A trust agreement is a legal document that sets out the terms and conditions of a trust. The following are some of the key provisions that may be included in a trust agreement:
- Trustee: The name of the trustee or trustees who will be responsible for managing the trust assets and making distributions to the beneficiaries.
- Beneficiaries: The names of the beneficiaries who will receive the income and principal of the trust.
- Purpose: The purpose of the trust, such as providing for the education of children or caring for a disabled family member.
- Assets: A description of the assets that will be transferred to the trust, such as cash, securities, or real estate.
- Distribution of Income and Principal: The terms and conditions for making distributions of income and principal to the beneficiaries, including the frequency of distributions and the circumstances under which distributions may be made.
- Duration of the Trust: The length of time the trust will continue and under what circumstances it may terminate.
- Trust Administration: Procedures for managing the trust, including investment strategies, record-keeping, and accounting.
- Amendment or Revocation: Provisions for amending or revoking the trust agreement.
- Governing Law: The state law that will govern the interpretation and administration of the trust.
- Powers of the Trustee: The powers and authority of the trustee, including the power to make investments, borrow money, and make distributions to the beneficiaries.
- Trustee Compensation: The trustee’s compensation for managing the trust.
It is important to consult with an experienced lawyer when drafting a trust agreement, as the specific provisions may vary depending on the type of trust and the unique circumstances of the trust creator and beneficiaries.
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