Docstoc

Living Trust

Document Sample
Living Trust Powered By Docstoc
					Living Trust By Steve Smith
I, STEVE SMITH, a resident of Flint, Genesee County, Michigan, declare this to be my Living Trust and hereby revoke any previous Living Trust that I may have previously made. ARTICLE I – IDENTIFICATION 1. The Grantor of this trust is STEVE SMITH. 2. The Grantor’s spouse is SALLY SMITH(“Spouse”). 3. The Grantor currently has three living children, THOMAS SMITH, JR., JONUS SMITH, and MARGARET SMITH, all residing in Flint, Genesee County, Michigan. The Grantor also currently has one deceased child, TIMOTHY SMITH. 4. This Trust shall be known as the LIVING TRUST OF STEVE SMITH. ARTICLE II – FUNDING OF TRUST The Grantor is causing to be made payable to the Trustee the assets listed on the attached Schedule “A”. Said Schedule may be revised at any time as assets are made payable to the Trustee or transferred to the Trustee. Those assets, all additional property received by the Trustee from any person by will or otherwise, and all investments and reinvestments thereof are herein collectively referred to as the “Trust Estate” and shall be held upon the following trusts. ARTICLE III – APPOINTMENT OF TRUSTEES The Grantor hereby appoints himself, STEVE SMITH, as Trustee of this Living Trust. In the event that he is unwilling, unable, or does not accept his appointment, Grantor hereby appoints FIRST NATIONAL BANK to serve as Alternate Trustee of this Living Trust or any trust created hereunder. ARTICLE IV – PAYMENT OF EXPENSES 1. The Trustee shall pay from the Trust Estate all expenses of Grantor’s last illness and funeral, monument expenses, all Grantor’s legally enforceable debts, costs of administration including ancillary costs, costs of safeguarding and delivering legacies, other proper charges against Grantor’s estate, and estate and inheritance taxes assessed by reason of Grantor’s death, except that the amount, if any, by which the estate and inheritance taxes shall be increased as a result of the inclusion of property in which Grantor may have a qualifying income interest for life or over which Grantor may have a power of appointment shall be paid by the person holding or receiving that property. Interest and penalties concerning any tax

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 2 of 12 shall be paid and charged in the same manner as the tax. Grantor waives for his estate all rights of reimbursement for any payments made pursuant to this article. 2. The Trustee’s selection of assets to be sold to make the foregoing payments or to satisfy any pecuniary legacies, and the tax effects thereof, shall not be subject to question by any beneficiary. 3. The Trustee shall make such elections under the tax laws as the Trustee deems advisable, without regard to the relative interests of the beneficiaries. No adjustment shall be made between principal and income or in the relative interests of the beneficiaries to compensate for the effect of elections under the tax laws made by the Trustee. ARTICLE V – TRUST PROVISIONS WHILE GRANTOR IS LIVING 1. Income – During the lifetime of the Grantor, the Trustee shall pay the income from the Trust Estate in convenient installments to the Grantor or otherwise as he may from time to time direct, and also such sums from principal as he may request at any time. 2. Disability – If at any time the Grantor is unable to manage his affairs, the Trustee may use such sums from the income and principal of the Trust Estate as the Trustee deems necessary or advisable for the care, support, and comfort of the Grantor and any person dependant upon him, or for any other purpose the Trustee considers to be for the Grantor’s best interest, adding to principal any income not so used. For purposes of this agreement, the Grantor shall be considered to be unable to manage his affairs if he is under a legal disability or by reason of illness or mental or physical disability is unable to give prompt and intelligent consideration to financial matters. The determination as to Grantor’s inability at any time shall be made by two licensed physicians, not related to the Grantor or any beneficiary of the trust created by this Declaration of Trust Agreement, who certify that he has become legally incapacitated. At the time such a determination is made, the Alternate Trustee shall become the Acting Trustee of this Living Trust. If the Alternate Trustee shall serve during the lifetime of the Grantor, the Alternate Trustee shall disburse from the Trust Estate such amounts as necessary for the Grantor’s complete care, support, and maintenance. 3. Simultaneous Death – If Grantor and his spouse should die under circumstances where it is not clear which of them survived the other, it shall be conclusively presumed that Grantor’s spouse is the survivor. ARTICLE VI – TRUST ADMINISTRATION AFTER DEATH OF GRANTOR 1. Trust Estate – Upon the death of the Grantor, the Trustee shall divide the Trust Estate, including all property received as a result of the Grantor’s death, into two parts, each part to be administered as a separate Trust to be known respectively as the “Decedent’s Trust” and the “Survivor’s Trust”.

