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Revocable Living Trust Agreement

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Revocable Living Trust Agreement

THIS REVOCABLE LIVING TRUST AGREEMENT, (hereinafter "Trust"), is being made on this the day of , , by and between of County, State of Iowa, hereinafter referred to as the Trustor, 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 REVOCABLE LIVING TRUST and is created in accordance with Iowa Chapter 633A Sections 633A.2101 through 633A.2104.

ARTICLE II

IDENTIFICATION

2. TRUSTOR AND BENEFICIARIES: The Trustors or Settlors of this trust are and , Husband and Wife, residing at , , Iowa . As used herein, the term “Trustor” shall mean all trustors of this trust, whether one or more. The Trustors are married and the parents of the following living child:

The Beneficiaries of the Trust during the lifetime of the Trustors is the Trustors. Except as otherwise provided herein, upon the death of the Trustor, the Beneficiary is the Child of the Trustor.

ARTICLE III

TRUSTEE APPOINTMENT

3. TRUSTEE APPOINTMENTS: The Trustor hereby appoints , the Trustor, as Trustee of this Trust. If the Trustor is unable to serve as Trustee for any reason, then the Trustor hereby appoints as Successor Trustee. If neither the first or second Trustee are able to serve as Trustee for any reason, then the Trustor hereby appoints as Successor Trustee, whether one or more.

The Trustee shall have all powers as provided in this agreement and the laws of the State of Iowa. The principal place of administration of this trust is the Trustors place of residence, regardless of the residence of the Trustee.

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 Schedule “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 Trustor, or any other third party at any time.

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: Grantor(s) reserves the right to use, occupy and reside upon any real property placed in this Trust as their permanent residence during their lives.

ARTICLE V

TRUSTEE POWERS AND OTHER PROVISIONS

8. POWERS: The Trustor does hereby grant to the Trustee all powers necessary to deal with any and all property of the Trust as freely as the Trustor could do individually.

(A) TRUST ASSETS: The Trustee is hereby authorized and granted all powers necessary to retain as a permanent investment of the Trust...

(B) NONPRODUCTIVE ASSETS: The Trustee is hereby granted all powers and authority necessary to hold uninvested cash...

(C) INVESTMENT POWERS: The Trustee is hereby granted all powers necessary to invest and reinvest any and all of the property of the Trust...

(D) SECURITIES: The Trustee is specifically authorized, in his or her discretion, to maintain brokerage margin accounts...

(E) ADDITIONAL PROPERTY: The Trustee is specifically authorized to receive additional property from any source...

(F) SELL AND LEASE: The Trustee is hereby granted all powers necessary to sell, convey, lease, transfer, exchange...

(G) INSURANCE: The Trustee is specifically authorized to insure Trust property and assets with any insurer...

(H) BORROWING AND LENDING: The Trustee is specifically authorized to lend Trust funds to any borrower...

(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...

(J) CLAIMS: The Trustee is hereby granted all powers necessary to compromise, adjust, arbitrate, sue on, defend...

(K) DISTRIBUTIONS: The Trustee is specifically authorized to distribute any shares of the Trust in cash or in property...

(L) NOMINEE: The Trustee is specifically authorized to hold any or all of the Trust assets...

(M) FORECLOSURE: The Trustee is specifically authorized to foreclose on any mortgage...

(N) ENCUMBRANCES: The Trustee may pay off any encumbrance on any Trust asset...

(O) VOTING: The Trustee may vote stock for any purpose...

(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...

(Q) PURCHASE FROM ESTATE OR TRUST: The Trustee is specifically authorized to purchase property of any type...

(R) ASSISTANTS AND AGENTS: The Trustee is hereby granted all powers necessary to employ any person or persons...

(S) RESERVES: The Trustee is hereby authorized to set aside and maintain reserves...

(T) MANAGEMENT OF REALTY: The Trustee is specifically authorized to deal with real and personalty...

