New York Irrevocable Trust Agreement

comments and customize as needed
4. Remove all guidance comments before final execution
5. Have this document reviewed by qualified New York trust and estate counsel before execution
6. Confirm all tax elections with independent tax counsel before funding
7. CRITICAL: Review NY estate tax cliff implications (Article 7) before determining funding amount

JURISDICTION: New York
LAST UPDATED: 2026-02-17
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NEW YORK IRREVOCABLE TRUST AGREEMENT

(EPTL Article 7 — New York Estates, Powers and Trusts Law)

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TABLE OF CONTENTS

Article 1 — Trust Identification, Situs, and Parties
Article 2 — New York Situs Declaration and Governing Law
Article 3 — Irrevocability and Retained Powers
Article 4 — Trust Purpose and Type Election
Article 5 — Irrevocable Life Insurance Trust (ILIT) Provisions
Article 6 — Intentionally Defective Grantor Trust (IDGT) Provisions
Article 7 — Credit Shelter / NY Estate Tax Cliff Planning
Article 8 — Supplemental Needs Trust Provisions
Article 9 — Crummey Withdrawal Powers
Article 10 — Generation-Skipping Transfer (GST) Tax Provisions
Article 11 — Beneficial Interests and Distributions
Article 12 — Spendthrift Provisions
Article 13 — Trust Protector (Contractual)
Article 14 — Decanting (EPTL § 10-6.6)
Article 15 — Digital Assets
Article 16 — Trustee Provisions
Article 17 — No-Contest Clause
Article 18 — Tax Provisions
Article 19 — Rule Against Perpetuities / Trust Duration
Article 20 — General Provisions
Article 21 — Execution

Schedule A — Initial Trust Property
Schedule B — Beneficiary Designations and Crummey Rights
Schedule C — Distribution Provisions
Schedule D — NY Estate Tax Cliff Planning Worksheet
Schedule E — Certification of Trust

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ARTICLE 1 — TRUST IDENTIFICATION, SITUS, AND PARTIES

1.1 Trust Name. This trust shall be known as the [________________________________] Irrevocable Trust (the "Trust").

1.2 Effective Date. This Trust Agreement (the "Agreement") is effective as of [__/__/____] (the "Effective Date").

1.3 Settlor. The Settlor of this Trust is:

Field	Information
Full Legal Name	[________________________________]
Date of Birth	[__/__/____]
SSN (last four)	XXX-XX-[____]
Street Address	[________________________________]
City, State, ZIP	[________________________________]
State of Domicile	[________________________________]

1.4 Initial Trustee. The initial Trustee of this Trust is:

Field	Information
Full Legal Name / Entity Name	[________________________________]
Type	☐ Individual ☐ NY Trust Company ☐ National Bank ☐ Out-of-State Trustee
Street Address	[________________________________]
City, State, ZIP	[________________________________]
State of Domicile / Organization	[________________________________]

1.5 Trust Situs. The situs of this Trust is the State of New York, unless the Settlor designates an alternative situs for income tax purposes under Section 18.5. All proceedings relating to this Trust shall be within the jurisdiction of the Surrogate's Court of [________________________________] County, New York.

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ARTICLE 2 — NEW YORK SITUS DECLARATION AND GOVERNING LAW

2.1 Governing Law. This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed by and construed in accordance with the laws of the State of New York, including the Estates, Powers and Trusts Law ("EPTL") and the Surrogate's Court Procedure Act ("SCPA"), without regard to conflict-of-laws principles.

2.2 New York Trust Law Characteristics. The Settlor acknowledges the following characteristics of New York as a trust jurisdiction:

(a) Rule Against Perpetuities. New York retains the common-law Rule Against Perpetuities. Under EPTL § 9-1.1, no trust interest may be created that will not vest within lives in being at the creation of the trust plus twenty-one (21) years. This Trust is subject to the perpetuities savings clause in Article 19;

(b) Resident Trust Taxation. Under NY Tax Law § 605, a trust created by a New York domiciliary is classified as a "resident trust" and is subject to New York income tax on ALL undistributed income, regardless of source, unless the trust qualifies as an "exempt resident trust" (see Section 18.5);

(c) NY Estate Tax Cliff. New York imposes an estate tax with a critical "cliff" provision: if the taxable estate exceeds the NY exemption amount (projected $7.35 million for 2026) by more than 5%, the ENTIRE estate is subject to NY estate tax — not merely the excess. This Trust is designed to address this cliff as described in Article 7;

(d) No DAPT. New York does NOT permit self-settled asset protection trusts. The Settlor may NOT be a discretionary beneficiary of this Trust for creditor protection purposes. Any retained beneficial interest by the Settlor may expose Trust assets to the Settlor's creditors under NY law;

(e) No Statutory Directed Trust Framework. New York has not enacted directed trust legislation. However, a Trust Protector may be appointed contractually under Article 13;

(f) No Statutory Trust Protector Framework. New York has no statutory enumeration of trust protector powers or liability protections. Trust protectors are appointed by contract (the trust instrument itself), and their authority and liability are governed solely by the terms of this Agreement;

(g) Decanting. New York was the FIRST state to enact a decanting statute (EPTL § 10-6.6, effective 2011, amended multiple times). See Article 14;

(h) Spendthrift Protection. New York provides robust spendthrift protections under EPTL § 7-1.5, which renders a beneficiary's trust interest inalienable when a valid spendthrift clause is included; and

(i) No Throwback Tax. New York does NOT impose a throwback tax on accumulated trust income distributed to beneficiaries.

2.3 Change of Situs. The Trust Protector (if appointed) or, if no Trust Protector is serving, the Trustee may change the situs of this Trust to another jurisdiction if such change is in the best interests of the beneficiaries. A change of situs may be advisable to:

(a) Move the Trust to a jurisdiction that has abolished the Rule Against Perpetuities, thereby extending the Trust's duration;

(b) Move the Trust to a jurisdiction with no state income tax to eliminate state income taxation; or

(c) Move the Trust to a jurisdiction offering statutory directed trust, trust protector, or asset protection frameworks.

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ARTICLE 3 — IRREVOCABILITY AND RETAINED POWERS

3.1 Irrevocability. This Trust is irrevocable. Pursuant to EPTL § 7-1.16, every trust is irrevocable unless the trust instrument expressly provides that it is revocable. The Settlor expressly and permanently waives all rights to revoke, amend, alter, or terminate this Trust, except as expressly permitted in Section 3.2 and Section 3.3.

3.2 Court-Authorized Modification (EPTL § 7-1.9). Notwithstanding Section 3.1, a court of competent jurisdiction may authorize modification or termination of this Trust under EPTL § 7-1.9 if:

(a) All persons interested in the Trust consent and the court determines that modification or termination is not inconsistent with the material purposes of the Trust; or

(b) The court determines, because of circumstances not anticipated by the Settlor, that modification or termination will further the purposes of the Trust, taking into account the interests of all beneficiaries.

