- 1 - NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE
NUMBER. REVOCABLE LIVING TRUST AGREEMENT THIS REVOCABLE LIVING TRUST AGREEMENT, (hereinafter "Trust"), is being
made on this the ________ day of _______________, 20_____ , by and between
___________________________________ of ____________________ County,
State of Texas, hereinafter referred to as the Trustor, whether one or more, and
the Trustee designated below and shall be governed and administered in
accordance with the following terms and provisions: ARTICLE I NAME OF TRUST 1.NAME OF TRUST: This trust may be referred to as THE ________
REVOCABLE LIVING TRUST as created by the Texas Property Code, Section
112.001. ARTICLE II IDENTIFICATION 2.TRUSTOR AND BENEFICIARIES: The Trustors or Settlors of this trust
are _______________________ and _______________________, Husband
and Wife, residing at ___________________________________,
___________________________________, Texas ________. As used herein,
the term “Trustor” shall mean all trustors of this trust, whether one or more. The
Trustors are married and parents of the following living children: ______________________________________________The Beneficiaries of the Trust during the lifetime of the Trustors is the
Trustors. Except as otherwise provided herein, upon the death of the Trustor,
the Beneficiaries are the Children of the Trustor. ARTICLE III TRUSTEE APPOINTMENT
- 2 - 3.TRUSTEE APPOINTMENTS: The Trustor, hereby appoints
__________________, the Trustor, as Trustee of this Trust. If the Trustor, is
unable to serve as Trustee for any reason, then the Trustor hereby appoints
__________________ as Successor Trustee. If neither the first or second
Trustee are able to serve as Trustee for any reason, then the Trustor hereby
appoints __________________ as Successor Trustee, whether one or more.
The Trustee shall have all powers as provided in this agreement and the laws of
the State of Texas. The principal place of administration of this trust is the
Trustors place of residence, regardless of the residence of the Trustee. If
multiple or Co-Trustees are appointed their exercise of powers shall be governed
by Texas Property Code Section 113.085. In the event a vacancy in the office of
Trustee occurs and there is no successor trustee, the existing Trustee, if one,
and the beneficiaries , or the beneficiaries, if there is no trustee, may agree to a
non-judicial change in the trustee by amendment to this Trust agreement. ARTICLE IV ASSETS OF TRUST 4. ASSETS OF TRUST: All rights, title, and interest in and to all real and
personal property, tangible or intangible, listed on the attached Exhibit “A”, is
hereby assigned, conveyed and delivered to the Trustee for inclusion in this
Trust. 5. ADDITIONS TO TRUST PROPERTY: Additional property may be
conveyed to the Trust by the Trustor, or any other third party at any time. Trustor
may execute such other documents as is necessary to effectuate the assignment
of property to this Trust.6. RIGHTS TO TRUST ASSETS: Except as specifically provided herein,
the Beneficiaries of this trust shall have no rights to any assets of the trust.
7. HOMESTEAD EXEMPTION: Grantor(s) reserves the right to use,
occupy and reside upon any real property placed in this Trust as their permanent
residence during their lives. Grantor(s) shall have the right to reside in the
property rent free and without charge except for the payment of the following: (1)
all mortgages costs and expenses (2) all property taxes, and (3) reasonable
expenses of upkeep and maintenance. Grantor(s) retain the legal right to use
and benefit from the property in all respects. It is the intent of this provision to
retain for the grantor(s) the requisite beneficial interest and possessor right in
and to such real property needed to retain their qualification for any exemption,
freeze of tax rates and/or valuation granted to any individual or individuals so
qualifying.
- 3 - ARTICLE V TRUSTEE POWERS AND OTHER PROVISIONS 8.POWERS: The Trustor does hereby grant to the Trustee all powers
necessary to deal with any and all property of the Trust as freely as the Trustor
could do individually. The Trustee shall at all times and in all actions act as a
fiduciary in good faith. Trustee is hereby granted all powers contained herein
and all powers conferred upon Trustee under the applicable statutes and laws of
the State of Texas, to the broadest extent possible, including, but not limited to all
of the powers authorized by Texas Property Code Section 113.001 through
113.030. All powers granted to the Trustee by this Trust Agreement are
ministerial in nature and are not intended to create or alter substantial rights.
Without limiting the foregoing general statement of powers, the Trustee powers
include, but shall not be limited to the following: (A) TRUST ASSETS: The Trustee is hereby authorized and granted all
powers necessary to retain as a permanent investment of the Trust,
or for such time as the Trustee shall deem advisable, the original
assets of the Trust and all other property later transferred, devised
or bequeathed to the Trustee, without liability for loss or
depreciation resulting from such retention. (B) NONPRODUCTIVE ASSETS: The Trustee is hereby granted all
powers and authority necessary to hold uninvested cash, and to
retain, acquire, and hold unproductive realty or personalty for any
periods deemed advisable by the Trustee, even though the total
amount so held is disproportionate under trust investment law or
would not be permitted without this section. (C) INVESTMENT POWERS: The Trustee is hereby granted all powers
necessary to invest and reinvest any and all of the property of the
Trust in any and all types of property, security or other asset
deemed by the Trustee to be in the best interests of the Trust as a
whole, without limitation or regard to yield rates or income
production.(D) SECURITIES: The Trustee is specifically authorized, in his or her
discretion, to maintain brokerage margin accounts, to buy, sell or
transfer options, warrants, puts, calls, commodities, futures
contracts, and repurchase contracts, and to exercise any options,
rights, and conversion privileges pertaining to any securities held by
the Trustee as Trust assets. (E) ADDITIONAL PROPERTY: The Trustee is specifically authorized
to receive additional property from any source and to hold and
administer this property as part of the Trust Estate.