(U) BUSINESS: With respect to any business that is part of or may become part of any Trust...

9. AUTHORITY TO ACT: The approval of any court, the Trustor, or any beneficiary of any Trust created by this Trust shall not be required for any dealings with the Trustee of this Trust...

ARTICLE VI

TRUST ADMINISTRATION DURING LIFE OF TRUSTOR

10. MANAGEMENT OF TRUST PROPERTY: All property of the Trust shall be managed by the Trustee at the direction of the Trustor.

11. INCAPACITY OF TRUSTOR: During any period of incapacitation of the Trustor, 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...

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 Trustor, the Trustor does hereby 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...

(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

DISTRIBUTIONS DURING LIFETIME OF TRUSTORS

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.

(D) The Trustee may expending such income or principal directly for the beneficiary.

(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.

15. OTHER PAYMENTS: At the request of any Trustor in writing, the Trustee shall make lump sum or periodic payments to any third party designated by such Trustor.

ARTICLE VIII

TRUST ADMINISTRATION AFTER TRUSTOR’S DEATH

16. TRUSTEE: Upon the death of the Trustor, the Successor Trustee shall continue to administer the assets of this Trust...

17. BENEFITS PAYABLE TO TRUST: Upon the death of the Trustor, the Trustee is hereby authorized to take any and every action necessary to collect any and all benefits payable to the Trust...

18. LIABILITIES OF TRUSTOR’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 Trustor’s estate...

19. TAXES: Upon the death of the Trustor, all estate and inheritance taxes that become due and payable upon all of the property comprising the Trustor’s gross estate...

20. ADDITIONAL DISTRIBUTIONS: The Trustee is hereby authorized to pay to the Probate Estate of the deceased Trustor as much of the income and principal of this Trust as the Trustee deems necessary...

21. GIFTS: The Trustee shall, upon the death of the Trustor, make such gifts of the tangible personal property of the Trustor held or acquired by this Trust as may be directed by the Trustor’s Will...

ARTICLE IX

TRUSTOR’S DEATH

22. DISTRIBUTIONS: Upon the death of the Trustor, the following distributions shall be made from the property of this Trust after payment of the Trustor’s just debts, funeral expenses, expenses of any last illness, and the other distributions otherwise provided for in this Trust:

(a) DISTRIBUTION UPON DEATH OF FIRST TRUSTOR: Following the death of the first Trustor, and prior to the death of the Surviving Trustor, the Trustee shall pay to or for the benefit of the Surviving Spouse (Surviving Trustor)...

(b) DISPOSITION OF TRUST ESTATE ON DEATH OF SURVIVING TRUSTOR: If the child of the Trustors survives the Surviving Trustor...

(c) SPRINKLING TRUST: The Trustee shall hold, administer, and distribute the assets of the Sprinkling Trust as follows:

(i) DISCRETIONARY PAYMENTS BEFORE DIVISION INTO SHARES...

(ii) DISCRETIONARY PAYMENTS OF INDIVIDUAL TRUSTS...

(iii) TERMINATION AND DISTRIBUTION OF INDIVIDUAL TRUSTS...

(iv) TERMINATION OF INDIVIDUAL TRUST ON DEATH OF CHILD...

(v) FINAL DISPOSITION...

(d) SPRINKLING TRUST FOR ISSUE...

23. DEATH OF BENEFICIARY: Should a named beneficiary die before a complete distribution of this Trust is made, and that Beneficiary leave no living issue, then that beneficiary’s share shall go to the surviving Beneficiaries.

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.

25. COMPENSATION: Any beneficiary of this Trust serving as Trustee shall do so without compensation for his or her services...

26. BOND AND QUALIFICATIONS: Bond shall not be required of the Trustee or any Successor Trustee.

27. SUCCESSOR TRUSTEE(S): No Successor Trustee shall be responsible for acts of any prior Trustee.

28. REMOVAL OF SUCCESSOR TRUSTEES: A Successor Trustee may be removed by the last individual to serve as Trustee...

29. DELEGATION OF POWERS: Any management function of any Trust may be delegated by any Trustee to any Successor Trustee...

