Real Estate Law Assignment
_________________________TRUST AGREEMENT
TRUST AGREEMENT, made July ___, 2016, between _________________________________, of Miami Dade County, Florida, a citizen of the United States, the Settlor, who will be referred to in the first person, and _________________________________, who will be referred to, along with his successors, as the trustees.
ARTICLE I
Name of Trust
I hereby transfer to the trustees the property described in the schedule attached as "Exhibit A," on the terms and conditions set forth in this agreement. With the consent of the trustees, additional property may be transferred from time to time to this trust estate by me or by any other person, and that property shall be held and disposed of on the same terms and conditions as the property originally transferred. This trust shall be known as _________________________________ LIVING TRUST.
ARTICLE II
Dispositive Provisions During My Life
During my lifetime, the trustees shall pay to me or for my benefit as much of the net income or principal of the trust estate as I may request. In addition, I shall be entitled to full use and possession of any non-income-producing real estate owned by the trust. I further reserve the right to reside upon any property placed in this trust as my permanent residence, referred to hereafter as my homestead, during my life, it being the intent of this provision to preserve my requisite beneficial interest and possessory right in and to such real property, to comply with Sections 196.031 and 196.041 of the Florida Statutes, such that my possessory right constitutes in all respects, "equitable title to real estate," as the term is used in Section 6, Article 7 of the Constitution of the State of Florida. In the event of my incapacity or incompetence, my trustees shall distribute for my benefit as much of the net income or principal of the trust estate as may be necessary to ensure my health and support.
My incapacity or incompetence, as that term is used in this agreement, shall be considered to have occurred if any successor trustee receives written proof that
a. my personal physician has determined that, for any cause, I am unable to properly care for myself or for my property, or
b. I have been adjudicated incapacitated or incapable of managing my financial affairs by a judge of a circuit court of the State of Florida or by a court of competent jurisdiction in the state in which I then reside.
ARTICLE III
Payment of Taxes and Expenses After Death
On and after my death, and assuming no estate of mine is probated, my trustees shall prepare and file, or cause to be prepared and filed, the federal estate tax return and any other tax returns as may be necessary, and they shall pay the taxes due and payable on my taxable estate, together with all of my just debts and funeral expenses. In the event that it is necessary to probate my estate, my trustees shall pay and distribute from the trust estate to the personal representatives of my estate, as promptly as is convenient, on the written request or certificate of the personal representatives, the sum or sums as may be required by the personal representatives with which to pay debts, funeral expenses, administration expenses, and estate or inheritance taxes due and payable by my estate.
Notwithstanding the direction above to my trustees to be responsible for the payment of my estate taxes, I intend and direct that any estate, inheritance, or death taxes due as a result of my death shall be apportioned in accordance with the applicable provisions of Florida and federal law. Furthermore, notwithstanding the direction above that my trustees pay my just debts and funeral expenses, in the event that no estate of mine is probated and that my trustees pay and distribute to the personal representatives of my estate the sums that my personal representatives may require to pay my debts, funeral expenses, or administrative expenses, if it is necessary to probate my estate, property held or received by my trustees, to the extent that the property would not have been subject to claims against my estate if it had been paid directly to a trust created under my will, or other than to my estate, or assets received from a trust other than a trust described in F.S. 733.707, shall not be considered assets of this trust available for the payment of expenses of administration, funeral expenses, or enforceable claims against my estate.
ARTICLE IV
Dispositive Provisions After Death
As soon after my death as is reasonably practicable, but after payment of or provision for debts and expenses as provided in Article III, the remaining trust estate shall be divided and distributed outright and free from further trust to "____________________________________, my children, in approximately equal shares as they may agree, or lacking agreement, as determined by my personal representative". In the event any of the beneficiaries should predecease me, his or her share shall be divided and distributed among his or her descendants who survive me, in equal shares per stirpes, or, if none, among my descendants who survive me, in equal shares per stirpes".
