Sprinkling Trust for Children During Grantor's Life, and for Surviving Spouse and
Children after Grantor's Death (Crummey Trust Agreement)
Trust agreement made on the _____ day of __________________, 20_____, between
__________________________________ (Grantor) who resides at _______________________
______________________________________________________________________________
(street address, city, county, state, zip code) , (the Grantor and a Co-Trustee ), and ____________
__________________________________________ (Name of Organization) of _____________
______________________________________________________________________________
(street address, city, county, state, zip code) , (a Co-Trustee ).
Whereas, the Grantor wishes to establish an irrevocable trust for the sole benefit of his or
minor children , _________________________________________________________________
(names) , during his lifetime and the Grantor's Spouse, _____________________________
(Spouse’s name) , after the Grantor's death;
Whereas, the Grantor wishes to convey to such Trust certain properties he now owns; and
Whereas, the Trustee is willing to carry out the duties enumerated in this agreement;
In consideration of the matters described above, and of the mutual benefits and
obligations set forth in this agreement, the Grantor and Trustee agree as follows:
I. Identifications
A. Grantor.
__________________________ (Grantor/Co-Trustee) may be referred to in this
agreement as the Grantor .
B. Grantor's Spouse.
The Grantor is married to ___________________________ (Spouse’s name) , who may
be referred to in this agreement as the "Grantor's Spouse."
C. Primary Beneficiaries.
Whenever used in this agreement, the term "Primary Beneficiaries" shall mean the
following individuals: ____________________________ (name) , a _______________ (male or
female) , born _______________________ (date) , and ___________________________
(name) , a __________________ (male or female) , born __________________________ (date) .
D. Trustee.
_______________________________________ (Co-Trustee) of _________________
______________________________________________________________________________
(street address, city, county, state, zip code) , and ___________________________
(Grantor/Co-Trustee) of _________________________________________________________
_________________________________________ (street address, city, county, state, zip code) ,
shall be the Co-Trustees of all Trusts created in this agreement. At all times while the Grantor is
serving as a Trustee, there shall be a Co-Trustee to serve with the Grantor, which Co-Trustee
may be referred to in this agreement as the "Independent Trustee." ________________________
______________________ (Co-Trustee) is the initial Independent Trustee. The Grantor shall be
the Investment Trustee.
E. Trust Committee.
The Trust Committee shall have the powers granted in Section IV of this agreement
(dealing with changes in Trustees). The initial Trust Committee shall consist of the following
individuals: ____________________________ (name) , of ______________________________
______________________________________________________________________________
(street address, city, county, state, zip code) , and _____________________________ (name) , of
______________________________________________________________________________
_____________________________ (street address, city, county, state, zip code) .
II. Establishment of Trusts; Disposition of Trust Property
A. Establishment of the Doe Children's Long-Term Trust.
1. General.
The Grantor has conveyed to the Trustee the properties listed in Exhibit A
attached to and made a part of this Agreement for all purposes. The Trustee accepts such
properties in trust under the terms and conditions of this agreement. The trust so
established may be referred to as the " _____________________ (Family’s Last Name)
Children's Long-Term Trust."
2. Beneficiaries.
During the Grantor's lifetime, the Trustee shall hold and administer the trust
properties for the benefit of the Primary Beneficiaries and the descendants of the
Primary Beneficiaries. After the Grantor's death, the Grantor's Spouse also shall be a
beneficiary of the Trust. Property subsequently transferred to the Trustee to be held in
trust under this Agreement shall be treated as though such properties were among the
original properties listed in Exhibit A .
3. Primary Beneficiary's Right to Withdraw.
To the extent any addition by gift (including the original addition) is made to the
Trust, each Primary Beneficiary may demand withdrawal, at any time from the date of
the addition until _______ (number) days after the date he or she receives written notice
of such addition, of an amount equal to his or her proportionate part only (determined
according to the number of such Primary Beneficiaries then living) of the market value
(on the date of the gift) of the addition. However, the maximum aggregate amount that
may be withdrawn by any Primary Beneficiary in any calendar year pursuant to his or her
demand rights shall be limited in value at the time of withdrawal to the maximum amount
that would not have been considered a release of a general power of appointment under
Section 2041(b)(2) of the Code if such demand rights had not been exercised and had
lapsed during the same calendar year. To the extent no withdrawal demand is made
within ______ (number) days of the date the Primary Beneficiary receives written notice
of any such addition, the right to make such demand shall lapse. Each such withdrawal
demand shall be exercisable only by a written instrument (executed by or on behalf of the
beneficiary having right of such demand) delivered to the then Independent Trustee on or
before the expiration of the ______ (number ) -day period that commences when the
beneficiary receives written notice of his or her demand right, and the thus demanded
amount shall be payable immediately upon receipt of such written instrument. If the
beneficiary is then under any legal disability of any kind, execution of the withdrawal
demand may be by his or her legal guardian or, if no legal guardian has been appointed,
his or her natural guardian, acting solely on behalf of the beneficiary in making such
demand and receiving such distribution for such beneficiary's sole benefit.
Notwithstanding any other provision of this Agreement to the contrary, the Independent
Trustee shall, at all times while any such withdrawal right is outstanding, retain sufficient
liquid funds or transferable assets in the Trust to satisfy all such withdrawal rights which
are then outstanding. Each beneficiary designated as having a withdrawal right with
respect to any addition or additions (and, if he or she is then under any legal disability of
any kind, his or her legal guardian or, if no legal guardian has been appointed, his or her
natural guardian) shall be given written notice by the Independent Trustee within _____
(number) days following the date that each withdrawable addition is made.
4. Distributions during Life of Grantor.
During the Grantor's lifetime, the Trustee shall have the power, in its sole
discretion, to accumulate all or part of the net income of the Trust or to distribute all or
part of the income or principal of the Trust for the comfort and welfare of the Primary
Beneficiaries and the descendants of the Primary Beneficiaries. It is the Grantor's
intention that the beneficiaries be enabled, insofar as possible, to maintain the standard of
living to which they are accustomed. The Trustee may (but is not so directed) take into
consideration all other sources of income or principal available to each beneficiary in
determining what distributions will be made among the beneficiaries of the Trust. The
Trustee may make unequal distributions from the Trust among the beneficiaries of the
Trust, and no such distributions shall be taken into account upon either the division of the
Trust, as provided in Subparagraph A(8) of this Section, or upon final distribution of the
Trust properties. It is the Grantor's desire, but not direction, that, in determining which
beneficiaries shall receive distributions, the Trustee shall give preference to the needs of
the beneficiaries in the following order: first to the Primary Beneficiaries and the
descendants of the Primary Beneficiaries taken on a per stirpes basis at the time of any
distribution, and second to the further descendants of the Primary Beneficiaries.
