RREVOCABLE TRUST AGREEMENT
(FOR THE BENEFIT OF THE GRANTOR’S ADULT CHILDREN, DESIGNATING TWO TRUSTEES)
IRREVOCABLE TRUST AGREEMENT made _______________, 20_____,
between _____________________________ (the "Grantor"),
and _____________________________and _____________________________ (the "Trustees").
1. TRUST PROPERTY. The Grantor, desiring to create trusts for the benefit of his adult children and for
other good and valuable consideration, irrevocably assigned to the Trustees of the property described in
attached Schedule A (the "Trust Property"), in trust, for the purposes and on the conditions hereinafter
stated.
2. DISPOSITIVE PROVISIONS. The Trustees shall hold the property for the primary benefit
of _____________________________ ____________________________________________________
______, and the Trustees shall hold, manage, and invest the trust property, and shall collect and receive
the income, and after deducting all necessary expenses incident to the administration of the trusts, shall
dispose of the corpus and income of the trusts as follows:
(a) The Trustees shall pay the entire net income of the trust, quarter annually, to the beneficiaries of the
trust, provided that the corpus of the trust shall be paid over absolutely to the beneficiaries at the age of
_______ years.
(b) If any of the beneficiaries shall die before attaining the age of ______ years, the trust for his or her
benefit shall cease, and the corpus, together with any undistributed income, shall be paid over absolutely
to the issue of the beneficiary then living per stirpes; but if there be no issue, then to the other
beneficiaries if living, either outright, or, if the other beneficiary shall not have then attained the age
of ______ years, in trust, to be added to, held, administered, and distributed as part of the trust for the
other beneficiary; but if the other beneficiary is not then living, then absolutely to the then living issue of
the other beneficiary per stirpes; and if there is no issue, then to the estate of the beneficiary for whom the
trust was being held originally.
(c) Notwithstanding anything contained to the contrary, if at any time while the trusts are in force any
financial emergency arises in the affairs of either of the primary beneficiaries of the trusts, or if the
independent income of either of the beneficiaries (exclusive of the income from any trust created for his or
her benefit by the Grantor) and all other means of support are insufficient for the support of the
beneficiary, in the judgment of the Trustees, the Trustees shall pay over to the beneficiary, solely out of
the corpus of the trust for his or her benefit, at any time and from time to time, the sum or sums as the
Trustees shall deem necessary or appropriate in their discretion.
3. TRUSTEES' POWERS. In the administration of the trusts, the Trustees shall have the following
powers, all of which shall be exercised in the fiduciary capacity, primarily in the interest of the
beneficiaries:
(a) To hold and continue to hold as an investment the property, of any additional property which may be
received by them, so long as they deem proper, and to invest and reinvest in any securities or property,
whether or not income-producing, deemed by them to be for the best interest of the trusts and the
beneficiaries.
(b) To rent or lease any property of the trusts for the time and upon the terms and for the price or prices
as in their discretion and judgment may seem just and proper and for the best interest of the trusts and
the beneficiaries.
(c) To sell and convey any of the property of the trusts or any interest, or to exchange it for other property,
for the price or prices and upon the terms as in their discretion and judgment may be deemed for the best
interest of the trusts and the beneficiaries.
(d) To make all repairs and improvements at any time deemed necessary and proper to and upon real
property constituting a part of the trusts.
(e) To deduct, retain, expend, and pay out of any money belonging to the trusts any and all necessary
and proper expenses in connection with the operation and conduct of the trusts.
(f) To vote upon all securities belonging to the trusts, and to become a party to any stockholders'
agreements deemed advisable by them in connection with the securities.
(g) To consent to the reorganization, consolidation, merger, liquidation, readjustment of, or other change
in any corporation, company, or association.
(h) To compromise, settle, arbitrate, or defend any claim or demand in favor of or against the trusts.
(i) To incur and pay the ordinary and necessary expenses of administration, including (but not by way of
limitation) reasonable attorneys' fees, accountants' fees, investment counsel fees, and the like.
(j) To act through an agent or attorney-in-fact, by and under power of attorney duly executed by the
Trustees, in carrying out any of the authorized powers and duties.
(k) To borrow money for any purposes of the trusts, or incidental to their administration, upon their bond
or promissory note as trustees, and to secure their repayment by mortgaging, creating a security interest
in, or pledging or otherwise encumbering any part or all of the property of the trusts.
(l) To lend money to any person or persons upon the terms and in the ways and with the security as they
may deem advisable for the best interest of the trusts and the beneficiaries.
