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Revocable Inter-Vivos Trust - Married in a Community Property State

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Revocable Inter-Vivos Trust - Married in a Community Property State Powered By Docstoc
					This is a legal document that determines how a married couple's property is to be
managed and distributed during their lifetime and also upon death. This particular trust
is created by a married couple in a community property state. This trust is revocable
and designates the spouse that survives longer as the beneficiary in order to avoid
estate and gift taxes, but this agreement can easily be customized to provide for
different beneficiaries. This document can be used by married couples in community
property states that want to designate each other as beneficiaries for distribution upon
the death of one spouse.
                         INTER-VIVOS REVOCABLE TRUST
THIS INTER-VIVOS REVOCABLE TRUST (this “Instrument”) is made this ____ day of
_________, _____, by ________________ [Comment:     INSERT   FIRST    SPOUSE’S
NAME] and _______________ [Comment: INSERT SECOND SPOUSE’S NAME] of
County of ___________________, State of ___________________, as Settlors, and by
________________ [Comment:             INSERT FIRST    SPOUSE’S   NAME]      and
_______________ [Comment: INSERT SECOND SPOUSE’S NAME], as Trustees
(collectively referred to as the “Trustee”).

                                                       Recitals

WHEREAS, Settlors, also referred to as husband and wife, are currently married;

WHEREAS, Settlors have ____ (__) 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, Settlors declare that they have transferred to the Trustee the property described in
Schedule “A” attached to this Instrument.

WHEREAS, the 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, the Settlors wish, by this Instrument, to create an inter-vivos revocable trust in
accordance with the laws of the State of ___________________ whereby their community
property and their separate property will be held in trust and managed for their benefit during
their respective lives and distributed to their beneficiaries upon their death;

                                                        Terms

                                               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 terms and conditions set forth in this Instrument.




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2. Trust Property

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

         B. The Settlors’ community property, listed in Schedule “A” or subsequently transferred
            to the trust estate, is called the “community estate” and shall remain the community
            property of the Settlors during their joint lifetimes.

         C. Either Settlor’s separate property, now transferred or subsequently added to the trust
            estate, is called and shall remain such Settlor’s separate estate.

         D. Unless otherwise specified at the time of an addition, it is hereby agreed by the
            Settlors that any quasi-community property transferred to the trust estate by a Settlor
            shall thereby become community property and shall be included in the community
            estate.

         E. Unless changed or transmutated by separate written agreement entered into on the
            same date or after the date of this Trust Agreement, the assets of the trust estate shall
            retain their original character as separate, quasi-community or community property of
            the Settlors, and shall be accordingly designated.


               II INCOME AND PRINCIPAL DISTRIBUTIONS DURING LIFE

1. Community Property

         A. During the joint lifetimes of Settlors (except as provided herein below), the Trustee
            shall pay to husband or wife for the account of the community, or shall apply for the
            Settlors’ benefit, all of the net income of the community estate in _____________
            [quarterly] or more frequent installments.

         B. The Trustee shall pay to the Settlors for the account of the community, or apply for
            the benefit of the Settlors, as much of the principal of the community estate as a
            Settlor directs or as is necessary in the Trustee’s discretion for the Settlors’ proper
            health, edu
				
DOCUMENT INFO
Description: This is a legal document that determines how a married couple's property is to be managed and distributed during their lifetime and also upon death. This particular trust is created by a married couple in a community property state. This trust is revocable and designates the spouse that survives longer as the beneficiary in order to avoid estate and gift taxes, but this agreement can easily be customized to provide for different beneficiaries. This document can be used by married couples in community property states that want to designate each other as beneficiaries for distribution upon the death of one spouse.
This document is also part of a package Estate Planning for Married with Adult Children 6 Documents Included