Trust Agreement for Minor Qualifying for Annual
Gift-Tax Exclusion with Multiple Trusts for Children
Trust Agreement made (date), between (Name of Grantor One) and (Name of Grantor Two),
of (street address, city, state, zip code), hereinafter called the Grantors, and (Name of Trustee),
a corporation organized under the laws of (Name of State), having its principal office at (street
address, city, state, zip code), hereinafter called the Trustee.
Whereas, the Grantors wish to establish irrevocable Trusts for the benefit of their minor
children, (Name of Child One) and (Name of Child Two); and
Whereas, the Grantors wish to convey to such Trusts certain properties they now own; and
Whereas, the Trustee is willing to carry out the duties enumerated in this Agreement.
Now, therefore, for and In consideration of the matters described above, and of the mutual
benefits and obligations set forth in this Agreement, the Grantors and the Trustee agree as
A. Grantors. Both (Name of Grantor One) and (Name of Grantor Two) may be
referred to collectively in this Agreement as the Grantor or as the Grantors.
B. Primary Beneficiaries. Whenever used in this Agreement, the term Primary
Beneficiaries shall mean the following individuals:
1. (Name of Child One), a male, born (date); and
2. (Name of Child Two), a male, born (date).
C. Trustee. (Name of Trustee), of (street address, city, state, zip code), is the
Trustee of any Trust created in this Agreement.
D. Trust Committee. The Trust Committee shall have the powers granted in
Section IV of this Agreement (dealing with changes in Trustees). The initial Trust
Committee shall consist of the following individuals:
1. (Name of Trust Committee Member One), of (street address, city, state,
2. (Name of Trust Committee Member Two) of (street address, city, state,
3. (Name of Trust Committee Member Three) of (street address, city, state,
II. Establishment of Trusts; Disposition of Trust Property.
A. Establishment of Trusts for Children of Grantors.
1. General. The Grantors have conveyed to the Trustee the properties listed
in Exhibit A, attached to and made a part of this Agreement for all purposes. The
Trustee accepts such properties in Trust under the terms and conditions of this
2. Division Into Separate Shares. The Trustee shall divide and partition
the Trust Properties into shares of equal value, one share for each Primary
Beneficiary. Each such share shall be held and administered as a separate Trust
for the benefit of a Primary Beneficiary. The names of the Trusts shall be:
“The Name of Child One), (Year of Agreement) Present Interest Trust”; and
“The Name of Child Two), (Year of Agreement) Present Interest Trust.” Property
subsequently transferred to the Trustee to be held in Trust under this Agreement
shall be allocated among the various Trusts in accordance with the directions
given in the instrument of transfer or, in the absence of such directions, as
though such properties were among the original properties listed in Exhibit B.
3. Distributions of Income and Principal. The Trustee shall have the
power, in its sole discretion, to accumulate all or part of the net income of each
Trust or to distribute all or part of the income or principal of each Trust to or for
the benefit of the Primary Beneficiary whose name designates that particular
Trust for any reason deemed appropriate by the Trustee, including, but not
limited to, distributions for the comfort and luxury of the Primary Beneficiary.
B. Final Distributions of Each Trust.
1. Age (Age). The Trust for each Primary Beneficiary shall continue until the
Primary Beneficiary attains the age of (age) years or sooner dies, unless the
Primary Beneficiary of such Trust, within (number) days after the date of his or
her 21st birthday, delivers to the Trustee a written direction to the Trustee to
distribute a specific portion or all of such Trust to the Primary Beneficiary. Any
part of a Trust over which a Primary Beneficiary does not timely exercise the right
conferred on him or her by the immediately preceding sentence shall continue in
Trust, as provided in this Agreement, and in such event:
a. The net income earned by such Trust after the Primary
Beneficiary attains the age of 21 years shall be distributed to or for the
benefit of the Primary Beneficiary at least annually or at more frequent
intervals; the Trustee also shall have the power to make such
distributions of principal to or for the benefit of such Primary Beneficiary
for any reason deemed appropriate by the Trustee; and
b. When the Primary Beneficiary attains the age of (age) years, the
Trust named for such Primary Beneficiary shall terminate and all principal
and undistributed income remaining in such Trust shall be distributed to
the Primary Beneficiary.