5. Distributions after Grantor's Death.
After the death of the Grantor, the Trustee shall have the power, in its sole
discretion, to accumulate all or part of the net income of the Trust or to distribute all or
part of the income or principal of the Trust to or for the Grantor's Spouse, the Primary
Beneficiaries, and the descendants of the Primary Beneficiaries, in order to provide for
their health, support, maintenance, and education.
6. Standards for Distribution after Grantor's Death.
It is the Grantor's desire, but not direction, that, in determining which
beneficiaries shall receive distributions after the death of the Grantor, the Trustee shall
give preference to the needs of the beneficiaries in the following order: first to the
Grantor's Spouse, second to the Primary Beneficiaries and their descendants taken on a
per stirpes basis at the time of any distribution, and third to the further descendants of the
Primary Beneficiaries. It is the Grantor's intention that the beneficiaries be enabled,
insofar as possible, to maintain the standard of living to which they are accustomed. In
determining what distributions, if any, should be made from the Trust, the Trustee
may (but is not so directed to) take into consideration all other sources of income or
principal available to each beneficiary. The Trustee may make unequal distributions from
the Trust among the beneficiaries of the Trust, and no such distributions shall be taken
into account upon either the division of the Trust, as provided in Subparagraph A(8)
of this Section, or upon final distribution of the Trust properties.
7. Distributions after Grantor's Spouse's Death.
After the deaths of the Grantor and the Grantor's Spouse, the Trust shall be held,
administered and distributed as follows:
a. Income and Principal.
After the death of the Grantor and the Grantor's Spouse, the Trustee shall
have the power, in its sole discretion, to accumulate all or part of the net
income of the Trust or to distribute all or part of the income or principal of
the Trust to or for the Primary Beneficiaries and the descendants of the Primary
Beneficiaries in order to provide for their health, support, maintenance, and
education.
b. Standards for Distribution.
It is the Grantor's desire, but not direction, that, in determining which
beneficiaries shall receive distributions, the Trustee shall give preference
to the needs of the beneficiaries in the following order: first to the Primary
Beneficiaries and their descendants taken on a per stirpes basis at the time of any
distribution, and second to the further descendants of the Primary Beneficiaries.
It is the Grantor's intention that the beneficiaries be enabled, insofar as
possible, to maintain the standard of living to which they are accustomed. In
determining what distributions, if any, should be made from the Trust, the
Trustee may (but is not so directed to) take into consideration all other sources
of income or principal available to each beneficiary. The Trustee may
make unequal distributions from the Trust among the beneficiaries of the
Trust, and no such distributions shall be taken into account upon either the
division of the Trust, as provided in Subparagraph A(8) of this Section,
or upon final distribution of the Trust properties.
c. Special Distribution to House Children.
After the deaths of the Grantor and the Grantor's Spouse, the Trustee is
authorized, in its sole discretion, to distribute to the person with whom any
Primary Beneficiary less than the age of _____ (number) resides, an amount
sufficient (after the payment by the recipient of income taxes, if any, on the
distribution) to defray the expense of making additions or improvements to that
person's residence or to purchase a larger residence to accommodate such child of
the Grantor. The distributee shall not be required to reimburse the Trust for any
amount so expended. The Trustee's discretion as to any distribution shall be
conclusive as to the advisability of such distribution and shall not be subject to
judicial review.
8. Division of the Trust into Separate Trusts.
After the deaths of the Grantor and the Grantor's Spouse and when the youngest
then-living Primary Beneficiary has attained the age of ______ (number) years (or upon
the death of the Grantor, the Grantor's Spouse, and all of the Primary Beneficiaries), the
Trustee shall divide and partition the Trust into separate portions of equal value, one
portion for each Primary Beneficiary who survives such event and one portion for the
descendants of each Primary Beneficiary who shall fail to survive such event but who
leaves descendants who survive such event. The Trustee shall hold the portion for each
Primary Beneficiary who survives such event as a separate Trust and each such separate
Trust shall be designated by the name of that particular Primary Beneficiary. Each such
Trust shall be held and administered for the benefit of the Primary Beneficiary whose
name designates that particular Trust and for that Primary Beneficiary's descendants. The
portion of the Trust for each Primary Beneficiary who shall fail to survive such event but
who leaves descendants who survive such event shall be distributed to such descendants,
per stirpes, subject, however, to the other provisions of this agreement.
a. Distributions of Income and Principal.
The Trustee shall have the power, in its sole discretion, to accumulate all or part
of the net income of each Trust or to distribute to and among the
beneficiaries of each Trust such amounts of income and principal (even to
the exhaustion of the Trust) as are necessary for the health, support,
maintenance, and (where applicable) education of the respective
beneficiaries, with such standards to be construed liberally. In determining
what distributions, if any, should be made, the Trustee may (but is not so
directed to) take into consideration all other sources of income or principal
available to each beneficiary. The Trustee may make unequal distributions
among the beneficiaries of each Trust, and no such distributions shall be taken into
account in determining the respective shares of beneficiaries upon
the final distribution or division of each Trust.
b. Distribution Priorities.
It is the Grantor's desire, but not direction, that, in determining which
beneficiaries of each Trust shall receive distributions, the Trustee shall
give preference to the needs of the beneficiaries of the Trusts in the following
order: first to the Primary Beneficiary whose name designates that Trust, second
to the descendants of such Primary Beneficiary whose name designates such
Trust taken on a per stirpes basis at the time of any distribution, and third to the
further descendants of such Primary Beneficiary whose name designates such
Trust.
9. Final Distributions of the Separate Trusts.
a. Partial Terminating Distribution.
At the time when the Grantor and the Grantor's Spouse have died and the Primary
Beneficiary whose name designates that Trust has reached the age of ______
(number) years, the Trustee shall distribute ______________________ (fraction)
of all of the principal and undistributed income then remaining in that Trust to the
Primary Beneficiary whose name designates that Trust.
b. Final Terminating Distribution.
At the time when the Grantor and the Grantor's Spouse have died and the Primary
Beneficiary whose name designates that Trust has reached the age of ________
(number) years, or has sooner died, the Trustee shall distribute all of the principal
and undistributed income then remaining in that Trust to the Primary Beneficiary
whose name designates that Trust and the then-living descendants of such
Primary Beneficiary, per stirpes, but if such Primary Beneficiary is then deceased
and has no then-living descendants, then to the Grantor's then-living descendants,
per stirpes, and that Trust shall terminate.