30. LIMITED AMENDMENT POWER: The Trustee shall enjoy a limited power to amend management functions of this Trust only as may be required...

31. RESIGNATION OF TRUSTEE: Any Trustee may resign by writing filed among the trust papers effective upon the trustees’ discharge.

32. NONLIABILITY FOR ACTION OR INACTION BASED ON LACK OF KNOWLEDGE OF EVENTS...

33. TRUSTEE AS BENEFICIARY...

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.

36. ALIENATION: Excepting the Trustor, no 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.

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 Trustor's estate will have various options in the exercise of discretionary powers...

39. BENEFICIARY DESIGNATION: Upon written designation by the Trustor of a beneficiary for a qualified plan or IRA benefits made payable to this Trust...

40. CERTIFICATE OF TRUST: The Trustee is hereby authorized and granted all powers necessary to execute a Certificate of Trust...

41. REGISTRATION OF TRUST ASSETS: Assets of this Trust during the Trustor’s lifetime shall be registered as follows:

, Trustee, or his or her successors in trust, under THE REVOCABLE TRUST, dated the day of , , and any amendments thereto.

42. TAX IDENTIFICATION: This Trust shall be identified during the Trustor’s lifetime by the Trustor's Social Security Number . Upon the Trustor’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...

44. PERPETUITIES CLAUSE: All 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 Trustor who was alive when the Trustor died...

ARTICLE XII

TERMS AND DEFINITIONS

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...

47. GUARDIANSHIP: During any period of incapacity or incompetence, the Trustor does hereby nominate as Guardian of the Trustor’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 Iowa.

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.

51. GENDER - SINGULAR AND PLURAL: Where appropriate, words of the masculine gender include the feminine and neuter...

52. IRC: The term "IRC" refers to the Internal Revenue Code and its valid regulations.

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.

55. NOTICE: No person shall have notice of any event or document until receipt of written notice.

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 shall represent the interests in the Trust of those who would take in default of said condition.

IN WITNESS WHEREOF, on this the day of , , Trustor, and Trustee have signed this Instrument.

TRUSTOR

TRUSTOR

TRUSTEE

STATE OF IOWA

COUNTY OF

On this day of , , before me, a Notary Public, personally appeared , to me known to be the person named in and who executed the foregoing instrument, and acknowledged that he/she/they executed the same as his/her/their voluntary act and deed.

Notary Public

Print Name

My commission expires

Schedule A

The sum of One Hundred Dollars ($100.00) in cash.

TOGETHER WITH:

Enter text✕

What a Revocable Living Trust Agreement Is

A Revocable Living Trust Agreement is a legally binding document in which a grantor transfers ownership of assets to a trust during their lifetime while retaining the right to modify or revoke the trust. It names a trustee to manage trust assets, identifies beneficiaries, and specifies distribution terms upon incapacity or death. Commonly used to avoid probate, provide privacy, and streamline asset management, a revocable trust does not remove estate tax liability for the grantor. It remains flexible and can be amended or dissolved by the grantor at any time while competent.

Why a Revocable Living Trust Agreement Matters

A Revocable Living Trust Agreement simplifies transfer of assets, reduces probate delays, and preserves confidentiality. It allows interim incapacity management, supports staged distributions, and offers flexibility because the grantor can amend or revoke the trust while alive.

Why a Revocable Living Trust Agreement Matters

Who Typically Uses This Agreement

Typical users include individuals planning estates, family advisors, and attorneys coordinating asset transfers and incapacity planning.

  • Grantors (individuals) who want control over assets and flexibility during life and at death.
  • Trustees who manage assets according to the agreement and act during the grantor's incapacity.
  • Estate attorneys, financial advisors, and family members coordinating beneficiary designations and funding steps.

