Irrevocable Trust Agreement cannot be revoked or changed
Date:
________________________________________________________________________________________________________(herein referred to as .the GRANTOR.)
And
___________________________________________________________________________________________
(herein referred to as .the TRUSTEE)
In consideration of the mutual covenants and promises set forth herein, Grantor and Trustee agree as follows:
1. Transfer of Trust. Grantor herewith assigns, transfers, and conveys to Trustee the property described in Exhibit .A. attached hereto and made a part hereof by this reference, and receipt of such property is hereby acknowledged by Trustee. Such property, hereafter designated the Trust Estate, shall be held by Trustee in Trust for the uses and purposes and on the terms and conditions set forth herein.
2. Disposition of Principal and Income. Trustee shall administer and manage the Trust Estate, collect the income therefrom, and after payment of all taxes and assessments thereon and all charges incident to the management thereof, apply and dispose of the net income and the principal of the Trust Estate as follows: [names and addresses of beneficiaries] ............................................................................................................................................................................................................................................................................................................................
3. Additions to Trust. Grantor and any other person shall have the right at any time to add property acceptable to Trustee to the this Trust. Such property, when received and accepted by Trustee, shall become part of the Trust Estate.
4. Irrevocability of Trust. This trust shall be irrevocable and shall not be revoked or terminated by Grantor or any other person, nor shall it be amended or altered by Grantor or any other person.
5. Compensation of Trustee : The original Trustee hereunder, and all Successor Trustees, shall be entitled to reasonable compensation for their services as Trustee.
6. Successor Trustees : If [name] [Original Trustee] resigns or is unable to continue to act as Trustee, [name] [Successor Trustee], of [address], is hereby appointed as successor Trustee.
7. Governing Laws : The validity, construction, and effect of this agreement and the Trust created hereunder and its enforcement shall be determined by the laws of India.
IN WITNESS WHEREOF, Grantor and Trustee have executed this Agreement on the date above written.
Grantor Trustee
Witness 1 Successor Trustee
Witness 2
The foregoing instrument was acknowledged before me this [day] day of [month], [year] by [name] [Grantor], [Name] [Trustee], and [name] [Successor Trustee].
Notary Public......................................
Date :
Exhibit A
[Listing of property included in this agreement]
Revocable Living Trust Agreemet for an Individual
[Note: This creates a trust for the lifetime use of (e.g. a single person) as Grantor with both the Grantor and a Third Party as Co-Trustees. Upon the death of the individual, property in the trust goes to any person specified in the trust.]
This Revocable Living Trust Agreement is made this (day) day of (month), (year), BETWEEN (name), of (address), herein referred to as Grantor, AND (name), of (address), herein referred to as trustees.
WHEREAS, grantor is now the owner of the property described in Exhibit A attached hereto and made a part hereof, AND WHEREAS, grantor desires to make provision for the care and management of such property, and the collection of the income therefrom, and the disposition of both such income and such property in the manner herein provided:
NOW, THEREFORE, for the reasons set forth above, and in consideration of the mutual covenants set forth herein, grantor and trustees agree as follows:
1. Transfer of Property : Grantor, in consideration of the acceptance by trustee of the trust herein created, doth hereby convey, transfer, assign, and eliver to trustees, their successors in trust and assigns, the property described in Exhibit A attached hereto and made a part hereof, by this reference, which property, together with all other property that may from time to time be held by trustees hereunder, is herein referred to as. Trust Estate.. Grantor, and any other persons shall have the right at any time to add property acceptable to trustees to this trust and such property, when received and accepted by trustees, shall become part of the trust estate.
2. Disposition of Income and Principal : Trustees shall care for and manage the trust estate and collect the income derived therefrom, and, after the payment of all taxes and assessments thereon and all charges incident to the management thereof, dispose of the net income therefrom and corpus thereof, as follows:
a. During the lifetime of grantor the trustees may Pay income of the trust estate and such portions of the principal as the grantor from time to time may direct to the grantor, or otherwise as he/she directs during his/her life. After the death of the grantor the successor trustee shall distribute the trust estate to the following beneficiary or beneficiaries who shall survive me: (names and addresses) ............................................................................................................................................................................................................................................................................................................................
b. The share of any beneficiary who shall be under the age of (age) years shall not be paid to such beneficiary but shall instead be held in trust to apply to his/her use all the income thereof, and also such amounts of the principal, even to the extent of all, as the trustee deems necessary or suitable for the support, welfare, and education of such beneficiary; and when he/she attains the age of (age) years, to pay him/her the remaining principal, if any.
c. If any beneficiary for whom a share is held in trust should die before having received all the principal thereof, then upon his/her death the remaining principal shall be paid to his/her then living child or children, equally if more than one, and in default thereof, to the then living descendants of the grantor, per stripes. No interest hereunder shall be transferable or assignable by any beneficiary, or be subject during his or her life to the claims of his or her creditors.
d. Notwithstanding anything herein to the contrary, the trusts hereunder shall terminate not later than twenty-one (21) years after the death of the last beneficiary name herein.
