Appendix Form #19

• Author: Jerold I. Horn
• Profession: Lawyer
• Pages: 903-919

903

[Irrevocable Trust. GST-exempt, dynasty-style trust. This trust is an example of the

specimen that is described at II.D of Part One of Chapter 13. The addition of variable1

and the deletion of variable 2 is intended to produce a nongrantor trust. The deletion

of variable 1 and the addition of variable 2 is intended to produce a grantor trust. Use

variable 3 or variable 4 but not both. The trust is designed as a vehicle for taxable gifts.]

Irrevocable Trust Agreement

Made November 1, 2017.

Article I

Purpose

I, DANIEL H. LEE, of Peoria, Illinois, transfer to DELORES R. DAVIS, of Peoria,

Illinois, as Trustee, ten dollars and other consideration. The Trustee agrees to

administer this property, together with any additions and changes, according to

this instrument.

Article II

Disposition of Trust Estate

Section 2.01. Delores R. Davis GST Family Trust. The Trustee shall set the trust estate

apart, in a separate trust to be known as the “Delores R. Davis GST Family Trust”

and to be administered as provided in this Section. Delores R. Davis is my descen-

dant with respect to whom the Delores R. Davis GST Family Trust is created. Any

share inuring to a descendant of mine according to the last sentence of subsec-

tion (C) of this Section shall be held in a separate trust, to be known as the “GST

Family Trust” preceded by the name of the descendant and to be administered

as provided in this Section. Each trust is primarily for the benet of the descen-

dant with respect to whom the trust is created, and I would approve (but do not

direct) the exercise of each power (determined as if this sentence did not exist) to

the maximum extent in favor of the descendant. References to “the descendant” in

succeeding provisions of this Section are references to my descendant with respect

to whom the particular trust is created.

(A) Give-Me-Five. Upon the end of each calendar year, if, after attaining thirty

years of age, the descendant is living immediately before the end of the year,

the Trustee shall pay to the descendant so much, if any, of the trust estate, not

Appendix Form #19

904 Appendix For m #19

to exceed ve percent (inclusive of any that creditors of the descendant can

obtain), as the descendant last directs in writing before the end of the year.

(B) Additional Distributions. The Trustee shall pay to the descendant so much

or all, if any, of the trust estate as the Trustee determines to be necessary or

advisable from time to time, considering resources otherwise available, to pro-

vide for the descendant’s health, education and support in the manner of living

to which accustomed. Additionally, the Trustee shall pay to the descendant

so much or all, if any, of any balance of the trust estate as the Independent

Trustee in its sole and absolute discretion determines to be advisable from

time to time, considering or not considering resources otherwise available,

for any purpose or reason whatsoever, including the termination of the trust.

Additionally, the Trustee shall pay so much or all, if any, of the trust estate

to such one or more appointees, other than the

1 [descendant, each person who is a spouse or former spouse of mine, me, our

respective creditors and estates and the creditors of our respective estates]

2 [descendant and the estate, creditors and creditors of the estate of the

descendant]

, in such amounts and portions and subject to such trusts, terms and condi-

tions as the descendant directs in writing at any time and from time to time.

(C) Termination. Unless sooner terminated by distribution or expenditure

according to the foregoing, the trust shall terminate upon the descendant’s

death, and the Trustee shall distribute the trust estate of the trust to such

one or more appointees, other than the

1 [descendant, each person who is a spouse or former spouse of mine, me, our

respective creditors and estates and the creditors of our respective estates]

2 [estate, creditors and creditors of the estate of the descendant]

, in such amounts and portions and subject to such trusts, terms and con-

ditions as the descendant may appoint by Will specically referring to this

power. To such extent, if any, as the trust estate of the trust is not effectively

appointed, the Trustee shall distribute the trust estate of the trust to the

descendant’s then living descendants, per stirpes, or, if no descendant of

thedescendant then is living, to the then living descendants, per stirpes, of the

descendant’s nearest ancestor who is I or a descendant of mine and of whom

one or more descendants then are living; provided, any share thus inuring

toa descendant of mine shall be held in a separate trust (then or previously

created with respect to the descendant under this Section) to be administered

as provided in this Section.

(D) Special Assets GST Family Trust. Notwithstanding the preceding por‑

tion of this Section, the Trustee shall set apart in (or, as the case may be, pay