Inter Vivos QTIP Trust with Principal to Donor's Children on Spouse's Death
This Trust Agreement is made on _________________ ( date) , between
_______________________ (Name of Donor) of __________________ (Name of
County) County, State of ______________, hereinafter referred to as the Donor , and
____________________ (Name of Trustee) , a banking corporation organized and
existing under the laws of the United States with its principal office located at
______________________________________________________________________
(street address, city, state, zip code) . This Trust shall be governed and administered
in accordance with the following terms and provisions:
The Donor, in consideration of the agreements and undertakings made by the
Trustee, and other good and valuable consideration, does assign, transfer, and set over
to the Trustee, and its successors, the property listed in Schedule A , which is attached
and incorporated by reference, to hold, manage, and dispose of the same for the uses
and purposes set forth below. In consideration of the transfer, Trustee agrees to accept
the same, and any additional money or property as may be transferred, assigned, or
bequeathed to the Trustee by the Donor or any other person or organization, and to
take, hold, manage, and dispose of the property, and all investments and reinvestments
of the property and income from the property on the following uses and trusts:
Article 1. Disposition of Principal and Income
A. Such property shall be held in trust, which Trust shall be designated the
____________________ (Name) Marital Trust (and shall be referred to below as the
Marital Trust) for the following uses and purposes:
1. All of the net income from the entire Marital Trust shall be paid to the
Donor's Wife annually or at more frequent intervals so long as the Donor's Wife
shall live. Any and all income accrued but not paid to the Donor's Wife prior to the
death of the Donor's Wife shall be paid to the Estate of the Donor's Wife.
2. The Donor's Wife shall have, in all events, the power to require, by written
notice, the Trustee of the Marital Trust to convert any unproductive property to
productive property within a reasonable period of time.
3. The Trustee of the Marital Trust may, from time to time, in its absolute
discretion, pay or distribute to the Donor's Wife such amount or assets out of the
principal of the Marital Trust as it may deem appropriate. It is the Donor's
expectation that it may be advantageous for the Donor's Wife to make gifts
during her lifetime to the Donor's issue and their spouses from the assets of the
Marital Trust. Accordingly, to enable the Donor's Wife to make such gifts, the
Trustee is especially authorized and empowered, in the Trustee's absolute
discretion, to pay or distribute to the Donor's Wife amounts or assets out of the
principal of the Marital Trust for those purposes. This provision shall not be
construed to permit the Trustee to appoint any part of the Marital Trust to any
person other than the Donor's Wife or to impose any obligation on the Donor's
Wife to make such gifts.
4. On the death of the Donor's Wife, an amount equal to the additional
federal estate and inheritance taxes imposed on the Estate of Donor's Wife shall
be paid by this Trust in satisfaction of the taxes.
B. On the death of the Donor's Wife, the then remaining principal of the Trust shall
be divided by the Trustee into as many equal shares as there shall be children of the
Donor then surviving and deceased children of the Donor leaving issue then surviving,
each of which shares shall be held and administered as follows:
1. One such share shall be paid and distributed to each of the then surviving
children of the Donor and one such share, per stirpes, to the then surviving issue
of each then deceased child of the Donor; provided, however, that if any such
child of the Donor shall not have attained the age of ____ years, or if any such
child of a deceased child of the Donor shall not then have attained the age of 21
years, the share or partial share which would otherwise be paid and distributed to
the child or grandchild of the Donor (but not the share or partial share of any
issue of any deceased grandchild of the Donor, which share shall be paid and
distributed to such issue free of Trust) shall be designated with the name of the
child or grandchild and shall continue to be held as a separate and distinct Trust
and Trust fund for the following uses and purposes:
a. With respect to each such Trust, the Trustee may, from time to time
in its sole and absolute discretion, pay or distribute to any one or more
then living of the group consisting of the child or grandchild with whose
name the Trust is designated, the spouses and issue of the child or
grandchild, and the parent of the grandchild, such part or all of the net
income of the Trust as they may deem appropriate.
