Qualified terminable interest will[1]

Qualified terminable interest will. I, _________, of the _________ of _________, County of _________, and State of _________, declare this to be my last will, and revoke all prior wills and codicils made by me. Article I. I direct that all estate, inheritance or other succession taxes incurred by reason of my death shall be paid by my executor out of the principal of my residuary estate without contribution or reimbursement from any person. Article II. I give to my wife, _________, if she survives me, all of my personal and household effects, including, but not limited to automobiles, clothing, jewelry, furniture, books and pictures. If she does not survive me, then I give all of such articles in equal shares to my children who survive me, and if they are unable to agree on a division thereof, my executor shall make the division which shall be binding and conclusive; provided, if any child of mine is a minor on the date of my death, I give his or her share to the designated trustee. The trustee may in its discretion hold all or any part of a minor child's share for his or her benefit until he or she reaches his or her majority, or deliver all or any part before or at that time to him or her for his or her use or may transfer such property to any person with whom he or she is residing, without further responsibility, or sell all or any part and add the proceeds to his or her share of the trust property. Article III. (A). I give all the rest, residue and remainder of my estate wherever situated, of which I am the owner at my death, or to which I may be entitled at the time of my death, including all bequests and devises to any person who may predecease me, or which for any reason may lapse or fail except as otherwise in this will specifically provided and excepting also any property over which I may have a power of appointment, to _________, a _________ corporation, as trustee, on the trusts expressed below. (B). If my spouse survives me, my trustee shall hold the trust property for the benefit of my spouse during my spouse's lifetime. The trust hereby created shall be known as the _________ Trust and may be referred to as the Qualified Marital Trust. For purposes of this article, my spouse shall be deemed to have survived me if there is no sufficient evidence of the order of our deaths. (C). My executor may elect to have all or a specific portion of the trust property treated as qualified terminable interest property for federal estate tax purposes, provided that only such property as qualifies for the marital deduction under the Internal Revenue Code, as amended, shall be the subject of such election. (D). My Trustee shall pay the net income from this trust to my spouse, commencing with the date of my death and continuing during my spouse's life. In addition to the payments of net income to be made to my spouse, my Trustee in its sole discretion is authorized to pay to my spouse out of the principal of this trust such sums as from time to time may be necessary for my spouse's comfort, welfare and maintenance, taking into account all sources of income known to my trustee. (E). Following the death of my spouse, my trustee shall turn over to the legal representative of my spouse's estate the amount by which the inclusion of the trust property in my spouse's estate shall have increased any estate and inheritance taxes payable by reason of my spouse's death, unless my spouse has directed otherwise by will. Any income accrued or undistributed from this trust at the time of my spouse's death shall be added to the estate of my spouse. The remaining trust property shall be added to the principal of Trust B, created below, to be held, administered and disposed of as provided for the principal of such trust. Article IV. (A). Upon the death of my spouse, or if my spouse should predecease me, then upon my death, my trustee shall hold and administer the remaining trust estate upon the trusts expressed below. The trust hereby created shall be known as Trust B. (B). The principal of Trust B shall be divided by my Trustee into separate shares, equal in value, one share for each then living child of mine and one for the then living descendants, collectively, of each then deceased child of mine. Each share shall be held and administered as a separate trust. Each share allotted for the then living descendants, collectively, of a deceased child of mine shall be held, administered and disposed of by my trustee as set forth in paragraph (E) of this article. Each share allotted for a living child of mine shall be held, administered and disposed of by my trustee as hereinafter provided. At the present time I have _________ children: ................................................................................................................................................................................................................ ................................................................................................................................................................................................................ ................................................................................................................................................................................................................ (C). My trustee shall pay the net income from the share allotted for the benefit of each such child to such child until the time hereinafter specified for the distribution of such share; provided, if any such child shall not have attained age 21, my trustee shall use and expend such part of the net income of the share allotted for his or her benefit, as in its sole discretion may be necessary for his or her comfort, welfare, maintenance and education, until he or she attains age 21. Any unexpended net income may be accumulated and added to the principal of the share. (D). Upon the death of my spouse, or when each child shall have attained age 25, whichever event shall occur last, my trustee shall transfer and pay over to the child one-half of the then balance of the principal of the share of Trust B allotted for his or her benefit. Upon the death of my spouse, or when each child shall have attained age 30, whichever event shall occur last, my trustee shall transfer and pay over to the child the balance of the principal of the share of Trust B allotted