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Irrevocable Trust Agreement

Irrevocable Trust Agreement

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Published by empoweredwendy7588

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Published by: empoweredwendy7588 on May 12, 2012
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THIS IRREVOCABLE TRUST AGREEMENT made and entered into at _________, _________ on _________, 19__, by and between _________, of _________, hereinafter called the GRANTOR and _________, or its successor, as Trustee, hereinafter called theTRUSTEE.WITNESSETH:WHEREAS, the Grantor hereby irrevocably transfers and delivers to the Trustee certaininsurance policies described in Schedule "A" hereto annexed to be held in trust; andWHEREAS, the Grantor has irrevocably transferred to the Trustee certain other assets asset forth in Schedule "A" hereto annexed; NOW, THEREFORE, in consideration of the mutual covenants and agreements containedherein, it is agreed that the Trustee shall hold and administer all assets which may comeinto this trust in accordance with the terms, provisions and conditions of the within TrustAgreement.ARTICLE ONE.GENERAL PROVISIONS RELATING TO GRANTOR AND TRUSTEEA. Irrevocability: This Trust Agreement shall be irrevocable, and neither the Grantor nor any other person shall have the right or power to alter, amend or revoke any of the terms,conditions or other provisions of this Trust in whole or in part.B. Right to Add Property: The Grantor or any other person may at any time causeadditional real or personal property to be added to the corpus of this Trust by deed, inter vivos transfer, Last Will and Testament or otherwise, and the Trustee shall hold, administer and distribute all such additional property according to the terms and conditions of thisagreement.C. Policies of Insurance:1. The Trustee is hereby vested with all right, title and interest in and to any policy of insurance which has been or will be irrevocably assigned to said Trustee (pursuant to thisAgreement), and is authorized and empowered to exercise and enjoy, for the purposes of the trust herein created and as absolute owner of any policy of insurance, all of the options, benefits, rights and privileges under any policy, including the right to borrow upon and pledge same for a loan or loans. Any insurance company which has or will issue a policy of insurance which becomes part of the trust estate is hereby authorized and directed torecognize the Trustee as absolute owner of said policy, fully entitled to all options, rights, privileges and interests under such policy, and any receipts, releases and other instrumentsexecuted by the Trustee in connection with any policy shall be binding and conclusiveupon the insurance company and upon all persons interested in this trust. The Grantor 
hereby relinquishes all rights and powers in any policy of insurance forming a part of thetrust estate and will, at the request of the Trustee, execute any and all instrumentsreasonably required to effectuate this relinquishment.2. The Trustee shall, to the extent the assets of the trust permit, pay the premiums whichmay become due and payable under the provisions of any policy of insurance forming a part of the trust estate. If the assets of the trust do not permit such payment of premiums,the Trustee shall be under no obligation to pay the premiums which may become due and payable under the provisions of any policy of insurance forming a part of this trust estate,or to make certain that such premiums are paid by the Grantor or others, or to notify any persons of the nonpayment of such premiums, and it shall be under no responsibility or liability of any kind in the event such premiums are not paid, except that it shall apply anydividends received on any policy to the payment of premiums thereon. Upon notice, at anytime during the continuance of this trust, that the premiums due upon any policy are indefault, or that premiums to become due will not be paid, by the Grantor, the Trustee or any other person, the Trustee, in its sole discretion, may apply any cash values attributableto any policy to the purchase of paid-up insurance or of extended insurance, or may borrowupon any policy for the payment of premiums due thereon, or may accept cash values of any policy upon its forfeiture. If the Grantor becomes totally and permanently disabled,within the meaning of any policy forming part of the trust estate, and as a result thereof the payment of premiums or any of them shall during the pendency of such disability bewaived, the Trustee, upon receipt of such knowledge, shall promptly notify the insurancecompany which has issued any policy, and shall take any and