Revocable Trust Agreement with Corporate Trustee
This Trust Agreement is made (date), between (Name of Grantor), of (street address,
city, state, zip code), referred to herein as Grantor, and (Name of Trustee), a
corporation organized and existing under the laws of the state of (name of state), with
its principal office located at (street address, city, state, zip code), referred to herein as
For and in consideration of the mutual covenants contained in this Agreement, and
other good and valuable consideration, the parties agree as follows:
Grantor hereby assigns and sets over to Trustee the property set forth in the attached
Schedule A, which is incorporated by this reference, the receipt of which property is
acknowledged by Trustee, to be held in Trust, as follows:
1. Distribution of Income and Principal. Trustee shall pay or apply the net
income to or for the use of Grantor during Grantor's lifetime. On the death of Grantor,
Trustee shall pay over and distribute the principal as the same shall then consist to such
person or persons, or corporations, and in such amounts, in further Trust or otherwise,
as Grantor may appoint by specific reference to this power of appointment in Grantor's
Last Will and Testament. In default of such appointment or insofar as such appointment
shall not be effectively exercised, then the principal shall be paid over and distributed to
Grantor's surviving issue, per stirpes, and if none, among Grantor's brothers and sisters
then surviving and the issue then surviving, per stirpes, of any deceased brothers and
sisters, and failing such, then to the executors or administrators of Grantor's Estate, to
become and be disposed of as part of the Estate.
2. Income Payable to Spouse and Children. Trustee shall pay or apply the net
income to or for the use of (Name of Wife), the wife of Grantor, during his lifetime.
On the death of (Name of Grantor), the principal, as it shall then consist, shall be
divided into as many equal shares as there may be children of Grantor then surviving
and children of Grantor then deceased leaving issue then surviving, so that there shall
be one equal share for each such child of Grantor then surviving and one equal share
for the then-surviving issue collectively of each such child of Grantor then deceased.
These shares shall be held, managed, and disposed of as follows:
A. As to the equal share set aside for the then-surviving issue collectively of
each such child of Grantor then deceased, the share shall be paid over and
distributed to such issue, per stirpes.
B. As to the equal share set aside for each such child of Grantor then
surviving, the share shall be held in a further separate trust and Trustee shall pay
or apply the net income from such child's trust to or for the use of the child during
the child's life or until the earlier termination of the trust as provided below. When
the child attains the age of (number) years, or if the child shall have attained that
age at the time of the division provided for above, Trustee shall pay over and
distribute to the child absolutely the principal of his or her trust. If the child shall
die prior to becoming entitled to receive the principal of his or her separate trust,
then on the child's death Trustee shall pay over and distribute the principal of the
trust, as the same shall then consist, to such person or persons, or corporations,
and in such amounts, as the child may appoint by specific reference to this power
of appointment in his or her Last Will and Testament (excluding, however, the
child's estate, the child's creditors or the creditors of the child's estate), and in
default of such appointment, or in so far as the appointment shall not be
effectively exercised, then, per stirpes, to his or her issue then surviving, and
failing any such issue, then, per stirpes, to Grantor's issue then surviving;
provided, however, that if in default of appointment any portion of the principal
shall be payable to a child of Grantor for whom a share is then held in trust under
this instrument, such portion shall, instead of being paid outright to the child, be
added to the Trust created by this instrument for the child's benefit and be held
and disposed of as part of that Trust.
C. Anything in this Agreement to the contrary notwithstanding, the trust as to
any share set aside for a child of Grantor who shall not have been in being at the
creation of this Trust shall terminate in any event on the death of the youngest
child of Grantor living at the date of this Agreement who shall survive (Name of
Spouse). In that event, Trustee shall pay over and distribute the principal of the
Trust to such after-born child, absolutely.
3. Simultaneous Death. If the income beneficiary and any remainderman of any
Trust created by this Agreement shall die in a common accident under such
circumstances that it is difficult or impossible to determine who predeceased the other,
then the terms and conditions of this Agreement shall be construed as though the
income beneficiary had survived any such remainderman and the Trust created by this
Agreement shall be administered and distributed in all respects accordingly.
4. Discretion of Trustee to Invade Principal. Trustee is authorized at any time or
from time to time to pay to or apply to the use of the person then entitled to the income
of any Trust under this Agreement, out of the principal of the Trust, such sum or as
Trustee may deem appropriate (without any duty to take into consideration the person's
other resources or other income) for that person's maintenance, education, and welfare,
or for any other purpose in the discretion of Trustee. Trustee shall be the sole judge of
whether the occasion exists for the withdrawal of principal under this Agreement,
whether principal shall be withdrawn, and the amount of principal and its use.