10. Major Disaster.
If at the time of the death of the later to die of the Grantor and the Grantor's
Spouse, the Grantor shall have no living descendants, or, if after the death of the
Grantor and the Grantor's Spouse, all of the Grantor's descendants shall die before
or at the time of the final termination of each Trust as provided in Subparagraph
A(9)(b) above, then each Trust shall terminate and the principal and undistributed income
of the Trust shall be divided into two equal shares. One such share shall be distributed to
the Grantor's Heirs, and the other such shall be distributed to the Grantor's Spouse's
Heirs.
11. Distribution to Beneficiary for Whom Trust Already Established .
If any distribution of any property previously held in trust under this agreement
for any beneficiary is to be made to another beneficiary for whom at such time the
Trustee holds property in any Trust, then such distribution may, in the Trustee's sole and
absolute discretion, be made to the latter beneficiary or may be added to and become a
part of the latter beneficiary's trust.
B. Contingent Trust for Persons Less Than the Age of ______ (number) .
Notwithstanding the preceding provisions of this Section II, this Paragraph B shall
apply if any portion of the principal of any Trust created in this instrument would be distributable
to a beneficiary (other than a Primary Beneficiary) who has not reached his or her ________ th
(number) birthday and no other Trust is created in this instrument for that beneficiary. If the
Trustee, in its sole discretion so elects, that portion shall be retained by the Trustee as a separate
Trust for the benefit of the beneficiary. Until the beneficiary reaches his or her _______ th
(number) birthday, the Trustee shall have the power to accumulate all or part of the income of
that Trust or to distribute so much of the income and principal of that Trust to or for the benefit
of the beneficiary as the Trustee, in its sole judgment and discretion, deems necessary for the
education, maintenance, support, and health of the beneficiary. When the beneficiary reaches his
or her _______ th
(number) birthday, the Trustee shall distribute all of the then-remaining
principal and undistributed income of the Trust to the beneficiary. If the beneficiary dies before
reaching his or her ________ th
(number) birthday, the Trustee shall distribute the then-remaining
principal and undistributed income of the Trust to the estate of the beneficiary.
C. Payments to Incapacitated Person.
During the minority or physical or mental incapacity of any person to whom principal or
income of any Trust created in this agreement may be paid (either during the term of a trust or
upon final distribution of a trust), the Trustee may make such payment in any one or more of the
following ways:
1. To such person directly;
2. To the guardian, committee, conservator, or other similar official of such
person;
3. To a relative of such person to be expended by such relative for the benefit of
such person, including payment to such relative;
4. To a custodian under an applicable Uniform Transfers (or Gifts) to Minors Act;
or
5. By the Trustee expending the same directly for the benefit of such person.
The Trustee's determination of the minority or incapacity of any such person shall be final, and
the Trustee shall not be responsible for the application of any payment after the same has been
made to any person in accordance with the provisions of this Paragraph C .
D. Spendthrift Clause.
All trusts created in this instrument shall be Spendthrift Trusts.
E. Undistributed Income Added to Principal.
Any income of any Trust not distributed within the first _______ ( number) days
following the end of the taxable year of that Trust shall be added to the principal of the Trust and
administered as a part of such principal.
III. Powers, Rights and Duties of Trustee
A. Definition of Trustee; Distribution of Powers.
The Trustee, whether one or more, whether male or female, whether individual or
corporate, whether original, successor, or substitute, is called "Trustee" in this Agreement. The
Independent Trustee shall have the sole authority to exercise the Tax Sensitive Powers. The
Investment Trustee shall have the powers stated in Section V, Paragraph H of this Agreement.
Otherwise, each Trustee shall have the same duties, powers, and discretions. However, no
Trustee shall have the power to participate in any decision relating to a distribution of either
principal or income to provide any benefit for any beneficiary that such Trustee is legally
obligated to support in his or her personal capacity.
B. General Powers.
In the administration of any Trust established in this agreement, the Trustee shall have
the powers set forth in Exhibits B, C, D and E attached to and made a part of this agreement for
all purposes, which powers shall be exercised in a fiduciary capacity. All powers and discretions
of the Trustee shall be exercised free of court supervision.
C. Limitations on Powers.
No powers of the Trustee enumerated in this agreement (including Exhibits B, C, D and
E ) or now or later conferred upon trustees generally, shall be construed to enable a Grantor to
purchase, exchange, or otherwise deal with or dispose of all or any part of the principal or
income of any Trust for less than an adequate consideration in money or money's worth, or to
enable a Grantor to borrow all or any part of the principal or income of any Trust, directly or
indirectly, without adequate interest or security. No person, other than the Trustee, shall have or
exercise the power to vote or direct the voting of any stock or other securities of any Trust, to
control the investment of any Trust either by directing investments or by vetoing proposed
investments, or to reacquire or exchange any property of any Trust by substituting other property
of an equivalent value.
D. Liability of Trustee and Persons Dealing With Trustee.
The liability of the Trustee and persons dealing with the Trustee shall be according to
Exhibit D attached to and made a part of this agreement for all purposes.
E. Release of Power by Amendment of Trusts.
Any Trustee shall have the power and authority to amend the provisions of the Trusts in
order to surrender, release, renounce, or disclaim any one or more of the discretionary powers
given by this agreement to that Trustee. Any such amendment shall be made by written
instrument acknowledged and filed in the ____________________________________________
(clerk of county where document would be recorded) of the Grantor's County. After any power
has been so surrendered, released, renounced, or disclaimed, it shall never again be exercised by
that Trustee.
F. Records; Inspection.
The Trustee shall keep accurate and complete records of Trust transactions. Any
beneficiary (or his or her representative authorized in writing) may inspect the records at any
reasonable time.
G. Annual Report.
Upon written request by the beneficiary or his or her personal representative, the Trustee
shall make an annual report in writing to any living beneficiary over the age of _____ (number)
years who could, in the discretion of the Trustee, receive any income or distribution from the
Trust estate during that year. Such report shall be for a calendar or fiscal year beginning each
year on a date selected by the Trustee as appropriate for this purpose and shall be submitted to
such income beneficiary (or to the guardian, conservator, committee, or other like official of any
incapacitated beneficiary) with reasonable promptness after the end of such period. Each report
shall include a statement of all property on hand at the end of such year, all receipts and
disbursements during such year, all sales and purchases made during such year, and of such other
acts of the Trustee as may be necessary to furnish such beneficiary with adequate information as
to the condition of the Trust estate.