for his or her benefit. (E). If any such child shall survive my spouse and me but die before attaining age 30, then upon the death of that child, my trustee shall hold and administer the share of Trust B allotted for the benefit of the child for the benefit of his or her then living descendants, per stirpes and not per capita, and such share shall thereupon vest in the descendants. My trustee shall use and expend such part of the net income from the share or portion of a share, allotted for the benefit of each descendant as may be necessary, in its sole discretion, for the comfort, welfare, maintenance and education of the descendant, until he or she attains age 21, at which time my trustee shall transfer and pay over to each descendant the share, or portion of a share, held for his or her benefit. Any unexpended net income may be accumulated and added to the principal of the share, or portion of a share. If my child should leave no descendant then living, the share allotted for the benefit of my child shall be divided into equal parts, one for each child of mine then living and one for the then living descendants of each then deceased child of mine, and my trustee shall pay over, transfer and deliver one part to each living child of mine, and one part to the living descendants of each deceased child, per stirpes; provided, however, if my Trustee is then holding and administering a share or a portion of a share for any living child, or any living descendant, that part, or a portion of a part, instead shall be added to the share, or portion of a share, and held, administered and disposed of as if it had been an original part thereof. (F). Each share allotted for the then living descendants, collectively, of a deceased child of mine shall be held and administered by my trustee for the benefit of the descendants, per stirpes, and the share shall thereupon vest in the descendants. My trustee shall use and expend such part of the net income from the share, or portion of a share, allotted for the benefit of each such descendant as may be necessary, in its sole discretion, for the comfort, welfare, maintenance and education of the descendant, until he or she attains age 21, at which time my trustee shall transfer and pay over to each such descendant the share, or portion of a share, held for his or her benefit. Any unexpended net income may be accumulated and added to the principal of the share, or portion of a share. (G). In the event any trust created herein, or share or portion thereof, shall be $15,000.00 or less, then notwithstanding any other provision of this Will my trustee may terminate the trust, or share or portion thereof, and shall distribute the entire principal of the trust, or share or portion thereof, to the person or persons then entitled to receive the net income in the same proportions in which they are entitled to the income. My trustee shall also have the right to purchase with the assets of the terminated trust, or share or portion thereof, life insurance, annuity or endowment policy or policies, in such form and upon such terms and conditions as my trustee may deem proper and deliver the policy or policies to the persons then entitled to receive the net income of the Trust Estate, or share or portion thereof, as the case may be. My trustee, upon making distribution of the principal of any trust, or share or portion thereof, or upon the delivery of the policy or policies of insurance as heretofore provided, shall not be liable or responsible to any remainderman whose interest may be extinguished by reason of my trustee's election to so terminate the trust, or share or portion thereof. In no event shall my trustee be liable or responsible for refusing to terminate the trust, or share or portion thereof, as authorized herein. Article V. (A). Subsequent to the death of my spouse, my trustee, in its sole discretion, is authorized to pay to or for the benefit of any beneficiary such sums out of the principal of the share or portion of a share, allotted for the benefit of the beneficiary, as may be necessary, from time to time for his or her comfort, welfare, maintenance and education. (B). In determining the necessity for any payment out of principal, my trustee shall take into consideration any other income of which it shall have actual knowledge which is available to the beneficiary to whom, or for whose benefit, payments are to be made. (C). Net income of Trust B which is on hand or accrued to the date of the death of any beneficiary shall not be paid to the beneficiary's estate but shall be paid to the next succeeding beneficiary or beneficiaries. (D). Any net income or principal of Trust B to which any beneficiary who is under legal disability, or who has not attained age 21, may be entitled, may be applied directly by my trustee, or be paid to any person selected by my trustee, for the use and benefit of the beneficiary. (E). The term "net income" shall be construed to mean the gross income less the costs and expenses normally payable out of income. The net income of each trust shall be payable in convenient installments, but no less frequently than quarterly commencing with the date of my death. At least annually my Trustee shall furnish a statement concerning the trust estate to the income beneficiary or beneficiaries. Article VI. (A). Neither income nor principal may be transferred or assigned by any beneficiary or be subject, during the lifetime of the beneficiary, to any claims of creditors of such beneficiary. (B). My trustee shall be entitled to reasonable compensation for services in the administration and distribution of the trust property and shall be reimbursed for all expenses in connection with its services as trustee. Article VII. In addition to any other powers that may be conferred upon it by law, my trustee shall have power and authority: (A). To invest and reinvest the trust estates in securities or obligations of the United States of America, or of any of the instrumentalities or states thereof, or of any county, city, town, village, school district, or other political subdivision, or in any notes or bonds, secured by first mortgage or trust deed on real estate, whether constituting all or a part of the issue so secured, or in stocks, bonds or other obligations of corporations or entities organized and doing business under the laws of the United States, or of any of