2. Premature Death. If a Primary Beneficiary dies before the termination of
a Trust named in this Agreement for such Primary Beneficiary, the Trustee shall
distribute the principal and undistributed income then remaining in the Trust to, or
hold the same for the benefit of, such person or persons or the estate of the
Primary Beneficiary, in such amounts and proportions, outright or upon such
terms, Trusts, conditions, and limitations as the Primary Beneficiary shall appoint
by a will admitted to probate by a court of competent jurisdiction, provided that
this general power of appointment is specifically referred to by the terms of such
will. If a Primary Beneficiary dies and fails to fully and validly exercise this
general testamentary power of appointment, then, upon the death of the Primary
Beneficiary, the Trustee shall distribute the principal and undistributed income
then-remaining in the Trust to the then-living descendants of the Primary
Beneficiary who survive the Primary Beneficiary, per stirpes; but if the Primary
Beneficiary has no descendants who survive the Primary Beneficiary, the Trustee
shall distribute the principal and undistributed income then remaining in the Trust
a. To the then-living descendants of the Grantors who survive the
Primary Beneficiary, per stirpes; but the share allocable to any person
then living for whom a Trust created in this Agreement is then still in
existence shall be added to that Trust; however,
b. If the Grantors have no descendants who survive the Primary
Beneficiary, then to those persons who would inherit from the Primary
Beneficiary in accordance with the laws of intestate distribution then in
effect in (name of state), as if the Primary Beneficiary had died intestate
at the date of termination of the Trust not survived by spouse and
descendants and domiciled in (name of state).
3. Contingent Trust for Persons Less than the Age of (Age of
Beneficiary at Distribution). Notwithstanding the preceding provisions of this
Section II, this Subparagraph B(3) shall apply if any portion of the principal of
any Trust created in this instrument would be distributable to a Beneficiary (other
than a Primary Beneficiary or an appointee of the Primary Beneficiary under a
power of appointment) who has not reached his or her (number) birthday and no
other Trust is created in this instrument for that Beneficiary. If the Trustee in its
sole discretion so elects, that portion shall be retained by the Trustee as a
separate Trust for the benefit of the Beneficiary. Until the Beneficiary reaches his
or her (ordinal number) birthday, the Trustee shall have the power to accumulate
all or part of the income of that Trust or to distribute so much of the income and
principal of that Trust to or for the benefit of the Beneficiary as the Trustee, in its
sole judgment and discretion, deems necessary for the education, maintenance,
support, and health of the Beneficiary. When the Beneficiary reaches his or
her (ordinal) birthday, the Trustee shall distribute all of the then-remaining
principal and undistributed income of the Trust to the Beneficiary. If the
Beneficiary dies before reaching his or her (ordinal number) birthday, the Trustee
shall distribute the then-remaining principal and undistributed income of the Trust
to the Estate of the Beneficiary.
C. Payments to Incapacitated Person. During the minority or physical or mental
incapacity of any person to whom principal or income of any trust created in this
Agreement may be paid (either during the term of a Trust or upon final distribution of a
Trust), the Trustee may make such payment in any one or more of the following ways:
1. To such person directly;
2. To the guardian, committee, conservator, or other similar official of such
3. To a relative of such person to be expended by such relative for the
benefit of such person, including payment to such relative;
4. To a custodian under an applicable Uniform Transfers to Minors Act; or
5. By the Trustee expending the same directly for the benefit of such
person. The Trustee's determination of the minority or incapacity of any such
person shall be final, and the Trustee shall not be responsible for the application
of any payment after the same has been made to any person in accordance with
the provisions of this Subparagraph C.
D. Spendthrift Clause. All Trusts created in this instrument shall be Spendthrift
E. Undistributed Income Added to Principal. Any income of any Trust not
distributed within the first (number) days following the end of the taxable year of that
Trust shall be added to the principal of the Trust and administered as a part of such
III. Trustee Provisions.
A. Definition of Trustee; Distribution of Powers. The Trustee, whether one or
more, whether male or female, whether individual or corporate, whether original,
successor, or substitute, is called “Trustee” in this Agreement. Except as expressly
provided otherwise, each Trustee shall have the same duties, powers, and discretions.
