REVOCABLE LIVING TRUST AGREEMENT
THIS REVOCABLE LIVING TRUST AGREEMENT, (hereinafter "Trust"), is being made this ______
day of __________________ , 20 ______ , by and between
of , County,
,
as the Trustor, and serving as Trustee. This Trust shall be known as
THE REVOCABLE TRUST, and shall be administered in
accordance with the following terms:
ARTICLE I
INTRODUCTION
(A) TRUST PURPOSE : Any person shall deal with the Trustee without the approval of any court, the Trustor,
or any beneficiary of any Trust created by this Trust, and shall assume that the Trustee has the same power and
authority to act as an individual does in the management of his or her own affairs. Further, any person presented
with a copy of this page and any other page of the Trust shall accept same as conclusive proof of the terms and
authority granted by this Trust, and shall assume that no conflicting directions or terms are contained in the pages
omitted.
(B) TRUST ASSETS: , as Trustor, does hereby assign, convey and
deliver to the Trustee, all of the Trustor's right, title, and interest in and to all real and personal property, tangible
or intangible, of any nature, in any location, which may be owned by the Trustor or later acquired by the Trustor,
unless an exception to the conveyance of a particular property interest is made on Schedule A. Said property shall
include, but shall not be limited to, the assets listed on Schedule A, which may be attached to this Trust. However,
this general assignment shall not alter any beneficiary designation unless specifically listed on Schedule A. A
voluntary conveyance by the Trustor of a Trust asset which may remain registered to the Trustor individually shall
convey any interest held by this Trust.
(C) ABSTRACT OF TRUST: In order to facilitate the convenient administration of the Trust, including the
registration and transfer of assets to and from the Trust, the Trustee shall have the power to execute an Abstract
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 who receives an original
or photocopy of said Abstract 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.
(D) SUGGESTED TRUST REGISTRATION: During the life of the Trustor, assets may be registered to the
Trust as follows: , Trustee, or his or her successors in trust,
under THE REVOCABLE TRUST dated the ______ day of
__________________ , 20 ______ , and any amendments thereto.
Other forms of registration are permissible.
(E) TAX IDENTIFICATION: During the life of the Trustor, the Trust shall be identified by the Trustor's Social
Security Number. Upon the death of the Trustor, the Trustee shall apply to the IRS for a tax identification number
for the Trust and any other Trust created by this Trust Agreement.
ARTICLE II
ADMINISTRATION DURING THE LIFE OF THE TRUSTOR
(A) TRUSTEE: The Trustee of this Trust shall be the Trustor, . If the
Trustee cannot continue to serve for any reason, the Successor Trustee shall be
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,
and if he or she shall be not willing and/or able, then shall serve as the
Successor Trustee. The powers of the Trustee and the Successor Trustee are set forth in Article VI, below.
(B) DISPOSITION OF INCOME AND PRINCIPAL:
(1) AT THE DIRECTION OF THE TRUSTOR
The Trustee shall manage the property of the Trust estate, collect t income, and shall pay from the
income of the Trust such amounts and to such persons as the Trustor may from time to time direct. In the absence
of direction, the Trustee may accumulate the net income or may disburse any portion of the net income to or for
the benefit of the Trustor, .
In addition, the Trustee shall pay from the principal of the Trust such amounts and to such persons as said
Trustor may direct. In the absence of direction, the Trustee may pay from the principal of this Trust such amounts
as
may be necessary for the health or maintenance of the standard of living of
.
(2) DURING THE INCAPACITY OF THE TRUSTOR
In the event is incapacitated 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 in his or her accustomed manner of living.
During any period of incapacity of the Trustor, and, provided sufficient resources exist for the care of the
Trustor, the Successor Trustee is authorized to make distributions to or for the benefit of any issue of the Trustor
who have no other financial resources and require said distribution for their health or support. In this regard the
Successor Trustee shall consider all financial resources available to a beneficiary prior to making an invasion of
this Trust, including, but not limited to, the ability of said beneficiary to earn a living and the ability of said
beneficiary's spouse, if any, to earn a living. In no event may a Successor Trustee participate in the exercise of this
power in favor of himself.
