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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.
I.
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)
II.
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)
III.
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.
IV.
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.
V.
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.
VI.
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.
VII.
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)_____.
VIII.
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.
Litigation
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.
IX.
No bond for the faithful performance of duties shall be required of any
Trustee appointed under this agreement.
X.
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.
XI.
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.
XII.
The Trustee, by joining in the execution of this agreement, hereby
signifies his acceptance of this trust.
XIII.
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.
XIV.
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
__________(9)__________
__________(9)__________ __________(11)___________
__________(9)__________
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.
___________(18)___________
My Commission Expires:______(19)_____
NOTICE
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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