B. General Powers. In the administration of any Trust established in this
Agreement, the Trustee shall have the powers set forth in Sections V, VI, VII, and VIII of
this Agreement for all purposes, which powers shall be exercised in a fiduciary capacity.
All powers and discretions of the Trustee shall be exercised free of court supervision.
C. Limitations on Powers. No powers of the Trustee enumerated in this
Agreement (including Sections V, VI, VII, and VIII), or now or later conferred upon
Trustees generally, shall be construed to enable a Grantor to purchase, exchange, or
otherwise deal with or dispose of all or any part of the principal or income of any Trust
for less than an adequate consideration in money or money's worth, or to enable a
Grantor to borrow all or any part of the principal or income of any Trust, directly or
indirectly, without adequate interest or security. No person, other than the Trustee, shall
have or exercise the power to vote or direct the voting of any stock or other securities of
any Trust, to control the investment of any Trust either by directing investments or by
vetoing proposed investments, or to reacquire or exchange any property of any Trust by
substituting other property of an equivalent value.
D. Liability of Trustee and Persons Dealing with Trustee. The liability of the
Trustee and persons dealing with the Trustee shall be according to Section VII (Liability
of Trustee and Persons Dealing with Trustee) of this Agreement for all purposes.
E. “Present Interest” Trusts. Anything to the contrary in this Agreement
notwithstanding, the Grantors intend that the Trusts initially created in this Agreement
shall meet the requirements of Section 2503(c) of the Code. To that end, the powers and
discretions of the Trustee in the administration of the Trusts created in this Agreement
shall be exercisable only in a manner consistent with this intention. Moreover, each
Primary Beneficiary shall have the power to compel the Trustee of the Trust for that
Primary Beneficiary to dispose of assets that produce no income so as to acquire assets
that do produce income.
F. Release of Power by Amendment of Trusts. Any Trustee shall have the power
and authority to amend the provisions of the Trusts in order to surrender, release,
renounce, or disclaim any one or more of the discretionary powers given by this
Agreement to that Trustee. Any such amendment shall be made by written instrument
acknowledged and filed in the (name of public records office) of the Grantors' County.
After any power has been so surrendered, released, renounced or disclaimed, it shall
never again be exercised by that Trustee.
G. Records; Inspection. The Trustee shall keep accurate and complete records of
Trust transactions. Any Beneficiary (or his or her representative authorized in writing)
may inspect the records at any reasonable time.
H. Annual Report. Upon written request by the Beneficiary or his or her personal
representative, the Trustee shall make an annual report in writing to any living
Beneficiary over the age of 21 years who could, in the discretion of the Trustee, receive
any income or distribution from the Trust Estate during that year. Such report shall be for
a calendar or fiscal year beginning each year on a date selected by the Trustee as
appropriate for this purpose and shall be submitted to such income beneficiary (or to the
guardian, conservator, committee, or other like official of any incapacitated beneficiary)
with reasonable promptness after the end of such period. Each report shall include a
statement of all property on hand at the end of such year, all receipts and disbursements
during such year, all sales and purchases made during such year, and of such other acts
of the Trustee as may be necessary to furnish such Beneficiary with adequate
information as to the condition of the Trust Estate.
I. Compensation and Bond. The Trustee shall be entitled to reasonable fees
commensurate with its duties and responsibilities, taking into account the value and
nature of the Trust Estate and the time and work involved. If any licensed attorney or
certified public accountant shall serve as Trustee, he or she shall be compensated for
his or her services on the basis of his or her customary charges for legal or accounting
services. The Trustee shall be reimbursed for the reasonable costs and expenses
incurred in connection with its fiduciary duties under this Agreement. No Trustee,
whether original or successor, shall be required to furnish a bond or other security,
except as expressly provided in this Agreement.