(C) RIGHT TO ADD TO PRINCIPAL
The Trustor, , or any other person may, at any time and from time to time add property
acceptable to the Trustee to the Trust.
(D) RIGHT TO REVOKE AND AMEND
The Trustor, , reserves the right while alive, except any period
when incapacitated, at any time and from time to time, by an instrument in writing, signed, acknowledged, and
delivered to the Trustee:
(1) To revoke this instrument entirely and to receive from the Trustee all property remaining after
making payment or provision for payment of all expenses connected with the administration of
this Trust,
(2) From time to time to alter or amend this instrument in any and every particular,
(3) From time to time to change the identity or number, or both, of the Trustee and/or Successor
Trustee,
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(4) From time to time to withdraw from the operation of this Trust any or all of the Trust property.
ARTICLE III
ADMINISTRATION AFTER THE DEATH OF THE TRUSTOR
(A) TRUSTEE: The Trustee (meaning the Successor Trustee then acting as Trustee), shall continue to
administer the assets of this Trust as well as any property received by this Trust under the terms of the Trustor's
will or from any other source to the extent it is included in the Trustor's gross estate for Federal Estate Tax
purposes, and shall distribute said assets as provided below.
(B) COLLECTION OF PROCEEDS: The Trustee may take such action as is necessary to collect the proceeds
of any life insurance policy, or provide for the payment of retirement plan, IRA, or other benefits payable to the
Trust. If probate administration has not or will not be commenced, the Trustee shall have the power to collect tax
refunds, health insurance, proceeds, refunds under any contract, death benefits, or any other item which might
otherwise be payable to the deceased Trustor's estate.
(C) DEBTS AND EXPENSES: The Trustee may, in the Trustee's sole and absolute discretion, pay to the estate
of
the Trustor from the principal or income of the Trust prior to distribution to any trusts created hereunder or any
other distributee, such amounts as may be needed to pay all or any part of the deceased Trustor's just debts,
funeral expenses, and the administration expenses of the Trustor's estate. Alternatively, the Trustee may, but shall
not be obligated to, pay such expenses directly.
(D) DEATH TAXES: The Trustee shall pay to the estate of the deceased Trustor or the appropriate tax
authorities all estate and inheritance taxes that may become payable by reason of the Trustor's death in respect to
all of the property comprising the Trustor's gross estate for death tax purposes, whether or not such property
passes under this Trust, under the Trustor's will or otherwise. However, the Trustee shall have the right of
contribution as provided in Sections 2207 and 2207A IRC, if it is applicable.
(E) DISTRIBUTIONS TO THE TRUSTOR'S ESTATE: In addition to the distributions provided for in
paragraphs C and D of this Article, the Trustee may 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.
(F) SPECIFIC GIFTS OF TANGIBLE PERSONAL PROPERTY: Upon the death of the Trustor, the Trustee
shall make such gifts of the tangible personal property of the Trustor held or acquired by the Trust as may be
directed by the Trustor's Will, or as may be directed by a list, letter, or other writing of the Trustor permitted by
the Will, or as may be directed by a list, letter or other writing designated as Schedule B of this Trust. The cost of
storing, packing, shipping and insuring any tangible personal property gift prior to delivery to its intended
recipient shall be paid by the Trust.
ARTICLE IV
DEATH OF THE TRUSTOR
(A) DISTRIBUTIONS AND DISBURSEMENTS: Upon the death of the Trustor, and after the payment of the
Trustor's just debts, funeral expenses and expenses of last illness, and the disbursements listed in Article III of this
Trust, the following distributions shall be made:
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I leave all the rest and remainder of the trust property to
.
