IRREVOCABLE TRUST AGREEMENT
(Wyoming – Governed by Wyo. Stat. Ann. § 4-10-101 et seq.)
[// GUIDANCE: This template is drafted under Wyoming’s adoption of the Uniform Trust Code (“UTC”). Verify local clerk requirements for recording, if any, and confirm tax counsel review before execution.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
3.1 Creation and Funding
3.2 Irrevocability
3.3 Additions to the Trust
3.4 Beneficial Interests & Distributions
3.5 Spendthrift Protection
3.6 Trustee Powers - Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
THIS IRREVOCABLE TRUST AGREEMENT (this “Agreement”) is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
- [SETTLOR NAME], an individual residing at [SETTLOR ADDRESS] (“Settlor”); and
- [TRUSTEE NAME], whose principal address is [TRUSTEE ADDRESS] (“Trustee”).
RECITALS
A. Settlor desires to establish an irrevocable trust pursuant to the Wyoming Uniform Trust Code, Wyo. Stat. Ann. § 4-10-101 et seq., for the benefit of the persons identified herein.
B. Trustee is willing to accept the trusteeship and hold the Trust Estate (as defined below) subject to the terms of this Agreement.
C. Settlor intends that this Trust be treated as a separate taxable entity for federal income tax purposes and not be included in Settlor’s gross estate, subject to applicable tax statutes and regulations.
NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the parties agree as follows:
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 fiscal year.
“Agreement” – This Irrevocable Trust Agreement, as amended or restated in accordance herewith.
“Applicable State Law” – The laws of the State of Wyoming, including the Wyoming Uniform Trust Code.
“Arbitration” – The elective alternative dispute resolution mechanism described in Section 8.3.
“Beneficiary” – Each person or entity listed in Schedule A, and any successor or additional beneficiary who becomes entitled to a beneficial interest as provided herein.
“Code” – The Internal Revenue Code of 1986, as amended.
“Distribution Event” – Any event that entitles a Beneficiary to receive principal or income under Section 3.4.
“Property” – All assets transferred to the Trust, together with additions and accretions thereto.
“Trust” – The irrevocable trust created by this Agreement and known as “[TRUST NAME].”
“Trust Estate” – All Property held at any time by Trustee under this Agreement.
“UTC” – Wyoming Uniform Trust Code, Wyo. Stat. Ann. § 4-10-101 et seq.
[// GUIDANCE: Add or delete definitions to align with the final structure of the Trust.]
3. OPERATIVE PROVISIONS
3.1 Creation and Funding
3.1.1 Establishment. Settlor hereby delivers to Trustee the Property described in Schedule B, receipt of which Trustee acknowledges, to be held in trust, administered, and distributed as herein provided.
3.1.2 Name. The Trust shall be known as “[TRUST NAME],” and Trustee shall hold title to the Trust Estate in that name.
3.1.3 Purpose. The purpose of the Trust is to hold, invest, and distribute the Trust Estate for the benefit of the Beneficiaries in accordance with the terms herein.
3.2 Irrevocability
3.2.1 No Revocation or Amendment. This Trust is irrevocable. Settlor expressly waives all rights to revoke, amend, or modify this Agreement except as may be expressly permitted in Section 9.1 relating to administrative changes.
3.2.2 Retained Powers. Any power reserved by Settlor shall not be construed as permitting revocation or resulting in ownership for federal estate tax purposes unless expressly stated.
3.3 Additions to the Trust
Additional Property may be transferred to the Trust by Settlor or any third party at any time, provided such Property is acceptable to Trustee. All such Property shall become part of the Trust Estate and be held subject to this Agreement.
3.4 Beneficial Interests & Distributions
3.4.1 Income Distributions. Trustee shall distribute or accumulate income for the benefit of the Beneficiaries as set forth in Schedule C.
3.4.2 Principal Distributions. Trustee may, in Trustee’s sole discretion, distribute principal to or for the benefit of a Beneficiary for health, education, maintenance, or support (“HEMS Standard”) or as otherwise provided in Schedule C.