3. Revocation and Amendment : The grantor may, by signed instrument delivered to the trustee, revoke the trusts hereunder, in whole or in part, or amend this Agreement from time to time in any manner.
4. Successor Trustees : In the event of the death or incapacity of both trustees, I hereby nominate and appoint as successor trustee (name) and (address). In the event the successor trustee does not serve I appoint whoever shall at the time be the first designated beneficiary hereunder. The trustees and their successors shall serve without bond.
5. Trustees. Acceptance : This trust has been accepted by trustees and will be administered in [Name of jurisdiction] and its validity, construction, and all rights thereunder shall be governed by the laws of India.
IN WITNESS WHEREOF, Grantors and Trustees have executed this Agreement on the date above written.
Grantor Trustee
Witness 1 Trustee
Witness 1 Witness 2
Sworn to and subscribed before me this (day) day of (month), (year).
Exhibit A
(Listing of property included in this agreement)
Transfer of property to trustee for benefit of creditors This agreement made at...., on..... [date], by........
of......., referred to as debtor, and...... of......., referred to as trustee, and the several creditors of debtor who shall accede in writing to this agreement, called creditors, as follows:
1. Debtor, being heavily indebted and unable to pay his [her) debts promptly and fully, for the considerations appearing in this agreement, sells, assigns, conveys and sets over to trustee all and singular the stock of merchandise, being all the merchandise of every nature, kind and description pertaining to and being in or about the business and store building now operated by debtor, more commonly known as....... [location], together with all debtor.s fixtures in and about the building and pertaining to the business, and including the goodwill of the business. All accounts and bills receivable, and all credits of any kind pertaining to the business and belonging to debtor are given to trustee on the trust and subject to the provisions and agreements set out below, all of which provisions are of the essence of this agreement.
2. Debtor shall sign all reasonable and necessary written instruments and do all similar things that trustee may deem necessary or advisable to fully carry out the purposes for which this agreement is made.
3. Trustee shall take possession of the business, property, accounts and bills receivable, and credits conveyed on trust; collect and compel payment of all credits; sell and convert into money the business and all property of debtor; and shall take possession of all moneys that come into his [her] hands under and by virtue of this agreement on trust.
4. Trustee shall pay and retain out of moneys all costs, charges and expenses of or incidental to the negotiations, preparation and execution of this agreement, and of the carrying of the agreement into effect.
5. Trustee shall pay, divide and distribute the residue of the moneys rateably among the creditors in discharge of their debts, by instalments, and at such times as trustee may deem necessary in carrying out his [her] duties.
6. Trustee may in his [her] discretion carry on the business which debtor has carried on with the view of a gradual winding up, instead of immediately selling the business. For this purpose trustee may employ one or more persons to assist him [her], including debtor, if he [she] deems it advisable, and may pay these persons out of the trust moneys such wages as shall seem right to trustee. For this purpose, trustee may from time to time at the expense of the trust estate procure such stock in trade, materials and articles as he [she] shall deem fit for the purpose of carrying on the business, but the carrying on of the business or the winding up of the business by trustee shall not cause of create any future or additional liability as against debtor. Trustee shall apply the net receipts of carrying on the business in like manner as provided above in reference to the trust money.
7. The fees of trustee shall be the same as those of a trustee in bankruptcy under similar circumstances.
8. Creditors shall accept their distributive share under this agreement as paid to them by trustee in full and complete satisfaction of each of their several demands of every kind and nature against debtor.
9. In the event that all creditors, save and except not more than Rs....... in amount, do not accede in writing to this agreement within...... days from this date, then if debtor in writing notifies trustee, trustee shall immediately reconvey the property to debtor; but if all creditors, save and except not more than Rs..... in amount, shall within... days fron this date execute and deliver to debtor a written release of debtor from any and all liability of every kind and nature for and on account of any and all demands creditors now have against debtor, then debtor may not rescind this agreement in whole or in part but this agreement and conveyance shall be absolute.
10. Creditors assenting to this agreement shall be entitled to receive dividends under this agreement in respect to all debts due to them respectively, which would have been provable in bankruptcy, and on the amounts for which they would have been so provable.
11. Claims of creditors duly verified shall be filed with trustee in connection with a written assent to this agreement.
12. Trustee shall deliver to each of the creditors and to debtor a list of the creditors and their respective claims filed with him [her] as provided in this agreement.
13. Any money over and above that required to pay the expenses and debts provided for, shall be paid rateably to the several creditors who have assented to this agreement and who shall release debtor.
[Date]
[Signature of debtor]
The undersigned, on............... [date], accepts the trusts created above, and agrees to abide by the terms and conditions of the trust.
[Signature of trustee]
The following creditors agree to and subscribe the above agreement, and present or will present to trustee their claims against debtor within.......
[Signatures]
