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Declaration of Life Insurance Trust
This Declaration of Insurance Trust is made this __(1)__
day of __(2)__, 19 _(3)_, by and between _____(4)_____, of
_____(5)_____, hereinafter called the Trustor, and _____(6)_____,
of _____(7)_____, hereinafter called the Trustee.
The Trustor, as owner of certain life insurance policy or
policies listed below, and desiring to establish a Life Insurance
Trust, with power in the Trustee upon the death of the Trustor
to purchase assets from Trustor's estate, assigns to the Trustee
all his right, title, and interest in the policy or policies
of insurance, to be held by Trustee in trust, and to receive
the proceeds of the policy or policies of insurance when they
become due and are paid, for the purposes and on the conditions
set forth herein. The Trustor reserves the right to add to
this trust from time to time additional life insurance policies
which, when delivered to the Trustee, shall be held by him
subject to the terms herein.
(Description of Life Insurance policies)
The Trustee is vested with all right, title, and interest
in the life insurance policy or policies, and is authorized
and empowered to exercise and enjoy, for the purposes of the
trust and as absolute owner of the policy of insurance, all
the options, benefits, rights, and privileges under the policy
or policies. The Trustor relinquishes all rights and powers
in the life insurance policy or policies which are not assignable
and will, at the request of the Trustee, execute all other
instruments reasonably required to effectuate this relinquishment.
The trustee shall receive and hold said Life Insurance policies,
together with any additions thereto, in trust for the use
and benefit of:
(List names of Beneficiaries)
Upon the death of the Trustor, the Trustee may, within his
discretion, purchase assets from Trustor's estate at a fair
value. The propriety of the purchase, the amount of such assets
purchased, and the ascertainment of fair value shall be solely
within the discretion of the Trustee, and the Trustee shall
incur no liability as a result of the purchase or purchases
whether or not the assets constitute investments which may
be legally made by Trustee.
If the Trustee uses all or any portion of the proceeds of
the policy of insurance to purchase assets from the estate
of the Trustor, as authorized above, then the net income produced
from the assets, or the proceeds of any sale, exchange, or
reinvestment of the assets, shall be paid to the spouse of
the Trustor during the spouses's lifetime.
If any beneficiary of this trust who is at the time receiving
income would otherwise, in the opinion of the Trustee, be
subject to hardship or suffering, the Trustee shall have the
authority to pay over and distribute, at any time and from
time to time, to the beneficiary the amounts of the principal
of this trust, from which the beneficiary shall then be entitled
to receive income as the Trustee, in his sole discretion,
shall deem necessary to provide for the maintenance, comfort,
support, and medical care of the beneficiary.
This Life Insurance Trust shall be irrevocable and unamendable.
I am aware of the consequences of establishing an irrevocable
trust and hereby affirm that the trust created by this agreement
shall be irrevocable by me or any other person, it being my
intention to make to the beneficiary/beneficiaries named herein
an absolute gift of the Life Insurance policies described
in paragraph I above.
This agreement and the trust created hereby shall be administered,
managed, governed and regulated in all respects according
to applicable statutes of the State of _____(8)_____.
The Trustee, in addition to all other powers granted by this
agreement and by law, shall have the following additional
powers with respect to the trust, to be exercised from time
to time at the Trustee's discretion:
Management of the Trust
To invest and reinvest, lease, rent, mortgage, insure, repair,
improve or sell any of the real and personal property of the
trust as he may deem advisable.
Mortgages, Pledges and Deeds of Trust
To enforce any all mortgages, pledges and deeds of trust
held by the trust and to purchase at any sale thereunder any
such real estate or personal property subject to any mortgage,
pledge of deed or trust.
To initiate or defend, at his discretion, any litigation
affecting the trust.
Attorneys, Advisors and Agents
To employ and pay from the trust reasonable compensation
to such attorneys, accountants, brokers, and investment.,
tax and other advisors as he shall deem advisable.
Adjust of Claims
To submit to arbitration, to compromise or to release or
otherwise adjust with or without compensation, any and all
claims affecting the trust estate.
No bond for the faithful performance of duties shall be required
of any Trustee appointed under this agreement.
The trustee shall receive reasonable compensation for the
services performed by him, but such compensation shall not
exceed the amount customarily received by corporate fiduciaries
in the area for like services.
No Trustee of the trust created by this agreement shall at
any time be held liable for any action or default of himself,
or of his agent, or of any other person in connection with
the administration and management of this trust unless caused
by this own gross negligence or by commission of a willful
act of breach of trust.
The Trustee, by joining in the execution of this agreement,
hereby signifies his acceptance of this trust.
The Trustee shall have sole authority to determine what shall
be defined as income and what shall be defined as principal
of the trust established by this agreement, and to determine
which costs, taxes and other expenses shall be paid out of
income and which shall be paid of out principal.
In the event that any portion of this agreement of the trust
created hereby shall be held illegal, invalid or otherwise
inoperative, it is my intention that all of the other provisions
hereof shall continue to be fully effective and operative
insofar as is possible and reasonable.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement the day and year first above written.
__________(9)__________ __________(10)__________ Trustor
STATE OF _______(12)_______)
COUNTY OF _______(13)______)
On this __(14)__ day of ______(15)______, 19 _(16)_, before
me personally came and appeared ______(17)______, known, and
known to me, to be the individuals described in and who executed
the foregoing instrument, and who duly acknowledged to me
that he executed same for the purpose therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
My Commission Expires:______(19)_____
The information in this document is designed to provide an
outline that you can follow when formulating business or personal
plans. Due to the variances of many local, city, county and
state laws, we recommend that you seek professional legal
counseling before entering into any contract or agreement.
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