H. Compensation and Bond.
Each Trustee, other than the Grantor, shall be entitled to reasonable fees commensurate
with its duties and responsibilities, taking into account the value and nature of the Trust estate
and the time and work involved. The Trustee shall be reimbursed for the reasonable costs and
expenses incurred in connection with its fiduciary duties under this agreement. No Trustee,
whether original or successor, shall be required to furnish a bond or other security, except as
expressly provided in this agreement.
IV. Irrevocability; Change in Trustee and Trust Committee
A. Trusts Irrevocable.
This agreement and the Trusts created by it shall be irrevocable and shall not be altered,
amended, revoked, or terminated, in whole or in part, by the Grantor.
B. Renouncement of Interest by Grantor.
Notwithstanding any other provision in this agreement, no part of the principal or income
of any Trust established in this agreement shall ever revert to or be used for the satisfaction of
legal obligations of the Grantor; and no income of any Trust established in this agreement shall
be applied to the payment of premiums of insurance on the life of the Grantor or the Grantor's
Spouse without the prior written approval of all the Primary Beneficiaries, or if there are no
Primary Beneficiaries, then all of the then income beneficiaries of such Trust. The Grantor
renounces for ____________ ( himself or herself) and _______ (his or her) estate any interest,
either vested or contingent, including any reversionary right or possibility of reverter, in the
principal and income of the Trusts, and any power to determine or control, by alteration,
amendment, revocation, termination, or otherwise, the beneficial enjoyment of the principal or
income of the Trusts.
C. Resignation of Trustee.
Any Trustee may resign by filing a written instrument acknowledged of record in the
__________________________________________________ (clerk of county where document
would be recorded) of the Grantor's County, which filing shall deprive the resigning Trustee of
all powers as Trustee under this agreement on the effective date of the instrument or, if no
effective date is stated, immediately; provided, nevertheless, that at least _______ (number) days
prior to such filing, the resigning Trustee shall give written notice of the resignation to those
persons who could in the discretion of the Trustee receive income from the Trust estate and are
at such time sui juris . No purchaser from or other person dealing with any Trustee is obligated to
examine such public records, and any such person shall be protected in all transactions with any
Trustee whether or not any such resignation has taken place. If the Investment Trustee shall
resign or otherwise cease or fail to serve as Trustee, the Independent Trustee shall serve as the
sole Trustee. If the Independent Trustee shall resign or otherwise cease or fail to serve, the Trust
Committee shall appoint a successor Independent Trustee in the manner set forth in the following
Paragraph D.
D. Removal of Trustee and Appointment of Successor by Trust Committee.
The Trust Committee shall have the power to remove the Independent Trustee named in
this Agreement and any successor Independent Trustee. The Trust Committee also shall have the
power to appoint successor Independent Trustees but shall not have the power to appoint more
than _________ (number) Independent Trustees to serve at one time. If a Trustee expressly is
appointed for administration of the Trust because the Trustee or Trustees otherwise serving are
prohibited from exercising a power or performing an act, then the Trust Committee may limit
that Trustee's powers to the power or act the exercise or performance of which is prohibited to
the other Trustee or Trustees. The Trust Committee shall act in its sole discretion in taking any
action authorized in this paragraph and shall act by a majority vote of the members then serving.
Any successor Independent Trustee appointed by the Trust Committee shall be either (a) any
individual who is not a beneficiary of the Trust of which such individual is to be appointed
Trustee (but not an individual listed in Subparagraph E(2) of this Section), or (b) any national
or state bank, trust company, or other financial institution in the United States having trust
powers and a capital and surplus of $_____________________ (amount ) or more. Such removal
and appointment shall be by written instrument executed and acknowledged by a majority of the
Trust Committee members then serving and by the successor Independent Trustee and filed in
the _____________________________________________ (clerk of county where document
would be recorded) of Grantor's County. A member of the Trust Committee or the successor
Independent Trustee shall promptly deliver a copy of such instrument to the Independent Trustee
then serving, which shall immediately deprive such Independent Trustee of all powers as Trustee
under this agreement, except those powers appropriate to the administration of the Trust during
the time required for the transfer of the Trust assets. No purchaser from, or other person dealing
with, any Trustee is obligated to examine such public records, and any such person shall be
protected in all transactions with any Trustee, whether or not any such replacement has taken
place.
E. Administration of Trust Committee.
1. Replacement of Members.
If, through any member's ceasing or failing to serve, the membership of the Trust
Committee shall be reduced to less than ________ (number) individuals, the
remaining members shall appoint by majority vote a sufficient number of persons
to bring the total membership to ________ (number) individuals. Any person
may be reappointed to serve as a member of the Trust Committee.
2. Limitations Regarding Committee Members.
The following individuals shall be ineligible to serve as a member of the Trust
Committee if the appointment of such an individual would result in the
Trust Committee's having a membership more than half of whom are: a Grantor
or any beneficiary; the spouse of a Grantor or of any beneficiary; the father,
mother, lineal descendant, brother, or sister of a Grantor or of any
beneficiary; an employee of a Grantor or of any beneficiary; an
employee of a corporation in which the stockholdings of the Grantor, the Trust,
and the beneficiaries of the Trust are significant from the viewpoint of voting
control; an employee of a corporation in which a Grantor or any beneficiary of
the Trust is an executive; a partner of a partnership in which the interest of the
Grantor, the Trust, and the beneficiaries of the Trust are significant from the
viewpoint of operating control or distributive share of partnership income;
or an employee of a partnership in which a Grantor or any beneficiary of the
Trust is a partner.
3. Fiduciary Capacity; Bond; Compensation.
In carrying out its duties, the Trust Committee shall act in a fiduciary capacity,
but shall not be required to furnish bond. Each member of the Trust
Committee shall be entitled to reimbursement for any out-of-pocket expenses
incurred in the performance of such member's duties. No member of the
Trust Committee shall be entitled to compensation.
4. Limitation on Scope of Trust Committee's Powers.
Anything in this Agreement to the contrary notwithstanding, neither the Trust
Committee nor any member of it, as a member of the Trust Committee,
shall have any power to establish or alter the beneficial enjoyment of principal or
income of any Trust created or authorized in this Agreement.