If any beneficiary entitled to a final distribution of my trust estate has not attained age _________________________________, his or her share shall vest but shall be held for his or her benefit until he or she attains age _________________________________ or dies sooner, at which time final distribution shall be made to him or her or to his or her estate; and, in the meantime, my trustees shall pay those sums to that person or those persons at those times as considered necessary or advisable for his, her, or their health, education, or support. Any net income accumulated shall be added to the principal.
ARTICLE V
Powers of Trustees
In the administration of any trust established hereunder, my trustees shall have the following powers:
a. To retain any property I may contribute to this trust, either during my life or at my death, or to sell, exchange, or otherwise dispose of the property, at public or private sale, without application to court, on any terms, including the extension of credit, which they consider advisable.
b. To acquire, by purchase or otherwise, any property, real or personal, without being limited by any provision of law that restricts investments by fiduciaries and without regard to any principles of diversification, including, but not limited to, common and preferred stocks, bonds, mutual funds, common trust funds, general or limited partnership interests, secured and unsecured obligations and mortgages; or to sell, exchange, or otherwise dispose of the property, at public or private sale, without application to court, on any terms, including the extension of credit, which they consider advisable.
c. To acquire and pay for, exercise, or sell any options or subscription rights in connection with securities or any other property.
d. To hold securities in the names of nominees or in bearer form.
e. To operate, repair, alter, improve, insure, grant options on, mortgage, partition, or lease for any period of time any real property or interest in real property held by them.
f. To retain and pay, as an expense of administration, appraisers, accountants, attorneys, investment advisors, and other assistants, and to delegate discretionary and nondiscretionary investment management authority.
g. To borrow money from any source and for any purpose, including, but not limited to, the payment of taxes, and to pledge or mortgage any assets held by them as security for money borrowed.
h. To make distributions from any trust created hereunder in cash, in kind, or partly in each, and to allocate property other than ratably.
i. To hold property of separate trusts in common investments for the convenience of investment or administration.
j. To enter into contracts or agreements or to compromise or settle any debts, claims, or controversies as they consider necessary or advisable.
k. To vote personally or by proxy any share of stock held by them.
My trustees may act freely under all of the powers given to them after forming their judgment concerning the wisest and best course to pursue based on all of the circumstances, without the necessity of obtaining the consent or approval of any interested person or any court, and notwithstanding that they may be interested in connection with the same matters in other capacities.
The powers granted to the trustees shall be considered to be supplementary to, and not exclusive of, the general powers of trustees according to law and shall include all powers necessary to carry the same into effect.
ARTICLE VI
Disabled Beneficiaries
Whenever any asset of any trust established under this agreement is required to be paid to a minor, a person under legal disability, or a person not adjudicated incapacitated but who, by reason of illness or mental or physical disability, is unable, in the opinion of my trustees, to properly administer the property, payment thereof may be made
a. directly to the beneficiary;
b. to the legally appointed guardian of the person or guardian of the property of the beneficiary;
c. to some near relative of the beneficiary, to be applied for the benefit of the beneficiary;
d. directly for the benefit of the beneficiary; or
e. to a custodian for a minor beneficiary under the Florida Uniform Transfers to Minors Act.
ARTICLE VII
Spendthrift Clause
The interests of the beneficiaries are held subject to a spendthrift trust. I direct that none of the assets or income of the trusts established in this agreement shall be subject to or liable for any of the debts, contracts, engagements, or taxes of any of the beneficiaries under this trust, nor shall the same be liable to execution, attachment, or any other legal process whatsoever at the suit of any creditor or otherwise, nor shall the same be subject to assignment, transfer, or anticipation; but all payments of principal and income as provided in this agreement shall be made by my trustees to the beneficiaries designated in accordance with the provisions of this agreement. Provided, however, that nothing in this article shall prevent a beneficiary at any time from disclaiming or renouncing his or her interest in any trust created hereunder and, in the event of a renunciation or disclaimer, the beneficiary shall be treated as if he or she died on the effective date of the renunciation or disclaimer.