3.3 Limited Administrative Amendments. The Trustee, with the written consent of the Trust Protector (if appointed), may amend this Agreement solely for the following purposes:

(a) To correct scrivener's errors or ambiguities;

(b) To conform the Agreement to mandatory changes in applicable law;

(c) To facilitate tax compliance or optimize tax treatment, provided no such amendment materially alters any beneficiary's beneficial interest; or

(d) To change the situs of the Trust as permitted under Section 2.3.

3.4 Retained Powers — Estate Tax Exclusion. Any power retained by the Settlor under this Agreement (including, without limitation, the swap power under Article 6 and the power to substitute assets of equivalent value) shall not be construed as a power to revoke the Trust or as an incident of ownership that would cause inclusion of Trust assets in the Settlor's gross estate under IRC §§ 2036, 2037, 2038, or 2042, except as expressly intended under Article 6 (Grantor Trust Provisions).

3.5 No Beneficial Interest. The Settlor retains no beneficial interest in the Trust Estate and is not a permissible beneficiary. New York does NOT permit self-settled asset protection trusts; accordingly, any retained beneficial interest by the Settlor would expose Trust assets to the Settlor's creditors and may cause estate tax inclusion.

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ARTICLE 4 — TRUST PURPOSE AND TYPE ELECTION

4.1 Trust Purpose. The purpose of this Trust is to hold, invest, protect, and distribute the Trust Estate for the benefit of the Beneficiaries designated herein, in a tax-efficient manner, and to accomplish the specific objectives indicated by the trust type election(s) below.

4.2 Trust Type Election. The Settlor elects the following trust type(s) (check all that apply):

☐ Irrevocable Life Insurance Trust (ILIT) — Trust designed to own life insurance policies outside the Settlor's estate to avoid estate tax inclusion under IRC § 2042 and to remove life insurance proceeds from the NY taxable estate. Complete Article 5.

☐ Intentionally Defective Grantor Trust (IDGT) — Trust that is irrevocable for estate/gift tax purposes but treated as a grantor trust for income tax purposes, allowing the Settlor to pay income taxes on trust earnings (effectively a tax-free gift to the trust). Especially powerful when combined with exempt resident trust status. Complete Article 6.

☐ Credit Shelter / Bypass Trust — Trust designed to shelter assets up to the NY estate tax exemption amount at the first spouse's death, preventing double taxation and avoiding the NY estate tax cliff. Complete Article 7.

☐ Supplemental Needs Trust (SNT) — Trust under EPTL § 7-1.6 designed to supplement (not supplant) government benefits for a disabled beneficiary. Complete Article 8.

☐ Standard Irrevocable Trust — Irrevocable trust without ILIT, IDGT, credit shelter, or SNT features.

☐ Combination — This Trust incorporates features of multiple trust types as indicated above.

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ARTICLE 5 — IRREVOCABLE LIFE INSURANCE TRUST (ILIT) PROVISIONS

(IRC § 2042)

☐ This Article applies — ILIT elected

☐ This Article does not apply — skip to Article 6

5.1 Trust as Owner and Beneficiary. The Trust shall be the owner and beneficiary of all life insurance policies listed in Schedule A or subsequently acquired by the Trustee. The Settlor shall have no incidents of ownership in any such policy, including but not limited to the right to change beneficiaries, borrow against the policy, surrender or cancel the policy, or assign the policy.

5.2 Premium Payments. Premiums on life insurance policies owned by the Trust shall be paid from:

(a) Contributions made by the Settlor or third parties, subject to the Crummey withdrawal provisions of Article 9;

(b) Trust income or principal, in the Trustee's discretion; or

(c) Policy dividends or accumulated cash value.

5.3 Three-Year Lookback Warning. If the Settlor transfers an existing life insurance policy to this Trust, the proceeds of such policy will be included in the Settlor's gross estate under IRC § 2035 if the Settlor dies within three (3) years of the transfer. For New York purposes, such inclusion also subjects the proceeds to NY estate tax. The Settlor acknowledges this risk and has been advised to consult with independent tax counsel.

5.4 Policy Management. The Trustee shall have full authority to:

(a) Apply for, acquire, and maintain life insurance policies on the life of the Settlor, the Settlor's spouse, or any other insurable person;

(b) Pay premiums and policy assessments;

(c) Exercise policy options, including conversion, exchange, and replacement;

(d) Borrow against policy cash values (subject to fiduciary duty);

(e) Collect and receipt for death benefits; and

(f) Compromise, settle, or litigate claims against insurance carriers.

5.5 NY Estate Tax Benefit. The Settlor specifically intends that insurance proceeds payable to this Trust shall be excluded from the Settlor's NY taxable estate. The Trustee shall not take any action that would cause the Settlor to be treated as holding incidents of ownership under IRC § 2042(2), including any action that would cause inclusion in the NY gross estate under NY Tax Law.

5.6 Disposition of Proceeds. Upon the death of the insured, the Trustee shall collect the death benefit proceeds and administer them as part of the Trust Estate in accordance with the distribution provisions of Article 11 and Schedule C.

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ARTICLE 6 — INTENTIONALLY DEFECTIVE GRANTOR TRUST (IDGT) PROVISIONS

(IRC §§ 671–679)

☐ This Article applies — IDGT elected

☐ This Article does not apply — skip to Article 7

6.1 Grantor Trust Status. The Settlor intends that this Trust be treated as a grantor trust under IRC §§ 671–679 for federal and state income tax purposes. To achieve this status, the following intentional "defect" provision(s) are incorporated (check one or more):

☐ Swap Power (IRC § 675(4)(C)). The Settlor retains the power, exercisable in a nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity, to reacquire Trust property by substituting other property of an equivalent value, determined at the time of substitution.

☐ Power to Borrow (IRC § 675(2)). The Settlor retains the power to borrow from the Trust without adequate interest or security.

☐ Spousal Beneficiary (IRC § 677). The Settlor's spouse is a discretionary beneficiary of the Trust, and distributions of Trust income may be made for the benefit of the Settlor's spouse.

☐ Other intentional defect: [________________________________]

6.2 Swap Power Procedures. If the swap power is elected:

(a) The Settlor may exercise the swap power at any time by delivering substitute property of equivalent value to the Trustee and receiving Trust property of equivalent value in exchange;

(b) The Trustee shall cooperate with the swap but shall independently verify that the substitute property is of equivalent value;

(c) Equivalent value shall be determined by fair market value at the time of substitution; and

(d) The swap power shall not be exercisable in a manner that shifts economic benefits between the Settlor and the Trust.

6.3 Toggle Provision — Grantor to Non-Grantor Conversion. The Settlor may relinquish any or all grantor trust powers at any time by written notice to the Trustee, thereby converting the Trust from grantor trust status to non-grantor trust status. Upon conversion:

(a) The Trust shall obtain its own Employer Identification Number (EIN) from the IRS;

(b) The Trustee shall file fiduciary income tax returns (IRS Form 1041) for all subsequent tax years;

(c) The Trust shall be treated as a separate taxable entity for federal and state income tax purposes; and

(d) The Trust shall be subject to NY income taxation as a resident trust unless it qualifies as an exempt resident trust under Section 18.5.

