This post contains Articles Nine of a sample living trust agreement. My clients have asked me the same question frequently. To answer these questions, I dedicated BoomX Show episodes to answering these questions. I video taped the episode with my iPhone in the studio. These short videos are meant to liven up the tutorial with a BoomX feel to it. But, I admit, they are also far from professionally produced. The text of the sample Article is displayed below.
Our Trustee shall hold and administer the Non-Marital Share in a separate trust as provided in this Article. This document refers to the trust as the Family Trust.
The surviving Grantor is the only beneficiary of the Family Trust during the surviving Grantor’s lifetime.
Our Independent Trustee may distribute as much of the income and principal of the Family Trust to the surviving Grantor as our Independent Trustee may determine advisable for any purpose. If no Independent Trustee is then serving, our Trustee shall distribute as much income and principal to the surviving Grantor as our Trustee determines necessary or advisable for the surviving Grantor’s health, education, maintenance or support.
Any undistributed net income must be accumulated and added to principal.
The surviving Grantor is the only beneficiary of the Family Trust. In making discretionary distributions under this Article, our Trustee should bear in mind that our primary concern and objective is to provide for the well-being of the surviving Grantor, and the preservation of principal is not as important as this objective.
Without limiting our Trustee’s discretion, we recommend that our Trustee not distribute principal from the Family Trust to the surviving Grantor until the principal of the Survivor’s Trust is substantially exhausted.
The Family Trust will terminate upon the death of the surviving Grantor and our Trustee shall administer the balance or remainder of the Family Trust as provided herein.