Fill and Sign the Trust Agreement to Hold Funds for Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of Minor Form

Trust Agreement to Hold Funds for Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of Minor Trust Agreement made on the ____ day of ______________________________, 20____, between ___________________________________________________ (Guardian) of ______________________________________________________________________________ ______________________________________________________________________________ _________________________________ (street address, city, county, state, zip code) , referred to herein as Guardian , and _________________________________________________ (Bank), a banking corporation of the United States, with its principal office located at _______________ ______________________________________________________________________________ ______________________________________________________________________________ _______________________ (street address, city, county, state, zip code) , referred to herein as Trustee. Whereas, on _______________________________________ (date), at ______________ ______________________________________________________________________________ ________________________________________________________ (location in city, name of county and state), an accident occurred, resulting in bodily injuries to _____________________ _____________________________________ (Name of Minor), a minor, born on ________________________________________ (date), hereinafter sometimes called the Minor or Beneficiary; and Whereas, Guardian is the natural mother of Minor and served as Guardian of the Minor as the result of an Order entered by the ______________________________________________ ______________________________________________________________________________ __________________________________________ (specify name, location, and type of court), hereinafter called the Court, on _________________________________________ (date), in the action entitled __________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ [e.g., (Name of Plaintiff) vs. (Name of Defendant), Civil Action No. (insert number assigned to case)], said action being hereafter referred to as Action; and Whereas, claims were made by Guardian on behalf of Minor against ___________________________________________________ (Name of Defendant), hereinafter called Defendant, for compensation for such injuries to Minor resulting from ________________________________________________________ (e.g. the negligence) of Defendant as described in said Action; and Whereas, Guardian and Defendant entered into a Settlement Agreement approved by said Court resulting in the payment of $________________ to Guardian on behalf of Minor for such injuries; and Whereas, this Trust is being formed to manage said $_____________ until Minor reaches the age of ______________ (e.g., 25); and Whereas, this Trust Agreement has been approved by the Court and is irrevocable and may not be altered or amended in any manner, without an Order of the Court; and Whereas, the Trustee is willing to carry out the duties enumerated in this Agreement; Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guardian and the Trustee agree as follows: 1. Transfer in Trust Guardian transfers and delivers to Trustee the sum of $_______________. The receipt of the said sum is hereby acknowledged by Trustee. This property, together with any other property that may later become subject to this Trust, shall constitute the trust estate and is hereinafter referred to as the Trust Estate. The Trust Estate shall be held, administered, and distributed in accordance with the terms of this trust instrument. The Trustee is authorized to accept additional gifts of property from third persons, whether by lifetime gift, will, codicil, or by the proceeds of life insurance. Any such gift shall be held by Trustee under the terms of this trust instrument. 2. Disposition of Principal and Income For as long as Beneficiary is under the age of _________ (e.g., 25) years, the income from the Trust Estate shall be added to principal. However, the Trustee may pay to or apply for the benefit of the Beneficiary so much of the principal and income as the Trustee deems necessary for the support, health, maintenance, and education of the Beneficiary. The Trustee shall distribute the net income of the Trust Estate to the Beneficiary, annually or at more frequent intervals, from the time the Beneficiary attains the age of _______ (e.g., 25) until the termination of the Trust. At the time of the termination of the Trust, the entire Trust Estate shall be distributed to Beneficiary free of any Trust. In addition to distributions of net income of the Trust Estate , Trustee shall pay to or apply for the Beneficiary's benefit such sums out of the principal of the Trust Estate as the Trustee considers necessary for the Beneficiary's support, health, maintenance, and education until the termination of this Trust. When the beneficiary attains the age of ________ (e.g., 25) years, the Trustee shall distribute to Beneficiary the entire undistributed balance of the Trust Estate . 3. Death of Beneficiary If the Beneficiary dies before attaining the age of ________ (e.g., 25) years, the Trustee shall distribute the undistributed balance of the Trust Estate to the heirs-at-law of the Beneficiary. 