F. Powers and Duties of Successor Trustee.
Upon the appointment and qualification of any successor Independent Trustee, the same
duties shall devolve upon, and the same rights, powers, authorities, privileges, and discretions
shall inure to it as to the Independent Trustee originally designated under this Agreement; and all
rights, powers, authorities, privileges, and discretions shall be exercised without the supervision
of any court.
G. Reorganization of Corporate Trustee.
If a corporate Trustee should, before or after qualification, change its name; be
reorganized, merged, or consolidated with, or acquired by any other corporation; or be converted
into or assign its trust functions to a different type of entity, the resulting entity shall be deemed a
continuation of the former one and shall continue to act as Trustee or continue to be eligible to
become a Trustee, as the case may be.
V. Definitions
A. Survive.
For purposes of this agreement, one person shall be regarded as having survived another
only if the former survived the latter by _____ (number) days or more.
B. Grantor's County.
Wherever used in this agreement, the term "Grantor's County" shall mean
___________________County, ________________________ (state) .
C. Code.
All references in this agreement to the "Code" shall mean the Internal Revenue Code of
1986, as amended, and shall be deemed to refer to corresponding provisions of any subsequent
federal tax law.
D. Issue and Descendants.
Wherever used in this agreement, the word "issue" or the word "descendants" shall mean
legitimate descendants of whatever degree, including descendants both by blood and by
adoption. A person shall be regarded as having been adopted by another only if the adoption is
by court proceedings, the finality of which is not being contested by the adopting person. A child
en ventra sa mere shall be regarded for purposes of this agreement, as though he or she were
then living, but only if he or she survives birth.
E. Per Stirpes .
All references in this Agreement to per stirpes shall mean a distribution in accordance
with this paragraph. Except for discretionary distributions which may be made unequally among
a group of beneficiaries, whenever a distribution is to be made to the descendants of any person,
the property to be distributed shall be divided into as many shares as there are living children of
the person and deceased children of the person who left descendants who are then living. Each
living child (if any) shall take one share and the share of each deceased child shall be divided
among his or her then-living descendants in the same manner.
F. Education.
Whenever used in this agreement, the term education shall include elementary,
secondary, college, and postgraduate study or vocational training or study, so long as pursued to
advantage by the beneficiary at an institution of the beneficiary's choice. In determining
distributions for education, the Trustee may consider the beneficiary's reasonable living
expenses.
G. Spendthrift Trust.
Wherever used in this agreement, the term Spendthrift Trust shall mean a trust no part of
the income or principal of which shall ever be transferred or assigned by any beneficiary or
distributee, or subjected to any judicial process against any beneficiary or distributee before the
same has been paid. No part of the interest of any beneficiary or distributee shall in any event be
subject to sale, hypothecation, assignment, or transfer. Nor shall the principal or income of any
Spendthrift Trust estate be liable for the debt of any beneficiary or distributee. Nor shall any part
of the principal or income be seized, attached, or in any manner taken by judicial proceedings
against any beneficiary or distributee on account of the debts, assignments, sale, divorce, or
encumbrance of any beneficiary or shall pay to the beneficiary or distributee the sum payable to
him or her according to the Trust terms, notwithstanding any purported sale, assignment,
hypothecation, transfer, attachment, or judicial process, exactly as if the same did not exist.
Nothing contained in this paragraph shall be construed as restricting the exercise of any power of
appointment granted in this Agreement.
H. Investment Trustee.
Wherever used in this agreement, the term Investment Trustee shall mean the person to
whom the powers to make any decision or take any action regarding the retention, sale,
exchange, lease, or any other acquisition or disposition of, or decision regarding, any property
held in any Trust under this Agreement are allocated.
I. Independent Trustee.
Wherever used in this agreement, the term Independent Trustee shall mean the Trustee to
whom the Tax Sensitive Powers are allocated.
J. Tax Sensitive Powers.
Wherever used in this agreement, the Tax Sensitive Powers held by the Independent
Trustee shall mean the following powers, which the Independent Trustee shall have, alone and
without joinder of the Investment Trustee, under the authority and discretion granted to the
Trustee in the following provisions of this agreement: Section II, Subparagraph A(4) (dealing
with distributions during the lifetime of the Grantor); Section II, subparagraph A(11) (dealing
with distributions to beneficiaries for whom trusts already exist); Section II, Paragraph C
(dealing with payments to incapacitated persons); Section VI, Paragraph A (dealing with
change of situs); Exhibit C (dealing with certain "Additional Powers"); and Exhibit E (dealing
with Trustee's rights and responsibilities as regards life insurance).
K. Grantor's Heirs.
Whenever used in this Agreement, the term Grantor's Heirs shall mean those persons
who would inherit from the Grantor in accordance with the laws of intestate distribution then in
effect in the State of _______________, as if the Grantor had died intestate at the termination of
the Trust not survived by the Grantor's Spouse and descendants.
L. Grantor's Spouse's Heirs.
Whenever used in this agreement, the term Grantor's Spouse's Heirs shall mean those
persons who would inherit from the Grantor's Spouse in accordance with the laws of intestate
distribution then in effect in the State of ________________, as if the Grantor's Spouse had died
intestate at the termination of the Trust not survived by the Grantor and descendants.
VI. Miscellaneous
A. Situs of Trusts.
The Trusts created in this Agreement shall be deemed ______________________ (State)
Trusts and shall, in all respects, be governed by the laws of the State of ___________________.
However, if the Trustee, in its sole discretion, determines that a change of situs would be
beneficial to the purposes of any separate Trust established by this agreement, the Trustee shall
have the discretion and authority to change the situs of any such Trust to another state. Formal
notice of any change of situs may be given by the Trustee by the filing of a written declaration in
the ______________________________________________ (clerk of county where document
would be recorded) of the Grantor's County. If the situs of any such Trust is changed to another
state, then the Trust shall, in all respects, be governed by the laws of the state that is the new
situs. No such change of situs shall be authorized, however, which would result in a termination
of the Trust for federal tax purposes.
B. Use of Words.
As used in this agreement, wherever the context so indicates, the gender of all words
shall include the masculine, feminine, and neuter, and the number of all words shall include the
singular and plural. The failure to capitalize any word or term, or the erroneous capitalization of
any word or term, shall not affect the definition.
C. Maximum Duration of Trusts.
Notwithstanding any other provision of this agreement, if any Trust created or authorized
in this agreement has not otherwise fully terminated under the terms of this agreement, then that
Trust shall terminate fully and all principal and undistributed income shall be distributed to the
respective income beneficiary or beneficiaries at the end of ______ (number) years and _______
(number) months after the death of the last to die of the following persons living on the date of
this agreement: the Grantor, the Grantor's Spouse, and all of the Primary Beneficiaries.