b. When any child of the Donor with whose name such a Trust is
designated shall have attained the age of _____ years, ______% of the
principal of the Trust designated with the name of the child shall be paid
and distributed to that child; when any child shall have attained the age of
______ years, ____________% of the remaining balance of the principal
of the Trust shall be paid and distributed to the child; provided, however,
that the Trustee may in the Trustee's absolute discretion postpone the
date on which the right to the mentioned distributions vest for a period not
exceeding (e.g., two) _____ years.
c. When any child of the Donor with whose name such a Trust is
designated shall have attained the age of ______ years, or when any
grandchild of the Donor with whose name such a Trust is designated shall
have attained the age of 21 years, the entire remaining principal of the
Trust designated with the name of the child or grandchild, together with
any and all accrued, accumulated, and undistributed income shall be paid
and distributed to the child or grandchild, as the case may be.
d. If any child of the Donor with whose name such a Trust is
designated shall die prior to the termination of the Trust, the entire
principal of the Trust shall be paid and distributed to the estate of the child
of the Donor.
e. If any grandchild of the Donor with whose name such a Trust is
designated shall die prior to the termination of the Trust, the entire
principal of the Trust designated with the name of the grandchild shall be
paid and distributed to the estate of the grandchild.
2. Net income not required to be paid or distributed from any Trust created
by this article may be added to any subsequent income payment from the Trust.
Until distributed, accumulated income shall be regarded for all purposes under
this Trust as principal of the respective Trusts created by this Article.
3. If, prior to the time that any Trust fund shall be set up for and designated
with the name of any person under the foregoing provisions, or any addition shall
be made to any such fund, or any other fund or share of any other fund shall
become payable to him or her or to a Trust for his or her benefit under the
provisions of this agreement, the person shall have arrived at the age when a
mandatory partial or total distribution to him or her is required under the terms of
this agreement, then the person's fund or share of any other fund promptly shall
be partially or totally paid and distributed to the person in the same proportions
as required by such mandatory provisions.
C. If at any time after the death of the Donor's Wife, there shall be no beneficiary
eligible to receive the income or principal of any Trust created under this agreement,
then the entire principal of the Trust shall be paid and distributed to the persons then
living who would have been the next of kin of the person with whose names the Trust is
designated, if the person had died at the time or times of such payment and distribution,
under the then existing laws of ________________ (name of state) relating to the
distribution of intestate personal property, in the proportions prescribed by such laws;
provided, however, that for purposes of this paragraph, the Donor shall be deemed to
have predeceased the beneficiary.
D. With respect to any Trust or Trust fund created under this Article 1 , the Trustee
may pay to or apply for the benefit of any beneficiary currently eligible to receive the
income or any part of it arising from any such Trust fund such amounts out of the
principal of the Trust fund as the Trustee in its absolute discretion may deem
appropriate. No such payment or distribution shall constitute an advance against any
amount receivable by any person from any Trust created by this Article 1 , unless the
Trustee shall otherwise provide in writing at the time of making the payment, and then
only to the extent so provided.
E. All interest, both in income and in principal, in all Trusts created in this Article 1
are intended for the personal protection and welfare of the beneficiaries of the Trusts;
no such interest shall be transferable, voluntarily or involuntarily, by the beneficiary nor
subject to the claims of creditors or of a spouse or former spouse of the beneficiary.
F. Any of the Trusts created under this Article 1 may be terminated, in whole or in
part, at any time after the death of the Donor's Wife, if such action is deemed advisable
and for the best interests of the Trust or Trusts, or the beneficiaries of them, for any
reason whatsoever (including the determination that the principal of the Trust is so small
as to make the efficient management of it impractical) in the sole discretion of the
Trustee whose judgment shall be conclusive and free from question by anyone or in any
court. In the event of such termination, the principal of each Trust so terminated,
together with the accrued, accumulated, and undistributed income, shall be paid over
and distributed to the person with whose name the Trust is designated.
G. Any person may irrevocably disclaim and renounce any part or all of any gift
made to the person by this Article. Any such disclaimer and renunciation shall be
effected in the manner required by applicable law. If any person disclaims and
renounces all interest in all or any part of any gift made to the person by this Article, all
of the gift or all of such part shall be disposed of as if the person had died prior to the
time when the gift vested.