(B) DEATH OF BENEFICIARY BEFORE COMPLETE DISTRIBUTION OF TRUST
ASSETS: In the event the Beneficiary dies before a complete distribution of his Trust is made, then their share
shall go to: [ state names, i.e. children of deceased beneficiary, or residuary person]
(C) PERPETUITIES CLAUSE: Notwithstanding any provision of this Trust to the contrary, all Trusts 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 V
INCAPACITY, REHABILITATION, AND GUARDIANSHIP
Throughout this Trust Agreement, where there have been references to "incapacity" and "rehabilitation",
those two terms shall have the following meanings:
(A) "INCAPACITATED"
If , as a Trustee or a beneficiary, is under a
legal disability or by reason of illness, or mental or physical disability is, in the written opinion of two doctors
currently practicing medicine, unable to properly manage his or her affairs, he or she shall be deemed
incapacitated for the purposes of this Trust Agreement.
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(B) "REHABILITATION"
as a Trustee or as a beneficiary, once deemed incapacitated
under Paragraph (A) of this Article, 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 affairs. Upon rehabilitation, he or she shall resume the duties and powers he or she had
prior to incapacity and his or her successors shall relinquish all powers and be relieved of all duties.
(C) "GUARDIANSHIP"
In the event the Trustor is adjudicated incompetent by any court having jurisdiction, pursuant to
Statutes or similar provisions of the laws of any other state
having jurisdiction, the Trustor does hereby nominate the same person(s) in name and order of succession who
serve as Trustee as provided in Article II(A) as Guardian of the property of the incompetent Trustor, and the same
person(s) in name and order of succession as provided in Article IX(B) as Guardian of the person of the
incompetent Trustor. The Trustor further directs that the Court honor Article I(B) of the Trust by permitting the
completion of the conveyance to the Trustee of any assets which remain registered to the Trustor.
ARTICLE VI
PROVISIONS REGARDING THE TRUSTEE
The following general provisions apply to the Trustee and any Successor Trustee of any Trust which is
created by this Trust Agreement:
(A) GENERAL PROVISIONS: (1) TRUSTEE'S POWER: It is the intention of the Trustor to grant to the
Trustee the power to deal with all of the Trust property as freely as the Trustor could do individually, and the only
requirement that the Trustor places upon the Trustee is that the Trustee act as a fiduciary in good faith. The
Trustee shall have all the powers and protection granted to Trustees by statute at the time of application, including
all of the powers enumerated below or contained in any Certificate of Trust signed by the Trustor; and the Trustor
intends that such powers be construed in the broadest possible manner.
Notwithstanding the foregoing, the Trustee shall not hold or exercise any power or any discretion granted by
Article VII which creates unexpected or adverse tax consequences to the Trustor's estate, any Trust created by this
agreement, or any beneficiary, or which causes taxation to the Trustee or the estate by virtue of the existence of
the power. The Trustee's powers are ministerial in nature and are not intended to create or alter substantive rights.
The limitations of this paragraph shall not affect the rights of any third person who deals with the Trustee.
(B) SPECIFIC POWERS OF THE TRUSTEE: (1) RETAIN TRUST ESTATE: To retain, without liability for
loss or depreciation resulting from such retention, the original assets and all other property later transferred,
devised or bequeathed to the Trustee for such time as the Trustee shall deem advisable although such property
may not be of the character prescribed by law or by the terms of this agreement for the investment of Trust assets
and although it represents a large percentage of all of any Trust; said original property may accordingly be held as
a permanent investment.
(2) HOLD UNINVESTED CASH AND UNDERPRODUCTIVE PROPERTY: For any periods
deemed advisable, to hold cash, uninvested, even though the total amount so held is disproportionate under trust
investment law or would not be permitted without this provision, and to retain or acquire and hold
underproductive realty or personalty.
(3) INVEST AND ACQUIRE: To invest and reinvest Trust assets in any type of property or security or
any interests in such property (including cotenancies and remainders) without regard to the proportion that
investments of the type selected may bear to the entire Trust estate, without limitation to the classes of trust
investments authorized by law, and without regard to the possibility that the investments may be in new issues or
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in new or foreign enterprises, and to write options against long positions. The property acquired may be realty or
personalty and may include life insurance, bonds, debentures, leaseholds, options, easements, mortgages, notes,
mutual funds, investment trusts, common trust funds, voting trust certificates, limited partnership interests, U.S.
