LIFE INSURANCE TRUST
THIS TRUST AGREEMENT is made this ______ day of _____________ (month),
____ (year), by and between ________________________________ of
__________________
("Grantor"), and _________________________ of
_____________________ ("Trustee").
W I T N E S S E T H:
The Grantor is the owner of a certain policy or policies of insurance
on his/her life, a description of which is set forth in Schedule A attached
hereto and made a part hereof by reference, and has named the Trustee as
beneficiary of those policies; and by this Agreement, Grantor wishes to set
forth the powers and duties granted to the Trustee hereunder.
ARTICLE I
The Trustee shall be under no obligation to pay the premiums which may
become due and payable under the
provisions of such policy of insurance, or to make certain that such premiums are paid by the Grantor or
others, or to notify any persons of the non payment of such premiums, and the
Trustee shall be under no responsibility or liability of any kind in the event such premiums are not paid as
required.
ARTICLE II
The Trustee shall be under no obligation or duty whatsoever with
respect to the safekeeping of such policy or policies of insurance except the
duty to receive such sums as may be paid pursuant to the policy, in accordance
with the requirements of this Trust, and to hold and disburse such proceeds
subject to the terms of this Agreement.
ARTICLE III
Upon Grantor's death, the Trustee shall collect the proceeds of any
insurance policies payable to the Trustee for the beneficiary. The Trustee shall make all reasonable
efforts to carry out the provisions of this Agreement, including the
maintenance or defense of any suit; provided, however, the Trustee shall be
under no duty to maintain or enter into any litigation unless the Trustee's
expenses, including attorney fees and costs, have been advanced or guaranteed
in an amount and in a manner reasonably satisfactory to the Trustee. The Trustee may repay any advances made by
____ (Him or Her) or reimburse __________ (Himself or Herself) for any such
fees and costs out of any corpus or income of this Trust.
ARTICLE IV
In addition to any inherent, implied, or statutory powers granted to
trustees generally, the powers set forth in ___________________ (State) General
Statutes Sections ___________ (Statutes) are incorporated by reference and
granted to the Trustee, subject to the restrictions of _____________ (State)
General Statutes ___________ (Statutes).
The Trustee shall not be required to make or file an inventory or
accounting to any Court, or to give Bond, but the Trustee shall, at least
annually, furnish to each beneficiary a statement showing property then held by
the Trustee and the receipts and disbursements made.
ARTICLE V
The Trustee shall hold the entire Trust Estate in trust for the benefit
of _________________ ______________ and any other children born to or adopted
by the Grantor after the execution of
this Agreement. If any beneficiary
hereunder has reached the age of ________ (____) years prior to the death of
the Grantor, then the Trustee shall distribute such beneficiary's pro share of
the Trust property directly to such
beneficiary.
If any beneficiary hereunder has not reached the age of ________
(_____) years prior to the death of the Grantor, then the Trustee shall hold
and manage the funds for the benefit of the beneficiaries as follows: so much of the income from this trust and,
if net income be at any time insufficient, so much of the principal of this
trust as may be deemed necessary, in the sole discretion of the Trustee (taking
into account all other sources of income or support of the beneficiaries of
which the Trustee has knowledge), may be either paid to or expended on behalf
of the beneficiaries (whichever in the Trustee's sole discretion is deemed most
appropriate) in order to ensure the support, maintenance, health and education
of the beneficiaries.
When each beneficiary reaches the age of ________ (____) years, a pro
share of the principal, together with any accumulations of income, shall be
paid over and distributed to the beneficiary.
In the event that any beneficiary should fail to attain the age of
_______ (_____) years, the property being held for the beneficiary shall be
paid over and distributed (i) to the beneficiary's issue per stirpes, or in
default of such, (ii) to the beneficiary's brothers and sisters and descendants
of deceased brothers and sisters, per stirpes, or in default of such, (iii) to
Grantor's heirs, determined as if Grantor had died at the time of such
beneficiary's death, pursuant to the General Statutes of _____________ (State)
as written on the date of this Trust Agreement; provided, however, that should
any such taker be the beneficiary of a trust created herein, and still in
effect, the share of such taker shall be added to such trust and be held,
managed, and distributed as a part thereof.
At any time after a beneficiary attains the age of _____ (____) years,
the Trustee may, in _______ (His or Her) sole, unbridled discretion, terminate
this Trust and pay over and deliver a pro share of the trust property to such
beneficiary.
