REVOCABLE LIVING TRUST AGREEMENT
THIS REVOCABLE LIVING TRUST AGREEMENT, (hereinafter "Trust"), is being
made on this the ________ day of _______________ , 20 _____ , by and between
___________________________________ of ____________________ County,
State of Florida, 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.
ARTICLE II
IDENTIFICATION
2. TRUSTOR AND BENEFICIARIES: The Trustors or Settlors of this trust
are _______________________ and _______________________ , Husband
and Wife, residing at ___________________________________ ,
___________________________________ , Florida ________ . As used herein,
the term “Trustor” shall mean all trustors of this trust, whether one or more. The
Trustors are married and have no children.
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 Beneficiaries is/are __________________ .
ARTICLE III
TRUSTEE APPOINTMENT
3. TRUSTEE APPOINTMENTS: T he 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 Florida as stated in the Florida Code Sections 736.0815 and
736.0816. The principal place of administration of this trust is the Trustors place
of residence, regardless of the residence of the Trustee. If multiple or Co-
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Trustees are appointed their exercise of powers shall be governed by Florida
Code Section 736.0703. 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. See
Section 736.0704.
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 Trustor, or any other third party at any time. Trustor
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: 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. It is the intent of this provision to retain for the
grantor(s) the requisite beneficial interest and possessor right in and to such real
property to comply with Florida Statute 196.041(2), such interest being hereby
declared to be "equitable title to real estate" as that term is employed in Section
6, Article VII of the State Constitution.
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. 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 Florida, to the broadest extent possible, including, but limited to all of
the powers authorized by Florida Code Sections 736.0815 and 736.0816 . 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:
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(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
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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.
(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
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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 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 Trustor 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
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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, 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.
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Except as otherwise provided herein by provisions inconsistent therewith, the
Trust shall be administered by the Trustee in accordance with the provisions of
Florida Title 42 Chapter 738 Sections 738.101 through 738.804.
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, 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.
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. The Trustee shall
collect all income of the Trust, and shall pay from the income such amounts and
to such persons as the Trustor may from time to time direct. In the absence of
direction from the Trustor, 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
Trustor. 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 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, or both, for the
health and maintenance of the Trustor, in his or her accustomed manner of living.
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 Trustor, the Trustor does hereby
reserve during his or her lifetime the following rights:
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(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
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. 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.
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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, 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 Trustor, 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 Trustor’s
estate.
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, from the principal or income of the Trust, any or all of
the Trustor’s just debts, funeral expenses, and administration expenses of the
Trustor’s estate. Alternatively, the Trustee may, but is not obligated to, pay such
expenses directly.
19. TAXES: Upon the death of the Trustor, a ll estate and inheritance taxes
that become due and payable upon all of the property comprising the Trustor’s
gross estate, without regard to how such property passes, shall be paid by the
Trustee either to the estate of the Trustor 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 Trustor 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 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 or any list, letter, or other writing of the
Trustor permitted by the Will of the Trustor, or as may be directed by a list, letter
or other writing designated as Schedule B of this Trust, whenever made. All
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costs of storing, packing, shipping and insuring such gifts shall be paid by the
Trust.
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),
at the Trustee’s discretion, so much of the income and principal as the Trustee
deems necessary for the health, maintenance, education, support, and
happiness of the Surviving Trustor.
If at any time before full distribution of the trust estate the Trustor’s and all named
Beneficiaries are deceased and no other disposition of the property is directed by
this instrument, the remaining portion of the trust shall then be distributed to the
Trustor’s legal heirs according to the laws of succession of the State of Florida
then in force.
(b) DISTRIBUTION UPON DEATH OF BOTH TRUSTORS: Upon the death
of the Trustor and surviving Trustor, the Trustee shall distribute or hold the trust
property as follows:
All trust property, including principal or income shall be distributed to
__________________ . If more than one person is named, they shall receive
property equally. If any of the named persons are minors, the Trustee shall retain
his or her portion of the Trust Estate in accordance with the Sprinkling Trust
provisions below.
(c) SPRINKLING TRUST: The Trustee shall hold, administer, and
distribute the assets of the Sprinkling Trust as follows:
i) For any named beneficiaries who are minors on the date of my
death the trustee shall hold his or her trust estate in a separate trust to be used in
the discretion of the trustee for the health, education, maintenance, and general
welfare of such beneficiary.
ii) Upon the beneficiary reaching 21 years of age, the trustee
shall distribute outright all remaining income and principal to such beneficiary and
the trust for such beneficiary shall terminate.
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iii) If any beneficiary of this Sprinkling Trust shall die before age
21, and leave no living issue, his or her share of the trust will be distributed
equally to the other beneficiaries named herein. If the named beneficiary leaves
living issue, then they shall be substituted for the deceased beneficiary, and this
trust shall be administered for their benefit, pursuant to the provisions for their
deceased parent. Upon such beneficiary reaching 21 years of age all remaining
principal and income shall be distributed to the sole beneficiary.
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. If
there are living issue, the living issue shall receive their deceased parents share
of the trust estate. If a Beneficiary dies before complete distribution and leaves
living issue, such living issue shall step into the shoes of his or her parent and
the trust shall be administered for their benefit.
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. Florida Code Section 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. Florida Code
Section 736.1013. 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. Florida Code Section 736.1013.
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 Florida, 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. Florida Code
Section 736.0702.
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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 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 attorney’s 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
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amendment under this provision shall be in writing and must be consented to by
the Trustor, if not then deceased or incapacitated, or the beneficiaries of any
Trust if the Trustor 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 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. The Trustee shall be required to inform and
account to any beneficiary.
ARTICLE XI
TRUST ADMINISTRATION
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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.
(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 Trustor, 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
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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,
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 Trustor
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 designation of beneficiary exists, the Trustor grants to the
Trustee the power, on behalf of the Trustor, 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 Trustor'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
Trustor’s lifetime shall be registered as follows: __________________ , Trustee,
or his or her successors in trust, under THE __________________ REVOCABLE
TRUST, dated the _____ day of ______________ , 20 ___ , 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, or
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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 Trustor. 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 Trustor who was alive when the Trustor 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.
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
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.
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49. APPLICABLE LAW: This Agreement shall in all respects be construed
and regulated according to the laws of the State of Florida. 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.
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 Trustor or out of the family of a descendant of the
Trustor. 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.
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IN WITNESS WHEREOF, on this the ____day of __________, 20___, Trustor,
and Trustee have signed this Instrument.
____________________________
TRUSTOR
______________________________
TRUSTOR
_____________________________
TRUSTEE
The above and foregoing Trust of ____________________________ was
declared by _____________________________ in our view and presence to be
his/her Trust and was signed and subscribed by the said
_____________________________ in our view and presence and at his/her
request and in the view and presence of _____________________________
and in the view and presence of each other, we, the undersigned, witnessed and
attested the due execution of the Trust of _____________________________ on
this the _____day of ___________________, 20____.
Witness Signature Witness Signature
Print Name: Print Name:
Address: Address:
City, State,
Zip: City, State,
Zip:
Phone: Phone:
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STATE OF FLORIDA
COUNTY OF _____________________
The foregoing instrument was acknowledged before me this
________________ (date), by
__________________________________________ (name), who is personally
known to me or who has produced ____________________________ (type of
identification) as identification.
__________________________
Notary Public
Printed Name: ______________
My Commission Expires:
____________________
Commission #_________
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THE __________________ REVOCABLE LIVING TRUST
Schedule A
The sum of One Hundred Dollars ($100.00) in cash.
TOGETHER WITH:
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