IV. Irrevocability; Change in Trustee and Trust Committee.
A. Trusts Irrevocable. This Agreement and the Trusts created by it shall be
irrevocable and shall not be altered, amended, revoked, or terminated, in whole or in
part, by the Grantors.
B. Renouncement of Interest by Grantors. Notwithstanding any other provision in
this Agreement, no part of the principal or income of any Trust established in this
Agreement shall ever revert to or be used for the satisfaction of legal obligations of either
Grantor; and no income of any Trust established in this Agreement shall be applied to
the payment of premiums of insurance on the life of either Grantor without the prior
written approval of the Primary Beneficiary if there is one, or, if not, all of the then-
income beneficiaries of such Trust. The Grantors renounce for themselves and their
estates any interest, either vested or contingent, including any reversionary right or
possibility of reverter, in the principal and income of the Trusts, and any power to
determine or control, by alteration, amendment, revocation, termination, or otherwise,
the beneficial enjoyment of the principal or income of the Trusts.
C. Resignation of Trustee. Any Trustee may resign by filing a written instrument
acknowledged of record in the (name of public records office) of the Grantors' County,
which filing shall deprive the resigning Trustee of all powers as Trustee under this
Agreement on the effective date of the instrument or, if no effective date is stated,
immediately; provided, nevertheless, that at least (number) days prior to such filing, the
resigning Trustee shall give written notice of the resignation to those persons who could
in the discretion of the Trustee receive income from the Trust Estate and are at such
time sui juris. No purchaser from or other person dealing with any Trustee is obligated to
examine such public records in the (name of public records office), and any such person
shall be protected in all transactions with any Trustee whether or not any such
resignation has taken place. If the Trustee shall resign, or otherwise cease or fail to
serve, the Trust Committee shall appoint a successor Trustee in the manner set forth in
the following subparagraph.
D. Removal of Trustee and Appointment of Successor by Trust Committee.
The Trust Committee shall have the power to remove the Trustee named in this
Agreement and any Successor Trustee. The Trust Committee also shall have the power
to appoint Successor Trustees but shall not have the power to appoint more than three
Trustees to serve at one time. If a Trustee expressly is appointed for administration of
the Trust because the Trustee or Trustees otherwise serving are prohibited from
exercising a power or performing an act, then the Trust Committee may limit that
Trustee's powers to the power or act the exercise or performance of which is prohibited
to the other Trustee or Trustees. The Trust Committee shall act in its sole discretion in
taking any action authorized in this Subparagraph and shall act by a majority vote of the
members then serving. Any Successor Trustee appointed by the Trust Committee shall
be either (i) any individual who is not a Beneficiary of the Trust of which such individual
is to be appointed Trustee (but not an individual listed in Subparagraph E(2) of this
Section IV), or (ii) any national or state bank, trust company, or other financial institution
in the United States having Trust powers and a capital and surplus of $
_____________ or more. Such removal and appointment shall be by written instrument
executed and acknowledged by a majority of the Trust Committee members then serving
and by the Successor Trustee and filed in the (name of public records office) of the
Grantors' County. A member of the Trust Committee or the Successor Trustee shall
promptly deliver a copy of such instrument to the Trustee then serving, which shall
immediately deprive such Trustee of all powers as Trustee under this Agreement, except
those powers appropriate to the administration of the Trust during the time required for
the transfer of the Trust assets. No purchaser from, or other person dealing with, any
Trustee is obligated to examine such public records, and any such person shall be
protected in all transactions with any Trustee, whether or not any such replacement has
E. Administration of Trust Committee.
1. Replacement of Members. If through any member's ceasing or failing to
serve, the membership of the Trust Committee shall be reduced to less than
three individuals, the remaining members shall appoint by majority vote a
sufficient number of persons to bring the total membership to three individuals.
Any person may be reappointed to serve as a member of the Trust Committee.
