Section 3.40 Form of Revocable Inter Vivos Trust for Single Persons

• Library: Estate Planning 2013 Forms

Revocable Trust Agreement of

John Doe

This Agreement is made and entered into this _____ day of ________________, 20___, by and between

John Doe

of [City], [County] County, Missouri, as Settlor, and

John Doe

of [City], [County] County, Missouri, as the Trustee.

In consideration of the mutual covenants and promises set forth in this Agreement, Settlor and the Trustee agree as follows:

Article I

Transfer in Trust

Settlor hereby transfers and delivers to the Trustee, in trust, the property listed and described on the attached Schedule A, and the Trustee hereby acknowledges receipt from the Settlor, in trust, of that property. The Trustee accepts the Trust created by this Agreement and, subject to the rights and powers reserved to and retained by Settlor, agrees to hold, administer, and distribute the trust estate upon the terms set forth in this Agreement.

Article II

Revocable Trust Terms

During the lifetime of Settlor, the trust may be known and designated as the John Doe Revocable Trust, and the trust estate shall be held and distributed upon the following terms:

Section 1

As long as Settlor is competent, and during any period when Settlor is competent:

a. The Trustee shall distribute such amounts of the net income and principal of the trust estate to Settlor or to others as Settlor may from time to time direct. The Trustee shall promptly comply with each direction of Settlor, but Settlor shall, if requested by the Trustee, confirm a verbal direction given the Trustee in a writing signed by Settlor.

b. In the absence of direction by Settlor, the Trustee shall have full power and authority from time to time to distribute such amounts of the net income and principal of the trust estate to or for the benefit of Settlor as the Trustee shall, in the absolute discretion of the Trustee, deem necessary or advisable for the health, support, and maintenance of Settlor.

Section 2

If Settlor becomes incompetent, and during any period when Settlor is incompetent:

a. The Trustee shall from time to time distribute such amounts of the net income and principal of the trust estate for the benefit of Settlor as are necessary to provide for Settlor’s health, support, and maintenance.

b. Subject to the provisions of Subsection 2.a, which at all times shall have priority, the Trustee shall have full power and authority from time to time to distribute such amounts of the net income and principal of the trust estate for the general welfare of Settlor as the Trustee shall, in the absolute discretion of the Trustee, deem necessary or advisable.

Section 3

Any net income of the trust estate not distributed in accordance with the prior provisions of this Article shall be accumulated and periodically added to principal.

Article III

Payments and Disposition at Death

Upon the death of Settlor, all undistributed net income and any property to which the Trustee is entitled by reason of the death of Settlor shall be added to principal, and the entire then remaining principal of the John Doe Revocable Trust as thus constituted shall be disposed of as follows:

Section 1

The Trustee shall have full power and authority to pay, to the extent they are timely presented to the Trustee, the expenses of the last illness, funeral, and burial of Settlor; debts of Settlor; expenses of administration; any other lawful claims or charges against the estate of Settlor; and all transfer taxes directly attributable to property includible in Settlor’s gross estate for federal transfer tax law purposes, without apportionment to or reimbursement from any person who receives, or before Settlor’s death has received, any such includible property. The Trustee shall make such elections and allocations under the applicable tax laws as the Trustee deems advisable, without regard to the relative interests of the beneficiaries and without liability to any person. No adjustment shall be made between principal and income or in the relative interests of the beneficiaries to compensate for the effect of any such elections or allocations.

If there is a Personal Representative of the estate of Settlor, the payments authorized under this Section shall be made by the Trustee only in the amounts and to the taxing authorities the Personal Representative directs, and the Trustee may conclusively rely on, and shall promptly comply with, any such written direction.

Section 2

All of the nonbusiness tangible personal property, [including/excluding] motor vehicles and watercraft, shall be disposed of as follows:

a. Settlor shall have, and hereby reserves, a general power of appointment by which Settlor may dispose of any part or all of such property by a list, and the Trustee shall distribute the items described on the list to the person or persons designated, subject, however, to the following provisions:

1. To be effective as, and conclusively presumed to be, a “list” and an effective exercise of the general power of appointment reserved to Settlor, the document must be dated and signed by Settlor and must be located within 30 days following the date of Settlor’s death. Any document that does not satisfy the foregoing requirements shall be conclusively presumed not to be a list.

2. If Settlor prepares more than one list and there is a conflict as to the disposition of any item of such property, the disposition of that item in the list bearing the latest date shall control.

3. Unless the list otherwise provides, a direction to distribute any item or items to a person who does not survive Settlor shall be of no force or effect.

4. The Trustee shall be fully exonerated from any liability for distributions of items of property made in accordance with a list.

b. All such property not disposed of in accordance with Subsection 2.a shall be distributed to those of settlor’s children, ________________, who survive Settlor, equally, to be divided among or between them as they shall agree, or all to the survivor if only one of them survives Settlor, but if none of them survives Settlor, such property shall be disposed of as subsequently provided in this Article.

Section 3

All of the principal of the trust estate not disposed of under prior provisions of this Article, which is referred to in this Section as the “Remaining Principal,” shall be distributed to those of Settlor’s descendants who survive Settlor, by representation.

Section 4

For purposes of determining the shares prescribed under Section 4 and the allocation of property (including cash) in satisfaction of the shares, the following provisions shall apply:

a. If a transfer tax law is applicable to Settlor’s estate, values as finally determined for transfer tax law purposes shall control.

b. The property allocated shall carry with it, as income and not as principal, a proportionate share of all income earned after Settlor’s death and before the date or dates of allocation.

Subject to the foregoing provisions of this Section, the allocation of property (including cash) in satisfaction of the shares prescribed shall be made by the Trustee in the Trustee’s discretion.

Article IV

Supplemental Trust Terms

After the death of Settlor, the prior provisions of this Agreement shall be supplemented by and, unless in direct conflict, superseded by the following provisions:

Section 1

If any beneficiary under this Agreement and Settlor die simultaneously or under circumstances that do not show the beneficiary survived Settlor, it shall be conclusively presumed for all purposes of this Agreement that Settlor survived the beneficiary.

Section 2

The Trustee shall invest, distribute, and, in general, administer each trust estate to the best advantage of the beneficiary or beneficiaries then entitled to enjoy the benefits, and do so even though the result is, or may be, detrimental to subsequent beneficiaries.

Section 3

If final distribution of any trust estate cannot be made because no distributee of it is then living, the entire then remaining principal and all undistributed net income of the trust estate shall be distributed to Settlor’s heirs-at-law.

Section 4

If the Trustee is at any time required by the terms and limitations of this Agreement to distribute all or any part of the principal of a trust...