all steps necessary to makesuch waiver of premium provision effective.3. In the year of the creation of this trust, and in every succeeding calendar year thereafter in which the Grantor shall transfer property to this trust, the Trustee shall pay immediatelyto or for the benefit of each designated beneficiary of the Grantor, who personally or through his guardian shall request (in an instrument in writing deposited with the Trusteeno later than thirty (30) days after notice is sent to such designated beneficiary or hisrepresentative that property has been transferred to this trust) property of a value equal to(a) the value, as of the date of the transfer, of the property so transferred in the respectiveyear divided by (b) the number of then designated beneficiaries of the Grantor; provided,however, that the total amount that may be so requested by such beneficiary in eachcalendar year shall not exceed the greater of five thousand dollars ($5,000), or themaximum gift tax exclusion. The Trustee shall send a notice in writing by mail or deliver anotice personally to each designated beneficiary representative within thirty (30) days after it receives such transfer.4. The Trustee shall be under no obligation or duty except: (1) those duties herein set forth;(2) the duty of safekeeping of any policy of insurance forming part of the trust estate; and(3) the duty to receive such sums as may be paid to it, in accordance with the requirementsof this trust, by the company issuing any such policy, or to hold and disburse such proceedssubject to the terms of this agreement. Upon the death of the insured under any such policy,the Trustee shall make reasonable efforts to carry out the provisions of this agreement,including the maintenance or defense of any suit; provided, however, it shall be under no
duty to maintain or enter into any litigation unless its expenses, including counsel fees andcosts, have been advanced or guaranteed in an amount and in a manner reasonablysatisfactory to it. The Trustee may repay any advances made by it or reimburse itself for any such fees and costs out of any principal or income of this trust.D. Right to Loan Assets: The Trustee may, in its absolute and uncontrolled discretion, loanassets with adequate interest and security, as the Trustee determines, to the estate of theGrantor, to the estate of the Grantor's spouse, or to the estate of any beneficiary of any trustfund created herein. The propriety of the loan, the amount of the loan and interestchargeable thereon, and the security for the loan shall be solely within the discretion of theTrustee, and the Trustee shall incur no liability as a result of such loan or by the default inrepayment of such loan in whole or in part.ARTICLE TWO.DISPOSITION OF TRUST ESTATE FOR GRANTOR'S SPOUSEA. During the Life of the Grantor's Spouse:1. The entire net income received by the Trustee (after payment of all administrativeobligations or premiums on life insurance policies, if any), shall be paid to, or for the benefit of _________, spouse of the Grantor, if living, in monthly or other convenientinstallments during her lifetime.2. Furthermore, the Trustee is authorized to pay to, or for the benefit of, the Grantor'sspouse and issue of the Grantor, such portions of the principal of this trust, whether thewhole or a lesser amount, as the Trustee shall, from time to time, determine to be necessaryin its absolute and uncontrolled discretion for her health, maintenance, support andeducation, in accordance with her station in life, due regard being given by the Trustee tothe amount of income available to her from this trust, and from sources other than this trust.It is the Grantor's intention that the health, maintenance and support of the Grantor's spouseshall be of primary concern, and the Trustee shall exercise its discretion in using principalfor the Grantor's spouse in a reasonable manner consistent with maintaining theaccustomed manner of living of the Grantor's spouse, considering all other beneficiaries of this trust to be secondary and without liability to any other beneficiary for the use of  principal for the Grantor's spouse.ARTICLE THREE.DISPOSITION OF TRUST ESTATE AFTER DEATH OF BOTH THE GRANTOR ANDGRANTOR'S SPOUSEA. Income and Principal to Grantor's Children: Upon the subsequent death of the spouse of the Grantor, if the Grantor predeceases, or upon the death of the Grantor, if said spouse predeceases, the balance of this trust shall be held and distributed as follows:1. The Trustee shall divide the trust assets for accounting purposes into as many equalshares as shall be equal to the number of children of the Grantor who are then living, and

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