IRREVOCABLE TRUST AGREEMENT

(State of Arizona)

[// GUIDANCE: This template is drafted under the Arizona Uniform Trust Code (“AUTC”), Ariz. Rev. Stat. Ann. Title 14, Chapter 11. Customize bracketed placeholders before execution. Remove all guidance comments prior to final signing.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
Schedules

I. DOCUMENT HEADER

1. Parties
   1.1 Grantor / Settlor: [GRANTOR LEGAL NAME], an individual residing at [GRANTOR ADDRESS] (“Grantor”).
   1.2 Trustee: [TRUSTEE LEGAL NAME & CAPACITY] (“Trustee”).
   1.3 Co-Trustee / Successor Trustee (if any): [CO-TRUSTEE NAME].
   1.4 Beneficiaries: Primary and contingent beneficiaries identified in Schedule A (collectively, “Beneficiaries”).

2. Trust Name
   This trust shall be known as “[TRUST NAME] Irrevocable Trust” (the “Trust”).

3. Recitals
   A. Grantor desires to create an irrevocable trust to hold, administer, and distribute the Trust Estate for the benefit of the Beneficiaries.
   B. Grantor is transferring the property described in Schedule B to Trustee upon the terms herein.
   C. Trustee is willing to accept the Trust and hold the Trust Estate subject to this Agreement and the AUTC.

4. Effective Date
   This Agreement is effective as of [MONTH DAY, YEAR] (the “Effective Date”).

5. Governing Law & Jurisdiction
   This Trust is governed by the laws of the State of Arizona relating to trusts, including the AUTC, without regard to conflict-of-laws principles.

II. DEFINITIONS

Unless the context requires otherwise, capitalized terms have the meanings set forth below. Terms defined here are used throughout this Agreement.

“Accountant” – [ACCOUNTING FIRM / CPA], or any successor engaged under § V.2.
“Arizona Probate Court” – The Superior Court of Arizona in the county having jurisdiction over the Trust pursuant to A.R.S. Title 14 (the “Probate Court”).
“Code” – The Internal Revenue Code of 1986, as amended.
“Dispositive Event” – Any event triggering a mandatory distribution under § III.3.
“Investment Advisor” – Any qualified advisor appointed under § V.3.
“Irrevocable” – Grantor’s express waiver of any right, power, or authority to amend, revoke, or terminate the Trust except as specifically allowed under § III.2(c).
“Trust Assets” or “Trust Estate” – All property, tangible or intangible, conveyed to or otherwise acquired by the Trust, together with all earnings and replacements.

[// GUIDANCE: Add or delete defined terms to align with the specific trust structure.]

III. OPERATIVE PROVISIONS

1. Creation and Funding
   (a) Grantor hereby irrevocably transfers to Trustee the property listed in Schedule B.
   (b) Additional property may be added by Grantor or any third party with Trustee’s written consent and schedule amendment.

2. Irrevocability
   (a) Grantor declares this Trust to be irrevocable. No person, including Grantor, may alter, amend, revoke, or terminate this Trust except:
   (i) as permitted by a court under A.R.S. Title 14, Chapter 11, Article 4; or
   (ii) as provided in § III.2(c).
   (b) Grantor expressly relinquishes all retained powers under Treas. Reg. § 20.2036-1 and § 20.2038-1, except as set forth in § III.4 (Tax Elections).
   (c) Limited Administrative Amendments. Trustee may execute amendments to: (1) correct scrivener’s errors, (2) achieve favorable tax classification, or (3) maintain Trust qualification under applicable law, provided no Beneficiary’s vested interest is materially impaired and Probate Court approval is obtained when required.

3. Dispositive Provisions
   [// GUIDANCE: Insert detailed distribution scheme—e.g., mandatory income to Child A, discretionary principal for education, remainder to grandchildren, etc.]
   3.1 Income Distributions. …
   3.2 Principal Distributions (Discretionary). …
   3.3 Mandatory Termination. Upon the earlier of (i) the death of the last surviving Beneficiary listed in Schedule A or (ii) [DATE / EVENT], Trustee shall distribute the remaining Trust Estate per § III.3.4 and wind up the Trust.

4. Tax Provisions
   4.1 Tax Status Election. [ ] Grantor Trust [ ] Non-Grantor Trust (check one).
   4.2 If treated as a grantor trust, Grantor shall report all Trust income, deductions, and credits on Grantor’s individual returns.
   4.3 Trustee shall obtain a separate EIN if the Trust is classified as a non-grantor trust and shall timely file Form 1041.
   4.4 Trustee may make any Code elections reasonably necessary to minimize aggregate tax liability of the Trust and Beneficiaries.

5. Trustee Powers
   In addition to powers granted by law, Trustee has all powers enumerated in A.R.S. § 14-10818, including but not limited to:
   (a) invest and reinvest Trust Assets;
   (b) borrow, encumber, or pledge Trust Assets;
   (c) employ professionals;
   (d) allocate receipts between principal and income; and
   (e) commingle Trust Assets with other trusts having identical terms for investment purposes.

6. Performance Standards & Deadlines
   Trustee shall provide annual accountings to Beneficiaries within 90 days of fiscal year-end (§ V.1).

7. Conditions Precedent / Subsequent
   All gifts to the Trust are conditioned upon the donor’s clear intent that such gifts are irrevocable and subject to this Agreement.

IV. REPRESENTATIONS & WARRANTIES

1. Grantor Representations
   (a) Grantor has full legal capacity to create this Trust and transfer the property listed in Schedule B.
   (b) Assets transferred are free and clear of liens except as disclosed in Schedule B.
   (c) Execution of this Agreement does not violate any court order or agreement binding on Grantor.