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 3 of 12 a. Decedent’s Trust – The Decedent’s Trust shall include a total amount equal to the equivalent Estate Tax Exemption in effect during the year of death of the Grantor. The Decedent’s Trust shall also include any interest in the property located at Lot 12, Brown Subdivision, City of Flint, Genesee County, Michigan. b. Survivor’s Trust – The remainder of the assets of the Trust Estate not allocated to the Decedent’s Trust, if any, shall be allocated to the Survivor’s Trust. c. Other Transfer – In the event that property is received by the Trustee, either by inter vivos or testamentary transfer, and directions are contained in the instrument of transfer for allocation to or between the Decedent’s Trust or the Survivor’s Trust, then the Trustee shall make allocation in accordance with such directions, anything to the contrary notwithstanding. In the event no specific instructions are given as to allocation, such property received from a source other than the Grantor shall be placed in the Survivor’s Trust. d. Distribution in Cash or Kind – The foregoing distribution shall be satisfied in cash, in kind, or in both at values as finally determined for federal estate tax purposes. 2. Decedent’s Trust a. Distribution of Income – During the lifetime of the surviving spouse, the Trustee shall pay all the net income from Decedent’s Trust in convenient installments to the spouse, if requested, not less frequently than quarterly. b. Distribution of Principal – During the lifetime of the surviving spouse, the Trustee, in his or her sole discretion, may distribute the principal of the Decedent’s Trust as necessary to provide proper support for the surviving spouse. In exercising discretion hereunder, the Trustee shall take into consideration the income, earning capacity, resources, and other sources of receipt of the surviving spouse, together with any other factor that the Trustee may deem pertinent, including the accustomed manner of living of the surviving spouse. The Trustee need not require the exhaustion of personal resources as a condition for making disbursements under the authority of this paragraph. The judgment of the Trustee as to the propriety and amount of all such payments shall be conclusive. Notwithstanding any provision to the contrary, the Trustee shall not distribute principal except within the standards of Internal Revenue Code §2041. c. Survivor’s Power of Appointment – During the lifetime of the surviving spouse, he shall have the power to appoint the principal and undistributed income of the Trust or any part thereof to himself or anyone else of his choosing. However, the

