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Spendthrift Trust

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					Spendthrift Trust
This Spendthrift Trust is created by an individual that wants to create a trust that will be
distributed upon their death with spendthrift provisions. A spendthrift trust can be
especially advantageous to beneficiaries because it can prevent creditors from
collecting the property of the trust. Customize the information the testator, the executor,
the trustee, and more. This document is ideal for individuals that want to create a trust
whereby the trust assets cannot be attached by creditors in certain situations.
 LAST WILL AND TESTAMENT OF __________________________ [Instructions: Insert
                    the full legal name of the Testator]

I, ______________________, [Instructions: Insert the full legal name of the Testator] of the
City of ______________________, [Instructions: Insert the Testator’s city] County of
________________________ [Instructions: Insert the Testator’s county] and State of
____________________, [Instructions: Insert the Testator’s state] being of sound mind, do
hereby declare this to be my Last Will and Testament, hereby revoking all prior Wills and
Codicils made by me.

1.       EXECUTOR

         a.       Appointment.

             i.         I nominate and appoint _______________________ [Instructions: Insert
the full legal name of the Executor] of the City of ________________________,
[Instructions: Insert Executor’s city] County of _____________________, [Instructions:
Insert the Executor’s county] and State of _________________________, [Instructions:
Insert the Executor’s state] as the Executor of this Will. I, reposing special trust and faith in
the Executor, direct that no bond or other security be required for the faithful performance of the
Executors duties or, if bond is required, that sureties thereon be waived.

            ii.       Should ___________________, [Instructions: Insert the full legal name
of the Executor] predecease me or fail to qualify as Executor or, having qualified, die, resign or
become incapacitated, then I nominate and appoint _______________________ [Instructions:
Insert the full legal name of the Back-Up Executor] of the City of
________________________, [Instructions: Insert Back-Up Executor’s city] County of
_____________________, [Instructions: Insert the Back-Up Executor’s county] and State of
_________________________, [Instructions: Insert the Back-Up Executor’s state] as the
Executor of this Will, and confer upon _____________________ [Instructions: Insert the full
legal name of the Back-Up Executor], the same powers and authority as my original Executor
was given.

        b.     Powers of Executor. In addition to any powers and authority conferred by law, I
give to the Executor of this Will the full power and authority to do any and all things necessary
for the complete administration of my estate, including, but not limited to, the power to
mortgage, lease, sell, or otherwise encumber any real, personal or mixed property that may be a
part of my estate, by public or private transaction, without court order or approval and without
notice to anyone. The Executor of this Will shall not be accountable or responsible to any person
interested in my estate for the manner in which reasonable discretionary authority is exercised.

        c.    Debts and Expenses. I direct the Executor of this Will to first pay any legally
enforceable debts still owing at my death, last illness, funeral expenses and estate administration
expenses from my estate, except that any debt or expense secured by a mortgage, pledge or
similar encumbrance on property owned by me at my death need not be paid by my estate, but
such property may pass subject to such mortgage, pledge or similar encumbrance.



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2.       RESIDUE OF ESTATE

I give, devise and bequeath all the rest, residue and remainder of my estate, including real,
personal or mixed property, whether tangible or intangible, of whatever kind and nature,
wherever situated, including all property that I may acquire or become entitled to after the
execution of this Will, or other gifts made by this Will that fail for any reason, that I may own at
the time of my death, or which I have the power to dispose of at the time of my death, to the
person or corporation that at the time of my death is serving as Trustee, in trust (the “Trust”), to
be held, administered, and distributed according to the terms set forth herein.

         a.           Trustee.

                 i.          Nomination of Trustee.

                        (1)     I nominate and appoint _______________________ [Instructions:
Insert the full legal name of the Trustee] of the City of ________________________
[Instructions: Insert the Trustee’s city] County of ________________________,
[Instructions: Insert the Trustee’s county] and State of ______________________
[Instructions: Insert the Trustee’s state] as Trustee of the Trust. I, reposing special trust and
faith in Trustee, direct that no bond or other security be required for the faithful performance of
Trustee’s duties or, if bond is required, that sureties thereon be waived.

                      (2)    Should ____________________ [Instructions: Insert the full
legal name of the Trustee] predecease me or fail to qualify as Trustee or, having qualified, die,
resign or become incapacitated, then I nominate and appoint _______________________
[Instructions: Insert the full legal name of the Back-Up Trustee] of the City of
________________________ [Instructions: Insert the Back-Up Trustee’s city] County of
________________________, [Instructions: Insert the Back-Up Trustee’s county] and State
of ______________________ [Instructions: Insert the Back-Up Trustee’s state] the same
powers and authority as my original Trustee was given.

              ii.        Powers of Trustee. To carry out the purposes of the Trust, and subject to
any limitations stated elsewhere in this Will, Trustee shall have all of the following powers, in
addition to all of the powers now or hereafter conferred on Trustees by law:

                       (1)    Retain property received into the Trust at its inception, or later
added to the Trust, as long as Trustee considers that retention in the best interests of the Trust or
in furtherance of my goals in creating the Trust, as determined from this Will, but subject to the
standards of the prudent investor rule.

