IRREVOCABLE TRUST AGREEMENT

(Connecticut – Draft Template)

[// GUIDANCE: This template is drafted to comply with the Connecticut Uniform Trust Code (“CT-UTC”) (Conn. Gen. Stat. § 45a-499c et seq.) and the Connecticut Uniform Prudent Investor Act (“CT-UPIA”) (Conn. Gen. Stat. § 45a-541 et seq.). Verify citations against current official statutes before final execution.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
    1. Creation; Name; Purpose
    2. Irrevocability & Limited Modification
    3. Funding & Additions
    4. Distributions & Beneficial Interests
    5. Spendthrift & Creditor Protection
    6. Tax Matters
    7. Trustee Powers
    8. Trustee Duties
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default, Removal & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

This IRREVOCABLE TRUST AGREEMENT (the “Agreement”) is made and entered into on [EFFECTIVE DATE] (the “Effective Date”) by and between:

• [SETTLOR LEGAL NAME], residing at [SETTLOR ADDRESS] (the “Settlor”); and
• [TRUSTEE LEGAL NAME], with principal address at [TRUSTEE ADDRESS] (the “Trustee”).

Recitals
A. Settlor desires to create an irrevocable trust under the laws of the State of Connecticut for the benefit of the persons identified herein.
B. Trustee is willing to accept the trusteeship and to hold, manage, and distribute the Trust Estate pursuant to the terms and conditions set forth herein.
C. The parties intend that this Trust shall be governed by the Connecticut Uniform Trust Code and other applicable Connecticut law.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, the parties agree as follows:

II. DEFINITIONS

For purposes of this Agreement, capitalized terms have the meanings set forth below. Any term used but not defined herein shall have the meaning assigned under the CT-UTC.

“Accountings” – The periodic written reports described in Section 8.4.
“Beneficiary” – Each person or entity identified in Schedule A or otherwise entitled to current or future distributions of income or principal.
“Code” – The Internal Revenue Code of 1986, as amended.
“CT-UTC” – The Connecticut Uniform Trust Code, Conn. Gen. Stat. § 45a-499c et seq.
“Distribution Committee” – [IF APPLICABLE] The committee appointed under Section 4.3.
“Fiduciary Duty” – The standard of care imposed by Conn. Gen. Stat. §§ 45a-541 to -541l (CT-UPIA) and § 45a-499c et seq.
“Qualified Beneficiary” – As defined in Conn. Gen. Stat. § 45a-499c(13).
“Trust” – The irrevocable trust created hereby, to be known as “[TRUST NAME],” together with all property held from time to time hereunder.
“Trust Estate” – All assets, income, and proceeds subject to this Agreement.
“Trustee” – The person or entity acting as trustee hereunder, including any successor trustee.

[// GUIDANCE: Insert additional defined terms as necessary (e.g., “Grantor Trust,” “GST Exemption”). Always update cross-references.]

III. OPERATIVE PROVISIONS

1. Creation; Name; Purpose

1.1 Creation. Settlor hereby transfers, conveys, and delivers to Trustee the property described in Schedule B (the “Initial Corpus”), receipt of which Trustee acknowledges, to hold in trust upon the terms herein.
1.2 Name. The Trust shall be known as “[TRUST NAME]” and may be referred to as such in all dealings.
1.3 Purpose. The Trust is established (a) to provide for the health, education, maintenance, and support of the Beneficiaries; (b) to facilitate multigenerational wealth transfer consistent with applicable tax laws; and (c) to shield assets from the Settlor’s and Beneficiaries’ creditors to the maximum extent permitted by law.

2. Irrevocability & Limited Modification

2.1 Irrevocability. This Trust is irrevocable. Settlor expressly waives all rights, whether statutory or equitable, to revoke, amend, or modify this Agreement, except as specifically permitted in Section 2.2.
2.2 Limited Modification Mechanisms.
(a) Nonjudicial Settlement. The Trustee and all Qualified Beneficiaries may, by unanimous written agreement, modify administrative (but not dispositive) provisions pursuant to Conn. Gen. Stat. § 45a-499hh, provided no such modification contravenes a material purpose of the Trust.
(b) Court Approval. Upon petition by Trustee or Beneficiaries, a Probate Court of competent jurisdiction may modify or terminate the Trust as authorized by Conn. Gen. Stat. § 45a-499i, subject to the Trust’s spendthrift protections.
(c) Power of Appointment. Settlor reserves no power of appointment unless expressly stated in Schedule C.
[// GUIDANCE: Delete or expand sub-sections depending on desired flexibility.]

3. Funding & Additions

3.1 Additional Contributions. Any person, including Settlor, may transfer additional property to the Trust, provided such property is acceptable to Trustee and is accompanied by written confirmation of intent to incorporate into the Trust Estate.
3.2 Characterization. All additions shall be held subject to the terms of this Agreement without further act.