- 4 - (F) SELL AND LEASE: The Trustee is hereby granted all powers
necessary to sell, convey, lease, transfer, exchange, grant options
to purchase or otherwise dispose of any Trust asset on any terms
deemed by the Trustee to be in the best interests of the Trust, to
execute and deliver deeds, leases, bills of sale, and other
instruments of whatever character, and to take or cause to be taken
all action deemed necessary or proper by the Trustee in
furtherance of this authority. (G) INSURANCE: The Trustee is specifically authorized to insure Trust
property and assets with any insurer against any hazards,
foreseeable or unforeseeable, including public liability, and to use
insurance proceeds to repair or replace the asset insured, at the
discretion of the Trustee. In addition, the Trustee may carry or
purchase life insurance on the life of any Trust beneficiary, and may
exercise or release any rights with regard to such policy.(H) BORROWING AND LENDING: The Trustee is specifically
authorized to lend Trust funds to any borrower, on any terms
deemed advisable, and to change the terms of these loans at any
time and for any reason. This authorization includes the power to
extend loans beyond maturity with or without renewal and without
regard to the existence or value of any security, and to facilitate
payment, to change the interest rate, to consent to the modification
of any guarantee, and to forgive loans in their entirety. The Trustee is further granted all powers necessary to borrow
whatever money the Trustee deems desirable for any Trust on any
terms from any lender, and to mortgage, pledge or otherwise
encumber as security any assets of the borrowing Trust.(I) MODIFICATION OF TERMS: The Trustee is specifically
authorized, incident to the exercise of any power, to initiate or
change the terms of collection or of payment of any debt, security,
or other obligation of or due to any Trust, upon any terms and for
any period, including a period beyond the duration or the
termination of any or all Trusts.(J) CLAIMS: The Trustee is hereby granted all powers necessary to
compromise, adjust, arbitrate, sue on, defend, or otherwise deal
with any claim, upon whatever terms the Trustee deems advisable,
against or in favor of any Trust, and to abandon any asset the
Trustee deems of no value or of insufficient value to warrant
keeping or protecting. The Trustee is further authorized, in his or
her sole and absolute discretion, to refrain from paying taxes,
- 5 - assessments, or rents, and from repairing or maintaining any asset;
and to permit any asset to be lost by tax sale or other proceeding.(K) DISTRIBUTIONS: The Trustee is specifically authorized to
distribute any shares of the Trust in cash or in property, or partly in
each, and the Trustee's valuations of and selection of assets upon
making distribution shall, if made in good faith, be final and binding
on all beneficiaries.(L) NOMINEE: The Trustee is specifically authorized to hold any or all
of the Trust assets, real or personal, in the Trustee's own name, the
name of any Co-Trustee, corporation, partnership, or any other
person as the Trustee's nominee for holding the assets, with or
without disclosing the fiduciary relationship. A corporate Trustee
does hereby have the power necessary to appoint a Trustee to
administer property in any jurisdiction in which it shall fail to qualify.(M) FORECLOSURE: The Trustee is specifically authorized to
foreclose on any mortgage, to bid on the mortgaged property at the
foreclosure sale, or acquire mortgaged property from the mortgagor
without foreclosure, and to retain or dispose of the property upon
any terms deemed advisable by the Trustee.(N) ENCUMBRANCES: The Trustee may pay off any encumbrance on
any Trust asset and may invest additional amounts of money in the
asset, as the Trustee deems appropriate, to preserve the asset or
to increase its productivity.(O) VOTING: The Trustee may vote stock for any purpose, either in
person or by proxy, may enter into a voting trust, and may
participate in corporate activities related to a trust in any capacity
as permitted by law, including service as officer or director.(P) REORGANIZATION: The Trustee is hereby granted all powers
necessary to unite with other owners of property similar to any
property held in this Trust in carrying out the foreclosure, lease,
sale, incorporation, dissolution, liquidation, reincorporation,
reorganization, or readjustment of the capital or financial structure
of any association or corporation in which any Trust has a financial
interest; to serve as a member of any protective committee; to
deposit Trust securities in accordance with any plan agreed upon;
to pay any assessments, expenses, or other sums deemed
expedient for the protection or furtherance of the interests of the
beneficiaries; and to receive and retain as Trust investments any
new securities issued pursuant to the plan, even though these
- 6 - securities would not constitute authorized Trust investments without
this provision.(Q) PURCHASE FROM ESTATE OR TRUST: The Trustee is
specifically authorized to purchase property of any type, whether
real or personal, from a Trustor or beneficiary's estate or Trust for
their benefit upon such terms and conditions, price and terms of
payment as the Trustee and the respective personal
Representative shall agree upon, and may hold any property so
purchased in Trust although it may not qualify as an authorized
Trust investment except for this provision, and may dispose of such
property as and when the Trustee shall deem advisable. (R) ASSISTANTS AND AGENTS: The Trustee is hereby granted all
powers necessary to employ any person or persons the Trustee
deems advisable for the proper administration of any Trust,
including but not limited to: attorneys-at-law, accountants, financial