Treasury obligations redeemable at par in payment of Federal Estate Tax, and any class of stock or rights to
subscribe for stock, regardless of whether the yield rate is high or low or whether or not the new asset produces
any income at all. It is intended that the Trustee shall have the authority to act in any manner deemed in the best
interests of the Trust involved, regarding it as a whole, even though certain investments considered alone might
not otherwise be proper.
(4) OPTIONS, WARRANTS, PUTS, CALLS, COMMODITY AND MARGIN ACCOUNTS: The
Trustee is specifically authorized, in his or her discretion, to buy, sell or transfer options, warrants, puts, calls,
commodities, futures contracts, repurchase contracts, and to maintain brokerage margin accounts.
(5) EXERCISE OPTIONS AND CONVERSION PRIVILEGES: To exercise any options, rights, and
conversion privileges pertaining to any securities held by the Trustee as Trust assets.
(6) RECEIVE ADDITIONAL PROPERTY: To receive additional property from any source, including
the Personal Representative of a Trustor's estate and the Trustee or beneficiary of any other trust, by whomsoever
created, and to hold and administer this property as part of the Trust Estate.
(7) SELL AND LEASE: To sell, convey, grant options to purchase, lease, transfer, exchange or
otherwise dispose of any Trust asset on any terms deemed advisable, 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.
(8) INSURANCE: To carry any insurance deemed advisable with any insurer against any hazards,
including public liability, and to use insurance proceeds to repair or replace the asset insured. In addition, the
Trustee may carry or purchase life insurance on the life of any Trust beneficiary, and exercise or release any rights
in such policy.
(9) LEND: On any terms deemed advisable, to lend Trust funds to any borrower, including the personal
Representative of a Trustor's estate and the Trustee or beneficiary of any trust, by whomsoever created, and to
change the terms of these loans. This authorization includes the power to extend them 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, and to consent to the modification of any guarantee.
(10) BORROW: To borrow whatever money the Trustee deems desirable for any Trust on any terms
from any lender, including the personal Representative a Trustor's estate, and the Trustee or beneficiary of any
other trust, by whomsoever created, and to mortgage, pledge or otherwise encumber as security any assets of the
borrowing Trust.
(11) TERM OR DURATION OF OBLIGATION: 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.
(12) COMPROMISE OR ABANDONMENT OF CLAIMS: Upon whatever terms the Trustee deems
advisable, to compromise, adjust, arbitrate, sue on, defend, or otherwise deal with any claims, including tax
claims, against or in favor of any Trust, to abandon any asset the Trustee deems of no value or of insufficient
value to warrant keeping or protecting; 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.
(13) DISTRIBUTION IN CASH OR IN PROPERTY: To distribute any shares 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.
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(14) USE OF NOMINEE: To hold any or all of the Trust assets, real or personal, in the Trustee's own
name, or in the single name of any Co-Trustee, or in the name of any corporation, partnership, or other person as
the Trustee's nominee for holding the assets, with or without disclosing the fiduciary relationship. A corporate
Trustee shall have the power to appoint a Trustee to administer property in any jurisdiction in which it shall fail to
qualify.
(15) BID ON OR TAKE OVER WITHOUT FORECLOSURE: To foreclose any mortgage, to bid on
the mortgaged property at the foreclosure sale or acquire it from the mortgagor without foreclosure, and to retain
it or dispose of it upon any terms deemed advisable.
(16) PAY OFF ENCUMBRANCES: To pay off any encumbrance on any Trust asset and to invest
additional amounts to preserve it or to increase its productivity.
(17) VOTE STOCK: To vote stock for any purpose in person or by proxy, to enter into a voting trust,
and to participate in corporate activities related to a trust in any capacity permitted by law, including service as
officer or director.
(18) PARTICIPATE IN REORGANIZATION: To unite with other owners of property similar to any
held in Trust in carrying out 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.
(19) PURCHASE PROPERTY FROM ESTATE OR TRUST: To purchase property, real or personal,
from a Trustor's or a 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 or Trustee shall agree upon, to hold the
property so purchased in Trust although it may not qualify as an authorized Trust investment except for this
provision, and to dispose of such property as and when the Trustee shall deem advisable.