6.4 Exempt Resident Trust Coordination. If this Trust is an IDGT and the Settlor has arranged for exempt resident trust status under Section 18.5:

(a) While the Trust is a grantor trust, all income is reported on the Settlor's individual return (the exempt status is irrelevant during this phase);

(b) Upon conversion to non-grantor status via the toggle provision, the exempt resident trust status activates, and the Trust owes NO NY income tax on undistributed income; and

(c) The Trustee shall maintain the conditions for exempt status (out-of-state trustees, out-of-state corpus, non-NY-source income) at all times after conversion.

6.5 Tax Identification. While this Trust is a grantor trust, all Trust income shall be reported on the Settlor's individual income tax return using the Settlor's Social Security Number. The Trustee shall provide the Settlor with all information necessary for timely tax reporting.

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ARTICLE 7 — CREDIT SHELTER / NY ESTATE TAX CLIFF PLANNING

☐ This Article applies — Credit Shelter / Bypass Trust elected

☐ This Article does not apply — skip to Article 8

7.1 Credit Shelter Purpose. This Trust is designed to shelter assets from New York estate taxation by removing assets from the surviving spouse's taxable estate, specifically addressing the NY estate tax cliff provision.

7.2 NY Estate Tax Cliff — Explanation and Warning.

(a) The Cliff. New York does not provide a true exemption — it provides an exclusion amount. If the NY taxable estate exceeds the exclusion by MORE than 5%, the exclusion is entirely lost and the FULL estate is taxable.

(b) 2026 Projected Thresholds:

Threshold	Amount	Result
NY Exclusion (2026 projected)	$7,350,000	No NY estate tax
Cliff Threshold (105% of exclusion)	$7,717,500	Excess over exclusion taxed
Above Cliff Threshold	> $7,717,500	ENTIRE estate taxed

(c) Example: An estate of $7,350,000 owes $0 in NY estate tax. An estate of $7,717,501 owes approximately $578,000 in NY estate tax — on the ENTIRE estate, not just the $367,501 excess. The effective marginal tax rate on the dollar that crosses the cliff approaches infinity.

7.3 Funding Formula. Upon the occurrence of the triggering event specified in Section 7.4, the Trustee shall fund this Trust with an amount determined as follows (check one):

☐ NY Exemption Amount — An amount equal to the then-applicable NY estate tax exclusion amount, reduced by any other assets passing in a manner that qualifies for the NY exclusion

☐ Federal Exemption Amount — An amount equal to the then-applicable federal estate tax applicable exclusion amount

☐ Specified Amount — $[________________________________]

☐ Formula to Avoid Cliff — The maximum amount that can pass without triggering NY estate tax, taking into account the 5% cliff threshold, the surviving spouse's own assets, and all other assets includable in the decedent's NY gross estate

7.4 Triggering Event. This Trust shall be funded upon:

☐ The death of the first spouse to die

☐ The Effective Date (lifetime transfer)

☐ Other: [________________________________]

7.5 Surviving Spouse as Beneficiary. The surviving spouse may be a beneficiary of this Trust, entitled to receive distributions in the Trustee's discretion, without causing inclusion of Trust assets in the surviving spouse's NY or federal taxable estate, provided:

(a) Distributions are limited to the HEMS standard (health, education, maintenance, and support) as an ascertainable standard under IRC § 2041(b)(1)(A);

(b) The surviving spouse does NOT serve as sole Trustee with discretion over distributions to himself or herself beyond the HEMS standard; and

(c) The surviving spouse does NOT hold a general power of appointment over Trust assets.

7.6 Preservation of NY Exclusion. The Trustee shall administer this Trust in a manner that ensures Trust assets are NOT included in the surviving spouse's NY taxable estate, thereby preserving the surviving spouse's own NY exclusion amount for assets passing outside this Trust.

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ARTICLE 8 — SUPPLEMENTAL NEEDS TRUST PROVISIONS

(EPTL § 7-1.6)

☐ This Article applies — Supplemental Needs Trust elected

☐ This Article does not apply — skip to Article 9

8.1 Supplemental Needs Purpose. This Trust is established as a supplemental needs trust under EPTL § 7-1.6 for the sole purpose of supplementing, and not supplanting or replacing, government benefits available to the Supplemental Needs Beneficiary identified below.

8.2 Supplemental Needs Beneficiary.

Field	Information
Full Legal Name	[________________________________]
Date of Birth	[__/__/____]
Relationship to Settlor	[________________________________]
Nature of Disability	[________________________________]
Current Government Benefits	[________________________________]

8.3 Supplemental Distributions. The Trustee may, in the Trustee's sole and absolute discretion, make distributions for the Supplemental Needs Beneficiary's supplemental needs, including but not limited to:

(a) Supplemental medical and dental care not covered by government benefits;

(b) Education, training, and vocational services;

(c) Entertainment, recreation, and travel;

(d) Personal items, clothing, and furnishings;

(e) Technology, communication devices, and assistive equipment;

(f) Transportation, including vehicle purchase and maintenance;

(g) Housing improvements and accommodations; and

(h) Any other goods or services that supplement (but do not replace) government benefits.

8.4 Prohibition on Direct Cash Distributions. The Trustee shall NOT make direct cash distributions to the Supplemental Needs Beneficiary if such distributions would disqualify or reduce the beneficiary's eligibility for government benefits. Distributions shall be made directly to third-party providers whenever possible.

8.5 Government Benefit Coordination. The Trustee shall:

(a) Monitor the Supplemental Needs Beneficiary's government benefit eligibility;

(b) Consult with a special needs planning attorney or benefits specialist before making distributions that could affect eligibility;

(c) Maintain records demonstrating that all distributions supplemented rather than supplanted government benefits; and

(d) Cooperate with government agencies in providing information about the Trust, provided that no information shall be disclosed beyond what is required by law.

8.6 EPTL § 7-1.6 Compliance. This Trust is intended to comply with all requirements of EPTL § 7-1.6 and applicable federal and state regulations governing supplemental needs trusts. If any provision of this Trust is found to conflict with the Supplemental Needs Beneficiary's eligibility for government benefits, such provision shall be reformed to the minimum extent necessary to preserve eligibility.

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ARTICLE 9 — CRUMMEY WITHDRAWAL POWERS

(IRC § 2503(b); IRC § 2514)

9.1 Withdrawal Right. Each beneficiary who is designated as a "Crummey Beneficiary" in Schedule B shall have the right, for a period of thirty (30) days following each contribution to the Trust, to withdraw from the Trust an amount equal to the lesser of:

(a) The value of such contribution; or

(b) The annual gift tax exclusion amount under IRC § 2503(b) (currently $19,000 per donee for 2026) divided by the number of Crummey Beneficiaries.

9.2 Notice of Contribution. The Trustee shall provide written notice to each Crummey Beneficiary (or the beneficiary's legal guardian if the beneficiary is a minor) within five (5) days of each contribution, stating:

(a) The date and amount of the contribution;

(b) The beneficiary's right to withdraw;

(c) The deadline for exercising the withdrawal right; and

(d) The procedure for making a withdrawal.