the states thereof, or in certificates of interest, or participation in, or promises to pay, secured by groups of securities of the classes herein mentioned, or in a common trust fund or funds established, maintained and administered by my corporate trustee, or in any type of investment authorized for trust funds by the laws of the State of _________ in force from time to time, whether or not such investment is of the type herein specified. (B). To retain for such time as it may deem advisable, property of any kind or character, which I may own at the time of my death regardless of lack of diversification; provided, however, that any unsecured loans or unproductive property in the trust created for my spouse, whether owned by me at the time of my death or subsequently acquired, shall not be held beyond a reasonable time without my spouse's consent. (C). To enter into agreements, or to consent to plans of reorganization, from time to time, with reference to the reorganization of any corporation or other entity, the stocks, securities, bonds, certificates of interest or obligations of which shall form a part of the trust or trusts; and to accept, hold and dispose of any securities or certificates of interest or deposit issued in exchange for or in lieu of securities surrendered, deposited or transferred pursuant to any plan of reorganization; to extend or renew, to agree to forbear and to consent to the extension, refunding or renewal of any securities. (D). To vote or refrain from voting any stock or other voting securities held hereunder; to issue proxies to vote the same to any person or persons; to exercise or sell any subscription rights and to hold any investment in the name of a nominee or nominees. (E). To determine the mode in which receipts and expenses are to be credited or borne as between principal and income, and to determine which moneys or property are to be treated as principal or as income. Without limiting the generality of the foregoing, such power and authority shall include the power to apportion the following between principal and income: losses and costs of protecting the trust estates, or any part thereof; the proceeds of sales of and rentals from real estate; the cost of extraordinary repairs of real estate; the difference between the amount received upon payment or sale of any security and the price paid therefor, and the trustee's compensation with respect to the administration and distribution of the trust property. This paragraph shall not apply to the Qualified Marital Trust created for my spouse. (F). For the purpose of making any distribution of the principal of the trust estates or allocation of property to separate shares, to value and appraise any or all of the trust estates and to distribute or allot the same in kind or in cash, or partly in kind and partly in cash or to allot different kinds or disproportionate shares or undivided interests in property among the beneficiaries as it may deem advisable; and any such valuation, allocation or appraisal made by my trustee shall be conclusive and binding upon all persons. In dividing the trusts into shares, my trustee may allot (without making a physical division) undivided interests in any of the assets of the several shares, and invest in common for any or all such shares. (G). To sell, exchange, pledge or otherwise deal with personal property on such terms and for such prices as it shall determine. (H). To sell, convey, release, mortgage, encumber, lease, partition, improve, manage, protect and subdivide any real estate, interest therein or parts thereof; to dedicate for public use; to vacate any subdivisions or parts thereof; to resubdivide; to contract to sell, to grant options to purchase, to sell on any terms, to convey, to mortgage, pledge or otherwise encumber the property, or any part thereof; to lease the property, or any part thereof, from time to time, in possession or reversion, by leases to commence in the present or in the future, and upon any terms and for any period or periods of time, including a period beyond the term of the trust, and to renew or extend leases, to amend, change or modify the terms and provisions of any leases, to consent to the assignment of leases, to contract to make leases and to grant options to lease and options to renew leases and options to purchase the whole or any part of the reversion; to partition or to exchange the real estate, or any part thereof, for other real or personal property; to grant easements or charges of any kind; to release, convey or assign any right, title or interest in or about or easement appurtenant to the property or any part thereof; to construct and reconstruct, remodel, alter, repair, add to or take from, buildings on said premises; to purchase or hold real estate, improved or unimproved, or any reversion in real estate subject to lease; to employ and compensate such agents, brokers, appraisers, attorneys, accountants or others as it shall deem advisable. (I). My trustee, whenever and so often and for such periods as my trustee may deem it advantageous so to do, with full power of revocation, may appoint any bank or trust company, wherever situated, having a combined capital and surplus of not less than $1,000,000.00 as special trustee as to any part or all of the trust assets, and the special trustee shall have with respect to such trust assets the same powers granted to my trustee, subject to any limitations which may be imposed in the instrument of appointment. (J). No person paying money or delivering property to the trustee need see to its application. (K). My trustee from time to time may set aside from the income from the trust estates such sum or sums as it may deem advisable for the purpose of paying in full or in part any mortgage on the trust estates, or on any part thereof, and for the purpose of establishing a reserve for the depreciation or obsolescence of buildings which may form a part of said trust estates at any time. Pending the application of the funds so reserved, to the payment or reduction of a mortgage or mortgages of, or to the restoration or rebuilding of buildings on real estate forming a part of the trust estates, such funds may be invested and reinvested in like manner as other funds of the trust estates, and the income arising therefrom shall be paid under the provisions of this will with reference to income from the trust