required to apply to any court in any jurisdiction for confirmation of said appointment.
A successor trustee of a trust shall succeed to all the powers, duties and discretionary
authority of the original trustee. Any appointment of a specific bank, trust company, or
corporation as trustee is conclusively presumed to authorize the appointment or continued
service of that entity's successor in interest in the event of a merger, acquisition, or
reorganization, and no court proceeding is necessary to affirm the appointment or
continuance of service.
28. REMOVAL OF SUCCESSOR TRUSTEES: A Successor Trustee may be
removed by the last individual to serve as Trustee; however, if that person is deceased or
incapacitated, the Successor Trustee may be removed by a majority vote in interest in
Trust income. Said removal must be in writing, stating the reasons for removal and
indicate the successor Trustee, which must be a corporate trustee.
Removal of a Successor Trustee shall be permitted only for the convenient administration
of the Trust and not for the purpose of influencing the exercise of the discretionary
powers of a Successor Trustee as granted by this instrument.
Removal of a Successor Trustee shall be effective upon delivery of the notice of removal.
The removed Trustee shall have a reasonable period of time to transfer assets to his or her
successor. In the event the successor Trustee believes that his or her removal is improper,
he or she may, but shall not be required to, apply to a court of competent jurisdiction, at
his or her expense, for a declaration of the propriety of the removal. In that event, the
removal shall be effective only upon the order of said court and after any appeal. In the
event the Successor Trustee prevails, he or she shall be entitled to reimbursement from
the Trust for reasonable costs and attorneys fees associated with such action.
29. DELEGATION OF POWERS: Any management function of any Trust may be
delegated by any Trustee to any Successor Trustee, even if such Successor Trustee is not
then serving as Trustee. The terms of such delegation of power shall be any conditions
agreed to by the Trustees which are not detrimental to the Trust. Provided, however, that
the Trustee shall not delegate ALL of the trustee’s duties and responsibilities.
30. LIMITED AMENDMENT POWER: The Trustee shall enjoy a limited power
to amend management functions of this Trust only as may be required to facilitate the
convenient administration of this Trust, to deal with the unexpected or the unforeseen, or
to avoid unintended or adverse tax consequences. Any amendment under this provision
shall be in writing and must be consented to by the Settlor , if not then deceased or
incapacitated, or the beneficiaries of any Trust if the Settlor is deceased or incapacitated.
The amendment may be retroactive. This limited power to amend shall not affect the
rights of any beneficiary to enjoy Trust income or principal without the consent of said
beneficiaries. The dispositive provisions of any Trust shall not be affected by this limited
power to amend, and such power shall not be exercisable in such any manner as to create
gift, estate, or income taxation to the Trustee or any beneficiary. No amendment shall
- 11 -
affect the rights of third persons who have dealt or may deal with the Trustee without
their consent.
31. RESIGNATION OF TRUSTEE: Any Trustee may resign by writing filed
among the trust papers effective upon the trustees’ discharge. The resigning Trustee, or
other interested party, shall provide notice to all adult income beneficiaries and other
adult beneficiaries of the Trust. The resignation shall be effective upon agreement of all
parties entitled to notice, or thirty days after notice, whichever occurs first.
32. NONLIABILITY FOR ACTION OR INACTION BASED ON LACK OF
KNOWLEDGE OF EVENTS. When the happening of any event, including but not
limited to such events as marriage, divorce, performance of educational requirements, or
death, affects the administration or distribution of the trust, a trustee who has exercised
reasonable care to ascertain the happening of the event is not liable for any action or
inaction based on lack of knowledge of the event. A corporate trustee is not liable prior to
receiving such knowledge or notice in its trust department office where the trust is being
administered.
33. TRUSTEE AS BENEFICIARY . A trustee who is also a beneficiary of the trust
may exercise powers to make:
(1) Discretionary distributions of either principal or income to or for the benefit of the
trustee;
(2) Discretionary allocations of receipts or expenses as between principal and
income; or
(3) Discretionary distributions of either principal or income to satisfy a legal
obligation of the trustee.
34. WAIVER OF ACCOUNTING. Except as otherwise provided herein, neither
this trust, nor any Trustee, shall be required to provide an accounting to any Beneficiary.
ARTICLE XI
TRUST ADMINISTRATION
35. ALLOCATION TO PRINCIPAL AND INCOME – SEPARATE TRUSTS:
All expenses and all receipts of money or property paid or delivered to the Trustee may
be allocated to principal or income in the sole discretion of the Trustee. The Trustee, in a
reasonable and equitable manner, shall also have the discretion to allocate, in whole or in
part:
(A) Expenses of administration of the Trust to income or principal.
(B) Fees of the Trustee to income or principal.
