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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
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
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
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
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
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]