Free Irrevocable Trust Form 

Custom Search

 

                                                  IRREVOCABLE TRUST

 
 

                TRUST AGREEMENT made ______________, 19__, 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 there shall be paid over absolutely to the

        beneficiaries at age _______ the corpus of the trust.

 

                (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

 

 

                                        ______________________________

                                        Trustee