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 4 of 12 surviving spouse may exercise said power of appointment during any calendar year only to the extent of $5,000.00 or five percent of the aggregate value of the trust, whichever amount is greater. Any such power of appointment shall not be construed to be cumulative, and if not exercised within a given calendar year, such power shall be terminated as to that year. Such power of appointment shall be exercised only by means of written direction executed by the surviving spouse and delivered to the Trustee during the lifetime of the surviving spouse. If the surviving spouse executes and delivers more than one written direction to the Trustee, the last one shall control unless, by its context, the surviving spouse clearly indicates otherwise. d. Death of Survivor – Upon the death of the surviving spouse, the Decedent’s Trust shall terminate and shall be distributable as provided for in this instrument. e. Trust Irrevocable – The Decedent’s Trust shall be irrevocable. 3. Survivor’s Trust a. Distribution of Income – During the lifetime of the surviving spouse, the Trustee shall pay all the net income from Survivor’s Trust in convenient installments to the spouse, if requested, not less frequently than quarterly. b. Survivor’s Power of Appointment – During the lifetime of the surviving spouse, he shall have the power to appoint the principal and undistributed income of the Trust or any part thereof to himself or anyone else of his choosing. c. Power of Appointment Upon Death of Survivor – Upon the death of the surviving spouse, any written exercise of Power of Appointment properly signed by the surviving spouse shall be deemed to be effective as a Power of Appointment taking effect upon his death of either principal or any undistributed income of the Survivor’s Trust. Such power of appointment shall be exercised only by means of written direction executed by the surviving spouse and delivered to the Trustee during the lifetime of the surviving spouse. If the surviving spouse executes and delivers more than one written direction to the Trustee, the last one shall control unless, by its context, the surviving spouse clearly indicates otherwise. d. Trust Revocable – The Survivor’s Trust shall be revocable during the life of the surviving spouse. 4. Distribution of Trust Estate after Death of Survivor – Upon the death of the surviving spouse, the Trustee shall distribute all of the Decedent’s Trust and Survivor’s Trust as follows: a. Three-quarters of one percent (0.75%) up to a maximum of $20,000 shall be distributed to ROBERT MORRIS.

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 5 of 12 i. In the event that ROBERT MORRIS is deceased or disclaims his share, this share shall pass to his then living children in equal amounts. In the event that there are no living children, the share shall lapse and be distributed under the remaining terms of this Trust. ii. Each share of the Trust Estate that is distributable to a beneficiary who has not reached the age of twenty-five years (25) shall immediately vest in the beneficiary. However, the Trustee shall retain possession of the share as a separate trust, paying to or for the benefit of the beneficiary so much or all of the income and principal of the share as the Trustee deems necessary or advisable from time to time for the beneficiary’s health, maintenance in reasonable comfort, education (including post-graduate education), and best interest. The Trustee shall add to the principal any income not so paid and shall distribute the beneficiary’s share to the beneficiary when he or she reaches the age of twenty-five years (25). iii. If any beneficiary should die prior to reaching the age of twenty-five years (25), the Trustee may use such funds as necessary for funeral and monument expenses, and any remaining funds shall be distributed equally to any then living beneficiaries under the terms and conditions of the Trust. b. The remainder of the shares shall be divided equally between THOMAS SMITH, JR., JONUS SMITH, MARGARET SMITH, TIMOTHY SMITH, JR., and any currently living children STEVE SMITH may share with STEVE SMITH. i. In the event that THOMAS SMITH, JR. is already deceased or disclaims his share, this share shall pass to his then living children in equal amounts. In the event that there are no living children, the share shall lapse and be distributed under the remaining terms of this Trust. ii. JONUS SMITH’S share shall be held in Trust for his benefit with First National Bank of Howell acting as Trustee for the lifetime of JONUS SMITH. The trustee is only to use the assets of the Trust on behalf of the beneficiary to cover expenses that are not paid for by other sources. In the event that JONUS SMITHis already deceased or disclaims his share, this share shall pass to his then living children in equal amounts. In the event that there are no living children, the share shall lapse and be distributed under the remaining terms of this Trust. iii. In the event that MARGARET SMITHis already deceased or disclaims her share, this share shall pass to her then living children in equal amounts. In the event that there are no living children, the share shall lapse and be distributed under the remaining terms of this Trust.