H. Notwithstanding any other provision of this instrument with respect to the time of
the termination of any Trust created by this instrument, if on the expiration of the period
of twenty years and eleven months immediately following the death of the last survivor
of the Donor, the Donor's Wife and the Donor's issue living on the day preceding the
date of the execution of this instrument, any Trust created by this instrument, or any part
of any such Trust, shall then remain in existence, then the Trust or part of it shall
promptly be paid and distributed to the person with whose name the Trust is
designated.
Article 2 Additions to Trust
The Donor or any other person or organization may, at any time, give, transfer, or
bequeath to this Trust or to any separate Trust fund created under this agreement,
either by inter vivos transfer or testamentary disposition, additional money or property of
any kind acceptable to the Trustee. In that event, such additional property shall become
a part of the corpus of the Trust or Trust fund to which it is given and shall be divided,
allocated, administered, and distributed as if it originally had been a part of the same.
The Trustee may assume any obligation associated with any such property.
Article 3 Discretion of Trustee
In making any division or apportionment of any Trust created by this instrument,
or of any portion of such Trust, for the purpose of creating any fund or portion, or any
part of the same, or for any other purpose of whatever nature, the Trustee shall not be
required to convert any property, real or personal, tangible or intangible, into money or
to divide or apportion each or any item of property, but the Trustee may allot all or any
part (including an undivided interest) of any item of property, real or personal, tangible
or intangible, to any fund or to any beneficiary provided for by this instrument; or the
Trustee may convert any property, real or personal, into any other form, it being the
Donor's intent and purpose to leave all such divisions and apportionments entirely to the
discretion of the Trustee with the direction merely that each fund, share, portion, or part
at any time created or provided for in this agreement shall be constituted so that the
same in the judgment of the Trustee shall have the value, relative or absolute,
designated by this instrument.
Article 4 Irrevocability
It is the intention of the Donor that this instrument shall constitute an irrevocable
gift in Trust of all property at any time held under this agreement. Any right, title, or
reversionary interest in that property, of any kind or description, which the Donor now
has or may subsequently acquire, either by operation of law or otherwise, is renounced
and relinquished forever. Any future gift of property to this Trust whether by the Donor
or any other person shall likewise be irrevocable. Any right, title, or reversionary interest
in that property, of any kind and description, which the Donor of it may have or
subsequently acquire, by operation of law or otherwise, shall, by the making of the gift
to this Trust, be renounced and relinquished forever.
Article 5 Principal and Income
All questions relating to the ascertainment of income and principal and the
allocation of receipts and disbursements between income and principal shall be
resolved by the Trustee in accordance with the terms of the Uniform Principal and
Income Act from time to time in effect in _________________ (name of state) , or if that
Act should be abolished, then in accordance with the terms of the Act as it was last in
effect in ________________ (name of state) ; provided, however, that the Trustee may
withhold from amounts otherwise payable as income under the Act a reasonable
allowance for depreciation or depletion on property subject to depreciation or depletion
under generally accepted accounting principles, and provided further, that the Trustee
may allocate annual Trustee' fees partially or entirely to income, in its discretion.
Article 6 Payments to Minor of Incompetent
A. If any person to whom any payment or distribution from any Trust created by this
instrument is required or permitted by any provision of this instrument to be made is
then a minor, incompetent, or for any other reason incapable of receiving such payment
or distribution, or if there is a substantial risk that the payment or distribution will be
involuntarily diverted from benefiting such person, the Trustee may, but need not, from
time to time exercise any one or more of the following powers:
1. Transfer property to the name of the person (as by depositing cash or
registering securities in the person's name), whether or not the person is then
able to exercise control over the property.
2. Transfer property to any custodian or guardian of the property of the
person without bond.
3. Transfer property to the Trustee of any Trust empowered to receive and
hold the property and to distribute the property and any income from it to that
person as soon as the person is capable of receiving it without substantial risk of
involuntary diversion, if the transfer will not fail because of a violation of any rule
against perpetuities, the accumulation of profits, restraint on alienation, the
duration of Trusts, or the remoteness of vesting.