planners, brokers, investment advisors, realtors, managers for
businesses or farms, technical consultants, attorneys-in-fact,
agents and any other consultants and assistants. (S) RESERVES: The Trustee is hereby authorized to set aside and
maintain reserves for the payment of present or future expenses,
including but not limited to: taxes, assessments, insurance
premiums, debt amortizations, repairs, improvements, depreciation,
obsolescence, maintenance, fees, salaries and wages, as well as
to provide for the effects of fluctuations in gross income, and to
equal or apportion payments for the benefit of income beneficiaries
under the Trust.(T) MANAGEMENT OF REALTY: The Trustee is specifically
authorized to deal with real and personalty, including oil, gas, and
mineral rights in any manner lawful to an owner on any terms and
for any period, including periods beyond the duration or termination
of any Trusts.(U) BUSINESS: With respect to any business that is part of or may
become part of any Trust, no matter how such business may be
organized, the Trustee is hereby granted the authority to:a.hold, retain and continue to operate such business solely at the
risk of the Trust estate and without liability to the Trustee for any
resulting losses;b.incorporate, dissolve, liquidate, or sell such business at any time
and upon any terms as the Trustee deems advisable. In
- 7 - exercise of this authority, the Trustee may obtain a qualified
appraisal, although the Trustee is not obligated in any way to
seek other offers in contracting for sale to any person including
another shareholder, trust, or beneficiary; mortgage, pledge or
otherwise encumber any assets of any Trust to secure loans for
any business purposes;c.engage in the redemption of stock and to take such actions as
are necessary to qualify the redemption under IRC Sections 302
or 303 and the applicable requirements of state law.d. create a special lien for the payment of deferred death taxes
under IRC Section 6324, or similar provisions of state law. e. create, continue, or terminate an S-Corporation election. 9.AUTHORITY TO ACT: The approval of any court, the Trustor, or any
beneficiary of any Trust created by this Trust shall not be required for any
dealings with the Trustee of this Trust, and any person so dealing with the
Trustee of this Trust shall assume that the Trustee has the same power and
authority to act as any individual does in the management of his or her own
affairs. Further, upon presentation of a copy of this page and any other page of
this Trust, any person shall accept same as conclusive proof of the terms and
authority granted by this Trust, and shall assume that no conflicting terms or
directions are contained in any of the omitted pages. ARTICLE VI TRUST ADMINISTRATION DURING LIFE OF TRUSTOR 10. MANAGEMENT OF TRUST PROPERTY: All property of the Trust shall
be managed by the Trustee at the direction of the Trustor. The Trustee shall
collect all income of the Trust, and shall pay from the income such amounts and
to such persons as the Trustor may from time to time direct. In the absence of
direction from the Trustor, the Trustee may accumulate the net income of the
Trust, or may disburse any portion of the net income to or for the benefit of the
Trustor. The Trustee is also authorized to pay from the principal of this Trust any
and all amounts necessary for the health or maintenance of the standard of living
of the Trustor.11. INCAPACITY OF TRUSTOR: During any period of incapacitation of the
Trustor, as defined by this Trust Agreement, the Successor Trustee may apply or
expend all or a part of the income and principal of this Trust, or both, for the
health and maintenance of the Trustor, in his or her accustomed manner of living.
Provided sufficient resources exist for the care and maintenance of the Trustor,
- 8 - during any period of incapacity of the Trustor, the Successor Trustee is further
authorized to make distributions to or for the benefit of any issue of the Trustor
who has no other financial resources and who requires said distribution for their
health or support. The Successor Trustee shall consider all financial resources
available to a beneficiary, including, but not limited to, the ability of said
beneficiary and his or her spouse, if any, to earn a living prior to making an
invasion of this Trust. Under no circumstances may a Successor Trustee
exercise this power for his or her own benefit.12. RESERVATION OF RIGHTS: Except during periods of incapacitation as
defined by this Trust Agreement, upon delivery to the Trustee of a written
instrument, signed and acknowledged by the Trustor, the Trustor does herby
reserve during his or her lifetime the following rights:(A)To revoke this Trust Agreement in its entirety and to recover any
and all remaining property of the Trust after payment of all Trust
administration expenses,(B) To alter or amend this instrument in any and every particular at any
time and from time to time,(C) To change, at any time and from time to time, the identity or
number, or both, of the Trustee and/or Successor Trustee, (D) To withdraw from the operation of this Trust, at any time and from
time to time, any or all of the Trust property. ARTICLE VII DISTRIBUTIONS DURING LIFETIME OF TRUSTORS 13.GENERAL DISTRIBUTIONS: The following options are available to the
Trustee regarding the distribution of principal or income to or for a beneficiary:(A) Payments may be made directly to the beneficiary as an allowance,
in such amounts as the Trustee may deem advisable;(B) Payments may be made to the Guardian of the beneficiary.(C) Payments may be made to a relative of the beneficiary upon the
agreement of such relative to expend such income or principal
solely for the benefit of the beneficiary. Said agreement may
include a custodianship under the Uniform Transfers (or Gift) to
Minors Act of any state.