Use depends on estate size, family complexity, tax planning needs, and whether probate avoidance is a priority.

Step-by-Step: Preparing and Executing the Trust

Follow these steps to prepare, fund, and execute a Revocable Living Trust Agreement correctly and properly.

  • 01
    Draft: Work with an attorney or use a vetted template to draft trust terms.
  • 02
    Name Trustees: Designate initial and successor trustees with clear powers and contact information.
  • 03
    Fund Trust: Transfer assets by deed, retitle accounts, and update beneficiary designations.
  • 04
    Execute: Sign before required witnesses and notary per state law; obtain self-proving affidavit if possible.

Core Sections to Include in a Professional Agreement

Core sections of a professional Revocable Living Trust Agreement organize authority, distributions, incapacity provisions, trustee powers, amendment rules, and successor arrangements.

Grantor Powers

Specifies the grantor's retained rights to amend or revoke the trust, use trust assets during life, and remove or appoint trustees with explicitly defined powers.

Trustee Duties

Outlines fiduciary duties, investment standards, recordkeeping and reporting obligations, accounting requirements, and successor appointment processes to reduce litigation risk and clarify expectations and timelines.

Beneficiary Terms

Defines precise distributions, contingent beneficiaries, staggered or age-based distributions, spendthrift protections, and creditor disclaimers for predeceased beneficiaries to ensure predictable outcomes and administration.

Incapacity Plan

Includes durable provisions for trustee takeover, incapacity determination standards, successor trustee activation, and detailed instructions for managing healthcare and financial incapacity without court intervention and processes.

Funding Instructions

Sets out deed forms, account retitling instructions, beneficiary designation updates, and timelines to transfer each asset type into the trust to perfect ownership and avoid probate.

Amendment & Revocation

Describes how the grantor may amend or revoke the trust, required signatures, notice to beneficiaries, and any limits on amendments during incapacity or third-party claims.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Timestamped logs, IP, signer attribution
Certifications: SOC 2 Type II, ISO 27001, PCI DSS
Legal Frameworks: Compliant with ESIGN and UETA
BAA Availability: HIPAA BAA available upon request
Retention Controls: Tamper-evident storage and versioning

Key Risks and Potential Consequences

Probate Delay: Estate subject to probate administration
Funding Failure: Assets outside trust may still probate
Tax Exposure: No automatic estate tax reduction
Creditor Claims: Creditors can reach revocable trust assets
Litigation Costs: Contested distributions increase legal fees
Invalid Signatures: Improper execution can void key clauses

Common Preparation Errors to Avoid

  • Failing to fund the trust after signing leaves assets in the grantor's name and exposes the estate to probate, undoing the primary benefit of the trust.
  • Using vague beneficiary descriptions or failing to name contingent beneficiaries creates ambiguity that can lead to intestacy rules or costly court interpretation.
  • Not updating account titles and beneficiary designations after trust creation causes assets like retirement accounts to bypass the trust and follow beneficiary forms.
  • Skipping state-required notarization, witness signatures, or self-proving affidavits may create obstacles during probate and complicate authentication in court.

How the Execution and Funding Workflow Typically Flows

Typical execution workflow shows drafting, signature, notarization, funding, and ongoing administration steps for a Revocable Living Trust Agreement.

  • Draft: Prepare trust document with clauses tailored to grantor goals.
  • Sign: Signatures dated and witnessed per state requirements.
  • Notarize: Obtain notarization or RON session where permitted.
  • Fund: Transfer deeds, retitle accounts, assign ownership to trustee.

Recommended Online Workflow Configuration

Configure an online signing workflow that meets state execution rules and preserves a complete audit trail for the Revocable Living Trust Agreement.

