Section 12.70 Joint Irrevocable Life Insurance Trust Agreement

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Joint Irrevocable Life Insurance Trust

(Which Owns a Second-to-Die Policy on

Grantors Who Are Husband and Wife)

John and Jane Doe

Irrevocable Life Insurance Trust Agreement

On this _____ day of ________________, 20___, John Doe and Jane Doe, husband and wife, of ______________, _______________ County, Missouri, (hereinafter referred to as the “Grantors”) hereby transfer and assign to John Smith and Joe Smith, as Co-Trustees and their successors in trust (hereinafter referred to collectively as the “Trustee”), in trust, the sum of Ten Dollars ($10.00), together with such other and additional property as may be contributed from time to time by the Grantors or other persons to the Trustee, all as hereafter described. The trust property so identified, any property added to the trust in accordance with the provisions of this instrument, and all investments and reinvestments thereof (“trust principal”) shall be held upon the following terms:

Article I

Name of Trust

This document shall be known as the “John and Jane Doe Irrevocable Life Insurance Trust Agreement,” and the initial trust hereby created shall be known as the “John and Jane Doe Irrevocable Life Insurance Trust.” The Grantors are John Doe and Jane Doe, husband and wife. The effective date of this trust is ________________, 20___.

Article II

Irrevocability

This trust and all interests in it are irrevocable, and the Grantors have and retain no power to alter, amend, revoke, or terminate any trust provision or interest, whether under this trust or under any statute or other rule of law.

Article III

Annual Demand Power

During the Grantors’ joint lifetimes, and during the lifetime of the surviving Grantor, the following demand (withdrawal) powers shall exist with respect to contributions to the trust:

A. Immediately following any contribution to this trust, each of the then-living children and grandchildren of John Doe and Jane Doe shall have the right to withdraw an amount equal to a proportionate share of the contribution. The proportionate share will be the amount of the contribution divided by the number of then-living children and grandchildren of John Doe and Jane Doe at the time of the contribution. If any of the children or grandchildren of John Doe and Jane Doe demand and receive a distribution in excess of the amount the child or grandchild is authorized to receive under this paragraph A, the Trustee shall immediately notify the child or grandchild in writing, requiring the prompt repayment of the excess amount. This demand power shall take precedence over any other power or discretion granted the Trustee or any other person by this agreement.

B. With respect to the demand powers created under this Article, the following rules shall apply:

1. As of the date this trust was created, John Doe and Jane Doe have two children: John Doe, Jr. and Mary Doe. The Grantors have no grandchildren. Each of John Doe’s and Jane Doe’s then-living children shall have the right to exercise the demand powers specified in this Article by a written request delivered to the Trustee in a timely manner.

2. If any such child is unable to exercise their demand power under this Article because of a legal disability, the child’s legally authorized personal representative, including (but not limited to) a guardian, committee, or conservator, may make the demand on the beneficiary’s behalf, and if there is no legally authorized personal representative, the Trustee shall designate an appropriate adult individual who may make the demand on the child’s behalf. But in no event can either Grantor make a demand for any of the above-named children, regardless of the Grantor’s relationship to the child.

3. The Trustee must reasonably notify the child (or the person who has the authority to exercise a child’s demand power) of the existence of the power and of any contributions made to the trust that are subject to the power. After receiving such notice at least once, an adult beneficiary may waive further notice by an instrument in writing delivered to the Trustee.

4. The demand powers created under this Article are generally noncumulative and shall lapse on the earlier of the last day of the calendar year in which the contribution is made or 60 calendar days following the date of the transfer to which these powers relate. But a demand power that is not exercised within the 60-day period shall continue to be exercisable by its holder to the extent that the amount subject to the exercise exceeds the greater of $5,000 or 5% of the aggregate value of the assets out of which the demand power could be satisfied. This continuing demand power shall lapse annually to the extent of the greater of $5,000 or 5% of the aggregate value of the assets out of which the demand power could be satisfied.