- 9 - (D) The Trustee may expending such income or principal directly for
the beneficiary. After making a distribution as provided above, the
Trustee shall have no further obligation regarding the distribution.(E)In making distributions of income or principal, the Trustee shall be
mindful of the Beneficiaries health, education, support,
maintenance, comfort and general welfare needs. 14.RESIDENCE: A residence may be purchased or otherwise obtained by
the Trustee for the benefit of an income beneficiary of any Trust for use by the
beneficiary and his or her family. Rent shall not be charged to said beneficiary
and expenses of maintaining such residence may be borne by the Trust, the
beneficiary, or partly by each, as the Trustee may deem proper.15. OTHER PAYMENTS: At the request of any Trustor in writing, the
Trustee shall make lump sum or periodic payments to any third party designated
by such Trustor. ARTICLE VIII TRUST ADMINISTRATION AFTER TRUSTOR’S DEATH 16.TRUSTEE: Upon the death of the Trustor, the Successor Trustee shall
continue to administer the assets of this Trust, as well as any other property
received by this Trust from any source, and shall distribute said assets as
provided herein.17.BENEFITS PAYABLE TO TRUST: Upon the death of the Trustor, the
Trustee is hereby authorized to take any and every action necessary to collect
any and all benefits payable to the Trust, including but not limited to proceeds
from life insurance policies, retirement plans, or IRA’s. The Trustee is further
authorized to collect any and all tax refunds, health insurance proceeds, refunds
under any contract, death benefits, or any other item payable to the Trustor’s
estate.18. LIABILITIES OF TRUSTOR’S ESTATE: Prior to the distribution of any
assets of this Trust, the Trustee may, at his or her sole and absolute discretion,
pay to the Trustor’s estate, from the principal or income of the Trust, any or all of
the Trustor’s just debts, funeral expenses, and administration expenses of the
Trustor’s estate. Alternatively, the Trustee may, but is not obligated to, pay such
expenses directly.19. TAXES: Upon the death of the Trustor, all estate and inheritance taxes
that become due and payable upon all of the property comprising the Trustor’s
gross estate, without regard to how such property passes, shall be paid by the
Trustee either to the estate of the Trustor or to the appropriate tax agency. The
- 10 - Trustee shall have the right of contribution as provided by Section 2207 and
2207A IRC, if applicable.20. ADDITIONAL DISTRIBUTIONS: The Trustee is hereby authorized to pay
to the Probate Estate of the deceased Trustor as much of the income and
principal of this Trust as the Trustee deems necessary for any purpose, in
addition to the other distributions provided for in this Trust.21. GIFTS: The Trustee shall, upon the death of the Trustor, make such gifts
of the tangible personal property of the Trustor held or acquired by this Trust as
may be directed by the Trustor’s Will or any list, letter, or other writing of the
Trustor permitted by the Will of the Trustor, or as may be directed by a list, letter
or other writing designated as Schedule B of this Trust, whenever made. All
costs of storing, packing, shipping and insuring such gifts shall be paid by the
Trust. ARTICLE IX TRUSTOR’S DEATH 22.DISTRIBUTIONS: Upon the death of the Trustor, the following
distributions shall be made from the property of this Trust after payment of the
Trustor’s just debts, funeral expenses, expenses of any last illness, and the other
distributions otherwise provided for in this Trust:(a) DISTRIBUTION UPON DEATH OF FIRST TRUSTOR: Following the
death of the first Trustor, and prior to the death of the Surviving Trustor, the
Trustee shall pay to or for the benefit of the Surviving Spouse (Surviving Trustor),
at the Trustee’s discretion, so much of the income and principal as the Trustee
deems necessary for the health, maintenance, education, support, and
happiness of the Surviving Trustor.If at any time before full distribution of the trust estate the Trustors and all the
Trustor’s issue are deceased and no other disposition of the property is directed
by this instrument, the remaining portion of the trust shall then be distributed to
the Trustor’s legal heirs according to the laws of succession of the State of Texas
then in force.(b) DISPOSITION OF TRUST ESTATE ON DEATH OF SURVIVING
TRUSTOR:If any of the children of the Trustors survives the Surviving Trustor,
but none of the children are under the age of twenty-one (21) years at the time of
the death of the Surviving Trustor, the Trustee shall divide the Trust property
(including all income then accrued but uncollected and all income then remaining
in the hands of the Trustee) into as many shares of equal market value as are
- 11 - necessary to create one share for each of the Trustor’s children who survive the
Surviving Trustor and one share for each of the Trustor’s children who
predecease the Surviving Trustor but who leave issue surviving him or her. The
Trustee shall distribute one share outright to each of the Trustors’ surviving
children. The Trustee shall distribute each share created for a deceased child to
the then-living issue of that child, with those issues to take that share of the trust
property as their deceased parent would have received. If all individual issue of
a deceased child have reached the age of 21 years at the death of the Surviving
Trustor, the Trustee shall distribute the share created for that deceased child
outright to those issue; if any individual issue of a deceased child has not
reached the age of 21 years at the death of the Surviving Trustor, the Trustee
shall continue to hold, administer, and distribute the share created for that
deceased child in a separate trust for all then-living issue of that deceased child
according to the terms set forth applicable to the Sprinkling Trust for Issue.If any children of the Trustors surviving the Surviving Trustor are under the age of
21 years at the time of the death of the Surviving Trustor, the property shall be
held, administered, and distributed by the Trustee, in trust, according to the terms
set forth in this article applicable to the Sprinkling Trust.If no issue of the Trustors survives the Surviving Trustor, the Trustee shall
