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1986-02-21
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IRREVOCABLE TRUST
TRUST AGREEMENT made ______________, 19__, between
_____________________(the "Grantor"), and ______________ and
_________________(the "Trustees").
1. TRUST PROPERTY. The Grantor, desiring to create
trusts for the benefit of his adult children and for other good
and valuable consideration, irrevocably assigned to the Trustees
of the property described in attached Schedule A (the "Trust
Property"), in trust, for the purposes and on the conditions
hereinafter stated.
2. DISPOSITIVE PROVISIONS. The Trustees shall hold the
property for the primary benefit of ___________________
______________________________________________, and the Trustees
shall hold, manage, and invest the trust property, and shall
collect and receive the income, and after deducting all necessary
expenses incident to the administration of the trusts, shall
dispose of the corpus and income of the trusts as follows:
(a) The Trustees shall pay the entire net income of the
trust, quarter annually, to the beneficiaries of the trust,
provided that there shall be paid over absolutely to the
beneficiaries at age _______ the corpus of the trust.
(b) If any of the beneficiaries shall die before
attaining the age of ______ years, the trust for his or her
benefit shall cease, and the corpus, together with any
undistributed income, shall be paid over absolutely to the issue
of the beneficiary then living per stirpes; but if there be no
issue, then to the other beneficiaries if living, either
outright, or, if the other beneficiary shall not have then
attained the age of _____ years, in trust, to be added to, held,
administered, and distributed as part of the trust for the other
beneficiary; but if the other beneficiary is not then living,
then absolutely to the then living issue of the other beneficiary
per stirpes; and if there is no issue, then to the estate of the
beneficiary for whom the trust was being held originally.
(c) Notwithstanding anything contained to the contrary,
if at any time while the trusts are in force any financial
emergency arises in the affairs of either of the primary
beneficiaries of the trusts, or if the independent income of
either of the beneficiaries (exclusive of the income from any
trust created for his or her benefit by the Grantor) and all
other means of support are insufficient for the support of the
beneficiary, in the judgment of the Trustees, the Trustees shall
pay over to the beneficiary, solely out of the corpus of the
trust for his or her benefit, at any time and from time to time,
the sum or sums as the Trustees shall deem necessary or
appropriate in their discretion.
3. TRUSTEES' POWERS. In the administration of the
trusts, the Trustees shall have the following powers, all of
which shall be exercised in the fiduciary capacity, primarily in
the interest of the beneficiaries:
(a) To hold and continue to hold as an investment the
property, of any additional property which may be received by
them, so long as they deem proper, and to invest and reinvest in
any securities or property, whether or not income-producing,
deemed by them to be for the best interest of the trusts and the
beneficiaries.
(b) To rent or lease any property of the trusts for the
time and upon the terms and for the price or prices as in their
discretion and judgment may seem just and proper and for the best
interest of the trusts and the beneficiaries.
(c) To sell and convey any of the property of the trusts
or any interest, or to exchange it for other property, for the
price or prices and upon the terms as in their discretion and
judgment may be deemed for the best interest of the trusts and
the beneficiaries.
(d) To make all repairs and improvements at any time
deemed necessary and proper to and upon real property
constituting a part of the trusts.
(e) To deduct, retain, expend, and pay out of any money
belonging to the trusts any and all necessary and proper expenses
in connection with the operation and conduct of the trusts.
(f) To vote upon all securities belonging to the trusts,
and to become a party to any stockholders' agreements deemed
advisable by them in connection with the securities.
(g) To consent to the reorganization, consolidation,
merger, liquidation, readjustment of, or other change in any
corporation, company, or association.
(h) To compromise, settle, arbitrate, or defend any
claim or demand in favor of or against the trusts.
(i) To incur and pay the ordinary and necessary expenses
of administration, including (but not by way of limitation)
reasonable attorneys' fees, accountants' fees, investment counsel
fees, and the like.
(j) To act through an agent or attorney-in-fact, by and
under power of attorney duly executed by the Trustees, in
carrying out any of the authorized powers and duties.
(k) To borrow money for any purposes of the trusts, or
incidental to their administration, upon their bond or promissory
note as trustees, and to secure their repayment by mortgaging,
creating a security interest in, or pledging or otherwise
encumbering any part or all of the property of the trusts.
(l) To lend money to any person or persons upon the
terms and in the ways and with the security as they may deem
advisable for the best interest of the trusts and the
beneficiaries.
(m) To engage in business with the property of the
trusts as sole proprietor, or as a general or limited partner,
with all the powers customarily exercised by an individual so
engaged in business, and to hold an undivided interest in any
property as tenant in common or as tenant in partnership.
(n) To determine the manner in which the expenses
incidental to or in connection with the administration of the
trusts shall be apportioned as between corpus and income.
(o) The Trustees may freely act under all or any of the
powers by this Agreement given to them in all matters concerning
the trusts, after forming their judgment based upon all the
circumstances of any particular situation as to the wisest and
best course to pursue in the interest of the trusts and the
beneficiaries, without the necessity of obtaining the consent or
permission of any interested person, or the consent or approval
of any court.
The powers granted to the Trustees may be exercised in
whole or in part, from time to time, and shall be deemed to be
supplementary to and not exclusive of the general powers of
trustees pursuant to law, and shall include all powers necessary
to carry them into effect.
4. LIMITATION ON POWERS. Notwithstanding anything
contained to the contrary, no powers enumerated or accorded to
trustees generally pursuant to law shall be construed to enable
the Grantor, or the Trustees or either of them, or any othe