IRREVOCABLE TRUST AGREEMENT
(Missouri – Draft Template)
[// GUIDANCE: This template is designed for use under Missouri law. Customize all bracketed fields and carefully review statutory references before execution.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Creation of Trust & Irrevocability
- Trust Estate; Contributions
- Distributions & Beneficial Interests
- Trustee Powers & Duties
- Representations & Warranties
- Covenants & Restrictions
- Default, Removal & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
IRREVOCABLE TRUST AGREEMENT
This Irrevocable Trust Agreement (the “Agreement”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
• [GRANTOR NAME], an individual with an address at [GRANTOR ADDRESS] (“Grantor”); and
• [TRUSTEE NAME], [individual/a Missouri trust company] with an address at [TRUSTEE ADDRESS] (“Trustee”).
The Grantor hereby transfers, conveys, and delivers to Trustee the property described in Schedule A attached hereto (the “Initial Trust Estate”) to be held, managed, and distributed in trust for the purposes and upon the terms set forth herein.
Recitals:
A. Grantor desires to establish an irrevocable trust under the Missouri Uniform Trust Code, MO. REV. STAT. § 456.1-101 et seq. (2022), for the benefit of the persons identified herein.
B. Trustee is willing to accept the trust and hold the Trust Estate subject to the terms of this Agreement.
2. DEFINITIONS
For purposes of this Agreement, the following terms have the meanings set forth below. Defined terms appear in bold throughout.
“Accounting Period” – Each calendar year ending December 31, unless Trustee selects another 12-month period by written notice.
“Applicable Law” – All federal and Missouri statutes, regulations, and common law governing this Trust, including but not limited to MO. REV. STAT. § 456.1-101 et seq.
“Beneficiary” – Each person or entity listed in Section 5 as a current or remainder beneficiary, together with any successor Beneficiary determined under this Agreement.
“Dispositive Provisions” – The distribution rules contained in Section 5.
“Grantor” – The person executing this Agreement as grantor/settlor, including any co-grantor.
“Qualified Trustee” – A Trustee that is either (i) an individual resident of Missouri, or (ii) a bank or trust company authorized to do trust business in Missouri.
“Trust” or “Trust Estate” – All property, real or personal, tangible or intangible, and all increments and replacements thereof, held hereunder from time to time.
“Trustee” – The initial Trustee and any successor or co-trustee duly appointed in accordance with this Agreement.
3. CREATION OF TRUST & IRREVOCABILITY
3.1 Establishment. Grantor hereby establishes the “[TRUST NAME]” (the “Trust”) effective on the Effective Date.
3.2 Irrevocability. The Trust is irrevocable. Grantor expressly:
a. Waives all power to revoke, amend, or modify this Agreement except as permitted under MO. REV. STAT. § 456.4-411A (2022) (judicial/nonjudicial modification of irrevocable trust) or successor statute; and
b. Disclaims any reversionary interest in the Trust Estate, except as specifically provided herein.
3.3 Spendthrift Provision. To the maximum extent permitted by Applicable Law, no Beneficiary may voluntarily or involuntarily anticipate, assign, transfer, pledge, or otherwise encumber any interest in the Trust prior to its actual receipt.
[// GUIDANCE: Missouri recognizes spendthrift clauses under MO. REV. STAT. § 456.5-502.]
4. TRUST ESTATE; CONTRIBUTIONS
4.1 Funding. Grantor transfers the Initial Trust Estate as set forth on Schedule A. Trustee shall provide a written receipt.
4.2 Additional Contributions. Trustee may accept additional assets from Grantor or any other person at any time, provided such assets are acceptable to Trustee and identified in a written conveyance referencing this Trust.
4.3 Separate Accounting. Trustee shall maintain separate records for each contribution if necessary to preserve applicable tax elections or allocations.
5. DISTRIBUTIONS & BENEFICIAL INTERESTS
5.1 Beneficiaries.
a. Primary Beneficiary(ies): [LIST NAMES & PERCENTAGES].
b. Secondary/Contingent Beneficiary(ies): [LIST NAMES & CONDITIONS].