distribute the property outright as follows: one half (1/2) to the heirs of the
deceased Trustor and one half (1/2) to the heirs of the Surviving Trustor.(c)SPRINKLING TRUST:The Trustee shall hold, administer, and
distribute the assets of the Sprinkling Trust as follows: (i) DISCRETIONARY PAYMENTS BEFORE DIVISION INTO
SHARES. At any time or times before the division of the Trust into shares as
provided below in this section, the Trustee shall pay to or apply for the benefit of
any one or more of the Trustors’ then-living children and the then-living issue of
any then–deceased children of the Trustors so much of the net income and
principal of the Trust as the Trustee deems proper for the health, education
support, and maintenance of each of them. In making these payments, the
Trustee may pay or apply more for some beneficiaries than for others, and may
make payments to or for one or more beneficiaries to the exclusion of others. No
amount paid or applied need thereafter be repaid to the Trustee or restored to
the Trust. In exercising discretion, the Trustee shall give the consideration that
the Trustee deems property to all other income and resources that are known to
the Trustee and that are readily available to the beneficiaries for use for these
purposes. All decisions of the Trustee regarding payments under this
subsection, if any, are within the Trustee’s discretion and shall be final and
incontestable by anyone. The Trustee shall accumulate and add to principal any
net income not distributed.
- 12 - (ii)DISCRETIONARY PAYMENTS OF INDIVIDUAL TRUSTS. At any
time or times during the term of the individual Trust to be created for each of the
then-living children of the Trustors, the Trustee shall pay to or apply for the
benefit of the child so much of the net income and principal of the individual trust
as the Trustee deems proper for the child’s health, education, support, and
maintenance. In exercising discretion, the Trustee shall give the consideration
that the Trustee deems property to all other income and resources that are
known to the Trustee and that are readily available to the child for use for these
purposes. All decisions of the Trustee regarding payments under this
subsection, if any, are within the Trustee’s discretion and shall be final and
incontestable by anyone. The Trustee shall accumulate and add to principal any
net income not distributed.(iii) TERMINATION AND DISTRIBUTION OF INDIVIDUAL TRUSTS.
The individual trust shall terminate when the child reaches the age of 21 years or
on the death of the child, whichever occurs first. (iv) TERMINATION OF INDIVIDUAL TRUST ON DEATH OF CHILD.
The Trust shall terminate on the death of the child for whom the trust was
created. On termination of the Trust, the Trustee shall distribute the remaining
Trust property to the then-living issue of the child. However, if any individual
issue of that child has not reached the age of 21 years at the termination of this
Trust, the Trustee is to continue to hold, administer, and distribute the Trust
property in a separate Trust for all of the then-living issue of that child according
to the terms set forth applicable to the Sprinkling Trust for Issue.(v) FINAL DISPOSITION. If the trust property is not completely
disposed of by the preceding provisions, the indisposed-of portion shall be
distributed outright as follows: one half (1/2) to the heirs of the deceased Trustor
and one half (1/2) to the heirs of the Surviving Trustor. (d) SPRINKLING TRUST FOR ISSUE. Each share or portion of the Trust
estate, or of the Trust property of any other Trust created by this Trust
instrument, that is allocated to a Sprinkling Trust for Issue for the benefit of the
beneficiaries when any beneficiary is under the age of twenty-one (21) years
shall be held, administered, and distributed by the Trustee as a separate Trust,
as follows: (i)BENEFICIARIES. The beneficiaries of this Trust are all the issue
of a deceased child of the Trustors or all issue of the Trustors, as the case may
be, for whom this Trust is created pursuant to the other provisions of this Trust
instrument.(ii) DISCRETIONARY PAYMENTS. At any time or times during the
Trust term, the Trustee shall pay to or apply for the benefit of each of the
beneficiaries so much of the net income and principal of the Trust as the Trustee
- 13 - deems proper for the health, education, support, and maintenance of each of
them. In making these payments, the Trustee may pay or apply more for some
of the beneficiaries than for others, and may make payments to or for one or
more beneficiaries to the exclusion of others. No amount paid or applied need
thereafter be repaid to the Trustee or restored to the Trust. In exercising
discretion, the Trustee shall give the consideration that the Trustee deems proper
to all other income and resources that are known to the Trustee and that are
readily available to the beneficiaries for use for these purposes. All decisions of
the Trustee regarding payments under this subsection, if any, are within the
Trustee’s discretion and shall be final and incontestable by anyone. The Trustee
shall accumulate and add to principal any net income not distributed. (iii)DISTRIBUTION ON TERMINATION. The Trust shall terminate
when there are no living beneficiaries who are under 25 years of age. On
termination, the Trustee shall distribute the Trust property (including all income
then accrued but uncollected and all net income then remaining in the hands of
the Trustee) outright to the then-living beneficiaries. (iv)FINAL DISPOSITION. If the Trust property is not completely
disposed of by the preceding provisions, the indisposed-of portion shall be
distributed outright as follows: one half (1/2) to the heirs of the deceased Trustor
and one half (1/2) to the heirs of the Surviving Trustor. 23. DEATH OF BENEFICIARY: Should a named beneficiary die before a
complete distribution of this Trust is made, and that Beneficiary leave no living
issue, then that beneficiary’s share shall go to the surviving Beneficiaries. ARTICLE X TRUSTEE PROVISIONS 24.THIRD PARTIES: Any person dealing in good faith with the Trustee shall
deal only with the Trustee and shall presume the Trustee has full power and
authority to act on behalf of the Trust. Court confirmation or approval of any
beneficiary shall not be required for any transaction with the Trustee. No Trustee