3.4.3 Termination & Final Distribution. Upon the earliest to occur of (i) [TERMINATION DATE/EVENT], or (ii) such other date mandated by Section 9.4 (Rule Against Perpetuities saving clause), Trustee shall distribute the remaining Trust Estate outright to the then-living Beneficiaries in the proportions stated in Schedule C.
3.5 Spendthrift Protection
3.5.1 Spendthrift Clause. To the maximum extent allowed under Wyo. Stat. Ann. § 4-10-502 (2023), the interests of Beneficiaries are not subject to voluntary or involuntary transfer, assignment, or attachment before actual receipt.
3.5.2 Exception. This Section does not impair any statutory exception that may permit enforcement of child-support or similar obligations.
3.6 Trustee Powers
Subject to fiduciary duties under the UTC, Trustee shall have all powers necessary or advisable to administer the Trust, including, without limitation, those enumerated in Wyo. Stat. Ann. § 4-10-815, and the following:
a. Invest and reinvest the Trust Estate, employing discretionary asset-allocation strategies;
b. Lease, sell, or exchange Trust Property without court approval;
c. Delegate investment functions to qualified agents;
d. Borrow or pledge Trust assets;
e. Make tax elections;
f. Employ and compensate professionals; and
g. Execute any document or instrument necessary to carry out the foregoing powers.
4. REPRESENTATIONS & WARRANTIES
4.1 Settlor Representations. Settlor represents that:
a. Settlor has full legal capacity to execute this Agreement;
b. The assets transferred are Settlor’s sole and lawful Property;
c. No creditor claims or pending litigation would impair the transfer.
4.2 Trustee Representations. Trustee represents that:
a. Trustee has reviewed and understands fiduciary duties under Applicable State Law;
b. Trustee is not disqualified from serving by reason of conflict or statutory bar;
c. Trustee will administer the Trust in good faith and in accordance with this Agreement.
4.3 Survival. The representations and warranties in this Section survive execution and continue until final distribution of the Trust Estate.
5. COVENANTS & RESTRICTIONS
5.1 Settlor Covenants. Settlor will execute all documents reasonably required to vest title to Property in Trustee.
5.2 Trustee Covenants. Trustee shall:
a. Maintain accurate books and records and provide annual reports to Beneficiaries within 90 days after each Accounting Period;
b. Keep Trust assets segregated from personal assets;
c. Provide reasonable notice to Beneficiaries of any significant actions affecting their interests.
5.3 Prohibited Acts. Trustee shall not:
a. Engage in self-dealing except as permitted under Section 7.2;
b. Make speculative investments contrary to the prudent investor rule;
c. Make any distributions inconsistent with Section 3.4.
6. DEFAULT & REMEDIES
6.1 Events of Default. Each of the following constitutes a “Trustee Default”:
a. Fraud, willful misconduct, or gross negligence;
b. Persistent failure to render required reports;
c. Misappropriation or commingling of Trust assets;
d. Bankruptcy or insolvency of Trustee.
6.2 Notice and Cure. Any Beneficiary may deliver written notice detailing the alleged Trustee Default. Trustee shall have 30 days to cure, unless the default is incapable of cure or involves misappropriation, in which case removal shall be immediate.
6.3 Remedies. Upon a Trustee Default:
a. Beneficiaries holding a majority of beneficial interests may remove Trustee and appoint [SUCCESSOR TRUSTEE];
b. Beneficiaries may seek injunctive relief to freeze or recover Trust assets;
c. Trustee shall be liable for damages proximately caused by the Default, limited as provided in Section 7.2.
6.4 Attorneys’ Fees. Trustee shall reimburse the Trust Estate for reasonable attorneys’ fees and costs incurred by Beneficiaries in enforcing remedies arising from a Trustee Default.