estates. The principal of such reserve funds shall be applied from time to time by my trustee to the payment or reduction of mortgages of real estate or to the payment or reduction of mortgages of leaseholding interests in real estate forming a part of the trust estates or to the restoration or rebuilding of buildings thereon or to be erected thereon. In case any part of such reserve funds remains unexpended at the termination of the trusts, it shall be distributed in the same manner as if it were a part of the principal of the trust estates. This paragraph shall not apply to the Qualified Marital Trust created for my spouse. (L). To manage, care for, protect, control or otherwise deal with the trust estates, or any parts thereof, in all other ways in which any owner having unrestricted ownership and control thereof could deal therewith, whether similar to or different from the ways above specified. Article VIII. (A). Any trustee may resign at any time by giving written notice specifying the effective date of such resignation to the beneficiary or beneficiaries receiving the income hereunder at the time of such notice; except that if any beneficiary is under a legal disability, such notice instead shall be sent to the guardian or conservator of the estate of such beneficiary, or to the parents or surviving parent or guardian of the person of a minor beneficiary for whose estate no guardian has been appointed. (B). If any trustee at any time resigns or is unable to act, another person, or a corporation authorized by the law of any state or of the United States to administer trusts, may be appointed as successor trustee by a written instrument signed in duplicate by a majority in interest of the persons then entitled to the income, and lodged, one copy with the trustee acting at the time, and one with the successor appointed. (C). Any successor trustee shall have all of the duties, rights, titles and powers, whether discretionary or otherwise, granted to the original trustee without the necessity of any conveyance or transfer. No successor trustee shall be liable or responsible in any way for any acts or defaults of any predecessor trustee, nor for any loss or expense from or occasioned by anything done or neglected to be done by any predecessor trustee, but the successor trustee shall be liable only for its own acts and defaults in respect to property actually received by it as trustee; and with the consent of the person or persons making designation of the successor trustee, the successor trustee may accept the account rendered and the property delivered to it by the predecessor trustee as a full and complete discharge to the predecessor trustee, and shall incur no liability or responsibility to any beneficiary for so doing. (D). The guardian or the conservator of the estate of a beneficiary under a legal disability, or the parents or surviving parent or guardian of the person of a minor beneficiary for whose estate no guardian has been appointed, shall have the power to act for the beneficiary in signing any instrument under this article. Article IX. If at any time my trustee shall also be acting as trustee of any trust created by the last will and testament of my spouse, for the benefit of the same persons who are beneficiaries under this will, upon substantially the same terms and conditions as those set forth herein, then my trustee is expressly authorized and empowered, in its discretion, if it deems such action desirable, to transfer and merge all of the assets held in this trust to and with such other trust and thereupon to terminate this trust as a separate entity, or to accept, add to, retain and administer as a part of the trust created hereunder on the trust, terms and conditions set forth herein, the assets of any other trust created by my spouse's last will and testament which may at any time be transferred to my trustee by the trustee of such other trust, pursuant to the powers and authorities given the trustee of the other trust. Article X. If my spouse and I shall die under circumstances such that there is no sufficient evidence that we have died otherwise than simultaneously, then and in such event my estate shall be disposed of and this will shall be read to the same effect as though my spouse had survived me. Article XI. (A). I nominate _________, a _________ corporation, as executor of this my last will. (B). With regard to any real estate of which my executor shall have title or possession, I authorize my executor without order of court: (1) To insure my executor and any person having an interest in or responsibility for the care, management or repair of such real estate against such risks as my executor in its sole discretion may deem advisable and to charge the premiums as an expense of administration; (2) to lease or mortgage the real estate, or any part thereof, upon such terms and for such periods of time, even though commencing in the future and extending beyond the period of administration of my estate, as my Executor in its sole discretion may deem advisable; (3) to collect the rents and earnings; to keep buildings and fixtures in tenantable repair; to make all necessary expenditures to preserve the real estate; to employ agents and custodians for the care, management or repair of the real estate; to pay taxes, mortgages and other liens in accordance with their terms; and to protect the real estate by insurance. (C). I authorize my executor in its discretion from time to time and without order of court, to sell all or any part of the estate, real or personal, which I may own or be entitled to at my death, at public or private sale, for cash or partly cash and partly credit, and upon such terms as to it may seem advisable. Such power of sale shall be general and shall not be restricted to purposes related to the administration of my estate. (D). During the period of administration of my estate, my executor is authorized to join with my trustee in the exercise of powers given to my trustee, and to the extent that my executor has sole custody and control of any property it is given, with respect to such property, all the powers herein conferred upon my trustee to be exercised without court order. (E). My executor may retain any of the estate which I may own or to which I may be entitled at the time of my decease and may make distribution thereof in kind. (In witness whereof, etc.)