5.2 Income Distributions. During the lifetime of the Primary Beneficiary(ies), Trustee shall distribute net income [AS DIRECTED / IN TRUSTEE DISCRETION] for health, education, maintenance, and support (“HEMS Standard”).
5.3 Principal Distributions. Trustee may invade principal for a Beneficiary’s HEMS needs, considering other resources reasonably available to such Beneficiary.
5.4 Final Distribution. Upon the death of the last surviving Primary Beneficiary, Trustee shall distribute the remaining Trust Estate to the Secondary Beneficiaries in the percentages listed above, free of trust, unless another trust is created pursuant to Section 5.5.
5.5 Protected Sub-Trusts. If any Beneficiary is (i) under the age of [AGE], (ii) disabled, or (iii) subject to creditor claims, Trustee shall retain such share in a separate sub-trust with terms comparable to this Trust until the triggering condition is resolved.
6. TRUSTEE POWERS & DUTIES
6.1 Standard of Care. Trustee shall administer the Trust in good faith and in accordance with the prudent investor rule, MO. REV. STAT. § 456.8-804 et seq.
6.2 Enumerated Powers. Subject to Applicable Law, Trustee may, without court order:
1. Invest and reinvest Trust assets;
2. Lease, pledge, encumber, or sell Trust property;
3. Operate businesses;
4. Make loans to Beneficiaries secured by trust property;
5. Employ professionals and pay them from the Trust Estate;
6. Allocate receipts and expenses between income and principal;
7. Merge or decant the Trust pursuant to MO. REV. STAT. § 456.4-419;
8. Exercise all powers customarily held by trustees under Missouri law.
6.3 Duty to Inform & Report. Trustee shall provide the information required by MO. REV. STAT. § 456.8-813, including an annual written accounting within [90] days after each Accounting Period.
6.4 Co-Trustees. If more than one Trustee serves, decisions shall be made by [UNANIMOUS / MAJORITY] vote. A dissenting Trustee who joins an action at another Trustee’s request shall not incur liability if the dissent is promptly recorded.
6.5 Successor Trustees.
a. Designation: [SUCCESSOR TRUSTEE NAME] is hereby appointed if the initial Trustee resigns, ceases to serve, or is removed.
b. Additional Successor Procedure: If no named successor is willing or able, a Qualified Trustee may be appointed by (i) the Beneficiaries by majority consent, or (ii) the Probate Division of the Circuit Court of [COUNTY], Missouri.
6.6 Resignation. Trustee may resign on [30] days’ written notice to Grantor (if living) and all Qualified Beneficiaries.
7. REPRESENTATIONS & WARRANTIES
7.1 Grantor Representations. Grantor represents and warrants that:
a. Grantor has full legal capacity and title to transfer the property comprising the Initial Trust Estate;
b. No encumbrances affect the assets except as disclosed in Schedule A; and
c. Establishing this Trust will not render Grantor insolvent.
7.2 Trustee Representations. Trustee represents and warrants that:
a. Trustee is qualified and willing to serve and is not disqualified under MO. REV. STAT. § 456.7-706;
b. Trustee shall administer the Trust in accordance with this Agreement and Applicable Law.
7.3 Survival. These representations and warranties survive execution and acceptance of the Trust.
8. COVENANTS & RESTRICTIONS
8.1 Grantor Covenants. Grantor shall execute any additional documents reasonably requested by Trustee to vest legal title to assets in the Trustee.
8.2 Trustee Covenants. Trustee shall:
a. Maintain accurate books and records;
b. File or cause to be filed all federal, state, and local tax returns required for the Trust;
c. Comply with state and federal securities, environmental, and other regulatory laws when managing Trust assets.
8.3 Notice & Cure. Trustee shall notify Beneficiaries of any material breach of duty within [15] days after discovery and allow a [30]-day cure period where feasible.
9. DEFAULT, REMOVAL & REMEDIES
9.1 Events of Default. The following constitute Events of Default:
1. Trustee’s breach of fiduciary duty causing material loss;
2. Trustee’s incapacity, insolvency, or conviction of a felony;
3. Failure to provide required accountings after written demand.
9.2 Removal. Upon an Event of Default, a majority in interest of the Qualified Beneficiaries may remove Trustee by written notice, effective upon acceptance by a successor Trustee.