D. Parties Bound.
This Agreement shall extend to and be binding upon the Trustee, the Grantor, and upon
their heirs, executors, administrators, successors and assigns, and the beneficiaries designated in
this agreement.
E. Invalid Provisions.
If any part of this Agreement or the Trusts created by it shall be invalid, illegal, or
inoperative for any reason, it is the Grantor's intention that the remaining parts, so far as possible
and reasonable, shall be effective and fully operative. The Trustee may seek and obtain court
instructions for the purpose of carrying out as nearly as may be possible the intention of this
agreement as shown by the terms of this agreement, including any terms held invalid, illegal, or
inoperative.
F. Headings.
The headings used throughout this Agreement have been inserted for administrative
convenience only, and do not constitute matter to be construed in interpreting this Agreement.
G. Photocopy Original.
The original copies of this instrument may consist of multiple counterparts which are
executed photocopies of a typed or printed master.
The Grantor and the Co-Trustees have executed this Agreement at __________________
_________________________________________________ (designate place of execution) the
day and year first above written.
_______________________________________
_______________________________________
(Signatures)
(Acknowledgments)
(Attach Exhibit A, list of property)
EXHIBIT B
TRUST POWERS
The Trustee shall have the following powers:
A. Standard.
To exercise all powers granted to trustees by the common law or any applicable statutes
(as they exist at this date or are subsequently amended), to the extent they increase the powers
granted to trustees. If, however, those powers are in conflict with the provisions of this
instrument (including this Exhibit and other Exhibits to this instrument), the terms of this
instrument shall prevail.
B. Selection and Retention of Assets.
To retain, without liability for loss or depreciation resulting from such retention, any
property or undivided interests in property received from any source, including residential
property, regardless of any lack of diversification, risk, or nonproductivity, for such time as the
Trustee shall deem advisable, and the Trustee shall be under no obligation to dispose of or
convert any such property. Any investments made by the Trustee pursuant to the terms of this
instrument need not be diversified, may be of a wasting nature, and may be made or retained
with a view to possible increase in value. The Trustee, except as otherwise specifically provided
in this agreement, shall have as wide a latitude in the selection, retention, or making of
investments as an individual would have in retaining or investing his or her own funds, and shall
not be limited to, nor be bound or governed by, any rules of law, statutes, or regulations
respecting investments by trustees.
C. Sale or Disposition of Trust Property.
To sell, exchange, give options upon, partition, convey, or otherwise dispose of, with or
without covenants (including covenants of warranty of title), any property that may from time to
time be or become a part of the Trust estate, at public or private sale or otherwise, for cash or
other consideration, or on credit, and upon such terms and conditions as the Trustee shall think
advisable, and to transfer and convey the same free of all Trusts.
D. Investment of Trust Property.
To invest and reinvest the Trust estate from time to time in any property, real, personal,
or mixed, including (without limiting the generality of the foregoing language) securities of
domestic and foreign corporations and investment trusts, bonds, preferred stocks, common
stocks, mortgage participations, and interests in common trust funds, with complete discretion as
to converting realty into personalty, or personalty into realty, or otherwise changing the character
of the Trust estate, even though such investment (by reason of its character, amount, proportion
to the total Trust estate, or otherwise) would not be considered appropriate for a fiduciary apart
from this provision, and even though such investment causes a greater proportion of the total
Trust estate to be invested in investments of one type or of one business or company than would
be considered appropriate for a fiduciary apart from this provision.
E. Loans of Trust Property.
To make loans, secured or unsecured, in such amounts, upon such terms, at such rates of
interest, and to such persons, firms, or corporations as the Trustee shall think advisable.
F. Acquisition of Non-Productive Property.
Except as limited by other provisions of this agreement, to acquire property returning no
income or slight income, or to retain any such property, so long as the Trustee shall think fit,
without the same being in any way chargeable with income, or the proceeds in case of sale or
other disposition being in any part deemed income.
G. Improving and Leasing Trust Property.
To improve any real estate comprising a part of the Trust estate; to demolish any
buildings in whole or in part; to erect buildings; to lease real estate or personal property on such
terms and conditions and for such length of time (including 99 years or more) as the Trustee
shall think fit, even though such lease may extend beyond the term of any Trust; to foreclose,
extend, renew, assign, release, or partially release, and discharge mortgages or other liens, and to
accumulate income for the purpose of doing so (except where the Trustee is required in this
agreement to distribute income).
H. Borrowing Money.
To borrow money and to execute promissory notes for the same; to secure such
obligations by mortgages or other liens or pledges of any property of the Trust estate; to make
any type of purchase or contract, including installment contracts or credit arrangements, the
effect of which is to borrow money; and to accumulate income for the purpose of repaying any
indebtedness owed by the Trustee under this agreement.
I. Adjustment of Claims and Suits; Prepayment of Existing Mortgage.
To prosecute or defend any suit; to compromise or arbitrate any claim (including a claim
for taxes) and any litigation, either in favor of or against the Trust estate or the Trustee in its
capacity under this agreement; to pay claims upon such evidence as the Trustee shall think
sufficient; and to prepay all or part of any mortgage.
J. Employment of Agents.
To employ such brokers, bank custodians, investment counsel, attorneys, and other
agents or servants, and to delegate to them such duties, rights, and powers of the Trustee for such
period as the Trustee shall think fit; and to pay such persons reasonable compensation out of the
Trust estate, all regardless of whether any such person or entity is (or is a partner, employee, or
employer of, or is owned by) a beneficiary or Trustee under this agreement.
K. Voting Securities; Reorganization.
To vote, in person or by proxy, any stocks or other properties having voting rights; to
enter into voting trusts and voting agreements; to exercise any options, rights, or privileges
pertaining to any property in the Trust estate; to participate in any merger, reorganization, or
consolidation affecting the Trust estate; and, in connection with the same, to take any action that
an individual could take with respect to property owned outright by such individual, including
the payment of expenses or assessments, the deposit of stock or property with a protective
committee, the acceptance or retention of new securities or property, and the payment of such
amounts of money as may seem advisable in connection with the same.