of this trust shall be personally liable for contracts entered into on behalf of the
trust unless the Trustee fails to reveal his or her representative capacity and
identify the trust estate in the contract. Further, the Trustee shall not be
personally liable for contracts or torts in connection with the administration of the
trust unless the Trustee is personally at fault. 25. COMPENSATION: Any beneficiary of this Trust serving as Trustee shall
do so without compensation for his or her services, except that the Trustee shall
be reimbursed for reasonable expenses incurred in the administration of the
Trust. Any Trustee not a beneficiary hereunder shall be compensated at the rate
customarily charged by commercial trust companies for services as a trustee of
- 14 - an inter vivos trust in the State of Texas, unless such compensation is waived by
the Trustee. 26.BOND AND QUALIFICATIONS: Bond shall not be required of the
Trustee or any Successor Trustee. The Trustee and any Successor Trustee shall
not be required to qualify in any court and is hereby relieved of the requirement
of filing any document and accounting in any court or beneficiary. Texas Property
Code Section 113.058.27.SUCCESSOR TRUSTEE(S): No Successor Trustee shall be responsible
for acts of any prior Trustee. In the event a vacancy in the office of Trustee
occurs and there is no successor trustee, the existing Trustee, if one, and the
beneficiaries may agree to a non-judicial change in the trustee by amendment to
this trust agreement. No person shall be required to apply to any court in any
jurisdiction for confirmation of said appointment. A successor trustee of a trust
shall succeed to all the powers, duties and discretionary authority of the original
trustee. Any appointment of a specific bank, trust company, or corporation as
trustee is conclusively presumed to authorize the appointment or continued
service of that entity's successor in interest in the event of a merger, acquisition,
or reorganization, and no court proceeding is necessary to affirm the
appointment or continuance of service. 28.REMOVAL OF SUCCESSOR TRUSTEES: A Successor Trustee may be
removed by the last individual to serve as Trustee; however, if that person is
deceased or incapacitated, the Successor Trustee may be removed by a majority
vote in interest in Trust income. Said removal must be in writing, stating the
reasons for removal and indicate the successor Trustee, which must be a
corporate trustee.Removal of a Successor Trustee shall be permitted only for the convenient
administration of the Trust and not for the purpose of influencing the exercise of
the discretionary powers of a Successor Trustee as granted by this instrument. Removal of a Successor Trustee shall be effective upon delivery of the notice of
removal. The removed Trustee shall have a reasonable period of time to transfer
assets to his or her successor. In the event the successor Trustee believes that
his or her removal is improper, he or she may, but shall not be required to, apply
to a court of competent jurisdiction, at his or her expense, for a declaration of the
propriety of the removal. In that event, the removal shall be effective only upon
the order of said court and after any appeal. In the event the Successor Trustee
prevails, he or she shall be entitled to reimbursement from the Trust for
reasonable costs and attorney’s fees associated with such action.29.DELEGATION OF POWERS: Any management function of any Trust
may be delegated by any Trustee to any Successor Trustee, even if such
Successor Trustee is not then serving as Trustee. The terms of such delegation
- 15 - of power shall be any conditions agreed to by the Trustees which are not
detrimental to the Trust. Provided, however, that the Trustee shall not delegate
ALL of the trustee’s duties and responsibilities. 30. LIMITED AMENDMENT POWER: The Trustee shall enjoy a limited
power to amend management functions of this Trust only as may be required to
facilitate the convenient administration of this Trust, to deal with the unexpected
or the unforeseen, or to avoid unintended or adverse tax consequences. Any
amendment under this provision shall be in writing and must be consented to by
the Trustor, if not then deceased or incapacitated, or the beneficiaries of any
Trust if the Trustor is deceased or incapacitated. The amendment may be
retroactive. This limited power to amend shall not affect the rights of any
beneficiary to enjoy Trust income or principal without the consent of said
beneficiaries. The dispositive provisions of any Trust shall not be affected by this
limited power to amend, and such power shall not be exercisable in such any
manner as to create gift, estate, or income taxation to the Trustee or any
beneficiary. No amendment shall affect the rights of third persons who have dealt
or may deal with the Trustee without their consent.31. RESIGNATION OF TRUSTEE: Any Trustee may resign by writing filed
among the trust papers effective upon the trustees’ discharge. The resigning
Trustee, or other interested party, shall provide notice to all adult income
beneficiaries and other adult beneficiaries of the Trust. The resignation shall be
effective upon agreement of all parties entitled to notice, or thirty days after
notice, whichever occurs first. 32. NONLIABILITY FOR ACTION OR INACTION BASED ON LACK OF
KNOWLEDGE OF EVENTS. When the happening of any event, including but not
limited to such events as marriage, divorce, performance of educational
requirements, or death, affects the administration or distribution of the trust, a
trustee who has exercised reasonable care to ascertain the happening of the
event is not liable for any action or inaction based on lack of knowledge of the
event. A corporate trustee is not liable prior to receiving such knowledge or
notice in its trust department office where the trust is being administered. 33.TRUSTEE AS BENEFICIARY . A trustee who is also a beneficiary of the
trust may exercise powers to make: (1) Discretionary distributions of either principal or income to or for the benefit
of the trustee; (2) Discretionary allocations of receipts or expenses as between principal andincome; or (3) Discretionary distributions of either principal or income to satisfy a legal
obligation of the trustee.