2. Limitations Regarding Committee Members. The following individuals
shall be ineligible to serve as a member of the Trust Committee if the
appointment of such an individual would result in the Trust Committee's having a
membership more than half of whom are: a Grantor or any Beneficiary; the
spouse of a Grantor or of any Beneficiary; the father, mother, lineal descendant,
brother, or sister of a Grantor or of any Beneficiary; an employee of a Grantor or
of any Beneficiary; an employee of a corporation in which the stockholdings of
the Grantors, the Trust, and the beneficiaries of the Trust are significant from the
viewpoint of voting control; an employee of a corporation in which a Grantor or
any Beneficiary of the Trust is an executive; a partner of a partnership in which
the interest of the Grantors, the Trust, and the beneficiaries of the Trust are
significant from the viewpoint of operating control or distributive share of
partnership income; or an employee of a partnership in which a Grantor or any
Beneficiary of the Trust is a partner.
3. Fiduciary Capacity; Bond; Compensation. In carrying out its duties, the
Trust Committee shall act in a fiduciary capacity, but shall not be required to
furnish bond. Each member of the Trust Committee shall be entitled to
reimbursement for any out-of-pocket expenses incurred in the performance of
such member's duties. No member of the Trust Committee shall be entitled to
compensation unless such member is a licensed attorney or certified public
accountant, and, in that event, such member shall be compensated for services
on the basis of such member's customary charges for legal or accounting
4. Limitation on Scope of Trust Committee's Powers. Anything in this
Agreement to the contrary notwithstanding, neither the Trust Committee nor any
member of it, as a member of the Trust Committee, shall have any power to
establish or alter the beneficial enjoyment of principal or income of any Trust
created or authorized in this Agreement.
F. Powers and Duties of Successor Trustee. Upon the appointment and
qualification of any successor Trustee, the same duties shall devolve upon, and the
same rights, powers, authorities, privileges, and discretions shall inure to it as to the
Trustee originally designated under this Agreement; and all rights, powers, authorities,
privileges, and discretions shall be exercised without the supervision of any court.
G. Reorganization of Corporate Trustee. If a Corporate Trustee should, before or
after qualification, change its name; be reorganized, merged, or consolidated with, or
acquired by any other corporation; or be converted into or assign its Trust functions to a
different type of entity, the resulting entity shall be deemed a continuation of the former
one and shall continue to act as Trustee or continue to be eligible to become a Trustee,
as the case may be.
V. Powers if Trustee. The Trustee shall have the following powers:
A. Standard. To exercise all powers granted to Trustees by the common law or any
applicable statutes (as they exist at this date or are subsequently amended), to the
extent they increase the powers granted to Trustees. If, however, those powers are in
conflict with any of the provisions of this Agreement (including this Section V and other
sections of this Agreement), the terms of this Agreement shall prevail.
B. Selection and Retention of Assets. To retain, without liability for loss or
depreciation resulting from such retention, any property or undivided interests in property
received from any source, including residential property, regardless of any lack of
diversification, risk, or non-productivity, for such time as the Trustee shall deem
advisable, and the Trustee shall be under no obligation to dispose of or convert any such
property. Any investments made by the Trustee pursuant to the terms of this Agreement
need not be diversified, may be of a wasting nature, and may be made or retained with a
view to possible increase in value. The Trustee, except as otherwise specifically
provided in this Agreement, shall have as wide a latitude in the selection, retention, or
making of investments as an individual would have in retaining or investing his or her
own funds, and shall not be limited to, nor be bound or governed by, any rules of law,
statutes, or regulations respecting investments by Trustees.
C. Sale or Disposition of Trust Property. To sell, exchange, give options upon,
partition, convey, or otherwise dispose of, with or without covenants (including
covenants of warranty of title), any property that may from time to time be or become a
part of the Trust Estate, at public or private sale or otherwise, for cash or other
consideration, or on credit, and upon such terms and conditions as the Trustee shall
think advisable, and to transfer and convey the same free of all Trusts.