9.3 Lapse of Withdrawal Right. If a Crummey Beneficiary does not exercise the withdrawal right within the 30-day period, the right shall lapse, subject to the limitations of Sections 9.4 and 9.5.

9.4 Five-and-Five Limitation. In any calendar year, a beneficiary's withdrawal right shall lapse only to the extent of the greater of:

(a) Five Thousand Dollars ($5,000); or

(b) Five percent (5%) of the aggregate value of the Trust assets from which the withdrawal could have been satisfied, valued as of the date of lapse.

(IRC § 2514(e); IRC § 2041(b)(2).)

9.5 Hanging Power. To the extent that the lapse of a beneficiary's withdrawal right in any calendar year would exceed the five-and-five limitation in Section 9.4, the excess withdrawal right shall NOT lapse but shall be carried forward and shall lapse in the earliest subsequent calendar year(s) in which the lapse would not exceed the five-and-five limitation. This "hanging power" prevents the lapse from being treated as a taxable gift by the beneficiary.

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ARTICLE 10 — GENERATION-SKIPPING TRANSFER (GST) TAX PROVISIONS

(IRC § 2601 et seq.)

10.1 GST Exemption Allocation. The Settlor intends that the Settlor's available GST exemption (currently $15,000,000 per individual for 2026, as made permanent by the One Big Beautiful Bill Act signed July 4, 2025) be allocated to this Trust as follows:

☐ Allocate the Settlor's entire available GST exemption to this Trust

☐ Allocate $[________________________________] of the Settlor's GST exemption to this Trust

☐ Do not allocate GST exemption to this Trust at this time — Settlor will make allocation on gift tax return (IRS Form 709)

10.2 GST-Exempt Trust. To the extent the Settlor's GST exemption is allocated to this Trust, the Trustee shall administer the GST-exempt portion as a separate trust (or separate share) with an inclusion ratio of zero, so that no taxable distribution or taxable termination with respect to such portion is subject to GST tax.

10.3 Division of Trust. If the Trust is partially exempt and partially non-exempt for GST purposes, the Trustee shall divide the Trust into two separate trusts:

(a) A GST-Exempt Trust — with an inclusion ratio of zero; and

(b) A GST Non-Exempt Trust — with an inclusion ratio of one;

and shall administer each trust separately with the intent that the GST-Exempt Trust remains wholly exempt from GST tax for the maximum duration permitted under New York's Rule Against Perpetuities (see Article 19).

10.4 Definitions.

(a) "Skip Person" means a natural person assigned to a generation two or more generations below the Settlor's generation, or a trust in which all interests are held by skip persons. (IRC § 2613.)

(b) "Non-Skip Person" means any person who is not a skip person. (IRC § 2613(b).)

(c) "Taxable Distribution" means any distribution from the Trust to a skip person. (IRC § 2612(b).)

(d) "Taxable Termination" means the termination of an interest in the Trust if, immediately after such termination, only skip persons have interests in the Trust. (IRC § 2612(a).)

10.5 NY Perpetuities Limitation on GST Planning. The Settlor acknowledges that unlike jurisdictions that have abolished the Rule Against Perpetuities, this Trust is subject to the NY perpetuities period (lives in being plus 21 years). Therefore, the GST-exempt portion of this Trust must vest or terminate within the perpetuities period. The Trustee shall administer the GST-exempt portion to maximize its tax-free benefit within this limited duration.

10.6 Trustee Authority. The Trustee is authorized to make any election, allocation, or division necessary to optimize the GST tax treatment of this Trust, including timely filing of IRS Form 709 allocations.

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ARTICLE 11 — BENEFICIAL INTERESTS AND DISTRIBUTIONS

11.1 Beneficiaries. The beneficiaries of this Trust are designated in Schedule B.

11.2 Income Distributions. The Trustee shall distribute or accumulate net income of the Trust as follows:

☐ Mandatory income distribution — The Trustee shall distribute all net income at least annually to [________________________________]

☐ Discretionary income distribution — The Trustee may, in the Trustee's sole and absolute discretion, distribute income to or among the beneficiaries

☐ Accumulate all income — The Trustee shall accumulate all income as principal

11.3 Principal Distributions. The Trustee may, in the Trustee's sole and absolute discretion, distribute principal to or for the benefit of any beneficiary. Distributions may be made pursuant to:

☐ HEMS Standard — For the health, education, maintenance, and support of beneficiaries, considering the beneficiary's other resources

☐ Wholly Discretionary — In the Trustee's sole and absolute discretion, for any purpose the Trustee deems appropriate, without limitation to any ascertainable standard

☐ Custom Standard — [________________________________]

11.4 Staggered Distributions (Optional). In addition to discretionary distributions, the Trustee shall make the following mandatory distributions of principal:

☐ This section does not apply — no staggered distributions

☐ Staggered distributions as follows:

At age [____]: [____]% of the then-current Trust principal

At age [____]: [____]% of the then-remaining Trust principal

At age [____]: The remaining Trust principal outright

11.5 Termination Distributions. Upon termination of the Trust (or any trust share), the Trustee shall distribute the remaining Trust Estate to the then-living beneficiaries as provided in Schedule C.

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ARTICLE 12 — SPENDTHRIFT PROVISIONS

(EPTL § 7-1.5; EPTL § 7-3.4)

12.1 Spendthrift Clause. To the maximum extent permitted by New York law, including EPTL § 7-1.5 and EPTL § 7-3.4, no beneficiary shall have the power to anticipate, assign, alienate, encumber, hypothecate, or otherwise voluntarily transfer any interest in the Trust Estate, whether income or principal, before actual receipt. No interest of any beneficiary shall be subject to the claims of any creditor, spouse (present or former), or any other person, or to any legal process, garnishment, attachment, execution, bankruptcy proceeding, or other involuntary transfer, before actual receipt by the beneficiary.

12.2 EPTL § 7-1.5 — Inalienability of Trust Interest. Pursuant to EPTL § 7-1.5, the interest of each beneficiary of this Trust, whether in income or principal, is inalienable. Neither the income nor the principal of this Trust shall be liable to be seized, taken, or appropriated by any judicial process to satisfy any debt or other obligation of any beneficiary, whether such obligation arose in contract, in tort, or otherwise.

12.3 Discretionary Trust Protection. To the extent that distributions from this Trust are subject to the Trustee's discretion, a creditor of a beneficiary may not compel the Trustee to make a distribution, attach the Trust property, or reach the beneficiary's interest in the Trust, even if the Trustee has abused its discretion or has elected to make a distribution directly to a third party on behalf of the beneficiary.

12.4 Exception Creditors. The spendthrift provisions of this Article shall not apply to the extent required by applicable law for:

(a) Court-ordered child support or alimony obligations;

(b) Claims by the United States or the State of New York;

(c) Judgments for restitution arising from criminal conduct; and

(d) Such other claims as New York law may require.

12.5 Settlor Not Protected. Pursuant to New York law, the spendthrift provisions of this Article do NOT protect the Settlor's retained interests, if any. To the extent the Settlor retains any beneficial interest in the Trust (which is generally prohibited under Section 3.5), such interest may be reached by the Settlor's creditors.