- 16 - 34.WAIVER OF ACCOUNTING. Except as otherwise provided herein,
neither this trust, nor any Trustee, shall be required to provide an accounting to
any Beneficiary. ARTICLE XI TRUST ADMINISTRATION 35.ALLOCATION TO PRINCIPAL AND INCOME – SEPARATE TRUSTS:
All expenses and all receipts of money or property paid or delivered to the
Trustee may be allocated to principal or income in the sole discretion of the
Trustee. The Trustee, in a reasonable and equitable manner, shall also have the
discretion to allocate, in whole or in part:(A) Expenses of administration of the Trust to income or principal.(B) Fees of the Trustee to income or principal.(C) Any expense of Trust administration or administration of its assets
which are deductible for Federal Income Tax purposes to income.(D)The gains or losses from option trading, and capital gains
distributions from utility shares, on mutual funds, or tax managed
funds to income; and(E) To income or principal, distributions from qualified or non-qualified
pension plans, profit sharing plans, IRA accounts or deferred
compensation arrangements.To the extent that division of any Trust is directed, the Trustee may administer
any Trust physically undivided until actual division becomes necessary. Further,
the Trustee may add the assets of the Trust for any beneficiary to any other trust
for such beneficiary having substantially the same provisions for the disposition
of trust income and principal, whether or not such trust is created by this
agreement. The Trustee may commingle the assets of several trusts for the
same beneficiary, whether or not created by this agreement, and account for
whole or fractional trust shares as a single estate, making the division thereof by
appropriate entries in the books of account only, and to allocate to each whole or
fractional trust share its proportionate part of all receipts and expenses; provided,
however, this carrying of several trusts as a single estate shall not defer the
vesting of any whole or fractional share of a trust for its beneficiary at the times
specified. 36. ALIENATION: Excepting the Trustor, no income or principal beneficiary
of any Trust shall have any right or power to anticipate, pledge, assign, sell,
- 17 - transfer, alienate or encumber his or her interest in the Trust, in any way. No
interest in any Trust shall, in any manner, be liable for or subject to the debts,
liabilities or obligations of such beneficiary or claims of any sort against such
beneficiary.37.TERMINATION OF TRUST: Should the aggregate principal of any Trust
at any time be valued at Twenty Thousand Dollars ($20,000) or less, the Trustee
may, in his or her sole discretion, terminate such Trust and distribute the assets
of the Trust to the beneficiaries in proportion to each beneficiary’s share of the
Trust.38.ELECTIONS: The Trustee and the Personal Representative of the
Trustor's estate will have various options in the exercise of discretionary powers,
and may exercise any such discretion without incurring liability to any beneficiary,
nor shall any beneficiary have the right to demand a reallocation or redistribution
of Trust income or principal as a result of the proper action of the Trustee or
Personal Representative, subject only to the requirement that the Trustee and
the Personal Representative act in good faith and within the bounds of their
fiduciary duty. Specifically, the Trustee or Personal Representative may make
certain elections for Federal Income Tax and Estate Tax purposes which may
affect the administration of Trust income or principal. 39.BENEFICIARY DESIGNATION: Upon written designation by the Trustor
of a beneficiary for a qualified plan or IRA benefits made payable to this Trust,
the Trustee shall distribute the right to receive such benefits to the designated
beneficiary. If no such designation of beneficiary exists, the Trustor grants to the
Trustee the power, on behalf of the Trustor, to distribute the right to receive such
benefits as a part of the share which is otherwise to be distributed to any
beneficiary, and such person shall be the Trustor's designated beneficiary. It is
intended that the operation of this paragraph qualify under the requirements of
401(a) (9) and 408(a) (6) IRC and it shall be interpreted in all regards in
accordance with this intent.40.CERTIFICATE OF TRUST: The Trustee is hereby authorized and
granted all powers necessary to execute a Certificate of Trust, describing any
Trust matter, including but not limited to a description of the Trust terms, the
administrative powers of the Trustee and the identity of any current Trustee. Any
person receiving an original or photocopy of said Certificate of Trust shall be held
harmless from relying on same, and shall not be obligated to inquire into the
terms of the Trust or maintain a copy of the Trust. 41.REGISTRATION OF TRUST ASSETS: Assets of this Trust during the
Trustor’s lifetime shall be registered as follows: __________________ , Trustee,
or his or her successors in trust, under THE __________________ REVOCABLE
TRUST, dated the _____ day of ______________, 20___, and any amendments
thereto.