(20) EMPLOYMENT OF ASSISTANTS AND AGENTS: To any extent reasonably necessary, to
employ 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 the
Trustee deems advisable for the proper administration of any Trust.
(21) ESTABLISHMENT AND MAINTENANCE OF RESERVES: Out of the rents,
profits, or other gross income received, to set aside and maintain reserves to the extent deemed advisable to meet
present or future expenses, including taxes, assessments, insurance premiums, debt amortization, repairs,
improvements, depreciation, obsolescence, general maintenance and reasonable compensation for services,
including services of professional and other employees, as well as to provide for the effects of fluctuations in gross
income and to equal or apportion payments for the benefit of beneficiaries entitled to receive income.
(22) MANAGE REALTY: To deal with real and personalty, including oil, gas, and mineral rights in any
manner lawful to an owner. This authority includes the rights to manage, protect, and improve it, to raze, alter and
repair improvements, to sell or contract to sell it in whole or in part, to partition it, to grant options to purchase it,
to donate it, to convey it, to acquire it, release or grant easements or other rights relating to it, to dedicate parks
and thoroughfares, to subdivide it, to vacate any subdivision or any part thereof and resubdivide it from time to
time, to lease it in whole or in part, and to renew, extend, contract for, and grant options in connection with
contract entered into by the Trustee can be made on any terms and for any period, including a period beyond the
duration or termination of any Trusts.
(23) CARRY ON BUSINESS: With respect to any business that may be or become a part of any Trust
whether organized as a sole proprietorship, limited partnership, partnership or corporation, upon such terms, for
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such time, and in such manner as the Trustee deems advisable:
a. To hold, retain and continue to operate such business solely at the risk of the Trust estate and
without liability on the Trustee's part for any resulting losses;
b. To incorporate, dissolve, liquidate, or sell such business at such time and upon such terms as
the Trustee deems advisable. In this regard the Trustee’s decision may be based upon qualified appraisal, and the
Trustee shall not be obligated to seek other offers in contracting for sale to any person including another
shareholder, trust, or beneficiary;
c. To borrow money for business purposes and to mortgage, pledge or otherwise encumber the
assets of any Trust to secure the loan;
d. To engage in the redemption of stock and take such actions as are necessary to qualify the
redemption under Sections 302 or 303 IRC and the applicable requirements of state law.
e. To create a special lien for the payment of deferred death taxes under 6324 IRC, or similar
provisions of state law.
f. To create, continue, or terminate an S-Corporation election.
(C) DEALINGS WITH THE TRUSTEE: Any person who deals in good faith with the Trustee shall deal only
with the Trustee and shall presume that the Trustee has full power and authority to act. No person shall require
court confirmation or the approval of a beneficiary for any transaction with the Trustee. The signature of the
Trustee shall bind the interest of any Trust beneficiary, including the Trustor, and no person need see the
application of any property delivered to the Trustee.
(D) COMPENSATION OF TRUSTEE : Any Trustee who is also a beneficiary hereunder shall serve 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 receive as compensation for its
services, unless waived, such amount of compensation as is customarily being charged by commercial trust
companies for services as a trustee of an inter vivos trust in the State of .
(E) BOND AND QUALIFICATIONS: No bond shall 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 are relieved of the filing of any
document and accounting in any court.
(F) SUCCESSOR TRUSTEE(S): No Successor Trustee shall be responsible for acts of any prior Trustee. In the
event a Trustee of any Trust is unable to serve or continue to serve as Trustee for any reason and no successor has
been provided, the Successor Trustee shall be elected in writing by any of the persons who have previously served
as Trustee, with preference in the making of such appointment being determined in the same order of their
succession as Trustee. If no appointment exists, the Successor Trustee shall be elected in writing by the majority
in interest in the income of the Trust. No person shall be required to apply to any court in any jurisdiction for
confirmation of said appointment. Any Successor Trustee so elected shall either be an issue of the Trustor or shall
be a corporate Trustee qualified to exercise Trust powers.