- 12 -
(C) Any expense of Trust administration or administration of its assets which
are deductible for Federal Income Tax purposes to income.
(D) The gains or losses from option trading, and capital gains distributions
from utility shares, on mutual funds, or tax managed funds to income; and
(E) To income or principal, distributions from qualified or non-qualified
pension plans, profit sharing plans, IRA accounts or deferred
compensation arrangements.
To the extent that division of any Trust is directed, the Trustee may administer any Trust
physically undivided until actual division becomes necessary. Further, the Trustee may
add the assets of the Trust for any beneficiary to any other trust for such beneficiary
having substantially the same provisions for the disposition of trust income and principal,
whether or not such trust is created by this agreement. The Trustee may commingle the
assets of several trusts for the same beneficiary, whether or not created by this agreement,
and account for whole or fractional trust shares as a single estate, making the division
thereof by appropriate entries in the books of account only, and to allocate to each whole
or fractional trust share its proportionate part of all receipts and expenses; provided,
however, this carrying of several trusts as a single estate shall not defer the vesting of any
whole or fractional share of a trust for its beneficiary at the times specified.
36. ALIENATION: Excepting the Settlor , n o income or principal beneficiary of any
Trust shall have any right or power to anticipate, pledge, assign, sell, transfer, alienate or
encumber his or her interest in the Trust, in any way. No interest in any Trust shall, in
any manner, be liable for or subject to the debts, liabilities or obligations of such
beneficiary or claims of any sort against such beneficiary.
37. TERMINATION OF TRUST: Should the aggregate principal of any Trust at
any time be valued at Twenty Thousand Dollars ($20,000) or less, the Trustee may, in his
or her sole discretion, terminate such Trust and distribute the assets of the Trust to the
beneficiaries in proportion to each beneficiary’s share of the Trust.
38. ELECTIONS: The Trustee and the Personal Representative of the Settlor’s
estate will have various options in the exercise of discretionary powers, and may exercise
any such discretion without incurring liability to any beneficiary, nor shall any
beneficiary have the right to demand a reallocation or redistribution of Trust income or
principal as a result of the proper action of the Trustee or Personal Representative,
subject only to the requirement that the Trustee and the Personal Representative act in
good faith and within the bounds of their fiduciary duty. Specifically, the Trustee or
Personal Representative may make certain elections for Federal Income Tax and Estate
Tax purposes which may affect the administration of Trust income or principal.
39. BENEFICIARY DESIGNATION: Upon written designation by the Settlor of a
beneficiary for a qualified plan or IRA benefits made payable to this Trust, the Trustee
shall distribute the right to receive such benefits to the designated beneficiary. If no such
- 13 -
designation of beneficiary exists, the Settlor grants to the Trustee the power, on behalf of
the Settlor , to distribute the right to receive such benefits as a part of the share which is
otherwise to be distributed to any beneficiary, and such person shall be the Settlor’s
designated beneficiary. It is intended that the operation of this paragraph qualify under
the requirements of 401(a) (9) and 408(a) (6) IRC and it shall be interpreted in all regards
in accordance with this intent.
40. CERTIFICATE OF TRUST: T he Trustee is hereby authorized and granted all
powers necessary to execute a Certificate of Trust, describing any Trust matter, including
but not limited to a description of the Trust terms, the administrative powers of the
Trustee and the identity of any current Trustee. Any person receiving an original or
photocopy of said Certificate of Trust shall be held harmless from relying on same, and
shall not be obligated to inquire into the terms of the Trust or maintain a copy of the
Trust.
41. REGISTRATION OF TRUST ASSETS: Assets of this Trust during the
Settlor’s lifetime shall be registered as follows: ______________________________
(Name) , Trustee, or his or her successors in trust, under THE ______________________
____________________ (Name) REVOCABLE TRUST, dated the ______ day of
_______________________, 20_____, and any amendments thereto.
42. TAX IDENTIFICATION: This Trust shall be identified during the Settlor’s
lifetime by the Settlor’s Social Security Number________________________. Upon the
Settlor’s death, the Trustee shall then apply to the IRS for a tax identification number for
the Trust and any other Trust created by this Trust Agreement.
43. SPENDTHRIFT CLAUSE: The interest of any Beneficiary of this Trust in the
income and principal shall not be subject to claims of his or her creditors, or others, or be
liable to attachment, execution, or other process or law and no Beneficiary shall have the
right to encumber, hypothecate, or alienate his or her interest in any of the trust in any
manner except as provided herein. Nor may a creditor compel a trustee to make a
discretionary transfer to a beneficiary. Where the trustee is also a beneficiary, restraint
on transfer is invalid against transferees or creditors of the settlor. In no case shall a
disclaimer by a beneficiary be considered a transfer to that Beneficiary.