9.3 Judicial Removal. Any Beneficiary may petition the Probate Division of the Circuit Court of [COUNTY] for removal pursuant to MO. REV. STAT. § 456.7-706.
9.4 Remedies. In addition to removal, Beneficiaries may seek:
a. Surcharge of Trustee personally, limited as set forth in Section 10.2;
b. Injunctive relief to prevent further breach;
c. Appointment of a receiver or temporary trustee.
9.5 Attorneys’ Fees. A prevailing party may recover reasonable attorneys’ fees and costs from the Trust Estate, except a Trustee surcharged for willful misconduct shall bear its own fees.
10. RISK ALLOCATION
10.1 Indemnification of Trustee. Trustee, and its agents and employees, shall be indemnified from the Trust Estate against any claim, liability, or expense (including attorneys’ fees) reasonably incurred in the administration of the Trust, except to the extent arising from Trustee’s willful misconduct or gross negligence.
10.2 Limitation of Liability. Trustee’s liability shall in no event exceed the value of the Trust Estate at the time the alleged liability is determined (“Liability Cap”). No personal assets of Trustee shall be subject to execution beyond such amount.
10.3 Insurance. Trustee may purchase fiduciary liability insurance at Trust expense.
10.4 Force Majeure. Trustee shall not be liable for delay or failure to perform caused by acts of God, governmental action, war, civil disturbance, pandemic, or other circumstances beyond Trustee’s reasonable control.
11. DISPUTE RESOLUTION
11.1 Governing Law. This Agreement and the Trust are governed by the laws of the State of Missouri, without regard to conflict-of-laws principles.
11.2 Forum Selection. All judicial proceedings concerning the Trust shall be instituted in the Probate Division of the Circuit Court of [COUNTY], Missouri, which shall have exclusive jurisdiction.
11.3 Optional Arbitration. [OPTIONAL – DELETE IF NOT ELECTED] Any dispute that could otherwise be brought before the Probate Division may, by unanimous written agreement of all Qualified Beneficiaries and the Trustee, be submitted to binding arbitration administered by [AAA / OTHER] in accordance with its rules. Judgment on the arbitrator’s award may be entered in any court of competent jurisdiction.
11.4 Injunctive Relief. Nothing in this Section shall impair the court’s power to grant temporary, preliminary, or permanent injunctive relief to enforce the terms of this Trust.
11.5 Waiver of Jury Trial. Not applicable—probate matters in Missouri are tried to the court.
12. GENERAL PROVISIONS
12.1 Amendment; Reformation. This Agreement may not be amended except as provided in Section 3.2 or by judicial reformation to correct scrivener’s errors or conform to Grantor’s intent under MO. REV. STAT. § 456.4-415.
12.2 Assignment. No party may assign rights or delegate duties under this Agreement except as expressly provided.
12.3 Successors & Assigns. This Agreement binds and inures to the benefit of Trustee’s and Beneficiaries’ successors and permitted assigns.
12.4 Severability. If any provision is held invalid, the remaining provisions shall remain in full force, and the court may reform the invalid provision to effectuate Grantor’s intent.
12.5 Entire Agreement. This Agreement, including all schedules and exhibits, constitutes the entire understanding between the parties regarding the Trust.
12.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each deemed an original, and delivered by electronic transmission with the same force and effect as an original.
12.7 Headings. Headings are for convenience only and do not affect interpretation.
13. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties have executed this Irrevocable Trust Agreement as of the Effective Date.
GRANTOR:
[GRANTOR NAME]
TRUSTEE:
[TRUSTEE NAME], Trustee
[// GUIDANCE: Insert notarization block below if required by local practice. Missouri law does not mandate notarization for trust validity but notarization is recommended for recordability and evidentiary purposes.]
State of Missouri )
) ss.
County of ____ )
On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME] and [TRUSTEE NAME], known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein stated.
Notary Public
My commission expires: ____
Schedule A – Initial Trust Estate
[// GUIDANCE: Attach detailed list of assets (cash, securities, real property legal descriptions, life insurance policies, partnership interests, etc.).]
[// GUIDANCE: Additional schedules (e.g., tax allocation clauses, life insurance provisions, beneficiary designation forms) may be appended as required.]