REVOCABLE LIVING TRUST AGREEMENT

(California – Governed by California Trust Law)

[// GUIDANCE: This template is intentionally comprehensive. Bracketed items must be customized by counsel prior to execution. All comments prefaced by “// GUIDANCE:” should be deleted in the final executed version.]

TABLE OF CONTENTS

1. Definitions
2. Creation and Funding of Trust
3. Revocation, Amendment, and Termination
4. Distributions During Settlor’s Lifetime
5. Distributions Upon Settlor’s Incapacity
6. Distributions Upon Settlor’s Death
7. Trustee Appointment, Resignation, Removal, and Succession
8. Trustee Powers and Duties
9. Representations, Warranties, and Covenants
10. Default and Remedies
11. Risk Allocation (Indemnification; Limitation of Liability; Insurance)
12. Dispute Resolution
13. General Provisions
14. Execution Block

1. DOCUMENT HEADER

REVOCABLE LIVING TRUST AGREEMENT

This Revocable Living Trust Agreement (“Agreement”) is made and entered into as of the [Effective Date] (the “Effective Date”) by and between:

1. [SETTLOR LEGAL NAME], an individual residing at [Settlor Address] (“Settlor”), and
2. [INITIAL TRUSTEE LEGAL NAME], [individual / California corporation], whose address is [Trustee Address] (“Trustee”).

Settlor desires to establish a revocable trust pursuant to California Probate Code §§ 15200 et seq., to hold, administer, and distribute the Trust Estate (as defined below) for the benefit of the Beneficiaries (as defined below) in accordance with the terms herein. Trustee is willing to accept such appointment and agrees to act as fiduciary subject to the provisions of this Agreement.

2. DEFINITIONS

For purposes of this Agreement, the following capitalized terms have the meanings set forth below. Defined terms appear in alphabetical order and shall apply both singularly and plurally.

“Accounting Period” – each twelve-month period ending [Month/Day], or such shorter period as may occur due to termination, resignation, or court order.
“Beneficiary” or “Beneficiaries” – the persons or entities described in §§ 4-6 entitled to receive distributions of income or principal.
“Incumbent Trustee” – the person or entity then serving as Trustee.
“Probate Court” – the Superior Court of California, [County] County, Probate Division, or any successor court having jurisdiction over trusts.
“Successor Trustee” – any person or entity appointed pursuant to § 7.
“Trust” – the revocable living trust created by this Agreement.
“Trust Estate” – all property transferred to or otherwise held from time to time in trust under this Agreement, together with all earnings, accretions, and replacements thereof.
“Trustee” – the Initial Trustee and each Successor Trustee.

[// GUIDANCE: Add, delete, or modify definitions to align with client intent, asset profile, and family structure.]

3. OPERATIVE PROVISIONS

3.1 Creation of Trust

3.1.1 Settlor hereby creates the Trust and delivers to Trustee the sum of [$10.00] as initial corpus, receipt of which is acknowledged.
3.1.2 The Trust shall be known as the “[Settlor Name] Revocable Living Trust dated [Effective Date]” and may be referred to in titling assets and legal instruments.
3.1.3 This Trust is revocable during Settlor’s lifetime and shall become irrevocable upon Settlor’s death except as otherwise expressly provided herein.

3.2 Governing Law

This Agreement and all questions concerning its validity, interpretation, and administration shall be governed by, and construed in accordance with, the laws of the State of California applicable to trusts, without regard to conflict-of-law principles.

3.3 Funding Procedures

(a) Transfer Instruments. Settlor shall execute all deeds, assignments, endorsements, and other instruments necessary to transfer legal title to assets into the Trust.
(b) Registration of Title. Tangible and intangible assets shall be retitled in the name of the Trust as follows: “[Settlor Name], Trustee of the [Settlor Name] Revocable Living Trust dated [Effective Date].”
(c) After-Acquired Property. Any property transferred to Trustee after the Effective Date shall automatically become part of the Trust Estate upon acceptance by Trustee.