44. PERPETUITIES CLAUSE: A ll Trusts created by this instrument and interests
therein shall vest in their then beneficiary twenty-one years after the death of the last of
the issue of the Settlor who was alive when the Settlor died, notwithstanding any
provision of this Trust to the contrary. No provision of an instrument creating a trust,
including the provisions of any further trust created, and no other disposition of property
made pursuant to exercise of a power of appointment granted in or created through
authority under such instrument is invalid under the rule against perpetuities, or any
similar statute or common law, during the said time period.
- 14 -
ARTICLE XII
TERMS AND DEFINITIONS
The terms below, as used throughout this Trust Agreement, shall have the following
meaning
45. INCAPACITATED: For the purposes of this Trust Agreement, if a Trustee or a
beneficiary, is under a legal disability, or by reason of illness, mental or physical
disability is, in the written opinion of two doctors currently practicing medicine, unable
to properly manage her affairs, he or she shall be deemed incapacitated.
46. REHABILITATION: For the purposes of this Trust Agreement, as a Trustee or
as a beneficiary, shall be deemed rehabilitated when he or she is no longer under a legal
disability or when, in the written opinion of two doctors currently practicing medicine, he
or she is able to properly manage his or her own affairs. Upon rehabilitation, his or her
successors shall relinquish all powers and be relieved of all duties, and the rehabilitated
party shall resume the duties and powers he or she had prior to incapacity.
47. GUARDIANSHIP: During any period of incapacity or incompetence, t he
Settlor does hereby nominate as Guardian of the Settlor’s property the same person(s) in
name and order of succession who serve as Trustee as provided herein.
48. SURVIVORSHIP: This Agreement shall be binding upon the heirs, personal
representatives, successors and assigns of the parties hereto.
49. APPLICABLE LAW: This Agreement shall in all respects be construed and
regulated according to the laws of the State of Connecticut. Should any Trust or asset of
any Trust be administered in another State, this Trust may be regulated by the laws of
that State if required to avoid excessive administration expenses or to uphold the validity
of any terms of this Trust.
50. TRUSTEE AND TRUST: The term “Trustee" refers to the single, multiple and
Successor Trustee, who at any time may be appointed and acting in a fiduciary capacity
under the terms of this agreement. Where appropriate, the term `Trust" refers to any trust
created by this agreement.
51. GENDER - SINGULAR AND PLURAL: Where appropriate, words of the
masculine gender include the feminine and neuter; words of the feminine gender include
the masculine and neuter; and words of the neuter gender include the masculine and
feminine. Where appropriate, words used in the plural or collective sense include the
singular and vice-versa.
52. IRC: The term "IRC" refers to the Internal Revenue Code and its valid
regulations.
- 15 -
53. SERVE OR CONTINUE TO SERVE: A person cannot "serve or continue to
serve" in a particular capacity if they are incapacitated, deceased, have resigned, or are
removed by a court of competent jurisdiction.
54. ISSUE: The term "issue", unless otherwise designated herein, shall include
adopted "issue" of descendants and lineal descendants, both natural and legally adopted
indefinitely. Such term shall specifically exclude individuals adopted out of the family of
the Settlor or out of the family of a descendant of the Settlor . The word "living" shall
include unborn persons in the period of gestation.
55. NOTICE: No person shall have notice of any event or document until receipt of
written notice. Absent written notice to the contrary, all persons shall rely upon the
information in their possession, no matter how old, without recertification, verification,
or further inquiry.
56. MERGER: The doctrine of merger shall not apply to any interests under any
Trust.
57. REPRESENTATION: In any Trust matter a beneficiary whose interest is
subject to a condition (such as survivorship) shall represent the interests in the Trust of
those who would take in default of said condition. The members of a class shall represent
the interests of those who may join the class in the future (e.g. living issue representing
unborn issue). The legal natural guardian of a person under a legal disability shall
represent the interests of the disabled person.
IN WITNESS WHEREOF, on this the _____day of _____________________, 20_____,
Settlor and Trustee have signed this Instrument.
____________________________________
SETTLOR
____________________________________
TRUSTEE
State of Connecticut
County of __________________
On this the ____________ day of _____________________, ____________,
before me, _______________________________ (name of notary), personally appeared
______________________________________, known to me (or satisfactorily proven) to
be the person(s) whose name(s) _________ (is or are) subscribed to the within instrument
and acknowledged that ________________________ (he/she/they) executed the same for
the purposes therein contained.
- 16 -
In witness whereof I hereunto set my hand.
Date: ___________________________
______________________________
Notary Public
Print Name: ___________________
My Commission Expires:
_______________________
THE ________________________________ (Name) REVOCABLE LIVING TRUST
Schedule A
The sum of One Hundred Dollars ($100.00) in cash.
TOGETHER WITH:
- 17 -