5. Children and Issue. The words child, children and issue wherever used in this
Agreement shall include for all purposes not only the child, children, and issue of the
person or persons designated, but also the legally adopted child and children of such
designated person or persons and of such issue, and also all the legally adopted
children and issue of the legally adopted children.
6. Minor Beneficiaries. If any person becoming entitled to any property under this
Agreement shall be under the age of 18 years, the same shall vest in the person, but in
the discretion of Trustee the payment may be deferred in whole or in part until the
person attains such age, Trustee meanwhile holding and retaining the property for the
benefit of that person, and applying so much of the property and any income from it as
Trustee, in Trustee's discretion, may determine for that person's benefit or other use.
The retention of any property for any person pursuant to the foregoing shall not be
considered as a continuation of any prior trust and Trustee shall be entitled to receive
for its services to any such person pursuant to this power separate compensation at the
rates and in the manner allowed to a sole guardian of the property of a minor under the
laws of (name of state).
7. Payment to or for Minor or Incompetent. In making payment of property,
whether principal or income, to a person under the age of 18 years or to an
incompetent, or in applying property, whether principal or income, to the use of any
such person under any provision of this Agreement, Trustee may make the payment or
application by payment to such person directly or to a natural or foster parent, or to the
person with whom such person shall reside, or to the guardian, committee, or other
legal representative, wherever appointed, of such person. The payment to any of the
foregoing shall be a full discharge of Trustee and binding in all respects on such person.
8. Powers of Trustee. In addition to any powers given to it by law or otherwise,
Trustee is authorized and empowered with respect to any property at any time held
under any provision of this Agreement, including accumulated income, if any, and any
property held pursuant to any power in Trust, and until the actual distribution of the
A. To sell on such terms and conditions as it in its sole discretion may
B. To retain property of any kind received by it without regard to
diversification and without being limited to the investments authorized by law for
the investment of Trust funds.
C. To invest and reinvest in and to acquire by exchange or otherwise
property of any character including stocks of any classification, obligations, or
other property, real or personal, whether or not of the same kind, and
participations in any common trust fund administered by (Name of Trustee),
without regard to diversification and without being limited to the investments
authorized by law for the investment of Trust funds.
D. To join in, consent to, or become a party to any reorganization, merger,
consolidation, dissolution, readjustment, exchange, or other transaction and any
plan or action under or in connection with the same; to deposit any such property
with any protective, reorganizational, or similar committee; to delegate
discretionary powers to the committee and to share in the payment of its
expenses and compensation and to pay any assessments levied with respect to
the property and to receive property under any reorganization, merger,
consolidation, dissolution, readjustment, exchange or other transaction whether
or not the same is authorized by law for the investment of Trust funds.
E. To make and retain joint investments and investments of undivided
interests in any property, real or personal, whether or not all the property is held
under this Agreement and whether or not the provisions under which such other
property is held are similar.
F. To exercise all conversion, subscription, voting, and other rights of
whatsoever nature pertaining to any such property and to grant proxies,
discretionary or otherwise, with respect to those rights.
G. With respect to any real property (including real property acquired on
foreclosure or by deed in lieu of foreclosure) at any time held under this
Agreement, to sell, exchange, partition, lease, sublease, mortgage, improve, or
otherwise alter on such terms as it may deem proper, and to execute and deliver
deeds, leases, mortgages, or other instruments relating to the real property. Any
lease may be made for such period of time, including a lease beyond a (number)
period, as it may deem proper and without the approval of any court.
H. To borrow money to provide funds for any purpose without resorting to the
sale of any assets; and for the purpose of securing the repayment of the
borrowed money, to pledge, mortgage, or otherwise encumber any and all such
property on such terms, covenants, and conditions as it may deem proper and
also to extend the time of payment of any loans or encumbrances which at any
time may be encumbrances on any such property irrespective of by whom the
same were made or where the obligations may or should ultimately be borne on
such terms, covenants, and conditions as it may deem proper.
I. To extend the time of payment of any bond (or other obligation) and
mortgage held by it, or of any installment of principal or interest or hold such
bond (or other obligation) and mortgage after maturity as past due; to consent to
the alteration or modification of any terms of the same, waive defaults in the
performance of the terms of the same; to foreclose any such mortgage or
compromise or settle claims under the mortgage; to take over, take title to, or
manage the property, or any part of it, affected by any such mortgage, either