ARTICLE VI
During the administration of any Trust hereunder, it shall not be
necessary for the Trustee at any time to have a guardian appointed for any
beneficiary with respect to the disbursement of income or principal to, or for,
such beneficiary. The Trustee may make
any part or all of the payments directly to a beneficiary or to some other
person, firm or corporation for the benefit of such beneficiary.
ARTICLE VII
The Grantor, or any other person, shall have the right, at any time, or
from time hereafter, to convey, transfer, assign, deliver, or by Will to give,
devise and bequeath to the Trustee additional insurance policies or property,
real or personal, to become subject to provisions of this Trust; provided,
however, that such additional property shall be of a kind acceptable to the
Trustee. Upon the acceptance thereof by
the Trustee, such additional property shall be identified by an additional
schedule attached hereto and shall become subject to and be held in Trust under
the terms hereof and shall be managed, controlled, handled, and disposed of by
the Trustee, subject to all of the terms, conditions, provisions and
limitations herein mentioned, and, upon any termination hereof, shall be
transferred in the same manner and to the same persons as herein provided as
though it constituted a part of the original Trust assets.
ARTICLE VIII
The provisions of this Trust in favor of all beneficiaries shall not be
subject to attachment or be liable to be taken over for his, her or their debts
by any legal process whatever; and if any beneficiary shall attempt to
alienate, dispose of, anticipate, encumber, or create a charge upon the
principal or income to which he or she is entitled; or if he or she shall
become bankrupt or make or attempt to make any assignment for the benefit of
creditors; or if the principal or income shall be in any way attached,
diverted, ceased or sequestered by any legal process, then the Trustee may
immediately cease to pay said principal or income to said beneficiary, and may
thereafter apply such part or even a whole thereof as said Trustee shall deem
wise for the beneficiary's support and maintenance.
ARTICLE IX
The Trustee shall be ____________________ of
____________________________. In the
event ______ (He or She) shall, at any time,
be unable or unwilling to serve as Trustee hereunder, _________________________
of ____________________________________ shall, upon written acceptance of this
Trust, become the Trustee hereunder.
Any individual serving as Trustee may resign as Trustee hereunder by
delivering a written resignation to his successor as Trustee and to Grantor, if
Grantor is living. Any successor
Trustee appointed or serving pursuant to the foregoing provisions shall serve
without bond and shall have all the rights and powers given and be subject to
all the duties and responsibilities conferred and imposed upon the Trustee
hereunder. No successor Trustee shall
have any duty to review the accounts of any predecessor Trustees.
ARTICLE X
This Trust Agreement shall be construed and regulated in all respects
in accordance with the laws of the State of ________________ (State).
ARTICLE XI
Recognizing that the needs and family circumstances of the Trust
beneficiaries may change or vary, the Grantors expressly authorize the Trustee
and each successor Trustee to change the situs of this trust for any reason
deemed sufficient by the Trustee, including, but not limited to, ease of
administration, adverse tax treatment of the trust in its present situs, or
convenience for either the Trustee or the beneficiaries.
The actions taken pursuant to the provisions of this article shall be
final and binding on all persons interested and shall not be subject to
judicial review.
ARTICLE XII
Grantor reserves the right to alter, amend, and revoke or terminate
this trust in whole or in part at any time, and from time to time, by an
instrument in writing signed by the Grantor and delivered to the Trustee,
except that no such change shall increase the duties or liabilities of the
Trustee without the consent of the Trustee.
Following receipt by the Trustee of a written instrument revoking this
Trust, in whole or in part, the Trustee shall have a reasonable time in which
to deliver to the Grantor or to the Grantor's attorney any trust property
subject to the revocation.
ARTICLE XIII
The Trustee hereby accepts the Trust herein created.
IN WITNESS WHEREOF, the parties hereto have executed this instrument in
duplicate originals the day and year first above written.
_______________________________ (SEAL)
_______________________________, Grantor
_______________________________ (SEAL)
_______________________________, Trustee
___________________ (State), _______________ County
I, a Notary Public for said County and State, do hereby certify that
___________________ ___________________, Grantor, personally appeared before me
this day and acknowledged the due execution of the foregoing and attached Life
Insurance Trust.
WITNESS my hand and notarial seal, this the _____ day of _______
(month), ____ (year).
My Commission Expires: _____________________________________
Notary Public ______________________
___________________ (State), _______________ COUNTY
I, a Notary Public for said County and State, do hereby certify that
___________________ _________________, Trustee, personally appeared before me
this day and acknowledged the due execution of the foregoing and attached Life
Insurance Trust.
WITNESS my hand and notarial seal, this the _____ day of _______
(month), ____ (year).
My Commission Expires: _____________________________________
Notary Public _______________________