4. Powers of Trustee The Trustee shall have the following powers in addition to those conferred by law: A. To invest and reinvest all or any part of the Trust Estate in such common or preferred stocks, shares of investment trust and investment companies, bond, debentures, mortgages, deeds of trust, notes, real estate, or other property as the Trustee, in the Trustee's sole discretion, may determine to be reasonable, advisable, expedient, or proper. B. To continue to hold in the form in which received (or the form to which changed by reorganization, split, stock dividend, or other like occurrence) any securities or other property the Trustee may at any time acquire under the trust created by this instrument. C. To continue to hold any property including any shares of any Trustee's own stock and to operate at the risk of the Trust Estate any business that the Trustee receives or acquires under the Trust. D. To have and exercise all rights, powers, and privileges of an owner with respect to the securities held in trust, including, but not limited to, the powers to vote, give proxies, and pay assessment; to participate in voting trusts, pooling agreements, foreclosures, reorganizations, consolidations, mergers, and liquidations; incident to such participation, to deposit securities with and transfer title to any protective or other committee on such terms as the Trustee may deem advisable; and to exercise or sell stock subscription or conversion rights. E. To buy and sell options, write options, establish and maintain margin accounts, and to sell securities "short against the box." F. To hold securities or other property in the Trustee's name as Trustee under the Trust created by this instrument, or in the Trustee's own name or in the name of a nominee; or the Trustee may hold securities unregistered in such condition that ownership will pass. G. To manage, control, grant options on, sell, convey, exchange, partition, divide, improve, and repair Trust property. H. To lease Trust property for terms within or beyond the term of the Trust created by this instrument for any purpose. I. To lend money to any person provided that any such loan shall be adequately secured and shall bear a reasonable rate of interest. J. To loan or advance the Trustee's own funds to the Trust created by this instrument for any Trust purpose, with interest at current rates; to receive security for those loans in the form of a mortgage, pledge, deed of trust, or other encumbrance of any assets of the Trust; to purchase assets of the Trust at their fair market value as determined by an independent appraisal of those assets; and to sell property to the Trust at a price not in excess of its fair market value as determined by an independent appraisal. K. To release or restrict the scope of any power that the Trustee may hold in connection with the Trust created under this instrument, whether such power is expressly granted in the instrument or implied by law. L. To purchase bonds and to pay such premiums in connection with the purchase as the Trustee, in the Trustee's reasonable discretion, deems advisable; provided, however, that each premium shall be repaid periodically to principal out of the interest on the bond in such reasonable manner as the Trustee shall determine and, to the extent necessary, out of the proceeds of the sale or other disposition of the bond. M. To purchase bonds at such discount as the Trustee, in the Trustee's discretion, deems advisable; provided, however, that each discount shall be accumulated periodically as interest in such reasonable manner as the Trustee shall determine and to the extent necessary paid out of the proceeds on the sale or other disposition of the bond or out of principal. N. To borrow money and to encumber Trust property by mortgage, deed of trust, pledge, or otherwise to secure a loan to or for the benefit of the Trust for any Trust purpose. O. To determine, except as otherwise specifically provided in this Trust instrument, what part of the Trust Estate is principal and what part of the Trust Estate is income and to apportion and allocate receipts and expenditures between principal and income. P. To commence or defend, at the expense of the Trust, such litigation with respect to the Trust or any property of the Trust Estate as the Trustee may deem advisable; and to compromise or otherwise settle any claims or litigation against or in favor of the Trust. Q. To purchase and carry such insurance as Trustee deems advisable to protect the Trust Estate and Trustee personally against any losses. R. To employ such attorneys, accountants, and advisors as the Trustee deems necessary; and to act on the advice of such advisors without incurring liability for any action taken or refrained from pursuant to that advice. S. To withhold from distribution, without the payment of interests, all or any part of the Trust property, if the Trustee shall determine, in the Trustee's sole discretion, that the property may be subject to conflicting claims, to tax deficiencies, or to liabilities, contingent or otherwise, properly incurred in the administration of the Trust Estate. . T. To partition and distribute the Trust Estate , on any division or partial or final distribution of the Trust Estate , in undivided interests or in kind, or partly in cash and partly in kind, at valuations determined by the Tr ustee; to sell such property as the Trustee may, in the Trustee's discretion, deem necessary to make such divisions or distributions; in making any such divisions or partial or final distributions of the Trust Estate , the Trustee shall be under no obligation to make a pro rata division, or to distribute the same assets to beneficiaries similarly situated; the Trustee may, in the Trustee's sole discretion, make a non-pro rata division between trusts or shares and non-pro rata distributions to the Beneficiaries as long as the respective assets allocated to separate trusts or shares, or distributed to the Beneficiaries, have equivalent or proportionate fair market value. 5. Accrued Income Accrued or unpaid income from trust property, when received into the Trust, shall be treated as any other income. Accrued income or income held undistributed by the Trustee at the termination of this Trust shall go to the Beneficiary or Beneficiaries then entitled to receive the distributions of the Trust Estate in proportion to their interests in the Trust Estate . 