4. Transfer property to any creditor of the person in discharge of any debts of
the person.
5. Use such payment or distribution to obtain goods or services for the
person if any debt of any other person is not consequently discharged.
B. Nothing contained in this article shall authorize any Trustee to transfer any
property to itself in a nonfiduciary capacity or to use any such payment or distribution to
support or maintain any person whom the Trustee is obligated to support or maintain.
C. No such payment or distribution shall absolve any person from any obligation to
support or maintain the beneficiary of the payment or distribution.
D. The receipt of any person to whom property is transferred pursuant to this Article
or other evidence of application made under this agreement for the benefit of any
beneficiary shall fully discharge the Trustee from any further liability in connection with
such payment or distribution.
E. The determinations of the Trustee with respect to all matters referred to in this
article shall be final.
Article 7 Powers of Trustee
Subject to the provisions and limitations set forth in this instrument, the Trustee
shall have the powers granted below in addition to the powers granted by applicable
law. The powers granted below shall not be exhausted by any use of them, but each
shall be continuing; and each shall continue and be exercisable until all provisions of
this instrument are fully executed. Any of the powers granted may be exercised without
the license or authorization of any court or other legal authority. The determination of
the Trustee with respect to whether to exercise any power shall be final. These powers
are the following powers:
A. To change the situs of the Trust and of any property which is part of the
Trust to any place in the United States of America or any other country.
B. Not to file an inventory of the property which is part of the Trust nor annual
accounts of administration with and not to have any of the property examined by
any court where such filing or examination is not required by applicable law.
C. To retain for any period of time any property which may be received or
acquired, even though its retention by reason of its character or otherwise would
not be appropriate apart from this provision.
D. To collect, receive, and receipt for rents, profits, or other income from any
property which may be held.
E. To expend money or other property in order to collect, sell, manage,
conserve, or administer any property which may be held, or in order to improve,
repair, equip, develop, furnish, maintain, alter, extend, or add to any such
property.
F. To sell at public or private sale (including, specifically, the power to initiate
or participate in any public offering or underwriting), partition, exchange for like or
unlike property, lease for any period of time even though it may be longer than
the duration of the Trust, modify, renew, or extend any lease, grant options on,
release, demolish, abandon, dedicate, and otherwise dispose of any property
which may be held, on such terms and conditions, including credit, and for such
consideration, even though it may be less than the value at which such property
was received or acquired, or for such other benefit, even though it may be
intangible, as may be deemed appropriate.
G. To transfer title to, grant rights in, and convey in fee simple or otherwise
any property which may be held, free of all Trusts.
H. To invest and reinvest in any and all kinds of securities, domestic or
foreign, including common and preferred stocks, bonds, debentures, notes,
commodity contracts, mortgages and options on property; in money market
funds, commercial paper, repurchase agreements, United States Treasury
obligations, certificates of deposit, savings accounts, checking accounts, and any
other cash investment medium; in investment Trusts and in common Trust funds;
in any real property; in any personal or mixed property; in any business, mining
or farming operation, or other venture; or in any other interest or investment
medium, even though such investment would not be of a character authorized by
applicable law but for this provision.
I. Not to diversify the property which may be held, whether the property was
originally received or subsequently acquired by exchange, investment, or
otherwise.
J. With respect to property subject to depreciation or depletion, to withhold
an amount from Trust income in the discretion of the Trustee to provide for a
reasonable allowance for depreciation or depletion on the property under
generally accepted accounting principles.
K. To retain cash for reasonable periods of time in amounts sufficient to meet
anticipated needs, including payments of expenses and to beneficiaries.
L. To do all things necessary, customary, or desirable to conduct the affairs
of an unincorporated business, mining or farming operation, real estate
operation, or other venture.
M. To do all things necessary, customary, or desirable to conduct the affairs
of any corporation; to act as officer, director, or attorney or employee of any
corporation; and to place stock in the name of a Trustee or any beneficiary of the
Trust in order to qualify him or her as a director of the corporation.
N. Alone or with others, to organize, reorganize, merge, consolidate,
recapitalize, dissolve, liquidate, or otherwise create or change the form of any
corporation, partnership, joint venture, or other entity.
