[MARRIED, WITH ADULT CHILDREN, MORE THAN $2 MILLION IN ASSETS, COMMUNITY PROPERTY STATES ONLY] INTER-VIVOS REVOCABLE TRUST THIS INTER-VIVOS REVOCABLE TRUST (this “Instrument”) is made this ____ day of _________, _____, by [FIRST SPOUSE’S NAME] and [SECOND SPOUSE’S NAME] of County of ___________________, State of ___________________, as Settlors, and [FIRST SPOUSE’S NAME] and [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 two (__) children, refered 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 ARTICLE I. TRUST ESTATE. A. 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. B. Trust Property
1. 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. 2. 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. 3. Either Settlor’s separate property, now transferred or subsequently added to the trust estate, is called and shall remain such Settlor’s separate estate. 4. 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. 5. 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. ARTICLE II. INCOME AND PRINCIPAL DISTRIBUTIONS DURING LIFE A. Community Property 1. 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. 2. 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, education, support, maintenance, comfort and welfare, in accordance with their accustomed manner of living during their joint lifetimes. 3. The spouse receiving payments shall have the same duty to use community income and principal received under this Instrument for the Settlors’ benefit as they have for any other community property. 4. Any income or principal paid to or for the Settlors’ benefit or withdrawn by them shall continue to retain its character as community property. B. Separate Property
1. During the Settlors’ joint lifetimes, the Trustee shall pay to or apply for the benefit of the Settlor whose separate property was transferred to the trust, the net income of that Settlor’s separate property in quarterly or more frequent installments. 2. The Trustee shall pay to or apply for the benefit of said Settlor as much of the principal of that Settlor’s separate estate as the Settlor directs or as is necessary in the Trustee’s discretion for the proper health, education, support, maintenance, comfort and welfare of that Settlor in accordance with that Settlor’s accustomed manner of living at the date of this Instrument. C. Residence At such times as the trust estate includes a family home, which Settlors or either of them occupy as their principal place of residence, and so long as doing so does not pose a threat to the health and physical or financial security of Settlor(s), the Trustee shall allow them or either of them to continue to occupy such home rent free, with all expenses, including taxes, insurance, repairs and maintenance, paid from the trust estate. ARTICLE III. INCAPACITATION OF SETTLOR. A. Payments for Benefit of Settlor That Is Incapacitated 1. If at any time, as certified in writing by the Settlor’s attending physician or, if such Settlor has no regularly attending physician, two licensed physicians, not related by blood or marriage to either Settlor or any beneficiary of this trust, either spouse has become incapacitated, whether or not a court of competent jurisdiction has declared him or her incompetent or mentally ill or has appointed a conservator, the Trustee shall take the steps provided for in this Article. 2. Trustee shall pay to the other spouse or apply for the benefit of either Settlor, first from the community estate, and then from the separate estates, if any, of either or both Settlors. in equal shares to the extent possible, amounts of net income and principal necessary in the Trustee’s discretion for the proper health, support, maintenance, comfort and welfare of both Settlors in accordance with their accustomed manner of living during their joint lifetimes. 3. The Trustee shall make such payments or applications until the incapacitated Settlor, as certified by the Settlor’s attending physician or, if such Settlor has no attending physician, by two licensed physicians not related by blood or marriage to either Settlor or to any beneficiary of this trust, is again able to
manage his or her own affairs, or until the e