7. RISK ALLOCATION
7.1 Trustee Indemnification
Trustee, and each affiliate, agent, or employee thereof (collectively, “Indemnified Parties”), shall be indemnified from the Trust Estate against all liabilities and expenses (including reasonable attorneys’ fees) arising from the administration of the Trust, except to the extent resulting from a Trustee Default established by final non-appealable judgment.
7.2 Limitation of Liability
Liability of Trustee and Indemnified Parties is limited to the Trust Estate. No personal assets of Trustee shall be subject to satisfaction of any claim relating to the Trust.
7.3 Insurance
Trustee may purchase fiduciary liability insurance with premiums payable from the Trust Estate.
7.4 Force Majeure
Trustee shall not be liable for delay or failure in performance caused by acts of God, war, terrorism, pandemic, or other events reasonably beyond Trustee’s control, provided Trustee acts diligently to mitigate adverse effects.
8. DISPUTE RESOLUTION
8.1 Governing Law
This Agreement and all disputes hereunder shall be governed by and construed in accordance with the laws of the State of Wyoming, without regard to conflict-of-laws principles.
8.2 Forum Selection
Exclusive jurisdiction and venue for any judicial proceeding relating to the Trust shall lie in the [COUNTY] Probate Court of the State of Wyoming.
8.3 Optional Arbitration
If [CHECK ONE: ☐ Elected / ☐ Not Elected], any “Arbitrable Dispute” (defined as any controversy relating solely to administration of the Trust and not requiring court jurisdiction under the UTC) shall be resolved by binding arbitration administered by [ARBITRATION PROVIDER] in accordance with its then-effective rules. The arbitrator shall have power to grant all legal and equitable remedies (including injunctive relief) and to allocate attorneys’ fees. Judgment on the award may be entered in any court of competent jurisdiction.
8.4 Injunctive Relief
Nothing in this Section limits the right of any party to seek temporary, preliminary, or permanent injunctive relief from the Probate Court to enforce the terms of the Trust.
8.5 Jury Waiver
In accordance with probate practice, matters shall be resolved without a jury.
9. GENERAL PROVISIONS
9.1 Amendment and Waiver
This Agreement may not be amended except (a) to correct scrivener’s errors, or (b) to modify administrative provisions with unanimous written consent of all living Beneficiaries and the Trustee, provided such amendment does not alter any Beneficiary’s beneficial interest.
9.2 Assignment
No party may assign rights or delegate obligations hereunder except as specifically permitted (e.g., appointment of Successor Trustee).
9.3 Successors and Assigns
This Agreement binds and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns.
9.4 Rule Against Perpetuities Savings Clause
Notwithstanding any contrary provision, the Trust shall terminate, if not sooner vested, 21 years after the death of the last survivor of Settlor’s descendants living on the Effective Date, and the Trust Estate shall be distributed outright to the Beneficiaries then entitled to income.
9.5 Severability
If any provision is held invalid or unenforceable, the remainder shall be given effect to the fullest extent permitted by law.
9.6 Entire Agreement
This Agreement constitutes the entire agreement of the parties regarding the subject matter and supersedes all prior understandings.
9.7 Counterparts; Electronic Signatures
This Agreement may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures delivered by electronic means are deemed effective to bind the signatory.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.
| SETTLOR | TRUSTEE |
|---|---|
| ____ | ____ |
| [SETTLOR NAME] | [TRUSTEE NAME] |
Acknowledgment (Notary)
State of Wyoming )
: ss.
County of [COUNTY] )
On this _____ day of [MONTH], [YEAR], before me, [NOTARY NAME], a Notary Public in and for said state, personally appeared [SETTLOR NAME] and [TRUSTEE NAME], known to me (or proved on the basis of satisfactory evidence) to be the persons whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained.
Notary Public
My Commission Expires: _____
Schedules (attach as needed)
• Schedule A – List of Beneficiaries
• Schedule B – Description of Initial Trust Property
• Schedule C – Distribution Provisions
[// GUIDANCE: Attach asset transfer documents and IRS Form 709 (if applicable) for gift-tax reporting. Consider filing a Notice of Trust with the county clerk if local practice recommends.]