O. To exercise all voting, sale, purchase, exchange, or other rights or options
with respect to any security or other property which may be held.
P. To refuse, reject, or not to exercise any offer to purchase, option to
purchase, voting, or other right or option with respect to any security or other
property which may be held.
Q. To participate in any plan or proceeding for protecting or enforcing any
right, obligation, or interest arising from any property which may be held; to serve
as a member of a security-holder protective committee; and to deposit securities
in accordance with any plan agreed on.
R. To expend money or other property, whether by bidding in at foreclosure,
by making a contribution to capital, by paying an assessment or otherwise, in
order to protect any property which may be held.
S. To pay, contest, compromise, abandon, release, adjust, submit to
arbitration, sue on, defend, and otherwise deal with and settle any claim in favor
of or against the Trust or the Trustee.
T. To receive, acquire, and retain policies of fire, motor vehicle, business
interruption, title, liability, fidelity, indemnity or other casualty insurance, either in
stock or in mutual companies, in any amount, against any risk in which the Trust
has an insurable interest.
U. To borrow money or other property for such periods of time, on such terms
and conditions, and for such purposes as may be deemed appropriate; to
mortgage, pledge, or otherwise encumber any property which may be held as
security for any such loan; and to renew, extend, or refund any existing loan
either as maker or endorser.
V. With respect to any obligation held, whether secured or unsecured, to
reduce the interest rate on it, to continue it on and after maturity with or without
renewal or extension and without regard to the then value of any security, to
foreclose on the security or to acquire the security without foreclosure.
W. To keep books of account and to make reports on such reasonable basis
and with such detail as may be deemed appropriate.
X. To execute any instrument, under seal or otherwise.
Y. To bind absolutely, by any action taken or not taken, all beneficiaries, born
or unborn, ascertained or unascertained, of the Trust as against any other party;
and no party dealing with the Trustee shall have any duty to follow any property
transferred by the party to the Trustee.
Z. To sell any property to, to exchange any property with, to purchase any
property from or otherwise to deal with any beneficiary of the Trust or with any
Trust or estate of which either the Donor, the Donor's spouse or any issue of the
Donor is or was a Donor or beneficiary, whether created by this instrument or
not, even though Trustee is also a fiduciary of such other Trust or estate; and
when dealing with any fiduciaries, the Trustee shall have no duty to follow any
property transferred by them.
AA. To act notwithstanding the self-interest of any of the Trustee, including the
powers to lease, mortgage, or sell any property to or lease or purchase any
property from any Trustee, to determine the amount of and to receive their
compensation for services as Trustee or in any other capacity; in the case of a
corporate Trustee, to borrow from, deposit money, or otherwise deal with its own
banking department, to invest in its own stock or stock of any of its affiliates, or to
invest in its own Common Trust fund, and to be interested in any investment,
corporation, unincorporated business, farming or mining operation, real estate
operation, or other venture in which the Trust is interested.
BB. To obtain the advice of accountants, attorneys-at-law, brokers, investment
counsel, realtors, appraisers, and other experts, and to compensate such experts
by salary, commission, fee, or otherwise, and to act pursuant to the advice of
such experts without independent investigation.
CC. To delegate to one or more agents: the authority to execute contracts,
checks, documents of title, and other instruments, to keep books of account, to
prepare reports and tax returns, to hold possession and record ownership of
securities, bank accounts, and other property, or to perform any other ministerial
functions; the authority to perform the following discretionary functions: the
management of any investment, unincorporated business, farming or mining
operation, and real estate operation, or other venture (whether by employing
agents, giving proxies, entering into voting trusts, or otherwise), and the selection
of the time to acquire or to dispose of any property which may be held, any
power, including this power, possessed by the Trustee which is necessary,
customary, or desirable so that the delegate may perform any function delegated
pursuant to this paragraph; and to compensate such agents by salary,
commission, fee, or otherwise.
DD. To enter into binding agreements not to exercise any power which they
possess on such terms and conditions and for such reasons as may be deemed
appropriate.