- 18 - 42.TAX IDENTIFICATION: This Trust shall be identified during the Trustor’s
lifetime by the Trustor's Social Security Number __________________. Upon the
Trustor’s death, the Trustee shall then apply to the IRS for a tax identification
number for the Trust and any other Trust created by this Trust Agreement.43.SPENDTHRIFT CLAUSE: The interest of any Beneficiary of this Trust in
the income and principal shall not be subject to claims of his or her creditors, or
others, or be liable to attachment, execution, or other process or law and no
Beneficiary shall have the right to encumber, hypothecate, or alienate his or her
interest in any of the trust in any manner except as provided herein. Nor may a
creditor compel a trustee to make a discretionary transfer to a beneficiary. Where
the trustee is also a beneficiary, restraint on transfer is invalid against transferees
or creditors of the Trustor. In no case shall a disclaimer by a beneficiary be
considered a transfer to that Beneficiary. 44.PERPETUITIES CLAUSE: All Trusts created by this instrument and
interests therein shall vest in their then beneficiary twenty-one years after the
death of the last of the issue of the Trustor who was alive when the Trustor died,
notwithstanding any provision of this Trust to the contrary. No provision of an
instrument creating a trust, including the provisions of any further trust created,
and no other disposition of property made pursuant to exercise of a power of
appointment granted in or created through authority under such instrument is
invalid under the rule against perpetuities, or any similar statute or common law,
during the said time period. ARTICLE XII TERMS AND DEFINITIONS The terms below, as used throughout this Trust Agreement, shall have the
following meaning45. INCAPACITATED: For the purposes of this Trust Agreement, if a Trustee
or a beneficiary, is under a legal disability, or by reason of illness, mental or
physical disability is, in the written opinion of two doctors currently practicing
medicine, unable to properly manage her affairs, he or she shall be deemed
incapacitated.46. REHABILITATION: For the purposes of this Trust Agreement, as a
Trustee or as a beneficiary, shall be deemed rehabilitated when he or she is no
longer under a legal disability or when, in the written opinion of two doctors
currently practicing medicine, he or she is able to properly manage his or her
own affairs. Upon rehabilitation, his or her successors shall relinquish all powers
and be relieved of all duties, and the rehabilitated party shall resume the duties
and powers he or she had prior to incapacity.
- 19 - 47.GUARDIANSHIP: During any period of incapacity or incompetence, the
Trustor does hereby nominate as Guardian of the Trustor’s property the same
person(s) in name and order of succession who serve as Trustee as provided
herein.48. SURVIVORSHIP: This Agreement shall be binding upon the heirs,
personal representatives, successors and assigns of the parties hereto.49.APPLICABLE LAW: This Agreement shall in all respects be construed
and regulated according to the laws of the State of Texas. Should any Trust or
asset of any Trust be administered in another State, this Trust may be regulated
by the laws of that State if required to avoid excessive administration expenses
or to uphold the validity of any terms of this Trust.50. TRUSTEE AND TRUST: The term “Trustee" refers to the single, multiple
and Successor Trustee, who at any time may be appointed and acting in a
fiduciary capacity under the terms of this agreement. Where appropriate, the
term `Trust" refers to any trust created by this agreement.51. GENDER - SINGULAR AND PLURAL: Where appropriate, words of the
masculine gender include the feminine and neuter; words of the feminine gender
include the masculine and neuter; and words of the neuter gender include the
masculine and feminine. Where appropriate, words used in the plural or
collective sense include the singular and vice-versa.52. IRC: The term "IRC" refers to the Internal Revenue Code and its valid
regulations.53. SERVE OR CONTINUE TO SERVE: A person cannot "serve or continue
to serve" in a particular capacity if they are incapacitated, deceased, have
resigned, or are removed by a court of competent jurisdiction.54.ISSUE: The term "issue", unless otherwise designated herein, shall
include adopted "issue" of descendants and lineal descendants, both natural and
legally adopted indefinitely. Such term shall specifically exclude individuals
adopted out of the family of the Trustor or out of the family of a descendant of the
Trustor. The word "living" shall include unborn persons in the period of gestation.55. NOTICE: No person shall have notice of any event or document until
receipt of written notice. Absent written notice to the contrary, all persons shall
rely upon the information in their possession, no matter how old, without
recertification, verification, or further inquiry.56. MERGER: The doctrine of merger shall not apply to any interests under
any Trust.
- 20 - 57.REPRESENTATION: In any Trust matter a beneficiary whose interest is
subject to a condition (such as survivorship) shall represent the interests in the
Trust of those who would take in default of said condition. The members of a
class shall represent the interests of those who may join the class in the future
(e.g. living issue representing unborn issue). The legal natural guardian of a
person under a legal disability shall represent the interests of the disabled
person.IN WITNESS WHEREOF, on this the ____day of __________, 20___, Trustor,
and Trustee have signed this Instrument.____________________________TRUSTOR______________________________TRUSTOR_____________________________TRUSTEESTATE OF TEXASCOUNTY OF ____________________This instrument was acknowledged before me on
_________________________ (date) by
_______________________________________________ (name or names of
person or persons acknowledging). ________________________Notary Public Printed Name: _____________ My Commission Expires: _____________________
- 21 - THE __________________ REVOCABLE LIVING TRUST Schedule A The sum of One Hundred Dollars ($100.00) in cash.TOGETHER WITH:
