Free Trust Agreement Form

I. The Parties

This Trust Agreement ("Agreement") is entered into as of Month Day, Yearby and between Grantor's Namewith a primary place of business at Grantor's Address ("Grantor"), and Trustee's Name with a primary place of business at Trustee's Address ("Trustee"). The Grantor and Trustee may collectively be referred to as the ("Parties") or individually as a ("Party").

WHEREAS, the Grantor desires to establish a trust for the purpose of managing and protecting certain property for the benefit of designated beneficiaries;

WHEREAS, the Trustee agrees to accept the responsibility of administering the trust property in accordance with the terms and conditions set forth in this Agreement;

WHEREAS, the Parties wish to define their rights, duties, and obligations with respect to the trust property and its management;

NOW THEREFORE, in consideration of the mutual promises and agreements contained herein, the Parties hereby agree to the following terms and conditions.

II. Definitions

For the purposes of this Agreement, the following terms shall have the meanings ascribed to them:

• Grantor: The individual or entity creating this trust.

• Trustee: The individual or entity responsible for managing the trust.

• Beneficiary(ies): The individual(s) designated to receive benefits from the trust.

• Trust Property: The assets and property held in trust.

III. Trust Property

The trust property consists of the following:

The assets have been delivered to the Trustee on Month Day, Year. The Trustee acknowledges receipt of the trust property and agrees to hold and manage it in accordance with the terms of this Agreement. The Grantor retains the right, through written instruction or the guidance of a designated attorney, to add or modify the trust property during the Grantor’s lifetime.

In circumstances where the Grantor becomes incapacitated, the Trustee shall have full discretion over the management of the trust property. This includes investment decisions, maintenance, and distributions to the beneficiaries, in accordance with the established terms. Additionally, the Trustee shall have the authority to make decisions regarding any future property added to the trust.

The trust property shall be administered with the utmost good faith and care, ensuring that the interests of the beneficiaries are protected. The Trustee shall also be responsible for ensuring the tax implications of the trust property are in compliance with applicable laws.

The Grantor reserves the right to revoke or amend the designation of specific assets within the trust at any time prior to incapacity. However, once the Grantor is deemed incapacitated, all changes to the trust property must be approved by the Trustee in consultation with the Grantor’s attorney or representative.

IV. Beneficiaries

The designated beneficiaries shall be entitled to receive distributions from the trust property as determined by the terms of this Agreement. The Trustee shall manage and allocate the trust property in a manner that reflects the best interests of each beneficiary, taking into consideration their needs, financial circumstances, and the Grantor's intentions.

The Trustee has discretion to determine the timing and amount of distributions but must do so in a way that ensures the long-term sustainability of the trust. If any beneficiary is a minor at the time of distribution, the Trustee shall manage the assets on their behalf until they reach the age of majority.

Should any beneficiary predecease the Grantor or become incapacitated, the trust property designated to them shall be redistributed among the remaining beneficiaries according to the proportions outlined above or as directed by the Grantor’s will or this Agreement.

V. Grantor's Rights

The Grantor retains several rights under this Agreement. First and foremost, the Grantor has the right to revoke or amend this Trust Agreement at any time before becoming incapacitated, except as otherwise provided in this Agreement. The Grantor also has the right to add or withdraw property from the trust, provided such actions are communicated to the Trustee in writing. During the Grantor’s lifetime, the Grantor may receive income or principal distributions from the trust at the discretion of the Trustee.

Furthermore, the Grantor may appoint new beneficiaries, subject to the Trustee’s approval, and modify the existing terms of the trust, including changing Trustees. The Grantor may also consult with the Trustee regarding investment decisions, though the Trustee retains the final authority over such decisions. In the event the Grantor becomes incapacitated, the rights to make these decisions shall be transferred to the Trustee.

VI. Power of Trustee

A. Disposition

The Trustee shall have full authority to manage and dispose of the trust property as they see fit, provided such actions are in the best interest of the beneficiaries. The Trustee may sell, lease, or invest the trust property, and is not limited by traditional investment rules.

B. Income and Capital Distribution

1. Income: The Trustee shall allocate and distribute income from the trust to the beneficiaries as outlined in the Agreement.

2. Capital: The capital may be distributed to beneficiaries at the discretion of the Trustee, ensuring the principal remains intact for long-term growth.

C. Advancement

The Trustee has the power to advance income or principal to any beneficiary for urgent needs, such as education, healthcare, or financial hardship, as long as it does not significantly diminish the trust’s assets.

D. Appointing New Beneficiaries

The Trustee may appoint new beneficiaries under the direction of the Grantor or upon the Grantor’s incapacitation, provided the appointment does not contradict the Grantor’s wishes.

E. Distributions to Minors

The Trustee shall have the power to manage distributions for minor beneficiaries, placing assets in a custodial account or trust until the minor reaches the age of majority.

F. Adding Beneficiaries

The Trustee has the authority to add new beneficiaries if the Grantor provides written authorization or if the circumstances of the beneficiaries change due to death or incapacitation.

G. Limitations on Power

The Trustee’s powers are subject to limitations set forth in this Agreement, including acting in good faith, avoiding conflicts of interest, and adhering to the fiduciary responsibilities outlined in applicable laws.

VII. Change and Appointment of New Trustees

The Grantor reserves the right to appoint a new Trustee or remove the current Trustee at any time, provided such changes are communicated in writing. The appointment of a new Trustee shall take effect upon the Trustee’s acceptance of their role. In cases where the Trustee becomes incapacitated or resigns, the Grantor or, if incapacitated, a court-appointed representative, shall appoint a successor. Any new Trustee shall have the same powers and responsibilities as the original Trustee.

VIII. Irrevocability

This trust shall become irrevocable upon the incapacity or death of the Grantor, except as otherwise provided in this Agreement. Once irrevocable, the terms of the trust may not be modified or revoked without the written consent of all beneficiaries and the Trustee. The Trustee shall continue to manage the trust property in accordance with the terms of this Agreement and for the benefit of the beneficiaries. The trust may not be terminated prematurely except under circumstances defined in the law or this Agreement. Should any provision of the Agreement become legally invalid, the remaining provisions shall remain enforceable.

IX. Duration

The trust shall remain in effect until the final distribution of all trust property, which shall occur upon the death of the last surviving beneficiary. If no beneficiaries remain, the trust property shall be distributed in accordance with the Grantor’s will or, if none, to the Grantor’s heirs as determined by applicable law. The Trustee is authorized to wind up the trust upon termination, paying any final expenses or taxes due.

X. Miscellaneous Provisions

A. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of State Name. Any disputes arising under this Agreement shall be resolved in the courts of State Name.

B. No Assignment

The rights and obligations of the Parties under this Agreement shall not be assigned to any third party without the prior written consent of the other Party.

C. Severability

If any provision of this Agreement is found to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

D. Amendment

This Agreement may be amended or modified only by a written instrument executed by both the Grantor and the Trustee, or their respective successors and assigns.

E. Notices

Any notices required or permitted under this Agreement shall be deemed sufficient if delivered in person or sent by certified mail to the addresses of the Parties as set forth herein.

XI. Signatures

IN WITNESS WHEREOF, the Parties hereto have executed this Trust Agreement as of the day and year first above written.

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