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 6 of 12 iv. In the event that TIMOTHY SMITH, JR. is already deceased or disclaims his share, this share shall lapse and be distributed under the remaining terms of this Trust. v. Each share of the Trust Estate that is distributable to a beneficiary who has not reached the age of twenty-five years (25) shall immediately vest in the beneficiary. However, the Trustee shall retain possession of the share as a separate trust, paying to or for the benefit of the beneficiary so much or all of the income and principal of the share as the Trustee deems necessary or advisable from time to time for the beneficiary’s health, maintenance in reasonable comfort, education (including post-graduate education), and best interest. The Trustee shall add to the principal any income not so paid and shall distribute the beneficiary’s share to the beneficiary when he or she reaches the age of twenty-five years (25). vi. If any beneficiary should die prior to reaching the age of twenty-five years (25), the Trustee may use such funds as necessary for funeral and monument expenses, and any remaining funds shall be distributed equally to any then living beneficiaries under the terms and conditions of the Trust. 5. Disclaimer by Beneficiary – Notwithstanding anything stated above, any beneficiary may disclaim his interest in the Trust Estate or any portion thereof at any time that he deems wise. ARTICLE VII – TRUST PROVISIONS 1. The following provisions shall apply to the Trust Estate and to each trust established under this Living Trust. 2. The Trustee shall hold, manage, care for, and protect the Trust Estate and shall have the following powers, except to the extent that they are inconsistent with those conferred by law: a. Income received after the last income payment date and undistributed at the termination of any estate or interest, along with any accrued income, shall be paid by the Trustee as income to the people entitled to the next successive interest in the proportions in which they take that interest. b. The Trustee may retain any property (including stock of any corporate Trustee hereunder or a parent or affiliate company) originally constituting the Trust or subsequently added thereto, although not of a type, quality, or diversification considered proper for trust investments. c. The Trustee shall have power to invest and reinvest the Trust property in bonds, stocks, notes, bank deposits, limited partnership interests, shares of registered

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 7 of 12 investment companies, or other property, real or personal, domestic or foreign, suitable for the investment of Trust funds. d. The Trustee shall have the power to register property in the name of the nominee without restriction. e. The Trustee shall have the power to vote in person, by general or limited proxy, or refrain from voting any corporate securities for any purpose. Any security as to which the Trustee’s possession of voting discretion would subject the issuing company or the Trustee to any law, rule, or regulation adversely affecting either the company or the Trustee’s ability to retain or vote company securities shall be voted as directed by the beneficiaries then entitled to receive or have the benefit of the income from the Trust. f. The Trustee shall have the power to lease (for any period of time commencing in the future or extending beyond the term of the trust), sell at public or private sale, convey, exchange, mortgage, or pledge any or all of the Trust property as the Trustee deems proper. g. The Trustee shall have the power to borrow, pledge, convey, or mortgage the trust property with any lender, to renew or extend any existing indebtedness, to employ agents, attorneys, and proxies, and to compromise, contest, prosecute, or abandon claims. h. The Trustee shall have the power to distribute income and principal in cash or in kind (or partly in each), to allocate or distribute undivided interests or different assets or disproportionate interests in assets (and no adjustment shall be made to compensate for a disproportionate allocation of unrealized gain for Federal income tax purposes), and to value the Trust property and sell any part of all thereof in order to make allocation or distribution. No action taken by the Trustee pursuant to this power shall be subject to question by any beneficiary. i. The Trustee shall have the power to elect the mode of distribution of the proceeds under any employee benefit plan, individual retirement plan, or insurance contract without adjustment in the interests of the beneficiaries to collect life insurance proceeds payable to the Trustee (after deducting all loans and other charges). The Trustee shall have the power to release the insurance company, but the Trustee need not enter into litigation to enforce payment on a policy until indemnified to its satisfaction. j. The Trustee shall have the power to deal with, purchase assets from, or make loans to the fiduciary of any trust made by me or any member of my family or a trust or estate in which any beneficiary under this Living Trust has an interest, though the Trustee hereunder is a fiduciary.