                      (2)     Invest and manage the Trust assets as a prudent investor would, by
considering the purposes, terms, distribution requirements, and other circumstances of the Trust.
In satisfying this standard, Trustee shall exercise reasonable care, skill, and caution. The
Trustee's investment and management decisions respecting individual assets and courses of
action must be evaluated not in isolation, but in the context of the Trust portfolio as a whole and



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as a part of an overall investment strategy having risk and return objectives reasonably suited to
the Trust.

                       (3)     With or without court authorization, sell (for cash or on deferred
payments, and with or without security), convey, exchange, partition, and divide Trust property;
grant options for the sale or exchange of Trust property for any purpose, whether the contract is
to be performed or the option is to be exercised within or beyond the term of the Trust; and lease
Trust property for any purpose, for terms within or extending beyond the expiration of the Trust,
regardless of whether the leased property is commercial or residential and regardless of the
number of units leased.

                         (4)    Engage in any transactions with the executor of my estate that are
in the best interest of the Trust under this Will.

                     (5)     Manage, control, improve, and maintain all real and personal Trust
property. In Trustee's discretion, abandon any unproductive or wasted Trust asset or interest
therein.

                       (6)    Employ and discharge agents and employees, including but not
limited to attorneys, accountants, investment and other advisers, custodians of assets, property
managers, real estate agents and brokers, and appraisers, to advise and assist Trustees in the
management Trust, and compensate them from the Trust property.

                       (7)     Borrow money for any Trust purpose from any person or entity on
such terms and conditions as Trustee deems advisable, and obligate the Trust for repayment;
encumber any Trust property by mortgage, deed of Trust, pledge, or otherwise, whether for terms
within or extending beyond the term of the Trust, as Trustee deems advisable, to secure
repayment of any such loan; replace, renew, and extend any such loan or encumbrance; and pay
loans or other obligations of the Trust deemed advisable by Trustee.

                     (8)    In Trustee’s discretion, make loans to beneficiaries out of funds of
the Trust and to guarantee the repayment of loans made to beneficiaries by third parties by
encumbering Trust assets.

                        (9)     Enforce any obligation owing to the Trust, including any
obligation secured by a deed of Trust, mortgage, or pledge held as Trust property, and to
purchase any property subject to a security instrument held as Trust property at any sale under
the instrument Pay or contest any claim against the Trust; release or prosecute any claim in
favor of the Trust; or, in lieu of payment, contest, release, or prosecution, adjust, compromise, or
settle any such claim, in whole or in part, with or without consideration. At Trust expense,
prosecute or defend actions, claims, or proceedings of whatever kind for the protection of the
Trust property and of Trustee in the performance of Trustee's duties, and employ and compensate
attorneys, advisers, and other agents as Trustee deems advisable.

                     (10) The enumeration of specific powers under this Will shall not limit
Trustee from exercising any other power with respect to the Trust that may be necessary or



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appropriate for Trustee to have and exercise in order to carry out the purposes of the Trust or to
permit Trustee to fulfill Trustee's responsibilities and duties with respect thereto.

            iii.      Duty to Account. The Trustee shall render accounts at least annually, at
the termination of the Trust, and upon a change of Trustees, to the persons and in the manner
required by law.

           iv.       Compensation of Trustee. The Trustee shall be entitled to reasonable
compensation for services rendered, payable without court order.

         b.       Trust.

               i.       Administration. The Trustee shall hold, administer, and distribute the
assets of the Trust as follows:

                        (1)    Discretionary Payment of Trust Income and Principal. Trustee
shall pay to _____________________, [Instructions: Insert the full legal name of the
Beneficiary] as beneficiary of this Trust (henceforth “Beneficiary”), all or part of the net income
of the Trust and all or part of the Trust principal, as Trustee, in Trustee’s sole and absolute
discretion, deems to be in the best interests of Beneficiary, provided such payments are for the
health, maintenance, support and education of Beneficiary. The distributions shall continue until
the death of Beneficiary or until the entire distribution of the Trust estate, whichever occurs first.
Determinations with regard to the time, amount, manner, and form of the distributions shall be
left to the sole discretion of Trustee and shall be made without court order. Any unused,
unapplied, or undistributed income shall be accumulated and, at least annually, added to the
principal of this Trust and then be held, administered, and disposed of as a part of the principal.