(G) REMOVAL OF SUCCESSOR TRUSTEES: In the event a Successor Trustee is administering any Trust
created hereunder, the 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.
For example, a Successor Trustee may be removed in order to transfer administration to the place of residence of a
primary beneficiary, or because of mismanagement of Trust funds, or because of excessive fees, or because of
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lack of attention to Trust matters, or other such reason. Removal shall not be permitted for the purpose of
influencing the exercise of discretion of a Successor Trustee which is granted by this instrument. For example,
removal of a Successor Trustee that refuses to make a discretionary invasion of principal shall not be allowed.
Removal of a Successor Trustee shall be effective upon delivery of the notice of removal and the removed Trustee
shall have a reasonable period of time to transfer assets to its successor. In the event the successor Trustee
believes that its removal is improper, it may, but shall not be required to, apply to a court of competent
jurisdiction, at its 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 it shall
be entitled to reimbursement from the Trust for its reasonable costs and attorneys fees.
(H) DELEGATION: Any Trustee may delegate any management function of any Trust to any other Successor
Trustee (even though the Successor Trustee is not then serving as Trustee) upon such terms as may be agreed by
the Trustees. In the event more than one Trustee is serving, Trust assets may be held in the name of one Trustee.
(I) LIMITED POWER TO AMEND: The Trustee may amend this Trust to create or renounce management
powers as may be required to facilitate the convenient administration of this Trust, deal with the unexpected or the
unforeseen, or avoid unintended or adverse tax consequences. The amendment shall be in writing and shall be
consented to by the Trustor, if not then deceased or incapacitated, or the beneficiaries of any Trust. The
amendment may be retroactive. This limited power may only be exercised to provide for the convenient
administration of any Trust; and shall not affect the rights of any beneficiary to enjoy Trust income or principal
without his consent, shall not alter the dispositive provisions of any Trust, and shall not be exercisable in such a
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.
ARTICLE VII
ADMINISTRATIVE PROVISIONS
(A) CARRYING SEVERAL TRUSTS AS ONE ESTATE: 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.
(B) ALLOCATION TO PRINCIPAL AND INCOME: All receipts of money or property paid or delivered to
the Trustee and all expenses may be allocated to principal or income in accordance with the laws of the State of
or any other state in which a Trust is being administered. However,
the Trustee, in a reasonable and equitable manner, shall have the discretion to allocate, in whole or in part:
1. Administration expenses to income or principal.
2. Trustee's fees to income or principal.
3. To income, any expense of the administration of the Trust or its assets which is deductible for Federal
Income Tax purposes.
4. To income, the gains or losses from option trading, and capital gains distributions from utility shares,
on mutual funds, or tax managed funds; and
5. To income or principal, distributions from qualified or non-qualified pension plans, profit sharing
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plans, IRA accounts or deferred compensation arrangements.
(C) PROHIBITION OF ALIENATION: No income or principal beneficiary of any Trust (except the Trustor)
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.
(D) SMALL TRUST TERMINATION: If, at any time, any Trust shall be in the aggregate principal value of
Ten Thousand Dollars ($l0,000.00) or less, the Trustee may, in his or her sole discretion, terminate such Trust and
distribute the assets to the beneficiary, or beneficiaries, the share of each being in the same proportion as he or she
is a beneficiary under the terms of the Trust.
(E) DISCLAIMER: Any beneficiary of any Trust shall have the right to disclaim his or her interest in said Trust.
Said disclaimer may be effected in compliance with the requirements of the laws of any jurisdiction in which any
Trust may be administered. Alternatively, the Trustee may act upon any written disclaimer of any interest, in
whole or in part, in any Trust. In the event any beneficiary is incapacitated, the Trustee may accept the disclaimer
of a legal or natural guardian of said beneficiary; and if no such guardian exists, the Trustee of any Trust, acting
on behalf of the beneficiary, shall have the power to disclaim all or a part of the property passing to said Trust.
(F) ELECTIONS: The Trustee and the Personal Representative of the Trustor's estate will have various options
in the exercise of discretionary powers, some of which being limited only by 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. The Trustee or Personal Representative 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.