L. Insurance.
To insure any part of the Trust estate against such risks as the Trustee shall think fit, such
insurance to be based on market values or costs, and the coverage to be full or partial as the
Trustee shall think fit; to pay the premiums and to collect or adjust the losses; except as limited
by other provisions of this agreement, to acquire, hold, and pay premiums on insurance upon the
life of any person or persons, and to exercise any and all rights to ownership of the insurance;
and to purchase other types of insurance or annuities for any beneficiary; provided, however, all
incidents of ownership with respect to any policies of insurance on the life of any Trustee shall
be vested in and exercisable solely by another Trustee.
M. Mineral Contracts and Sales.
To execute and deliver oil, gas, and other mineral leases containing such unitization or
pooling agreements and other provisions as the Trustee shall think fit; to execute mineral and
royalty conveyances; to purchase leases, royalties, and any type of mineral interest; and to
execute and deliver drilling contracts and other contracts, options, and other instruments
necessary or desirable to participate actively in the oil, gas, or mining business. All of the
foregoing may include such terms, conditions, agreements, covenants, provisions, or
undertakings as the Trustee shall think fit.
N. Corporations.
To incorporate any property in the Trust estate; to convey any such property to a
corporation for all or part of its capital stock or other securities (whether or not any Trustee is
also a security holder, officer, director, or manager of such corporation in an individual,
fiduciary, or other capacity); to dissolve such corporation or any other corporation, the securities
of which comprise a part of the Trust estate; and to hold or dispose of, as a part of the Trust
estate, any property so received upon such dissolution; all in such manner, at or for such times,
and on such terms as the Trustee shall think fit.
O. Partnerships.
To enter into partnerships; to transfer any property in the Trust estate to one or more
partnerships for interests in such partnerships; to act as a partner in any partnership or with
respect to any property, any part of which may be or become part of the Trust estate originally or
later; to so act as a partner with itself acting in an individual, fiduciary, or other capacity; to
participate in the management of such partnerships; to dissolve any partnership in which the
Trustee acts as a partner; and to hold or dispose of, as part of the Trust estate, any property
received upon any such dissolution; all in such manner, at or for such times, and on such terms as
the Trustee shall think fit.
P. Businesses.
To start or to enter into any business enterprise, or to continue to operate any business
interest which becomes part of the Trust estate; to delegate all or part of the management of the
business; to invest other funds of the Trust estate in the business; to convert such business from
one form (e.g., proprietorship, partnership, corporation, etc.) to another; to enlarge, diminish, or
change the scope or nature of the activities of any business; to authorize the participation and
contribution by the business in any form of plan to benefit employees, whether or not the
contributions qualify as being tax deductible; to use the general assets of the Trust estate for the
purposes of the business; to invest additional capital in or make loans to such business,
regardless of the speculative nature or nonproductivity of such investment or loan, and without
regard to diversification of investment; to endorse or guarantee on behalf of the Trust estate any
loan or loans made to the business, and secure such loan or loans by pledge or mortgage of any
property of the Trust estate; to employ such officers, managers, employees, or agents as the
Trustee deems advisable in the management of the business, including electing or employing
directors, officers, or employees of the Trustee to take part in the management of the business as
directors or officers or otherwise, and to pay such person or persons reasonable compensation;
and to rely upon the reports of certified public accountants as to the operations and financial
condition of the business without independent investigation; all in such manner, at or for such
times, and on such terms as the Trustee shall think fit (except where the Trustee is required to
distribute income).
Q. Special Farm Powers.
To retain any farm or farm property received from any source, and to acquire and retain
other such property; to engage in farm operations and the production, harvesting, and marketing
of farm products, including livestock breeding and feeding and poultry and dairy farming, by
operating directly with hired labor, by retaining farm managers or management agencies, by
renting on shares or for cash, or in any other manner; to enter into farm programs; to purchase or
rent farm machinery and equipment, livestock, poultry, seed and feed; to improve farm property
and to repair, improve, and construct farm buildings, fences, and drainage facilities; to borrow
money for any of these purposes; and in general to do all things customary or desirable in farm
operations.
R. Payment of Expenses and Taxes.
To incur such expenses or charges in the management of the Trust estate as the Trustee
shall think fit; to render the Trust estate for taxes if the Trustee shall think it desirable, or to
refuse to do so if the Trustee shall think it undesirable; to pay taxes, charges, and governmental
assessments against the Trust estate; and, in anticipation of such expenses, charges, taxes, and
assessments, to set up such sinking funds or reserves as the Trustee shall think fit (except where
the Trustee is required to distribute income).
S. Reliance on Business Documents .
To rely upon the authenticity of affidavits, certificates, opinions of counsel, letters,
notices, faxes, e-mails, telegrams, cablegrams, and other methods of communication in general
use and usually accepted in business as genuine and as what such documents or communications
purport to be.
T. Acceptance of Additional Property.
Except as limited by other provisions of this agreement, the Trustee (1) may accept from
any source any property acceptable to the Trustee to be held as part of any Trust under this
agreement; and (2) is authorized (but not directed) to accept from the Executor, at the
termination of the administration of any estate of which any Trust established in this agreement
may be the beneficiary, the assets delivered by the Executor to the Trustee on the basis of the
estate accounting as submitted by the Executor, without requiring an audit or other independent
accounting of the acts of such Executor. No Trustee under this agreement shall have any duty,
responsibility, obligation, or liability whatsoever for, or any duty, responsibility, obligation, or
liability whatsoever for failure to rectify, the acts or omissions of the Executor.
U. Powers under Changed Conditions.
To exercise such powers as may be necessary or desirable in the management and control
of the Trust estate, whether or not such powers are of like kind or character to those enumerated
in this instrument; and in particular to enable the Trustee to act under changed conditions, the
exact nature of which cannot now be foreseen.
V. Custody of Trust Estate; Nominees; Disbursement of Funds.
To retain sole custody of the Trust estate; to keep any of the property of the Trust estate
in any place or places in the State of or elsewhere in the United States or abroad, or with a
depository or custodian at such place or places; to hold any of the securities or other property of
the Trust estate for any length of time in the name of a nominee or nominees without mention of
any Trust created in this agreement in any instrument of ownership; to make all disbursements of
the Trust funds without any counter-signature; and to make all reports, including tax returns, to
any agency of the government, local, state, or federal.
W. Execution of Documents.
To execute and deliver agreements, assignments, bills of sale , contracts, deeds, leases,
notes, powers of attorney, warranties, covenants, guaranties, receipts, releases, discharges,
acquittances, and other papers or documents reasonably necessary or desirable to carry out the
powers granted to a Trustee.