                       (2)    Spendthrift Provision. Payments of both income and principal
shall be made as directed under the terms of this Will, and Beneficiary shall not have the right to
alienate, anticipate, pledge, assign, sell, transfer, or encumber those payments without first
procuring the written consent of Trustee. Any endeavor by Beneficiary to circumvent this
direction in any manner shall be null and void.

                       (3)     Incapacity of Beneficiary.        If at any time Beneficiary is
incompetent or is unable to manage funds properly or wisely if paid directly to Beneficiary, as
determined by Trustee in Trustee’s sole and absolute discretion, Trustee may, in Trustee’s sole
and absolute discretion, may make payments in one or more of the following ways: (a) directly
to Beneficiary; (b) to the legally appointed guardian of Beneficiary; and/or (c) to any person or
organization furnishing care or support for Beneficiary. The Trustee shall not be required to
oversee the application of any funds that are paid to the parties set forth in this paragraph.

                       (4)     Expenses of Beneficiary's Last Illness, Funeral, and Burial. On
the death of Beneficiary, Trustee shall pay the expenses of the last illness, funeral, and burial of
Beneficiary out of the principal of the Trust estate, unless Trustee, in Trustee’s sole and absolute
discretion, determines that other provisions have been made for the payment of such expenses.




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                            (5)       Termination and Distribution of Trust.

                              (a)    Death of Beneficiary. The Trust shall terminate on the
death of Beneficiary and Trustee shall divide the remaining balance of the Trust property into as
many shares of equal market value as are necessary to create one share for each Beneficiary's
then living children and deceased children who have left surviving issue. One equal share shall
be paid over and distributed to each then living child of Beneficiary. One equal share shall be
distributed to the issue of each deceased child of Beneficiary, per stirpes and not per capita.
Should Beneficiary leave no surviving issue, Trustee shall distribute any undistributed balance of
the Trust property outright to ___________________________. [Instructions: Insert any
alternate dispositions]

                              (b)     By Trustee. Trustee, in Trustee’s sole and absolute
discretion, may at any time terminate this Trust if the amount of the Trust estate does not warrant
the cost of continuing the Trust, or if the administration of the Trust becomes otherwise
impractical. On termination by Trustee, Trustee shall distribute the remaining balance of the
Trust estate, including any accumulated income, to Beneficiary, and the rights of all other
persons who might otherwise have an interest in the remainder of the Trust shall cease. If Trustee
determines, in Trustee’s sole discretion that Beneficiary is mentally or physically incapacitated,
Trustee may distribute the remaining balance of the Trust estate, including any accumulated
income, to the guardian of the estate or person of Beneficiary, or to the person caring for
Beneficiary.

              ii.       Failure of Trust Instrument or Gift. If, for any reason, the Trust is not in
force at the time of my death, or if this gift, devise and bequest to the then-current Trustee of the
Trust is held invalid, then I direct that this gift, devise and bequest shall be held and managed in
the manner described in the instrument of Trust now in existence by the same Trustee, and for
that purpose I hereby incorporate that instrument of Trust, as it now stands, by reference into
this, my Last Will and Testament.

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IN WITNESS WHEREOF, I have subscribed my name to this, my Last Will and Testament,
consisting of __________ (___) [Instructions: Insert the total number of pages in this
document] pages, in the presence of two (2) persons witnessing at my request, on
____________________. [Instructions: Insert then date of this document]



__________________________
__________________________ [Instructions: Insert the full legal name of Testator]
Testator


We, the undersigned, do hereby certify that:

        (a)    In our sight and presence, _______________________ [Instructions: Insert the
full legal name of Testator] (the “Testator”) signed and executed this instrument as Testator’s
Last Will and Testament.

       (b)      To the best of our knowledge, Testator was, at the time of Testator’s signing and
execution of this Will: (i) at least eighteen (18) years of age, (ii) signing willingly, freely and
voluntarily for the purposes therein expressed (iii) of sound mind, and (iv), under no constraint
or undue influence.

       (c)        Each of us signed this Will as witnesses, in the presence and hearing of the
Testator.

WITNESS                                                          WITNESS



__________________________                                       __________________________
__________ [Instructions: Insert Name]                           __________ [Instructions: Insert Name]
__________ [Instructions: Insert City]                           __________ [Instructions: Insert City]
__________ [Instructions: Insert State]                          __________ [Instructions: Insert State]




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DOCUMENT INFO
Description: This Spendthrift Trust is created by an individual that wants to create a trust that will be distributed upon their death with spendthrift provisions. A spendthrift trust can be especially advantageous to beneficiaries because it can prevent creditors from collecting the property of the trust. Customize the information the testator, the executor, the trustee, and more. This document is ideal for individuals that want to create a trust whereby the trust assets cannot be attached by creditors in certain situations.