EE. To enter into any pooling or unitization agreement.
FF. To purchase options on any property.
GG. To advance money on behalf of the Trust for which advances, with any
interest, the Trustee shall have a lien on the assets of the Trust as against any
beneficiary.
HH. To permit any beneficiary to have the use, possession, and enjoyment of
any property then distributable pending actual distribution of the property.
Article 8 Governing Law
The construction, validity, and effect of this agreement and the rights and duties
of the beneficiaries and Trustee shall at all times be governed exclusively by the laws of
____________________ (name of state) .
Article 9 Limitations on Trustee’s Power
Notwithstanding any powers conferred on the Trustee elsewhere in this
agreement, no Trustee or successor Trustee or any other person shall have at any time,
or in any manner or capacity, either directly or indirectly, the power to do any of the
following in respect of any Trust or Trust fund created under this agreement:
A. To revest title to any part of the principal of any Trust fund in the Donor
(including without further mention in this Article Nine any other Donor of property
under this agreement); to hold or accumulate any part of the income of any Trust
or Trust fund for future distribution to the Donor; or to distribute any part of the
income of any Trust or Trust fund to the Donor.
B. To enable any person to purchase, exchange, or otherwise deal with or
dispose of any part or all of the principal or income of any Trust or Trust fund for
less than adequate and full consideration in money or money's worth.
C. To enable the Donor directly or indirectly to borrow any part or all of the
principal or income of any Trust or Trust fund.
D. To exercise any power of administration over any Trust created under this
agreement other than in a fiduciary capacity for the benefit of the beneficiaries.
E. To apply any part of the income (whether current or accumulated) to the
payment of premiums on policies of insurance on the life of the Donor or the
Donor's spouse.
Article 10 Counterparts
This agreement may be executed in any number of counter-parts, any one of
which shall constitute the agreement between the parties.
Article 11 Amendments
The Trustee is authorized and empowered in its sole and absolute discretion to
amend, change, or supplement this instrument in any manner whatsoever, except as
provided below. Such amendments, changes, or supplements shall be effective on the
execution by the Trustee of a writing setting forth the same or as of such earlier or later
date as the Trustee may specify in the writing. However, no amendment, change, or
supplement of this instrument shall operate to diminish, enlarge, or otherwise alter the
interests of the beneficiaries, or to grant or create for the benefit of any Donor under this
agreement, directly or indirectly, any interest, right, or power, administrative or
otherwise, in the Trusts provided for, the Trust funds, or the income of the same, or to
grant to any person any power expressly forbidden under the provisions of this
agreement. The principal purpose for this power is to enable the Trustee to make
technical amendments to the Trust instrument in order that the Trust instrument will best
conform to the law, and particularly the tax law, in effect from time to time during the
continuance of the Trusts.
Article 12 Construction
A. Unless the context requires otherwise, all words used in this instrument in the
singular number shall extend to and include the plural; all words used in the plural
number shall extend to and include the singular; and all words used in any gender shall
extend to and include all genders.
B. For all purposes under this instrument, the adoption of a minor who is not an
issue of the Donor by a person or persons shall have the same effect except for
determining his or her age as if the minor were born to such person or persons on the
date of his or her adoption.
C. As used in this instrument, the terms "brother" and "sister" shall include persons
who have acquired the designated relationship by the half as well as the whole blood,
but shall be limited to persons related to the Donor by blood or adoption.
D. As used in this instrument, the term "Trustee" shall include all those holding that
office under this agreement from time to time without regard to whether they were
initially appointed, successor, or additional Trustee.
E. As used in this instrument, the term "children" means first generation offspring of
the designated ancestor; the term "issue" means both children of the designated
ancestor and lineal descendants indefinitely.
Article 13 Trustee
A. ____________________ (Name of Trustee) , a banking corporation organized
and existing under the laws of the United States with its principal office located at
______________________________________________________________________
(street address, city, state, zip code) , is appointed initial Trustee under this
agreement. Said Trustee and each of its successors may resign at any time for any
reason by delivering a written instrument to that effect to all adult beneficiaries and to
the guardians or other fiduciaries of the Estates of any minor or incompetent
beneficiaries who may then be receiving or entitled to receive income under this
Agreement. Any such resignation shall be effective as of the date of completion of
delivery of the instrument or as of such later date as shall be specified in the instrument.