(m) To engage in business with the property of the trusts as sole proprietor, or as a general or limited
partner, with all the powers customarily exercised by an individual so engaged in business, and to hold an
undivided interest in any property as tenant in common or as tenant in partnership.
(n) To determine the manner in which the expenses incidental to or in connection with the administration
of the trusts shall be apportioned as between corpus and income.
(o) The Trustees may freely act under all or any of the powers by this Agreement given to them in all
matters concerning the trusts, after forming their judgment based upon all the circumstances of any
particular situation as to the wisest and best course to pursue in the interest of the trusts and the
beneficiaries, without the necessity of obtaining the consent or permission of any interested person, or the
consent or approval of any court.
The powers granted to the Trustees may be exercised in whole or in part, from time to time, and shall be
deemed to be supplementary to and not exclusive of the general powers of trustees pursuant to law, and
shall include all powers necessary to carry them into effect.
4. LIMITATION ON POWERS. Notwithstanding anything contained to the contrary, no powers
enumerated or accorded to trustees generally pursuant to law shall be construed to enable the Grantor, or
the Trustees or either of them, or any other person, to sell, purchase, exchange, or otherwise deal with or
dispose of all or any parts of the corpus or income of the trusts for less than an adequate consideration in
money or monies worth, or to enable the Grantor to borrow all or any part of the corpus or income of the
trusts, directly or indirectly, without adequate interest or security.
5. CORPUS AND INCOME. The Trustees shall have the power to determine the allocation of receipts
between corpus and income and to apportion extraordinary and share dividends between corpus and
income.
6. TRUSTEES' AUTHORITY AND THIRD PARTIES. No person purchasing, renting, or leasing any of the
property of the trusts, or in any manner dealing with the trusts or with the Trustees, shall be required to
inquire into the authority of the Trustees to enter into any transaction, or to account for the application of
any money paid to the Trustees on any account.
7. ADDITIONAL PROPERTY. The Grantor reserves the right to himself or to any other person at any
time, by deed or will, to add to the corpus of either or both of the trusts, and any property added shall be
held, administered, and distributed as part of the trust or trusts. The additional property shall be allocated
between the trusts in accordance with any directions given in the instrument of transfer.
8. ACCOUNTING BY TRUSTEES. The Trustees may render an accounting at any time to the
beneficiaries of the trust, and the written approval of a beneficiary shall be final, binding, and conclusive
upon all persons then or thereafter interested in the trust for that beneficiary. The Trustees may at any
time render a judicial account of their proceedings for either or both of the trusts.
9. COMPENSATION OF TRUSTEES. The Trustees waive the payment of any compensation for their
services, but this waiver shall not apply to any successor trustee who qualifies and acts under this
Agreement except that no person who adds to the corpus of either or both of the trusts shall ever be
entitled to any compensation.
10. SUCCESSOR TRUSTEES. Either of Trustees shall have the power to appoint his or her successor
Trustee. If either of the named Trustees shall die, resign, become incapacitated, or refuse to act further as
Trustee, without having appointed a successor Trustee, the other named Trustee may, but shall not be
required to, appoint a successor Trustee. The appointment of a successor Trustee shall be made by a
duly acknowledged instrument delivered to the primary beneficiaries and to the person, if any, then acting
as Trustee.
11. BOND AND LIABILITY OF TRUSTEES. Neither of the two (2) named Trustees shall be required to
give any bond or other security. The Trustees shall not be liable for any mistake or error of judgment in
the administration of the trusts, except for willful misconduct, so long as they continue to exercise their
duties and powers in a fiduciary capacity primarily in the interests of the beneficiaries.
12. IRREVOCABILITY. The trusts shall be irrevocable, and the Grantor expressly waives all rights and
powers, whether alone or in conjunction with others, and regardless of when or from what source he may
have acquired such rights or powers, to alter, amend, revoke, or terminate the trusts, or any of the terms
of this Agreement, in whole or in part. By this instrument the Grantor relinquishes absolutely and forever
all his possession or enjoyment of, or right to the income from, the trust property, and all his right and
power, whether alone or in conjunction with others, to designate the persons who shall possess or enjoy
the trust property, or the income.
13. SITUS. This trust has been executed and delivered in the State of _________________ and shall be
construed and administered according to the laws of that state.
In witness whereof the Grantor and the Trustees have executed this Agreement
in ____________________.
________________________________________________
Grantor: [NAME]
________________________________________________
Trustee: [NAME]
________________________________________________
Trustee: [NAME]