D. Investment of Trust Property. To invest and reinvest the Trust Estate from time
to time in any property, real, personal, or mixed, including (without limiting the generality
of the foregoing language) securities of domestic and foreign corporations and
investment Trusts, bonds, preferred stocks, common stocks, mortgage participations,
and interests in common Trust funds, with complete discretion as to converting realty
into personalty, or personalty into realty, or otherwise changing the character of the Trust
Estate, even though such investment (by reason of its character, amount, proportion to
the total Trust Estate, or otherwise) would not be considered appropriate for a fiduciary
apart from this provision, and even though such investment causes a greater proportion
of the total Trust Estate to be invested in investments of one type or of one business or
company than would be considered appropriate for a fiduciary apart from this provision.
E. Loans of Trust Property. To make loans, secured or unsecured, in such
amounts, upon such terms, at such rates of interest, and to such persons, firms, or
corporations as the Trustee shall think advisable.
F. Acquisition of Nonproductive Property. Except as limited by other provisions
of this Agreement, to acquire property returning no income or slight income, or to retain
any such property, so long as the Trustee shall think fit, without the same being in any
way chargeable with income, or the proceeds in case of sale or other disposition being in
any part deemed income.
G. Improving and Leasing Trust Property. To improve any real estate comprising
a part of the Trust Estate; to demolish any buildings in whole or in part; to erect
buildings; to lease real estate or personal property on such terms and conditions and for
such length of time [including (number of years) years or more] as the Trustee shall think
fit, even though such lease may extend beyond the term of any Trust; to foreclose,
extend, renew, assign, release, or partially release, and discharge mortgages or other
liens, and to accumulate income for the purpose of doing so (except where the Trustee
is required in this Agreement to distribute income).
H. Borrowing Money. To borrow money and to execute promissory notes for the
same; to secure such obligations by mortgages or other liens or pledges of any property
of the Trust Estate; to make any type of purchase or contract, including installment
contracts or credit arrangements, the effect of which is to borrow money; and to
accumulate income for the purpose of repaying any indebtedness owed by the Trustee
under this Agreement.
I. Adjustment of Claims and Suits; Prepayment of Existing Mortgage. To
prosecute or defend any suit; to compromise or arbitrate any claim (including a claim for
taxes) and any litigation, either in favor of or against the Trust Estate or the Trustee in its
capacity under this Agreement; to pay claims upon such evidence as the Trustee shall
think sufficient; and to prepay all or part of any mortgage.
J. Employment of Agents. To employ such brokers, bank custodians, investment
counsel, attorneys, and other agents or servants, and to delegate to them such duties,
rights, and powers of the Trustee for such period as the Trustee shall think fit; and to pay
such persons reasonable compensation out of the Trust estate, all regardless of whether
any such person or entity is (or is a partner, employee, or employer of, or is owned by) a
Beneficiary or Trustee under this Agreement.
K. Voting Securities; Reorganization. To vote, in person or by proxy, any stocks
or other properties having voting rights; to enter into voting trusts and voting
agreements; to exercise any options, rights, or privileges pertaining to any property in
the Trust Estate; to participate in any merger, reorganization, or consolidation affecting
the Trust Estate; and, in connection with the same, to take any action that an individual
could take with respect to property owned outright by such individual, including the
payment of expenses or assessments, the deposit of stock or property with a protective
committee, the acceptance or retention of new securities or property, and the payment of
such amounts of money as may seem advisable in connection with the same.
L. Insurance. To insure any part of the Trust Estate against such risks as the
Trustee shall think fit, such insurance to be based on market values or costs, and the
coverage to be full or partial as the Trustee shall think fit; to pay the premiums and to
collect or adjust the losses; except as limited by other provisions of this Agreement, to
acquire, hold, and pay premiums on insurance upon the life of any person or persons,
and to exercise any and all rights to ownership of the insurance; and to purchase other
types of insurance or annuities for any Beneficiary; provided, however, all incidents of
ownership with respect to any policies of insurance on the life of any Trustee shall be
vested in and exercisable solely by another Trustee.
