DIY Legal Forms

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Trust for Cohabitating Couple

AGREEMENT and DECLARATION OF TRUST made [date] by and between [name] and [name], both residing at [address].

W I T N E S S E T H:

WHEREAS, the parties hereto wish to provide for the financial security of the survivor in the event of the untimely death of either of them; and WHEREAS, the parties also wish to provide for their children upon the death of the survivor;

NOW, THEREFORE, it is understood and agreed as follows:

1. Trust Property. [name] and [name] do hereby give, convey, and transfer to themselves as Trustees IN TRUST NEVERTHELESS the assets listed in Schedule A annexed hereto (hereinafter the Trust Estate) [omitted] to be held, managed, and disposed of for the uses and purposes, and subject to the terms and conditions hereinafter provided. It is the intention of the parties that their joint assets shall be administered as a part of the Trust Estate exclusive of property to be hereinafter inherited by either of them.

2. Dispositive Provisions. The Trustees or the survivor of them shall hold, manage, invest and reinvest the Trust Estate together with any additions thereto, and shall apply and distribute the income and principal of the Trust Estate in the following manner:

a. The net income of the Trust Estate shall be distributed or applied to or for the benefit of [name] and [name] during their joint lifetimes and during the lifetime of the survivor of them.

b. Upon the death of both [name] and [name], the successor Co-Trustees shall divide the Trust Estate into [number] equal shares and thereafter, shall distribute one such share absolutely and free of all trust to each of the following named persons: [name], [name], and [name], children of [name], and [name], [name], and [name], children of [name]. If any of the aforesaid persons shall not be living at such time, the share of such person shall be distributed to his or her issue then living in equal shares per stirpes, and in default of such issue, his or her share shall be added to the other shares pro rata.

3. Invasion of Principal. While [name] and [name] are both alive, the Trustees may in their absolute discretion pay to or apply for the benefit of either of said persons such amounts from the principal of the Trust Estate up to the whole thereof as the Trustees may from time to time deem necessary or advisable for the use and benefit of either of them. Upon the death of either [name] or [name], the surviving Trustee may, in his or her absolute discretion, pay to or apply for the benefit of himself or herself such amounts from the principal of the Trust Estate up to the whole thereof as he or she may, from time to time, deem necessary or advisable for his or her use and benefit. Anything to the contrary notwithstanding no court having jurisdiction of an express trust shall have the discretionary right to make an allowance from the principal of the Trust Estate to any income beneficiary hereunder whether or not his or her support is sufficiently provided for and whether or not all persons beneficially interested in the Trust Estate are adult and competent and consent thereto in writing, it being the intent of the grantors to prohibit any and all invasions of principal other than those hereinabove authorized.

4. Trustees' Powers. Without limitation of the powers conferred upon a Trustee by statute or general rules of law, the Trustees are specifically authorized and empowered:

a. To retain the property described in the Schedule attached and any property added to the Trust Estate, without liability for any decrease in value.

b. To sell, exchange, encumber, or lease all or any part of the property of the Trust Estate upon such terms, cash or credit, or both, as they may deem advisable.

c. Without regard to diversification to invest the Trust Estate in and to retain for the account of the Trust Estate such properties as men of prudence purchase for their own account having regard not to speculation, but to the permanent disposition of their funds, and considering the probable income as well as the probable safety of their capital, including but not by way of limitation, real property or interests therein, stocks, bonds, debentures, or other securities of corporations and similar entities and shares or interests in investment trusts and investment companies.

d. To determine what is principal or income of the Trust Estate and to apportion and allocate receipts and expenses as between these accounts.

e. To demand, receive, receipt for, sue for, and collect any and all rights, money, properties, or claims to which this trust may be entitled and to compromise, settle, arbitrate, or abandon any claim or demand in favor of or against this trust.

f. Subject always to their fiduciary obligations, the Trustees shall have as to the Trust Estate all the rights, powers, and privileges that an absolute owner of the same property would have including but not limiting the foregoing such powers of delegation as giving proxies, depositing securities with and transferring title to committees representing security holders, participating in voting trusts, reorganizations, and other arrangements and transactions requiring participation by and among security holders for their common benefit.

5. Trustees' Compensation and Appointment of Successor Trustee. The Trustees shall receive no compensation for their services under this trust. Upon the death of [name] and [name], [name] and [name] shall be authorized to act as successor Co-Trustees for the purpose of winding up the Trust Estate and distributing the assets as hereinbefore provided.

6. Bond. No bond or other security shall be required of the Trustees or of any successor Trustee hereinafter appointed.

7. Dealing With Third Parties. No parties, firm, or corporation dealing with the Trustees or either of them with reference to any property in this trust shall be required to ascertain the authority of the Trustees or either of them to act in such capacity. All deposits and withdrawals in savings accounts or checking accounts in the name of the Trust Estate may be made on the signature of one Trustee only, and sales or purchases of securities in the name of the Trust Estate may be made upon written authorization of one Trustee only.

8. Power of Amendment and Revocation. [name] and [name], while both of them are alive, may from time to time by instrument signed, acknowledged, and delivered to the Trustees, modify, amend, or revoke this Agreement and Declaration of Trust. Upon the death of either [name] or [name], the power to modify, amend, or revoke this Agreement shall terminate, and this Agreement of Trust shall become irrevocable, except that the survivor shall have the right to designate a successor Trustee to act in the event of his or her disability, in which event, such successor Trustee shall have the same duties and powers as are assumed and conferred in this Agreement upon the Trustees, including the discretionary powers dealing with invasion of principal.

9. Funeral Expenses. Anything to the contrary notwithstanding, upon the death of [name] and [name], all funeral expenses, including the cost of a footstone or headstone, as well as the cost of perpetual care of his or her grave, shall be paid from the Trust Estate herein.

10. Governing Law. This trust has been accepted by the Trustees in [state], and all questions pertaining to its validity, construction, and administration shall be determined in accordance with the laws of that state.

IN WITNESS WHEREOF, the parties hereto have duly executed this Trust Agreement.



This Section for Notary:


STATE OF -------)

) ss: [date]

COUNTY OF ------)

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.


[Name of Notary Public]

My commission expires: [date]