2. Trustee Representations
   (a) Trustee is qualified and willing to serve under A.R.S. Title 14.
   (b) Trustee will exercise the standard of care set forth in A.R.S. § 14-10804 (prudent administration).
   (c) Trustee is not currently suspended or disqualified from fiduciary service in any jurisdiction.

3. Survival
   These representations and warranties survive execution and remain in effect for the duration of the Trust.

V. COVENANTS & RESTRICTIONS

1. Accounting & Reporting
   Trustee shall furnish:
   (i) annual accountings per § III.6;
   (ii) tax reports within 30 days after filing; and
   (iii) material event notices within 15 days of occurrence.

2. Engagement of Professionals
   Trustee may engage an Accountant, Investment Advisor, or legal counsel and pay reasonable fees from Trust Assets.

3. Investment Covenant
   Trustee shall invest Trust Assets in a diversified manner consistent with the prudent investor rule (A.R.S. § 14-10902).

4. Beneficiary Information Rights
   Consistent with A.R.S. § 14-10813, qualified Beneficiaries may request and shall receive reasonable information about Trust administration.

5. Prohibited Acts
   Trustee shall not:
   (a) lend Trust Assets to Grantor or Beneficiaries except on market terms;
   (b) commingle Trust Assets with non-trust property, except as permitted by § III.5(e); or
   (c) make speculative investments exceeding prudent investor guidelines.

VI. DEFAULT & REMEDIES

1. Events of Default
   (a) Trustee breach of fiduciary duty;
   (b) Failure to provide required accountings within 60 days after written notice;
   (c) Insolvency or incapacity of Trustee;
   (d) Violation of an express covenant herein.

2. Notice & Cure
   Any Beneficiary may deliver written notice specifying the default. Trustee has 30 days to cure (or 10 days for monetary defaults).

3. Remedies
   (a) Removal and replacement of Trustee by the Probate Court;
   (b) Surcharge against Trustee personally for losses caused by willful misconduct or gross negligence;
   (c) Injunctive relief to prevent dissipation of Trust Assets;
   (d) Attorneys’ fees and costs to the prevailing party, charged against (i) the Trust Estate if Trustee prevails, or (ii) Trustee personally if Trustee is found in breach.

VII. RISK ALLOCATION

1. Indemnification of Trustee
   The Trust Estate shall indemnify and hold Trustee harmless against all claims, liabilities, and expenses (including reasonable attorneys’ fees) arising out of Trustee’s administration, except to the extent caused by Trustee’s gross negligence, willful misconduct, or bad faith.

2. Limitation of Liability
   Trustee’s aggregate liability to all parties is limited to the total value of the Trust Assets under administration at the time liability is determined. No punitive or exemplary damages may be awarded.

3. Insurance
   Trustee may purchase fiduciary liability insurance payable from the Trust Estate.

4. Force Majeure
   Trustee is not liable for failure or delay in performance caused by events beyond reasonable control, including but not limited to natural disasters, war, acts of terrorism, or changes in applicable law that materially affect Trust administration.

VIII. DISPUTE RESOLUTION

1. Governing Law
   Arizona law governs all matters arising under this Agreement.

2. Forum Selection
   Exclusive jurisdiction and venue lie in the Probate Court.

3. Arbitration (Optional)
   [ ] Selected [ ] Not Selected
   If selected, any dispute shall be submitted to confidential, binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. The arbitrator shall have authority to grant equitable relief.

4. Jury Waiver
   The parties acknowledge that probate proceedings are adjudicated without a jury under Arizona law; accordingly, any right to a jury trial is knowingly and irrevocably waived.

5. Injunctive Relief
   Nothing herein limits a party’s right to seek temporary, preliminary, or permanent injunctive relief in the Probate Court to enforce the terms of this Trust.

IX. GENERAL PROVISIONS

1. Amendment & Waiver
   Except as provided in § III.2(c), this Agreement may not be amended or waived except by (i) a writing signed by Trustee and all then-living Beneficiaries, and (ii) Probate Court approval where required.

2. Assignment
   No party may assign rights or delegate duties under this Agreement except as expressly permitted herein or by law.

3. Successors & Assigns
   This Agreement binds and inures to the benefit of all successors, assigns, heirs, and legal representatives of the parties.

4. Severability
   If any provision is held unenforceable, the remaining provisions will be reformed to effectuate the parties’ intent and will remain in full force.

5. Entire Agreement
   This Agreement, together with attached Schedules, constitutes the complete and exclusive statement of the Trust terms.

6. Counterparts & Electronic Signatures
   This Agreement may be executed in counterparts, each of which is deemed an original. Signatures delivered via electronic means (e.g., PDF, DocuSign) are deemed original and binding.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Irrevocable Trust Agreement as of the Effective Date.

NOTARY ACKNOWLEDGMENT

State of Arizona )
County of [__] )

On this ___ day of _, 20_, before me, the undersigned Notary Public, personally appeared ____, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to this instrument and acknowledged that he/she/they executed the same for the purposes therein contained.

Notary Public
My Commission Expires: ______

[// GUIDANCE: Arizona does not mandate witnesses for trusts, but some practitioners add witnesses for evidentiary support. Add witness lines if desired.]

SCHEDULE A – BENEFICIARIES

SCHEDULE B – INITIAL TRUST PROPERTY

SCHEDULE C – NOTICE ADDRESSES

[// GUIDANCE: End of template. Verify consistency of defined terms, cross-references, and statutory citations after customization.]