B. If, for any reason, the Trustee of any Trust created under this agreement shall
cease to be a Trustee, then such person as shall have been designated by written
instrument signed by the former Trustee shall be appointed as a successor Trustee. If
no such successor Trustee shall have been so designated within (e.g. 60) ______ days
of the vacancy in the office of Trustee, or if the designated successor Trustee shall
decline to act as a Trustee, or if for any reason a successor Trustee is not or cannot be
appointed, then _________________________________________________________
______________________ (Name and address) shall act as a successor Trustee to
the Trust.
C. No Trustee to whom a payment or distribution of property, income, or corpus may
be made or withheld under any of the provisions of this Trust agreement or of any Trust
created under this agreement shall be permitted or required by the provisions of this
agreement to vote on or participate in any action taken on the same. All decisions
concerning such payment, distribution, or retention shall be made solely by the other
Trustee acting under this agreement.
D. There shall be at all times, as to each of the Trusts created by this instrument, at
least one independent Trustee. As used in this instrument, the term "independent
Trustee" shall mean, collectively, all persons, corporations, partnerships, or associations
who have no beneficial interest, vested or contingent, in the property of the Trust of
which they are Trustee, who are not "related or subordinate parties" as that term is
defined in Section 672(c) of the Internal Revenue Code of 1954, as amended. In
addition, each must be one who can possess the powers vested in it, him or her without
causing income or principal to be attributable to a Trust beneficiary for federal income,
gift, or estate tax purposes prior to the actual distribution of the income or principal to
the beneficiary. The initial independent Trustee is ___________________ (Name of
Trustee) , a banking corporation organized and existing under the laws of the United
States with its principal office located at ______________________________________
______________________________________ (street address, city, state, zip code) .
E. All discretionary powers and duties vested in any Trustee under this agreement
which is not a natural person may be exercised on its behalf, from time to time, by its
governing board, or by an appropriate committee, or by its principal officers or Trust
officers.
F. No bond or other security shall ever be required to be given or filed by any
Trustee under this agreement for the faithful execution of its duty. If, notwithstanding the
foregoing provision, a bond shall nevertheless be required, no sureties shall be required
on it.
G. No Trustee under this agreement shall be liable except for willful malfeasance or
bad faith.
IN WITNESS WHEREOF, on this the ______day of _____________, 20____,
Grantor and Trustee have signed this Instrument.
____________________________
(Printed Name of Grantor )
____________________________
(Signature of Grantor )
____________________________
(Name of Trustee)
By:____________________________
____________________________
(P rinted name & Office in Corporation)
___________________________
(Signature of Officer)
Attach Schedule A
(Acknowledgment form may vary by state)
STATE OF _____________
COUNTY OF ____________
Personally appeared before me, the undersigned authority in and for the said
county and state, on this _____ day of ______________, 20_____, within my
jurisdiction, the within named ________________________ (Name of Officer) , who
acknowledged that he is _______________________ (Name of Office) of
___________________________ (Name of Corporation) , a _________________
(name of state) corporation, and that for and on behalf of the said corporation, and as
its act and deed he executed the above and foregoing instrument, after first having been
duly authorized by said corporation so to do.
________________________________
NOTARY PUBLIC
My Commission Expires:
____________________
State of _____________________
County of ___________________
Personally appeared before me, the undersigned authority in and for the said
County and State, on this _________________ (date) , within my jurisdic tion, the within-
named _____________________ (Name of Grantor) , who acknowledged that he
executed the above and foregoing instrument.
___________________________
NOTARY PUBLIC
My Commission Expires:
____________________
State of _____________________
County of ___________________
Personally appeared before me, the undersigned authority in and for the said
County and State, on this ___________________ (date) , within my jurisdic tion, the
within-named _____________________ (Name of Grantor ) , who acknowledged that
he executed the above and foregoing instrument.
________________________________
NOTARY PUBLIC
My Commission Expires:
____________________