5. The Trustee may satisfy any demand under this Article for a distribution by distributing cash, other assets, or fractional interests in other assets as the Trustee deems appropriate. Without limiting the Trustee’s power to select assets to satisfy a demand, the Grantors prefer that cash or tangible assets be distributed before life insurance policies and other intangible assets, unless the Trustee decides that a different selection is warranted.

6. “Contribution” means any cash or other assets transferred to the Trustee to be held as part of the trust funds. The amount of any contribution is its federal gift tax value, as determined by the Trustee at the time of the transfer.

Article IV

Trustee’s Duties During the Grantors’ Joint Lifetimes

and During the Lifetime of the Surviving Grantor

During the Grantors’ joint lifetimes, and during the lifetime of the surviving Grantor, the Trustee shall hold and administer all funds remaining after the exercise or lapse of all demand powers created under Article III, using some or all of the trust’s net income and principal to pay premiums on policies of life insurance on the lives of the Grantors, and adding to principal any income not so used. In addition, the Trustee may distribute to and among the descendants of John Doe and Jane Doe (in whatever proportions the Trustee deems appropriate) so much of the trust principal and income (including all or none) as the Trustee deems appropriate for any purpose, provided, however, that the Trustee may not make any distribution to or for the Trustee’s own benefit; nor may the Trustee make any distribution to or for the benefit of any individual if the distribution would discharge either Grantor’s legal obligation to support that individual. Furthermore, the Trustee shall not use any trust income or principal in a manner that would give either Grantor any pecuniary benefit.

Article V

Trustee’s Duties After Death of Both Grantors

A. After the death of both Grantors, the Trustee is authorized, although not required, to purchase assets from, make loans to, or otherwise deal without restriction with the probate estate of either Grantor or any other trust created by either Grantor, even though one or more of the Co-Trustees hereunder may also be acting as a trustee of such other trust or as a personal representative of either Grantor’s probate estate. The determination of the Trustee with respect to the desirability of any such purchase, loan, or other transaction shall be conclusive on all persons. The Trustee shall also distribute any portion of the trust principal that is includible in either Grantor’s gross estate for federal estate tax purposes to the personal representative of either Grantor’s probate estate (or to the Trustees of the pertinent Grantor’s Revocable Inter Vivos Trust). But if any portion of the principal of this trust is not so includible in either Grantor’s gross estate for federal estate tax purposes, the portion that is not so includible (up to and including all of the principal of this trust) shall be retained by the Trustee to be held and distributed by the Trustee as hereafter prescribed.

B. After any distribution required under paragraph A of this Article, if any child of John Doe or Jane Doe or any descendant of John Doe or Jane Doe survives both of the Grantors, the remaining portion of the principal and undistributed net income as accumulated as of the date of death of the last to die of the Grantors and that is not required to be distributed as set forth above in paragraph A shall be held and distributed by the Trustee in accordance with the following terms and conditions:

1. After the death of both Grantors, the Trustee is authorized, although not required, to purchase assets from, make loans to, or otherwise deal without restriction with the probate estate of either Grantor or any other trust created by either Grantor, even though one or more of the Co-Trustees hereunder may also be acting as a trustee of such other trust or as a personal representative of either Grantor’s probate estate. The determination of the Trustee with respect to the desirability of any such purchase, loan, or other transaction shall be conclusive on all persons.

2. If both of the children of John Doe and Jane Doe survive the Grantors, the remaining principal and undistributed accumulated income shall be divided into two equal shares such that there shall be one equal share created for the benefit of John Doe, Jr. and one equal share created for the benefit of Mary Doe. Each share created for a child of the Grantors named above shall be distributed as hereafter prescribed in this paragraph B.

3. Each of the above-named children who survive both the Grantors shall be entitled to receive the child’s share of this trust, free of trust, as soon as practicable after the death of the last to die of both of the Grantors, and if at such time all of the children survive, all assets in this trust shall be distributed and this trust shall terminate.

4. If either of the children of John Doe or Jane Doe...