Field Configuration
Template Select state-specific trust template with standard clauses and optional addenda.
Signing Order Grantor signs first; trustee and witnesses follow in order required.
Notarization Enable eNotary or RON fields where state permits remote notarization.
Authentication Choose email, SMS code, or knowledge-based verification for signer identity.
Storage Save final PDF/A with audit trail and version metadata.

Platform Capabilities to Support Trust Execution

Use a platform that supports eSign, audit trails, notary integrations, and secure storage for trust documents.

  • File Formats: PDF and Word (DOCX) support
  • Integrations: Connects with Google Drive, NetSuite, Salesforce
  • Authentication: SMS code, SSO, KBA options

Illustrative Use Cases

Real-world scenarios show how Revocable Living Trust Agreements prevent probate, manage incapacity, and simplify property transfers for different families.

Family Transfer

A married couple used a revocable living trust to transfer multiple real estate properties into a trust before retirement to avoid probate and streamline management.

  • They retitled deeds and updated accounts.
  • After funding, successor trustees assumed management during incapacity without court involvement, distributions occurred per the trust terms, and the family avoided probate costs and public court filings, preserving privacy while reducing time and legal expense for heirs.

Single Owner Estate

An individual with a small business and investment accounts created a revocable trust to name a successor trustee and specify staggered distributions for minor beneficiaries.

  • Estate taxes were coordinated with advisors.
  • The trust allowed the owner to retain control during life, direct business succession steps, provide guardianship instructions for minors, and avoid delays for beneficiaries; professional review minimized ambiguity and aligned the plan with estate tax planning.

Best Practices for Accuracy and Efficiency

Follow these best practices to ensure the Revocable Living Trust Agreement is valid, funded, and enforceable across jurisdictions.

Use Professional Counsel
Have an estate attorney review or draft the trust to ensure compliance with state law, clear trustee powers, tax coordination, and correct funding instructions. Professional counsel reduces ambiguity and helps prevent costly probate litigation or unintended tax consequences for beneficiaries.
Retitle Assets Promptly
After executing the trust, retitle real estate, bank accounts, and investment accounts into the trustee's name or the trust name promptly. Delays leave assets exposed to probate and may require corrective deeds, additional legal steps, or retroactive documentation.
Keep Clear Records
Maintain detailed inventories, account numbers, appraisals, and transfer receipts. Preserve signed deeds, funding confirmations, beneficiary designation updates, and trustee communications to support audits, tax reporting, and potential disputes over the retention period.
Review Periodically
Schedule reviews every three to five years or after major life events (marriage, divorce, birth, death, significant asset changes). Update trustees, beneficiaries, and funding to reflect current intentions and legal or tax rule changes.

Key Deadlines and Timing Considerations

Key deadlines and timing for Revocable Living Trust Agreements focus on funding actions, tax reporting, and periodic reviews to maintain effectiveness.

Fund Real Property:

Record deeds promptly after execution to reflect trust ownership and avoid title issues.

Update Beneficiaries:

Revise retirement and insurance designations immediately after trust changes to match estate plan.

Tax Filings:

Consult advisor if estate tax return (Form 706) may be required within nine months of death.

Annual Review:

Review trust and asset lists annually or after major life events.

Probate Check:

If assets remain untransferred after death, initiate probate procedures without delay.

Comparing Revocable Trusts with Related Instruments

Compare primary differences between Revocable Living Trusts, Wills, and Irrevocable Trusts to choose the right estate instrument.

Criteria Revocable Trust Last Will Irrevocable Trust
Probate avoids probate requires probate may avoid probate
Privacy private public record private
Amendable yes until death
Creditor Access reachable by creditors estate assets exposed generally protected

eSignature Vendor Pricing and Capability Snapshot

Compare entry-level pricing and key platform capabilities relevant to signing, auditing, and HIPAA compliance for the Revocable Living Trust Agreement.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions and Practical Answers

Answers to frequent questions about execution, funding, notarization, e-signature legality, and updating a Revocable Living Trust Agreement.


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