This Declaration of Insurance Trust is made this
_______ day of _______, 20 _____, by and between _____________,
of _____________, hereinafter called the Trustor,
and _____________, of _____________, 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.
_______________________ _______________________
Trustor _
_______________________
_______________________ _________________________
_______________________
STATE OF __________________)
COUNTY OF _________________)
On this ________ day of ________________, 20 ______,
before me personally came and appeared ________________,
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:_______________
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.