M. Mineral Contracts and Sales. To execute and deliver oil, gas, and other mineral
leases containing such unitization or pooling agreements and other provisions as the
Trustee shall think fit; to execute mineral and royalty conveyances; to purchase leases,
royalties, and any type of mineral interest; and to execute and deliver drilling contracts
and other contracts, options, and other Agreements necessary or desirable to participate
actively in the oil, gas, or mining business. All of the foregoing may include such terms,
conditions, Agreements, covenants, provisions, or undertakings as the Trustee shall
N. Corporations. To incorporate any property in the Trust Estate; to convey any
such property to a corporation for all or part of its capital stock or other securities
(whether or not any Trustee is also a security holder, officer, director, or manager of
such corporation in an individual, fiduciary, or other capacity); to dissolve such
corporation or any other corporation, the securities of which comprise a part of the Trust
Estate; and to hold or dispose of, as a part of the Trust Estate, any property so received
upon such dissolution; all in such manner, at or for such times, and on such terms as the
Trustee shall think fit.
O. Partnerships. To enter into partnerships; to transfer any property in the Trust
Estate to one or more partnerships for interests in such partnerships; to act as a partner
in any partnership or with respect to any property, any part of which may be or become
part of the Trust Estate originally or later; to so act as a partner with itself acting in an
individual, fiduciary, or other capacity; to participate in the management of such
partnerships; to dissolve any partnership in which the Trustee acts as a partner; and to
hold or dispose of, as part of the Trust Estate, any property received upon any such
dissolution; all in such manner, at or for such times, and on such terms as the Trustee
shall think fit.
P. Businesses. To start or to enter into any business enterprise, or to continue to
operate any business interest which becomes part of the Trust Estate; to delegate all or
part of the management of the business; to invest other funds of the Trust Estate in the
business; to convert such business from one form (e.g., proprietorship, partnership,
corporation, etc.) to another; to enlarge, diminish, or change the scope or nature of the
activities of any business; to authorize the participation and contribution by the business
in any form of plan to benefit employees, whether or not the contributions qualify as
being tax deductible; to use the general assets of the Trust Estate for the purposes of
the business; to invest additional capital in or make loans to such business, regardless
of the speculative nature or non-productivity of such investment or loan, and without
regard to diversification of investment; to endorse or guarantee on behalf of the Trust
Estate any loan or loans made to the business, and secure such loan or loans by pledge
or mortgage of any property of the Trust Estate; to employ such officers, managers,
employees, or agents as the Trustee deems advisable in the management of the
business, including electing or employing directors, officers, or employees of the Trustee
to take part in the management of the business as directors or officers or otherwise, and
to pay such person or persons reasonable compensation; and to rely upon the reports of
certified public accountants as to the operations and financial condition of the business
without independent investigation; all in such manner, at or for such times, and on such
terms as the Trustee shall think fit (except where the Trustee is required to distribute
Q. Special Farm Powers. To retain any farm or farm property received from any
source, and to acquire and retain other such property; to engage in farm operations and
the production, harvesting, and marketing of farm products, including livestock breeding
and feeding and poultry and dairy farming, by operating directly with hired labor, by
retaining farm managers or management agencies, by renting on shares or for cash, or
in any other manner; to enter into farm programs; to purchase or rent farm machinery
and equipment, livestock, poultry, seed and feed; to improve farm property and to repair,
improve, and construct farm buildings, fences, and drainage facilities; to borrow money
for any of these purposes; and in general to do all things customary or desirable in farm
R. Payment of Expenses and Taxes. To incur such expenses or charges in the
management of the Trust Estate as the Trustee shall think fit; to render the Trust Estate
for taxes if the Trustee shall think it desirable, or to refuse to do so if the Trustee shall
think it undesirable; to pay taxes, charges, and governmental assessments against the
Trust Estate; and, in anticipation of such expenses, charges, taxes, and assessments, to
set up such sinking funds or reserves as the Trustee shall think fit (except where the
Trustee is required to distribute income).
S. Reliance on Business Documents. To rely upon the authenticity of affidavits,
certificates, opinions of counsel, letters, notices, faxes, e-mails, telegrams, cablegrams,
and other methods of communication in general use and usually accepted in business
as genuine and as what such documents or communications purport to be.
T. Acceptance of Additional Property. Except as limited by other provisions of
this Agreement, the Trustee (i) may accept from any source any property acceptable to