(G) CERTAIN DISTRIBUTIONS: The Trustee shall have the following options with regard to the distribution
of principal or income to or for a beneficiary:
1. Directly to the beneficiary such amounts as the Trustee may deem advisable as an allowance;
2. To the Guardian of the person or of the property of the beneficiary.
3. 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, which agreement may include a custodianship under the Uniform
Transfers (or Gift) to Minors Act of any state.
4. By 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.
(H) USE OF RESIDENCE: The Trustee may purchase or hold a residence to be occupied by the income
beneficiary of any Trust (and/or his or her family) without rent, and the expense of maintaining the residence may
be borne by the Trust, the beneficiary, or partly by each, as the Trustee may deem proper.
(I) DESIGNATION OF BENEFICIARY: The Trustee shall act upon any written designation of a beneficiary by
a Trustor for qualified plan or IRA benefits made payable to this Trust by distributing the right to receive such
benefits to the designated beneficiary. If no such designation exists the Trustor gives the Trustee the power, on
behalf of the Trustor, to distribute the right to receive such benefits as a part of the share 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.
Revocable Living Trust Agreement Page 10 of 16
(J) INVESTMENT ADVISOR: The Trustor or any person then having the power to remove and replace a
corporate Trustee shall have the right to appoint an investment advisor who is duly registered with the Securities
Exchange Commission. Such appointment shall be in writing effective upon delivery to the corporate Trustee.
Upon receiving such appointment the corporate Trustee shall follow such investment directions regarding such
Trust assets the investment discretion as to which has been delegated to the investment advisor. During such time
as an investment advisor is acting, the corporate Trustee shall have absolutely no liability for investment
decisions which have been delegated to the investment advisor. Such appointment shall not cause the reduction of
the fees charged by the corporate Trustee, nor shall it create any new liabilities of the corporate Trustee without its
consent. The corporate Trustee may enter into such written agreements with the investment advisor or the person
appointing the investment advisor as may be appropriate to carry out the intent of this paragraph.
ARTICLE VIII
MISCELLANEOUS PROVISIONS
(A) SURVIVORSHIP
This Agreement shall be binding upon the heirs, personal representatives,
successors and assigns of the parties hereto.
(B) LAW
This Agreement shall be construed and regulated in all respects by the laws of the State of
. In the event any Trust or asset is being administered in another state,
this Trust may be regulated by the laws of such state if required to avoid excessive administrative expense, or to
uphold the validity of any of the terms of this Trust.
(C) 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.
(D) 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.
(E) IRC
The term "IRC" refers to the Internal Revenue Code and its valid regulations.
(F) 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.
(G) 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.
Revocable Living Trust Agreement Page 11 of 16
(H) 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.
(I) MERGER
The doctrine of merger shall not apply to any interests under any Trust.
(J) 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.
ARTICLE IX
POWER OF ATTORNEY
By virtue of the signing of this Trust below, the Trustor makes the following appointments of Attorneys-
in-Fact:
(A) FOR FINANCIAL MATTERS: The Trustor appoints , as Attorney-in-Fact for
the Trustor for the purpose of signing any state or federal income or gift tax return on behalf of the Trustor,
collecting and endorsing to the Trust any tax refund, making claims against any insurance policy, providing for
the collection and payment to the Trust of any amount due on account of Social Security, Medicare, salary or
other compensation, disability payments, contract, employee benefit program, IRA account or any other benefits
payable to the Trustor. In the event that , is unable or unwilling to
so serve, then shall serve in such capacity.
(B) FOR CARE OF THE TRUSTOR: The Trustor first appoints , and
, jointly if then alive and competent, and then either of them
individually, if then alive and competent if the other of them has pre-deceased Trustor or is incompetent, as
Attorney-in-Fact to make any and all decisions regarding the personal care of the Trustor during any period when
the Trustor may be incapacitated.
(C) DURABILITY: In the hands of a qualified holder, the appointments above shall create a durable family
power of attorney. This durable family power of attorney shall not be affected by the disability of the Trustor
except as provided by statute; and the powers in the hands of a qualified holder may not be delegated.