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ARTICLE 13 — TRUST PROTECTOR (CONTRACTUAL)

13.1 Appointment. The following individual or entity is appointed as Trust Protector:

Field	Information
Name	[________________________________]
Address	[________________________________]
Successor Trust Protector	[________________________________]

13.2 Powers. The Trust Protector shall have the following powers, exercisable in the Trust Protector's sole and absolute discretion:

(a) Remove and appoint Trustees;

(b) Approve or veto administrative amendments proposed under Section 3.3;

(c) Modify the Trust to take advantage of changes in tax law or to correct drafting errors;

(d) Add or remove beneficiaries (excluding the Settlor);

(e) Change the situs of the Trust to another jurisdiction;

(f) Terminate the Trust in whole or in part;

(g) Resolve ambiguities in this Agreement;

(h) Convert the Trust between grantor and non-grantor trust status;

(i) Veto distributions that may adversely affect a beneficiary's eligibility for government benefits;

(j) Direct the Trustee to decant the Trust under Article 14; and

(k) Modify or eliminate the Trust Protector role for successor Trust Protectors.

13.3 Fiduciary Status. The Trust Protector:

☐ Shall serve in a fiduciary capacity and shall owe duties of loyalty and prudence to the beneficiaries

☐ Shall serve in a nonfiduciary capacity and shall not owe fiduciary duties to the beneficiaries, except the duty to act in good faith

13.4 Liability. The Trust Protector shall not be liable for any action taken in good faith. The Trust Protector shall be liable only for actions taken in bad faith or with willful misconduct. The Trust Estate shall indemnify the Trust Protector against all liabilities and expenses (including reasonable attorneys' fees) arising from good-faith actions under this Article.

13.5 Compensation. The Trust Protector shall receive reasonable compensation as determined by agreement, payable from the Trust Estate.

13.6 No Statutory Framework Acknowledgment. The parties acknowledge that New York does not currently have a statutory trust protector framework. The powers, duties, and limitations of the Trust Protector are governed solely by the terms of this Agreement and applicable common law. If New York enacts trust protector legislation in the future, the parties intend that such legislation supplement (and not supersede) the terms of this Article, unless the Trust Protector or Trustee elects to opt into the statutory framework.

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ARTICLE 14 — DECANTING

(EPTL § 10-6.6)

14.1 Decanting Authority. The Trustee may, without court approval, exercise the power to decant (i.e., invade principal and distribute) all or part of the Trust Estate to a new trust (the "Receiving Trust") pursuant to EPTL § 10-6.6.

14.2 Scope of Decanting Power.

(a) Unlimited Discretion. If the Trustee has unlimited discretion to invade principal of this Trust, the Trustee may appoint all or part of the Trust principal to a Receiving Trust that benefits a class of beneficiaries that is the same as, or NARROWER than, the class of beneficiaries of this Trust. The Receiving Trust may include new administrative provisions, spendthrift provisions, or trust protector provisions.

(b) Limited Discretion. If the Trustee has limited discretion to invade principal (e.g., limited to an ascertainable standard), the Trustee may appoint all or part of the Trust principal to a Receiving Trust, but the Receiving Trust must grant all current and remainder beneficiaries the SAME beneficial interests as this Trust.

14.3 Mandatory Notice. The Trustee shall provide written notice of the intended decanting at least thirty (30) days before the effective date of the decanting to:

(a) The creator/Settlor, if living;

(b) Any person who has the power to remove or replace the Trustee;

(c) All persons interested in the Trust (as defined by EPTL § 10-6.6); and

(d) The Trust Protector, if appointed.

14.4 Limitations on Decanting. The Trustee shall NOT decant in a manner that:

(a) Extends the perpetuities period applicable to any trust interest beyond the period specified in Article 19;

(b) Reduces a fixed income interest of any beneficiary;

(c) Jeopardizes the Trust's qualification for the federal gift tax annual exclusion under IRC § 2503(b);

(d) Jeopardizes any marital deduction under IRC § 2056 or charitable deduction under IRC § 170;

(e) Creates a new presently exercisable general power of appointment; or

(f) Violates any express prohibition in this Agreement.

14.5 Fiduciary Duty. The power to decant is a FIDUCIARY power. The Trustee shall exercise the decanting power only when the Trustee reasonably believes that decanting is in the best interests of the beneficiaries, considering all relevant facts and circumstances. The Trustee shall document the reasons for decanting in writing.

14.6 Tax Considerations. The Trustee shall consult with tax counsel before decanting to ensure that the decanting does not adversely affect the Trust's GST exemption allocation, grantor trust status, or other tax characteristics. In particular, the Trustee shall confirm that the decanting does not cause a taxable gift, trigger GST tax, or cause inclusion in any person's estate.

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ARTICLE 15 — DIGITAL ASSETS

15.1 Authority. The Trustee shall have full authority to access, manage, control, and dispose of all digital assets of the Trust, including but not limited to:

(a) Electronic communications (email, messaging accounts);

(b) Social media accounts;

(c) Cloud storage and digital files;

(d) Cryptocurrency, blockchain-based assets, digital tokens, and NFTs;

(e) Digital financial accounts (online banking, brokerage, payment platforms);

(f) Domain names, websites, and digital intellectual property; and

(g) Any other digital asset as defined by applicable law.

15.2 Content and Catalogue Consent. The Settlor consents to the Trustee's access to both the content of electronic communications and the catalogue of electronic communications stored by any custodian, consistent with applicable New York and federal law.

15.3 Digital Asset Inventory. The Settlor shall maintain a secure inventory of digital assets, including access credentials, and shall provide this inventory to the Trustee or Trust Protector.

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ARTICLE 16 — TRUSTEE PROVISIONS

(EPTL § 11-1.1)

16.1 Initial Trustee. The initial Trustee is identified in Section 1.4.

16.2 Co-Trustees. If more than one Trustee is serving, the co-Trustees shall act:

☐ Unanimously

☐ By majority vote

☐ Independently (each co-Trustee may act alone)

16.3 Successor Trustees. If the initial Trustee ceases to serve, the following shall serve as successor Trustees in the order listed:

Priority	Name	Address
First Successor	[________________________________]	[________________________________]
Second Successor	[________________________________]	[________________________________]
Third Successor	[________________________________]	[________________________________]

16.4 Exempt Resident Trust — Trustee Domicile Requirement. If exempt resident trust status has been elected under Section 18.5:

(a) No Trustee shall be an individual domiciled in New York or an entity organized under New York law or maintaining an office in New York;

(b) If a Trustee becomes domiciled in New York or otherwise fails to satisfy the out-of-state requirement, the Trust Protector (or, if no Trust Protector is serving, the remaining co-Trustees) shall promptly appoint a replacement Trustee domiciled outside New York; and

(c) Failure to maintain out-of-state trustee status will cause the Trust to lose its exempt resident trust status and become subject to NY income tax on all undistributed income.