X. Division into Shares or Separate Trusts.
To hold, manage, invest, and account for the several shares or separate Trusts that may be
held in trust, either as separate funds or as a single fund, as the Trustee shall think fit; if as a
single fund, to make division of the fund only upon the books of account, to allocate to each
share or Trust its proportionate part of the principal and income of the single fund, and to charge
against each share or Trust its proportionate part of the common expenses.
Y. Occupancy of Trust Property.
Except as limited by other provisions of this agreement, to allow any beneficiary to use or
occupy Trust property without payment of rent.
EXHIBIT C
ADDITIONAL TRUST POWERS
The Trustee shall have the following additional powers:
A. Certain Transactions with Beneficiaries and Others.
To make loans (secured or unsecured), to buy property from, to sell property to, and to
otherwise deal with:
1. Any trust beneficiary;
2. The estate of any beneficiary (whether living or dead);
3. Any trust created by or for the benefit of any beneficiary (whether living
or dead) or for others;
4. Any executor or trustee of any estate or trust, including the estate of the
Grantor;
5. Any executor or trustee acting in his individual capacity; or
6. Any business or trust controlled by any beneficiary or trustee or of which
any such beneficiary or trustee, or any director, officer, employee, or
partner of any such beneficiary or trustee, is also a director, officer,
employee, or partner.
B. Apportionment of Income and Expenses.
Where not otherwise clearly provided by law or otherwise set forth in this agreement, to
determine with finality, as to each sum of money or other thing of value held or received by any
Trustee, whether and to what extent the same shall be deemed to be principal or to be income,
and as to each charge or expense paid by the Trustee, whether and to what extent the same shall
be charged against principal or against income, including, but not limited to, power to apportion
any receipt or disbursement between principal and income and to determine what part, if any, of
income is available for distribution according to the terms of this agreement, and what part, if
any, of the actual income received upon a wasting investment, or upon any security purchased or
acquired at a premium, shall be returned and added to principal to prevent a diminution of
principal upon exhaustion or maturity of the same; and to set up such reserves out of principal or
income as the Trustee shall think fit.
1. Mineral Interests.
As regards periodic payments for oil, gas, and other minerals physically severed,
however, the following provisions shall apply:
a. Definitions.
(1) Gross Proceeds.
Gross Proceeds shall mean the total amount payable, without deduction
for any tax, expense, or other charge.
(2) Net Proceeds.
Net Proceeds shall mean Gross Proceeds, less, if and to the extent
applicable, according to generally accepted accounting principles,
all recurring taxes (except income taxes), depreciation on equipment,
lifting costs, and other expenses usually chargeable to income, including
intangible drilling and development costs, but excluding
depletion. In a determination of net proceeds, the Trustee shall
adopt such accounting periods, not longer than one year, as the
Trustee may deem proper.
(3) Receipts.
Receipts shall mean the amounts actually received by the Trustee, whether
Gross or Net Proceeds.
(4) Interest.
Interest shall mean each tract or property the title to which is evidenced by
a separate conveyance, assignment, lease, or other instrument that
establishes the legal right to receive monetary payments in
connection with the same; provided, however, that if the title to two or
more areas that are non-contiguous is derived from a single instrument,
each of such areas shall constitute a separate interest.
b. Allocations .
Receipts from each interest, treated by the Trustee as a separate asset, shall be
apportioned as follows:
(1) If a production payment is acquired by the Trustee by gratuitous
conveyance or purchase, and at time of acquisition the property in respect
of which it exists is producing, in commercial quantities, oil or gas from
which the payment is or will be payable, to income, an amount equivalent
to _______% (percentage ) of the Net Proceeds, and the balance to corpus,
provided that if and when there shall have been so added to corpus an
amount equivalent either to cost, if the payment was purchased by the
Trustee, or to value at gratuitous acquisition, if so acquired, subsequent
receipts shall be divided between corpus and income, equally. If the
property, however, when the payment was acquired either gratuitously or
by purchase, was not so producing, or if the payment was created by
reservation by the Trustee, whether or not the property was then
producing, to income, the equivalent of ___________________ (fraction)
of the Net Proceeds, and the balance, to corpus.
(2) If, by virtue of a so-called net profits contract, apportionment shall be
in such manner as the Trustee deems equitable.
(3) If from any other interest in oil, gas, or other minerals, to corpus, an
amount equivalent to (a) _____% of the Gross Proceeds limited
to____ % of the Net Proceeds from a working interest, or (b)
depletion based on cost, computed in accordance with generally
accepted accounting principles, whichever is greater, and the
balance, to income; provided, however, that if such apportionment
is, in Trustee's opinion, substantially inequitable when compared with the
net income from the entire corpus of the trust, then to corpus an amount
equal to (one-half or other fraction) of the Net Proceeds derived
from such asset, and to income, the balance.
(4) Cash bonuses received upon execution of leases shall be ___________
__________________ (fraction) to income and _____________________
(fraction) to corpus, and delay rentals, wholly income.
(5) Income, determined as provided above, shall bear all pertinent
deductible charges enumerated in the above definition of Net
Proceeds, whether paid or deducted by Trustee or others, and, in turn,
income and corpus shall, respectively, bear all additional charges, if
any, in the same manner as other income and corpus would bear
similar charges.
2. Personal Property and Buildings.
Whenever corpus includes tangible personal property used in or for the
production of income or includes buildings, the Trustee is authorized to establish such
depreciation reserves as the Trustee shall deem reasonable, the amounts for such reserves
to be retained out of income and to be corpus.
3. Allocation of Deductions.
If the full deduction allowable by income tax law for depletion of oil, gas, and
other minerals is less, in any tax period, than the amount that is to be treated as corpus
under Subparagraph 1 above, the Trustee shall, in computing the tax payable by the
trust, take the full allowable deduction, but if it be greater than the amount so to be
treated as corpus, the Trustee shall claim the allowable deduction only to the extent
of the amount so to be treated as corpus, and the balance of such allowable deduction
shall be available to the income beneficiary or beneficiaries, in the manner provided
that if such income is accumulated and added to corpus, the Trustee shall take
the full deduction, and if part is so accumulated and part distributed, the excess deduction
shall be apportioned between the Trustee and income beneficiary in the same proportions as
such income shall be accumulated or distributed. The allowable tax deduction for
depreciation shall be allocated or apportioned in a like manner, depending upon whether
and to what extent depreciation reserves are maintained. This Subparagraph 3 shall
apply only so long as present pertinent income tax laws remain substantially unchanged.
4. Property Treated as Corpus.
Corpus shall bear income taxes in respect of property treated as corpus for trust
purposes, even though treated as income for t