6. Notice of Events Unless the Trustee shall receive from some person interested in this Trust written notice of any deaths, births, marriages, or other events on which the right to receive income or principal of the Trust Estate may depend, the Trustee shall incur no liability for any distributions made or omitted in good faith. 7. Spendthrift Provision No interests in the principal or income of the Trust created under this instrument shall be anticipated, assigned, encumbered, or subjected to creditor's claims or legal process before actual receipt by the Beneficiary. 8. Education Defined Whenever provision is made to pay for the education of a beneficiary, the term education shall include college and postgraduate study as long as, in the Trustee's discretion, such education is pursued to the advantage of the Beneficiary. In determining payments to be made to the Beneficiary for such education, the Trustee shall consider the Beneficiary's reasonably related living and traveling expenses. 9. Successor Trustees If for any reason __________________________________________ (Name of Trustee) shall cease to act as Trustee, a successor trustee shall be appointed by the Court. Any successor trustee shall succeed as Trustee as though originally named Trustee under this trust instrument. All authority, powers, and discretions conferred on the original Trustee under this trust instrument shall pass to any successor Trustee. No successor Trustee shall be responsible for the acts or omissions of any prior Trustee, nor shall any successor Trustee be under a duty to audit or investigate the accounts or administration of any prior Trustee. Unless requested in writing by a person having a present or future beneficial interest in the Trust, no successor Trustee shall have any duty to take any action to obtain redress for a breach of trust committed by any prior Trustee. 10. Bond of Trustee No bond shall be required of any person named in this instrument as Trustee for the faithful performance of its duties as Trustee. 11. Resignation of Trustee The Trustee may at any time resign from the duties created under this trust instrument on giving written notice to the person or persons then entitled to receive income payments from the Trust and to the parents or guardians of any minor beneficiary or beneficiaries who may be entitled or authorized to receive income payments from the Trust at that time. Notices may be mailed to the addresses of such persons last known to the Trustee. The resignation shall take effect days after the date of mailing of the notice. 12. Compensation of Trustee The Trustee shall be entitled to reasonable compensation from time to time for the Trustee's ordinary services rendered under this Agreement, for any extraordinary services performed by the Trustee, and for all services in connection with the termination of the Trust, either in whole or in part. 13. Accounting The Trustee shall make an _________________________ (e.g., annual) accounting regarding the transactions of the Trust by delivering a written report to the legal guardian of any minor beneficiary, if living, and to all adult income beneficiaries . Unless one or more interested persons shall deliver a written objection to the Trustee within _________ (e.g., 90) days of receipt of the Trustee's account, the account shall be deemed settled, final, and conclusive in respect to all transactions disclosed in the account as to all Beneficiaries of the Trust, including any unborn and unascertained Beneficiaries. After settlement of the account by reason of the expiration of the _________ (e.g., 90) -day period or by agreement of the parties, the Trustee shall no longer be liable to any Beneficiary of the Trust, including any unborn or unascertained Beneficiaries, with respect to transactions disclosed in the account, except for the Trustee's intentional wrongdoing or fraud. 14. Governing Law The validity of this Trust and the construction of its provisions shall be governed by the laws of ______________________________________________ (name of state) , regardless of any change of residence of the Trustee or any Beneficiary, or the appointment or substitution of a Trustee residing or doing business in another state. Witness our signatures as of the day and date first above stated. ____________________________________ Guardian ____________________________________ Trustee By_________________________________ ____________________________________ (Name and Office in Corporation) STATE OF ________________________________________ COUNTY OF _____________________________ Personally appeared before me, the undersigned authority in and for the said county and state, on this ____day of __________________________________, 20____, within my jurisdiction, the within named ____________________________________ (Bank Representative), who acknowledged that he is ______________________________ (title) of _________________________________________________________ (Trustee) , a banking corporation of the United States, and that for and on behalf of the said Bank, and as its act and deed, he executed the above and foregoing instrument, after first having been duly authorized by said corporation so to do. ____________________________________ NOTARY PUBLIC My commission expires: ____________________ STATE OF ___________________________________________ COUNTY OF ______________________________ Personally appeared before me, the undersigned authority in and for the said County and State, _________________________________________ (date) , within my jurisdiction, the within - named _________________________________________________ (Guardian) , as Guardian of _____________________________________________________ (Name of Minor) who acknowledged that she executed the above and foregoing instrument. __________________________________________ NOTARY PUBLIC My Commission Expires: ______________________