4. Distributions & Beneficial Interests

4.1 Distribution Standard. Trustee may distribute income and principal, in Trustee’s sole and absolute discretion, for the health, education, maintenance, and support (“HEMS”) of any Beneficiary.
4.2 Mandatory Terminating Distribution. Upon the death of the last surviving Beneficiary listed in Schedule A, Trustee shall distribute the remaining Trust Estate to [REMAINDER BENEFICIARY / CHARITABLE ORG] free of trust.
4.3 Distribution Committee. [OPTIONAL] A committee comprising [NUMBER] members, appointed per Schedule D, shall direct Trustee’s discretionary distributions.
4.4 Beneficiary Rights.
(a) Information Rights. Trustee shall provide Accountings at least annually to each Qualified Beneficiary, consistent with Conn. Gen. Stat. § 45a-499oo.
(b) Enforcement. Each Beneficiary has standing to petition the Probate Court for relief under CT-UTC §§ 45a-499jj–qq for breach of trust.
[// GUIDANCE: Tailor to desired beneficiary access—more stringent privacy, if needed, by limiting disclosures only to current distributees.]

5. Spendthrift & Creditor Protection

5.1 Spendthrift Clause. The interest of any Beneficiary shall not be subject to voluntary or involuntary transfer, assignment, pledge, or seizure by creditors, and no Beneficiary shall have power to anticipate or encumber distributions.
5.2 Exception Creditors. This provision does not restrict claims by the Connecticut Department of Social Services or other exception creditors as defined in CT-UTC § 45a-499pp.

6. Tax Matters

6.1 Intent. The Trust is intended to be treated as [SELECT: a “grantor trust” / “non-grantor trust”] for federal income tax purposes under Code §§ 671–678.
6.2 Tax Identification. Trustee shall obtain a separate EIN unless the Trust is a grantor trust and Settlor’s SSN is permissible.
6.3 Gift & Estate Tax. Settlor acknowledges that transfers to this Trust constitute completed gifts for federal and Connecticut gift-tax purposes and that the Trust assets will be excluded from Settlor’s gross estate, subject to retained powers, if any.
6.4 Generation-Skipping Transfer Tax. Trustee shall allocate available GST exemption to minimize transfer taxes, as directed in Schedule E.
6.5 Tax Reporting. Trustee shall file all required federal and state fiduciary income tax returns and shall provide K-1s or equivalent statements to each Beneficiary.

7. Trustee Powers

Subject to fiduciary duties imposed by law, Trustee shall have all powers necessary or advisable to manage the Trust Estate, including the illustrative powers in Schedule F, which incorporate by reference Conn. Gen. Stat. § 45a-499kk.

8. Trustee Duties

8.1 Standard of Care. Trustee shall administer the Trust in good faith, in accordance with its terms and the prudent investor rule under CT-UPIA.
8.2 Delegation. Trustee may delegate investment functions consistent with Conn. Gen. Stat. § 45a-541b, retaining oversight responsibilities.
8.3 Bond. [REQUIRED / WAIVED]
8.4 Accountings. Trustee shall deliver annual Accountings within 90 days of fiscal year-end and upon termination or change of trustee.
8.5 Compensation & Reimbursement. Trustee may receive reasonable compensation and reimbursement for expenses incurred.

IV. REPRESENTATIONS & WARRANTIES

4.1 Settlor Representations. Settlor represents and warrants that:
(a) Capacity. Settlor is of legal age, has full capacity, and is not under duress or undue influence.
(b) Title to Assets. Settlor owns the Initial Corpus free of liens or adverse claims.
(c) Tax Advice. Settlor has obtained, or has had the opportunity to obtain, independent tax and legal advice.

4.2 Trustee Representations. Trustee represents and warrants that:
(a) Authority. Trustee is duly qualified and, if an entity, in good standing under the laws of its organization jurisdiction.
(b) Acceptance. Trustee accepts the trust and agrees to perform its duties hereunder.
(c) No Conflict. Execution of this Agreement does not violate any agreement or legal obligation binding on Trustee.

V. COVENANTS & RESTRICTIONS

5.1 Ongoing Covenants of Trustee. Trustee shall:
(a) Maintain Trust records in accordance with GAAP or other recognized fiduciary accounting standards.
(b) Comply with all applicable federal, state, and local laws, including securities regulations applicable to Trust investments.
(c) Provide notice to Beneficiaries within 30 days of any change in principal place of administration.

5.2 Negative Covenants. Trustee shall not:
(a) Engage in self-dealing or transactions that create conflicts of interest, except as permitted under CT-UTC § 45a-499ll and with required disclosures.
(b) Loan Trust assets to Settlor, Trustee, or Beneficiaries except on market terms and with documented approval per Section 5.3.
(c) Make investments expressly prohibited in Schedule G.

[// GUIDANCE: Insert environmental, ESG, or faith-based investment filters if applicable.]