IN WITNESS WHEREOF, on this the ______ day of __________________ , 20 ______ ,
has signed this instrument as Trustor, and
has signed this Instrument as Trustee, to evidence acceptance of the
Trust Agreement.
______________________________
TRUSTOR
______________________________
Revocable Living Trust Agreement Page 12 of 16
TRUSTEE
STATE OF
COUNTY Of
, Trustor and Trustee, being first duly sworn, does
hereby declare to the undersigned officer/notary public that the Trustor signed the instrument as the Trustor's
Revocable Trust Agreement, that the Trustee accepted this instrument as such, that the Trustor and Trustee signed
the Trust Agreement as their voluntary act and deed on the date and year shown therein.
____________________________
TRUSTOR
_____________________________
TRUSTEE
SUBSCRIBED and sworn before me by ,
the Trustor and Trustee, on this the ______ day of _____________, 20___.
_____________________________
NOTARY PUBLIC
My commission expires: __________________
Revocable Living Trust Agreement Page 13 of 16
THE ______________________________ REVOCABLE TRUST
Schedule A
The sum of One Hundred Dollars ($100.00) in cash.
TOGETHER WITH:
INSTRUCTIONS FOR MAKING LIST OF TANGIBLE PERSONAL PROPERTY
You are permitted to give your tangible personal property to the persons indicated in a written statement
that is separate from your Living Trust if the statement is referred to in your Living Trust. Your Living Trust
refers to a separate written statement and you may dispose of your tangible personal property in this manner if you
so desire. Please read and follow the instructions below if you wish to prepare a separate written statement
disposing of your tangible personal property.
1. Tangible personal property that may be disposed of in a separate written statement includes personal
effects, furniture, family heirlooms, jewelry and other articles of adornment, paintings and other works of art,
antiques, sporting gear, books, collections, automobiles and similar items.
2. Certain types of tangible personal property cannot be disposed of in a separate written
statement. Items such as money, notes and other statements of indebtedness, documents of title, stocks, bonds,
and other securities, and property used in a trade or business may not be disposed in this manner and should not be
included in your separate written statement.
3. Tangible personal property that is already specifically disposed of in your Living Trust should not be
included in the separate written statement. Real estate cannot be disposed of in a separate written statement and
should not be included in your statement. Tangible personal property that is already specifically disposed of in
your Living Trust should not be included in the separate written statement Real estate cannot be disposed of in a
separate written statement and should not be included in your statement.
4. Your separate written statement should clearly identify each item of property that is being disposed of
in the statement The name, address, and relationship to you of the person whom you wish to receive each item of
property should be listed next to the description of the property. The following is an example of how the property
and the persons to receive the property should be listed on the separate written statement:
Item of Tangible Personal Property Name and Address of Person to Receive the Property
5. To be valid, the separate written statement must either be in your handwriting or be signed by you.
Attached to your Living Trust is a blank statement that you may use as your separate written statement if you so
desire. Whether you use the attached statement or one of your own, you should sign and date each page of the
separate written statement.
6. You may change or make additions to the separate written statement as often as you wish without
consulting your attorney. Whenever a change is made, the date of the change should be noted on the statement and
if the change is not in your handwriting you should sign your name near the change. If the statement becomes
cluttered or difficult to read, a new statement should be made following these instructions and the old statement
should be
destroyed.
7. The separate written statement should be kept in a safe place. It should also be kept where it can be
easily found in your absence. It may be kept with your Living Trust if you so desire. You should review the
statement periodically and keep it up to date.
SCHEDULE B
SEPARATE WRITTEN STATEMENT DISPOSING OF
TANGIBLE PERSONAL PROPERTY OF
______________________________
My Living Trust, executed on ________________________ , 20 ______ , refers to a written statement
separate from my Living Trust that provides for the disposition of my nonbusiness tangible personal property. I
hereby make the separate written statement referred to in my Living Trust and dispose of my tangible personal
property in the following manner:
Item of Tangible Personal Property Name and Address of Person to Receive the Property
Date