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 8 of 12 k. The Trustee shall have the power to deal with a corporate Trustee hereunder individually or with a parent or affiliate company. l. The Trustee is authorized to establish out of income and credit to principal reasonable reserves for depletion, but reserves for depreciation shall not be established except to the extent that the Trustee determines that readily marketable assets in the principal of the Trust will be insufficient for any renovation, major repair, improvement, or replacement of Trust property that the Trustee deems advisable. m. The Trustee shall render an account of receipts and disbursements and a statement of assets at least annually to each beneficiary then entitled to receive or have the benefit of income and the trust. The Trustee shall be reimbursed for all reasonable expenses incurred in the management and protection of the Trust and shall receive reasonable compensation for services provided, if requested. The Trustee’s compensation, if any, shall be charged half against the income and half against the principal, except that the Trustee shall have full discretion at any time to charge a larger portion or all of the compensation against income. n. The Trustee shall have the power to perform other acts necessary or appropriate for the proper administration of the trust, execute and deliver necessary instruments, and give full receipts and discharges. o. The Trustee, on behalf of the Trust, if prudent to do so, may disclaim a portion or all of the interest that the Trust may have in any IRA, Internal Revenue Service Code Section 401 to 409 Pension, Profit Sharing, Stock Bonus plans, or any other retirement type plan so as to minimize estate or income taxes to Grantor’s estate, beneficiary, or beneficiary’s estate. ARTICLE VIII – MISCELLANEOUS PROVISIONS 1. This Living Trust may be revoked, modified, or changed at any time during the lifetime of the Grantor. 2. When applicable, pronouns and relative words shall be read as plural, feminine, or gender neutral. 3. The headings used in this Living Trust are for identification and convenience only and are not to be considered in interpretation of the Trust. 4. This Trust shall be exempt from registration under the Michigan Revised Probate Code. 5. Lastly, Grantor hereby revokes any and all former Living Trusts previous made by him.

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 9 of 12 Dated this _____ day of __________, 2008.

______________________________ STEVE SMITH This instrument, consisting of ten (10) pages, including this page and the page immediately following, was signed, sealed, published, and declared by STEVE SMITH as his Living Trust on the above date in our presence. At his request, in his presence, and in the presence of each other, we have subscribed our names as witnesses and STEVE SMITH has signed his name on this page and at the close of the provisions of the Living Trust.

______________________________ ______________________________ JOHN LAW JOHN SMITH 123 Mount Ridge Blvd. 1234 Main Street Mason, OH 43254 Mason, OH 43254

STATE OF OHIO COUNTY OF MARK )

) ) SS

We, STEVE SMITH, the Grantor, and JOHN LAW and JOHN SMITH, the witnesses respectively, whose names are signed to the attached instrument, being duly sworn, declare to the undersigned officer that the Grantor signed this instrument as his Living Trust and that he signed voluntarily. We also declare that at the Grantor’s request, in his presence, and in the presence of each other, the witnesses signed this instrument as the Grantor’s Living Trust and that to the best of each witness’s knowledge, STEVE SMITH was eighteen (18) years of age or older, of sound mind, and under no constraint or undue influence. ______________________________ STEVE SMITH

______________________________ JOHN LAW

______________________________ JOHN SMITH

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 10 of 12 On the _____ day of __________, 2008, before me, a Notary Public, personally appeared STEVE SMITH, to me known to be the same person described in and who executed the within instrument, and who acknowledged the same to be his free act and deed.

______________________________ John Law, Notary Public Mark County, Ohio My Commission Expires: 11/19/08

Prepared by John Law, Attorney at Law

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 11 of 12 ACCEPTANCE OF TRUSTEE I hereby accept and will perform the duties of Trustee as outlined in the Living Trust of STEVE SMITH, dated _______________, 2008.

Dated this _____ day of __________, 2008.

______________________________ STEVE SMITH

__________

Living Trust of STEVE SMITH Date: November 21, 2008 Page 12 of 12 SCHEDULE A The following assets are the Trust Estate of the Living Trust of STEVE SMITH, dated April 20, 2008: 1. Various stocks. 2. Remainder interest in residence 3. Miscellaneous personal property.

__________


				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:2126
posted:11/21/2008
language:English
pages:12
Description: Living Trust