VI. DEFAULT, REMOVAL & REMEDIES

6.1 Events of Default. “Default” means:
(a) Trustee’s breach of Fiduciary Duty resulting in material loss;
(b) Failure to render Accountings within prescribed time;
(c) Insolvency, bankruptcy, or incapacity of Trustee; or
(d) Violation of court order pertaining to the Trust.

6.2 Notice & Cure. Qualified Beneficiaries may issue written notice specifying the Default. Trustee has 30 days to cure, or such longer period as is reasonable if cure is commenced within 30 days and diligently pursued.

6.3 Remedies. If Default is uncured, Beneficiaries may:
(a) Petition Probate Court for removal or surcharge;
(b) Seek injunctive relief under Section 8.3;
(c) Compel an accounting or restitution.

6.4 Successor Trustee Appointment. Upon removal, resignation, or death of Trustee, the successor selected in Schedule H shall assume office after (i) acceptance in writing and (ii) filing required bond, if any.

VII. RISK ALLOCATION

7.1 Indemnification of Trustee. Trustee and its agents shall be indemnified out of the Trust Estate against any liability or expense, including reasonable attorneys’ fees, incurred by reason of any action taken in good faith and in accordance with this Agreement, except arising from gross negligence, willful misconduct, or bad faith.

7.2 Limitation of Liability. In no event shall Trustee be personally liable for obligations of the Trust; liability shall be limited to the value of the Trust Estate.

7.3 Insurance. Trustee may purchase fiduciary liability insurance, premiums payable from the Trust.

7.4 Force Majeure. Trustee shall not be liable for failure to act due to events beyond its reasonable control, including natural disasters, governmental action, or market disruptions.

VIII. DISPUTE RESOLUTION

8.1 Governing Law. This Agreement and all rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of Connecticut, without regard to conflicts-of-law principles.

8.2 Exclusive Forum. Except as provided in Section 8.4, any judicial proceeding relating to the Trust shall be brought exclusively in the [PROBATE DISTRICT] Probate Court, State of Connecticut.

8.3 Injunctive Relief. The right to seek temporary, preliminary, and/or permanent injunctive relief to enforce the terms of this Trust is preserved notwithstanding any alternative dispute mechanism.

8.4 Arbitration (Optional).
[CHECK ONE]
☐ Included. Any dispute not subject to exclusive Probate Court jurisdiction shall be resolved by binding arbitration under the Commercial Rules of the American Arbitration Association, held in [CITY], Connecticut. The arbitrator shall be required to apply Connecticut trust law, and judgment on the award may be entered in any court of competent jurisdiction.
☐ Omitted. (Default)

[// GUIDANCE: Connecticut law does not presently mandate or prohibit trust arbitration. Obtain client consent and confirm enforceability.]

IX. GENERAL PROVISIONS

9.1 Amendment & Waiver. Except as permitted in Section 2.2, no amendment or waiver of any provision shall be effective unless in a writing executed by Trustee and all Qualified Beneficiaries, and, where required, approved by the Probate Court.

9.2 Assignment. No party may assign rights or delegate duties except as expressly permitted herein or by law.

9.3 Successors & Assigns. This Agreement shall bind and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, and assigns.

9.4 Severability. If any provision is held invalid, the remaining provisions shall remain in full force, and the court shall reform the Agreement to effectuate the Settlor’s intent.

9.5 Integration. This Agreement, together with all Schedules, constitutes the entire agreement regarding the Trust and supersedes all prior understandings.

9.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each deemed an original. Signatures delivered by electronic means shall be deemed effective to the same extent as originals.

9.7 Headings. Headings are for convenience only and shall not affect interpretation.

X. EXECUTION BLOCK

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

TRUSTEE ACCEPTANCE

The undersigned hereby accepts the trusteeship of “[TRUST NAME]” and agrees to perform all duties and obligations imposed herein.

| _____ |
| [TRUSTEE NAME], Trustee |
| Date: _______ |

NOTARIZATION

State of Connecticut )
County of _ ) ss. [CITY], on this ___ day of _, 20__, before me, the undersigned, personally appeared _______, known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged that he/she/they executed the same for the purposes therein contained.

| _____ |
| Notary Public |
| My Commission Expires: _______ |

[// GUIDANCE: Connecticut generally does not require witnesses for trusts unless dealing with testamentary documents; confirm client preference or institutional policies.]

SCHEDULES (Attach as Needed)

• Schedule A – Beneficiaries & Remainder Beneficiaries
• Schedule B – Initial Corpus Description
• Schedule C – Reserved Powers of Appointment (if any)
• Schedule D – Distribution Committee Charter
• Schedule E – GST Exemption & Tax Allocation Directions
• Schedule F – Detailed Trustee Powers Listing
• Schedule G – Prohibited Investments & ESG Guidelines
• Schedule H – Successor Trustee Designations

[// GUIDANCE: Always verify asset retitling, beneficiary designations, and insurance/retirement account alignment to avoid inadvertent inclusion of non-trust assets.]