ARTICLE VIII
Simultaneous Death Clause
Notwithstanding anything in this agreement or in any statute to the contrary, if any beneficiary and I die under any circumstances in which there is insufficient evidence to prove who died first or insufficient evidence to prove that we died otherwise than simultaneously, or if any beneficiary survives me but dies within 90 days of my death, for purposes of this trust, that beneficiary shall be considered to have predeceased me.
ARTICLE IX
Principal and Income Determinations
On the death of any income beneficiary of a trust created under this agreement, including myself, any accrued but unpaid income shall be distributed as income to the next succeeding beneficiary. Otherwise, in determining whether receipts and disbursements are allocated to principal or income, the trustees shall be governed by the principal and income law of Florida, as it may have been amended at the time of determination.
ARTICLE X
Revocability
I retain the following rights and powers:
a. The right to revoke this agreement and the trusts created in it by a writing delivered to the trustees.
b. The right to revoke this agreement and the trusts created in it with respect to any funds, securities, or other property held by the trustees and to require the same to be paid over, assigned, and delivered to me, free from trust, by writing delivered to the trustees.
c. The right and power to amend, change, and supplement this agreement by written agreement between me and the trustees, executed in like manner as this Trust Agreement.
d. The right and power to remove any trustee serving under this agreement, without cause, by a writing delivered to the trustees, and to appoint a successor trustee.
ARTICLE XI
Trustees
On the death, incapacity, or incompetence (as defined in Article II) of me or any successor to me, or in the event that I or any successor to me resigns or fails or ceases to serve as trustee for any other reason, the following in the following order shall serve automatically as successor trustee:
a. _________________________________________
___________________________________
___________________________________
b. ____________________Family Trust Agreement
_______________________________________
_______________________________________
Any corporate trustee shall be entitled to reasonable compensation for its services as trustee, in accordance with its published schedule of fees in effect at the time compensation is paid.
Any successor trustee shall serve with all the powers, discretions, and immunities granted in this document to my trustees, shall have no duty to investigate or inquire into the acts of a former trustee, and shall have no liability for the acts or omissions of a former trustee.
ARTICLE XII
Miscellaneous
This Trust Agreement is a Florida contract, and it shall be construed according to and be governed by the laws of the State of Florida.
The headings used herein are intended solely for use as reference and are not intended to be a part of this agreement.
Florida law may impose duties and responsibilities on a trustee in addition to those described in this Trust Agreement.
When necessary or appropriate to the meaning in this agreement, the singular and plural are interchangeable, and words of any gender include all genders.
IN WITNESS WHEREOF, the trustee and I have duly executed this Trust Agreement the day and year first written on the first paragraph of this document.
_________________________________
Settlor
_________________________________
Trustee
We certify that the above instrument was signed willingly, published, and declared by _________________________________ as his TRUST AGREEMENT in our joint presence, and at his request we have signed our names as attesting witnesses in his presence and in the presence of each other on July ___, 2016.
Witness
Witness
STATE OF FLORIDA
COUNTY OF MIAMI DADE
I, _________________________________, as settlor and trustee, declare to the officer taking my acknowledgment of this instrument, and to the subscribing witnesses, that I signed this instrument as my Trust Agreement.
_________________________________
Settlor and Trustee
We, _____________________________ and __________________________________, have been sworn by the officer signing below, and declare to that officer on our oaths that the Settlor declared the instrument to be his Trust Agreement and signed it in our presence and that we each signed the instrument as a witness in the presence of the Settlor and of each other.
Witness
Witness
Acknowledged and subscribed before me by _________________________________, as settlor and trustee, who is personally known to me or who has produced ________________________________ as identification, and sworn to and subscribed before me by the witnesses, _____________________________ who is personally known to me or who has produced _______________________ as identification and __________________________________ who is personally known to me or who has produced ______________________ as identification, and subscribed by me in the presence of the settlor and the subscribing witnesses, all on July ___, 2016.
Notary Public - State of Florida