16.5 Trustee Powers. In addition to the powers granted elsewhere in this Agreement, the Trustee shall have all powers enumerated in EPTL § 11-1.1, and all powers necessary or advisable for the administration of the Trust, including:

(a) Invest and reinvest the Trust Estate in any property, without limitation, including stocks, bonds, real estate, private equity, hedge funds, cryptocurrency, and alternative investments;

(b) Retain assets received from the Settlor without regard to diversification;

(c) Lease, sell, exchange, mortgage, or otherwise dispose of Trust property;

(d) Borrow funds, with or without security;

(e) Lend funds to beneficiaries on terms determined by the Trustee;

(f) Vote stock and exercise options;

(g) Participate in mergers, consolidations, and reorganizations;

(h) Compromise, settle, or litigate claims;

(i) Employ and compensate attorneys, accountants, investment advisors, and other professionals;

(j) Make tax elections and allocations;

(k) Distribute in cash or in kind;

(l) Establish and maintain reserves;

(m) Determine what is income and what is principal;

(n) Exercise all rights with respect to life insurance policies;

(o) Form, operate, or dissolve entities (LLCs, partnerships, corporations) to hold Trust assets; and

(p) Execute any document necessary to carry out the foregoing powers.

16.6 Prudent Investor Rule. The Trustee shall invest and manage Trust assets as a prudent investor would, considering the purposes, terms, distribution requirements, and other circumstances of the Trust. (EPTL § 11-2.3.)

16.7 Compensation. The Trustee shall receive compensation as follows:

☐ Reasonable compensation under EPTL § 11-1.1 and SCPA § 2309

☐ Compensation of [____]% of Trust assets annually

☐ Compensation of $[________________________________] per year

☐ No compensation (voluntary service)

16.8 Resignation. The Trustee may resign by giving sixty (60) days' written notice to the Trust Protector (if appointed) and the adult beneficiaries.

16.9 Removal. The Trustee may be removed by:

(a) The Trust Protector, at any time, with or without cause;

(b) The Surrogate's Court, for cause, upon petition by any interested person under SCPA § 711; or

(c) Unanimous written agreement of all adult beneficiaries, if no Trust Protector is serving.

16.10 Accounting. The Trustee shall provide annual written accountings to all qualified beneficiaries within ninety (90) days after the end of each calendar year, including a statement of all receipts, disbursements, distributions, and the fair market value of all Trust assets. Any beneficiary may petition the Surrogate's Court for a compulsory accounting under SCPA § 2205.

16.11 Trustee Indemnification. The Trust Estate shall indemnify the Trustee against all liabilities and expenses (including reasonable attorneys' fees) arising from the good-faith administration of the Trust, except to the extent resulting from the Trustee's fraud, willful misconduct, or gross negligence.

16.12 Trustee Exculpation. The Trustee shall not be liable for any loss or depreciation in value of Trust assets resulting from the Trustee's good-faith exercise of discretion, even if such exercise is later determined to have been imprudent, provided the Trustee acted in accordance with the prudent investor standard under EPTL § 11-2.3.

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ARTICLE 17 — NO-CONTEST CLAUSE

17.1 No-Contest Provision. If any beneficiary, directly or indirectly, contests the validity of this Trust or any of its provisions, or seeks to obtain an adjudication that this Trust or any provision is void, or seeks to void any transfer to this Trust, such beneficiary shall forfeit any and all interests in the Trust Estate, and the Trust shall be administered as if such beneficiary had predeceased the Settlor.

17.2 Exception for Good Faith. The no-contest provision of Section 17.1 shall not apply to any action brought in good faith and with probable cause, as determined by a court of competent jurisdiction.

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ARTICLE 18 — TAX PROVISIONS

18.1 NY Resident Trust Classification. The Settlor acknowledges that under NY Tax Law § 605(b)(3), a trust created by a New York domiciliary (including by a person domiciled in New York at death) is classified as a "resident trust." A resident trust is subject to NY income tax on ALL undistributed income, regardless of the source or location of the income, UNLESS the trust qualifies as an "exempt resident trust" under Section 18.5.

18.2 NY Income Tax — Compressed Brackets. Non-grantor trusts in New York are taxed at the highest individual income tax rate (currently 10.9% for NY State, plus applicable NYC or Yonkers surcharge) on taxable income exceeding a compressed threshold. This makes income accumulation in a non-grantor, non-exempt NY trust extremely tax-inefficient.

18.3 NY Estate Tax. The Settlor acknowledges the following NY estate tax rules:

(a) NY Estate Tax Exemption (2026 projected). $7,350,000 (indexed for inflation);

(b) Estate Tax Cliff. If the NY taxable estate exceeds the exemption by more than 5%, the ENTIRE estate is taxed — not merely the excess. See Article 7 for detailed cliff planning;

(c) Progressive Rates. NY estate tax rates range from 3.06% to 16%;

(d) No Portability. NY does NOT permit portability of the unused NY estate tax exemption between spouses. Only the federal exemption is portable; and

(e) Life Insurance. Life insurance proceeds payable to or for the benefit of the insured's estate are included in the NY taxable estate. An ILIT (Article 5) removes insurance from the NY taxable estate.

18.4 Federal Tax Elections. The Trustee is authorized to make any federal tax election available under the Internal Revenue Code, including but not limited to:

(a) Election to treat the Trust (or any portion thereof) as a grantor trust under IRC §§ 671–679;

(b) Allocation of GST exemption under IRC § 2631;

(c) QTIP election under IRC § 2056(b)(7);

(d) Section 643(e) election to recognize gain on in-kind distributions;

(e) Section 645 election to treat a trust and an estate as a single entity; and

(f) Any other election that the Trustee determines to be in the best interests of the Trust and its beneficiaries.

18.5 Exempt Resident Trust Election. The Settlor may structure this Trust to qualify as an "exempt resident trust" under NY Tax Law § 605(b)(3)(D), thereby exempting the Trust from NY income tax on undistributed income even though it is classified as a resident trust:

☐ This Trust IS intended to qualify as an exempt resident trust

☐ This Trust is NOT intended to qualify as an exempt resident trust

To qualify as an exempt resident trust, ALL of the following conditions must be satisfied at ALL times:

(a) No NY Trustees. No Trustee is domiciled in New York;

(b) No NY Corpus. No Trust property (corpus) is located in New York; and

(c) No NY-Source Income. The Trust derives no income from New York sources.

18.6 Tax Reporting. While this Trust is a grantor trust, all Trust income shall be reported on the Settlor's individual income tax return. If this Trust is a non-grantor trust, the Trustee shall file IRS Form 1041 and NY Form IT-205 (Fiduciary Income Tax Return) and distribute Schedules K-1 to beneficiaries.

18.7 Tax Apportionment. Federal and NY estate or GST taxes attributable to the Trust Estate, if any, shall be apportioned and paid as follows:

☐ From the Trust Estate, without apportionment against beneficiaries

☐ Apportioned among beneficiaries in proportion to their interests

☐ As directed by the Settlor's will or other estate planning documents

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ARTICLE 19 — RULE AGAINST PERPETUITIES / TRUST DURATION

(EPTL § 9-1.1)

19.1 Perpetuities Period. This Trust is subject to the Rule Against Perpetuities as codified in EPTL § 9-1.1. No interest created under this Trust shall be valid unless it vests within the perpetuities period: lives in being at the creation of this Trust plus twenty-one (21) years.

