Docstoc

Irrevocable Living Trust - Annuity

Document Sample
Irrevocable Living Trust - Annuity Powered By Docstoc
					An Irrevocable Living Trust is a legal instrument used as a means to avoid probate,
reducing income tax on certain assets, and reducing taxes on inheritances such as
money, real estate, investment accounts, and other assets. An Annuity is any
continuing payment with a fixed and total annual amount. An Irrevocable Living Trust
with an Annuity means the beneficiary will receive a set amount of payments from the
trust each year. Standard language is used in this trust, but additional terms may be
added. Use this trust to avoid probate, and to ensure the designated beneficiary
receives a certain amount of money, as determined by the trustor, per year.
                           IRREVOCABLE INTER-VIVOS TRUST

THIS INTER-VIVOS IRREVOCABLE TRUST (this “Instrument”) is made this ____ day of
_________, 20_____, by __________________ [Comment: insert Settlor’s name] of County of
___________________, State of ___________________, as Settlor, and _____________________
[Comment: insert name of Trustee], as Trustee.

                                            RECITALS

WHEREAS, Settlor is a individual and Settlor has one or more children who are alive;

WHEREAS, Settlor has _____ (__) children, referred to herein in as “child” or “children,” all of
them adults, namely: (1) _______________, who resides at ___________________ in the of
County of ___________________, State of ___________________; (2) ___________________,
who resides at ________________ in the County of ___________________, State of
___________________; and (3) ___________________, who resides at ________________ in the
County of ___________________, State of ___________________;

WHEREAS, Settlor declares that Settlor has transferred to the Trustee the property described in
Schedule “A” attached to this Instrument;

WHEREAS, Trustee hereby agrees to hold such property and any other property included in the
trust estate, in trust, on the terms and conditions set forth herein;

WHEREAS, Settlor wishes, by this Instrument, to create an inter-vivos irrevocable trust in
accordance with the laws of the State of ___________________ whereby Settlor’s separate
property will be held in trust and managed for Settlor’s benefit during Settlor’s lifetime and
distributed to the beneficiaries named herein upon Settlor’s death;


                                        I. TRUST ESTATE

1. TRUST ESTATE

All property subject to this Instrument is referred to as the “trust estate” and shall be held,
administered, and distributed according to terms and conditions set forth in this Instrument.

2. TRUST PROPERTY

   A. The trust estate consists of the property (plus the undistributed income and proceeds
      generated by such property) listed in Schedule “A” and hereafter transferred to the trust by
      the Settlor or Settlor’s will as insurance proceeds or pension benefits, or from any other
      person or source.

   B. The Settlor’s property, listed in Schedule “A” or subsequently added to the trust estate, is the
      separate estate of Settlor.
                   II. INCOME AND PRINCIPAL DISTRIBUTIONS DURING LIFE

During the Settlor’s lifetime, the Trustee shall pay to or apply for the benefit of Settlor the net
income of Settlor’s separate property in _________________ [quarter-annual or more frequent
installments]. The Trustee shall pay to or apply for the benefit of said Settlor as much of the
principal as the Settlor directs or as is necessary in the Trustee’s discretion for the proper health,
education, support, maintenance, comfort and welfare of the Settlor in accordance with Settlor’s
accustomed manner of living at the date of this instrument.


                           III. SHOULD SETTLOR BECOME INCAPACITATED

1. PAYMENTS FOR BENEFIT OF INCAPACITATED SETTLOR

    A. If at any time, Settlor’s physician or, if such Settlor has no attending physician, two
       licensed physicians, not related by blood or marriage to Settlor or any beneficiary of this
       trust, certifies in writing that Settlor has become incapacitated, whether or not a court of
       competent jurisdiction has declared Settlor incompetent or mentally ill or has appointed a
       conservator, the Trustee shall take the steps outlined in this Article.

    B. Trustee shall apply for the benefit of Settlor, amounts of net income and principal necessary
       in the Trustee’s discretion for the proper health, support, maintenance, comfort and welfare
       of Settlor according to Settlor’s habituated manner of living during Settlor’s lifetime.

    C. The Trustee shall make such payments until Settlor is again able to manage Settlor’s own
       affairs, or until Settlor’s death, as determined by Settlor’s physician, or if Settlor has not
       attending physician, by two licensed physicians not related by blood or marriage to the
       Settlor or to any beneficiary of this trust.

    D. In making distrib
				
DOCUMENT INFO
Description: An Irrevocable Living Trust is a legal instrument used as a means to avoid probate, reducing income tax on certain assets, and reducing taxes on inheritances such as money, real estate, investment accounts, and other assets.  An Annuity is any continuing payment with a fixed and total annual amount.  An Irrevocable Living Trust with an Annuity means the beneficiary will receive a set amount of payments from the trust each year.  Standard language is used in this trust, but additional terms may be added.  Use this trust to avoid probate, and to ensure the designated beneficiary receives a certain amount of money, as determined by the trustor, per year.
This document is also part of a package Estate Planning Starter Kit 20 Documents Included