DIY Legal Forms

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Qualification of Family Trust for Unified Tax Credit

(Residuary to Marital Trust)

Introduction. I, [name of testator] a resident of and domiciled in the City of [city], County of [county], and State of [state], make, publish, and declare this to be my Last Will and Testament, hereby revoking all former wills made by me.

1. Direction to Pay Debts. I direct my Executor to pay my just debts and funeral expenses as soon after my Executor's appointment as possible.

2. Creation of Family Trust. If my spouse, [name of spouse] survives me, I give, devise, and bequeath to my Trustee hereinafter named, in trust, assets selected by my Executor having an aggregate value at the time they are transferred equal to the unified credit exemption allowable to my estate pursuant to Section 2001 of the Internal Revenue Code of 1986, as amended. The value of this trust may be affected by certain tax elections made by my Executor and I emphasize that my intention is to fund this trust with a pecuniary amount and not a fractional share of my estate. The trust hereby created is called "the Family Trust."

3. Creation of Marital Trust. If my spouse survives me, I give, devise, and bequeath all the rest, residue, and remainder of my estate, of whatsoever nature and wheresoever situate to my Trustee hereinafter named, in trust. The trust hereby created is called the Marital Trust.

4. The Family Trust. My Trustee is directed to invest and reinvest the principal of the Family Trust and to collect the income thereof, and to pay the net annual income to, or apply the same for, the benefit of my spouse. Upon my spouse's death or as soon thereafter as is practical, I direct my Trustee to distribute the principal of the trust and any income accrued thereon to my issue, per stirpes and not per capita. My Trustee is directed to retain any share that will pass to a person who has not attained the age of [number] years in a separate trust, to be administered as hereinafter provided.

[Alternate Clause]

4. The Family Trust (Limited Power of Appointment). My Trustee is directed to invest and reinvest the principal of the Family Trust and to collect the income thereof, and to pay the net annual income to, or apply the same for, the benefit of my spouse. Upon my spouse's death, or as soon thereafter as shall be practical, my Trustee shall convey all property then belonging to the principal and any undistributed income of this trust as my spouse shall appoint by Will making specific reference to this power. My spouse's power to appoint the persons to whom the principal and undistributed income of this trust will be distributed is limited to the power to appoint to or among any of our descendants. The appointment may be outright or in trust. If my spouse predeceases me or, having survived me, fails to exercise or does not fully and effectually exercise such power of appointment, then upon my death or my spouse's death, as the case may be, my Trustee shall convey all the principal and undistributed income of this trust that has not otherwise been effectually disposed of as follows: [description of conveyance].

5. The Marital Trust. My Trustee is directed to invest and reinvest the principal of the Marital Trust and to collect the income thereof, and to pay the net annual income to, or apply the same for, the benefit of my spouse. Upon my spouse's death, or as soon thereafter as shall be practical, my Trustee shall convey all property then belonging to the principal of this trust to such person or persons, including my spouse's estate, and in such interests or proportions as my spouse shall appoint my Will making specific reference to this power. If my spouse shall predecease me or, having survived me, shall fail to exercise or not fully and effectually exercise such power of appointment, then upon my death or my spouse's death, as the case may be, my Trustee shall convey all the principal of the estate that has not otherwise been effectually disposed of as follows: [description of conveyance].

6. Executor and Trustee--Appointment, Powers, and Elections.

a. Appointment of Executor and Trustee. I nominate and appoint [name of executor and trustee], whose principal office is located at [address] to be the Executor and Trustee of this Will. I direct that [name of executor and trustee] not be required to post any bond or other undertaking for the faithful discharge of its duties in any jurisdiction. I direct that my Executor's and Trustee's compensation be fixed by the laws of the State of [state].

b. Executor's and Trustee's Powers. In addition to the powers conferred upon them by the laws of the State of [state] I grant to my Executor and Trustee the following powers: [description of powers]. In exercising any of these powers or in funding or administering the Trust, my Executor or Trustee shall not exercise any power in a way that would infringe upon any legal requirement for the allowance of the unified credit or marital deduction for federal estate tax purposes.

IN WITNESS WHEREOF, I have set my hand and seal this [date].

[signature] L.S.

[name of testator]

[Attestation]

This Section for Notary:

Acknowledgment

State of _________

County of ________ [County]

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.

Signature ________
Notary

My commission expires: _____

(Seal)