19.2 Measuring Lives. The perpetuities measuring lives for this Trust are:

☐ All beneficiaries living on the Effective Date — as identified in Schedule B

☐ Specific measuring lives: [________________________________]

☐ Default — The descendants of the Settlor who are living on the Effective Date

19.3 Maximum Trust Duration. This Trust shall terminate no later than twenty-one (21) years after the death of the last surviving measuring life identified in Section 19.2 (the "Maximum Termination Date").

19.4 Mandatory Termination. Upon the Maximum Termination Date, the Trustee shall distribute all remaining Trust assets outright and free of trust to the then-living beneficiaries, per stirpes, in the proportions specified in Schedule C. If no beneficiary is then living, the Trust assets shall be distributed as provided in the ultimate distribution provisions of Schedule C.

19.5 Perpetuities Savings Clause. Notwithstanding any other provision of this Agreement, no trust interest created hereunder shall be construed to violate the Rule Against Perpetuities. If any provision of this Trust would, but for this Section 19.5, violate the Rule Against Perpetuities:

(a) Such provision shall be reformed to the minimum extent necessary to comply with EPTL § 9-1.1 while preserving the Settlor's intent to the maximum extent possible;

(b) Any trust interest that has not vested by the Maximum Termination Date shall be treated as vesting immediately before such date; and

(c) The Trustee shall distribute Trust assets in accordance with Section 19.4.

19.6 Situs Change for Extended Duration. If the Trust Protector or Trustee determines that extending the Trust's duration beyond the NY perpetuities period would benefit the beneficiaries, the Trust Protector or Trustee may change the situs of the Trust to a jurisdiction that has abolished the Rule Against Perpetuities, subject to Article 2 Section 2.3. A change of situs shall not retroactively extend the perpetuities period applicable to trust interests created under New York law, but may permit additions to the trust to be governed by the new jurisdiction's perpetuities rules.

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ARTICLE 20 — GENERAL PROVISIONS

20.1 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the invalid provision shall be reformed to the minimum extent necessary to make it valid and enforceable.

20.2 Surrogate's Court Jurisdiction. The Surrogate's Court of [________________________________] County, New York, shall have exclusive jurisdiction over all proceedings concerning this Trust, including accountings, construction proceedings, modification, and termination, unless the situs of the Trust has been changed pursuant to Section 2.3.

20.3 Certification of Trust. The Trustee may present a certification of trust in the form attached as Schedule E to any third party in lieu of presenting the full Trust Agreement, and such third party may rely on the certification without further inquiry. (See EPTL § 7-A-5, if applicable.)

20.4 Privacy. This Trust Agreement is a private document. The Settlor and Trustee shall not file or register this Agreement with any state or federal agency unless required by law. New York does not require trust registration with any state agency; however, the Surrogate's Court may require filing in connection with trust proceedings.

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

20.6 Successors and Assigns. This Agreement binds and inures to the benefit of the parties and their respective heirs, executors, administrators, successors, and permitted assigns.

20.7 Notices. All notices under this Agreement shall be in writing and delivered personally, by certified mail (return receipt requested), or by nationally recognized overnight courier to the addresses set forth herein or such other address as a party may designate in writing.

20.8 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original. Electronic signatures shall be deemed originals to the fullest extent permitted by New York law, including the Electronic Signatures and Records Act (ESRA), N.Y. State Tech. Law § 301 et seq.

20.9 Construction. Words of one gender include all genders. Words used in the singular include the plural and vice versa. Section headings are for convenience only and shall not affect interpretation. References to statutes include all amendments and successor statutes.

20.10 Entire Agreement. This Agreement, including all Schedules attached hereto, constitutes the entire agreement among the parties concerning the Trust and supersedes all prior agreements, understandings, or discussions, whether written or oral.

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ARTICLE 21 — EXECUTION

21.1 Settlor's Signature.

I, [________________________________], declare that I am the Settlor identified in this Agreement. I am at least eighteen (18) years of age, of sound mind, and I execute this Agreement voluntarily, without fraud, duress, or undue influence. I have read this Agreement, understand its contents and legal effect, and intend to create an irrevocable trust under the laws of the State of New York, including EPTL Article 7.

Signature: __________________________________

Printed Name: [________________________________]

Date: [__/__/____]

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21.2 Trustee's Acceptance.

I, [________________________________], accept appointment as Trustee of this Trust and agree to hold, administer, and distribute the Trust Estate in accordance with the terms of this Agreement and applicable New York law. I acknowledge my fiduciary duties under the EPTL and SCPA.

Signature: __________________________________

Printed Name / Entity Name: [________________________________]

Title (if entity): [________________________________]

Date: [__/__/____]

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21.3 Notary Acknowledgment — Settlor.

State of New York )
) ss.:
County of [________________________________] )

On the [____] day of [________________________________], in the year [____], before me, the undersigned, personally appeared [________________________________], personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their capacity, and that by his/her/their signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

Signature: __________________________________

Notary Public, State of New York

My Commission Expires: [__/__/____]

(Seal)

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21.4 Notary Acknowledgment — Trustee.

State of [________________________________] )
) ss.:
County of [________________________________] )

On the [____] day of [________________________________], in the year [____], before me, the undersigned, personally appeared [________________________________], personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their capacity, and that by his/her/their signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

Signature: __________________________________

Notary Public, State of [________________________________]

My Commission Expires: [__/__/____]

(Seal)

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SCHEDULE A — INITIAL TRUST PROPERTY

#	Description of Property	Approximate Value	Notes
1	[________________________________]	$[________________________________]	[________________________________]
2	[________________________________]	$[________________________________]	[________________________________]
3	[________________________________]	$[________________________________]	[________________________________]
4	[________________________________]	$[________________________________]	[________________________________]
5	[________________________________]	$[________________________________]	[________________________________]

Asset Categories:

☐ Cash and cash equivalents

☐ Publicly traded securities

☐ Private equity / closely held business interests

☐ Real property (attach legal description) — WARNING: NY real property may cause loss of exempt resident trust status

☐ Life insurance policies (attach policy schedule with carrier, policy number, death benefit, and premium)

☐ Cryptocurrency and digital assets

☐ Personal property

☐ Other: [________________________________]

Total Approximate Value of Initial Trust Property: $[________________________________]

Exempt Resident Trust Compliance: ☐ All assets listed above are located OUTSIDE the State of New York

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SCHEDULE B — BENEFICIARY DESIGNATIONS AND CRUMMEY RIGHTS

#	Beneficiary Name	Relationship	Date of Birth	Crummey Rights?	Share / Percentage
1	[________________________________]	[________________________________]	[__/__/____]	☐ Yes ☐ No	[____]%
2	[________________________________]	[________________________________]	[__/__/____]	☐ Yes ☐ No	[____]%
3	[________________________________]	[________________________________]	[__/__/____]	☐ Yes ☐ No	[____]%
4	[________________________________]	[________________________________]	[__/__/____]	☐ Yes ☐ No	[____]%
5	[________________________________]	[________________________________]	[__/__/____]	☐ Yes ☐ No	[____]%

Contingent Beneficiaries (if all primary beneficiaries predecease):

#	Contingent Beneficiary	Relationship	Share
1	[________________________________]	[________________________________]	[____]%
2	[________________________________]	[________________________________]	[____]%

Perpetuities Measuring Lives: The following beneficiaries living on the Effective Date serve as measuring lives under Article 19:

☐ All primary beneficiaries listed above

☐ Only the following: [________________________________]

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SCHEDULE C — DISTRIBUTION PROVISIONS

During the Settlor's Lifetime:

☐ Distributions to beneficiaries: [________________________________]

☐ No distributions until specified triggering event: [________________________________]

Upon the Settlor's Death:

☐ Continue in trust for beneficiaries per the terms of this Agreement

☐ Distribute outright to beneficiaries per Schedule B

☐ Divide into separate trust shares for each beneficiary

☐ Fund Credit Shelter Trust per Article 7 formula

☐ Other: [________________________________]

Staggered Distribution Schedule (if applicable):

Triggering Event / Age	Distribution
[________________________________]	[________________________________]
[________________________________]	[________________________________]
[________________________________]	[________________________________]

Ultimate Distribution (if all named beneficiaries predecease):

☐ Distribute to Settlor's heirs at law under New York intestacy statutes (EPTL § 4-1.1)

☐ Distribute to the following charitable organization(s): [________________________________]

Maximum Termination Date Distribution: Upon the Maximum Termination Date under Article 19 Section 19.4, all remaining Trust assets shall be distributed outright, per stirpes, to the then-living beneficiaries identified above.

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SCHEDULE D — NY ESTATE TAX CLIFF PLANNING WORKSHEET

SECTION 1 — ASSET INVENTORY

Category	Approximate Value
Real property (NY)	$[________________________________]
Real property (non-NY)	$[________________________________]
Financial accounts	$[________________________________]
Retirement accounts (IRAs, 401(k)s)	$[________________________________]
Life insurance death benefit (policies NOT in ILIT)	$[________________________________]
Life insurance death benefit (policies in ILIT)	$[________________________________] (excluded)
Business interests	$[________________________________]
Other assets	$[________________________________]
Gross Estate	$[________________________________]
Less: Outstanding debts and liabilities	($[________________________________])
Less: Administration expenses (estimated)	($[________________________________])
Less: Assets already in irrevocable trust	($[________________________________])
Adjusted Gross Estate	$[________________________________]

SECTION 2 — NY ESTATE TAX CLIFF ANALYSIS

Line	Item	Amount
A	NY Estate Tax Exclusion (2026 projected)	$7,350,000
B	Cliff Threshold (105% of Line A)	$7,717,500
C	Adjusted Gross Estate (from Section 1)	$[________________________________]
D	Excess Over Exclusion (Line C minus Line A)	$[________________________________]
E	Is Line C greater than Line B?	☐ Yes ☐ No
F	If YES to Line E: ENTIRE estate is taxable	WARNING — CLIFF APPLIES
G	If NO to Line E and Line D is positive: Only excess is taxable	Reduced exposure
H	If Line D is zero or negative: No NY estate tax	Safe zone

SECTION 3 — RECOMMENDED TRUST FUNDING

Line	Item	Amount
I	Amount to transfer to irrevocable trust to bring estate BELOW Line A	$[________________________________]
J	Amount to transfer to bring estate to EXACTLY Line A	$[________________________________]
K	Recommended funding amount (consider gift tax implications)	$[________________________________]

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SCHEDULE E — CERTIFICATION OF TRUST

CERTIFICATION OF TRUST

The undersigned Trustee hereby certifies the following facts with respect to the [________________________________] Irrevocable Trust:

1. Trust Name: [________________________________]

2. Date of Execution: [__/__/____]

3. Settlor(s): [________________________________]

4. Current Trustee(s): [________________________________]

5. Trust Protector (if any): [________________________________]

6. Trust Situs: ☐ New York ☐ Other: [________________________________]

7. Governing Law: New York (EPTL Article 7)

8. Trust Type: ☐ ILIT ☐ IDGT ☐ Credit Shelter / Bypass ☐ Supplemental Needs Trust ☐ Standard Irrevocable ☐ Combination

9. Irrevocable: Yes — this Trust is irrevocable pursuant to EPTL § 7-1.16.

10. Trustee Powers: The Trustee has the powers described in Article 16 of the Trust Agreement and EPTL § 11-1.1, including the power to buy, sell, invest, borrow, and manage Trust assets.

11. Tax Identification Number: [________________________________]

12. Maximum Trust Duration: This Trust terminates no later than twenty-one (21) years after the death of the last surviving measuring life identified in the Trust Agreement.

13. This Certification is made in lieu of presenting the full Trust Agreement. Any third party may rely on this Certification in dealing with the Trustee regarding Trust assets.

Trustee Signature: __________________________________

Printed Name: [________________________________]

Date: [__/__/____]

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SOURCES AND REFERENCES

New York Trust Statutes (EPTL)

• EPTL Article 7 — Trusts
• EPTL § 7-1.5 — Spendthrift Trust Protections
• EPTL § 7-1.6 — Supplemental Needs Trusts
• EPTL § 7-1.9 — Modification/Termination of Irrevocable Trusts
• EPTL § 7-1.16 — Irrevocability Default
• EPTL § 7-1.17 — Amendment/Revocation Requirements
• EPTL § 7-3.4 — Spendthrift Provisions
• EPTL § 9-1.1 — Rule Against Perpetuities
• EPTL § 10-3.1 — Powers of Appointment
• EPTL § 10-6.6 — Decanting Statute
• EPTL § 11-1.1 — Trustee Powers
• EPTL § 11-2.3 — Prudent Investor Standard

Surrogate's Court Procedure Act (SCPA)

• SCPA § 711 — Removal of Fiduciary
• SCPA § 2205 — Compulsory Accounting
• SCPA § 2309 — Trustee Commissions

New York Tax Law

• NY Tax Law § 605 — Resident Trust Definition
• NY Department of Taxation — Fiduciary Income Tax
• NY Estate Tax Information

Federal Tax Statutes

• IRC § 2042 — Proceeds of Life Insurance (Incidents of Ownership)
• IRC § 2035 — Three-Year Lookback
• IRC § 2503(b) — Annual Gift Tax Exclusion
• IRC § 2514 — Powers of Appointment (5-and-5 Lapse)
• IRC § 2601 et seq. — Generation-Skipping Transfer Tax
• IRC §§ 671–679 — Grantor Trust Rules
• IRC § 675(4)(C) — Swap Power

Resources

• New York State Bar Association — Trusts and Estates Law Section
• New York City Bar Association — Estate and Gift Taxation Committee
• Surrogate's Court of the State of New York

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Prepared for attorney review. This template is provided for informational purposes only and does not constitute legal advice. New York trust law imposes unique requirements including the Rule Against Perpetuities (EPTL § 9-1.1), the estate tax cliff, and resident trust income taxation. All provisions must be reviewed and customized by a qualified New York trust and estate attorney before execution.