[// GUIDANCE: Attach funding schedule or asset assignment forms as exhibits if desired.]

4. REVOCATION, AMENDMENT, AND TERMINATION

4.1 Revocation or Amendment by Settlor. Settlor may revoke or amend this Agreement, in whole or in part, at any time by delivering to Trustee a signed and dated written instrument.

4.2 Termination. The Trust shall terminate upon the final distribution of the Trust Estate in accordance with § 6.

4.3 Partial Revocation. A partial revocation shall not affect the remainder of this Agreement, which shall continue in full force and effect.

5. DISTRIBUTIONS DURING SETTLOR’S LIFETIME

5.1 Income. During Settlor’s lifetime and capacity, all net income shall be distributed to, or applied for the benefit of, Settlor at least as frequently as annually.

5.2 Principal. Trustee may distribute such amounts of principal to Settlor as Settlor may request in writing, or as Trustee in its discretion deems advisable for Settlor’s health, education, support, or maintenance.

5.3 Additional Beneficiaries. No person other than Settlor shall have any vested right in the Trust Estate during Settlor’s lifetime.

6. DISTRIBUTIONS UPON SETTLOR’S INCAPACITY

6.1 Determination of Incapacity. Settlor shall be deemed incapacitated upon:
(a) written certification by two licensed physicians, or
(b) order of a court of competent jurisdiction.

6.2 Distributions During Incapacity. During any period of incapacity, Trustee shall distribute income and principal for Settlor’s benefit as Trustee deems necessary for Settlor’s health, support, maintenance, and comfort, with consideration for other available resources.

7. DISTRIBUTIONS UPON SETTLOR’S DEATH

7.1 Debts, Taxes, and Expenses. Upon Settlor’s death, Trustee shall first pay, to the extent of the Trust Estate, (i) Settlor’s legally enforceable debts, (ii) funeral and burial expenses, and (iii) expenses of last illness and administration, including estate and inheritance taxes.

7.2 Specific Distributions. Trustee shall distribute the following:
(a) [Description of Item or Cash Amount] to [Beneficiary Name];
(b) [Description] to [Beneficiary].

7.3 Residuary Distribution. The balance of the Trust Estate shall be distributed [in equal shares / as percentages] to the following Beneficiaries:
(i) [Name] – [/]%
(ii) [Name] – [/]%

7.4 Contingent Beneficiaries. If any primary Beneficiary predeceases Settlor, that Beneficiary’s share shall be distributed to [his/her/its] issue by right of representation, or, if none, redistributed per capita among remaining primary Beneficiaries.

8. TRUSTEE APPOINTMENT, RESIGNATION, REMOVAL, AND SUCCESSION

8.1 Initial Trustee. [Initial Trustee Name] shall serve as Trustee.

8.2 Successor Trustees. Upon the resignation, incapacity, or death of the Incumbent Trustee, the following shall serve, in the order listed, as Successor Trustees:
(a) [SUCCESSOR TRUSTEE #1 NAME]
(b) [SUCCESSOR TRUSTEE #2 NAME]

[// GUIDANCE: California law (Prob. Code § 15660) permits appointment of multiple successor trustees and methods of acceptance. Modify as needed.]

8.3 Resignation. A Trustee may resign by delivering written notice to Settlor (if living) and all adult Beneficiaries or their legal representatives at least 30 days prior to the effective date of resignation.

8.4 Removal. Settlor (if living), or a majority in interest of the adult Beneficiaries (if Settlor is deceased or incapacitated), may remove a Trustee by written notice and appointment of an eligible Successor Trustee.

8.5 Acceptance. Each Successor Trustee shall accept trusteeship in writing and shall be vested with all powers and duties hereunder upon such acceptance without need for court approval.

8.6 Bond. No Trustee shall be required to furnish bond or other security unless requested by a court of competent jurisdiction for good cause shown.

9. TRUSTEE POWERS AND DUTIES

9.1 In General. Subject to the fiduciary duties imposed by California law, Trustee shall have all powers conferred on trustees by the California Probate Code (§§ 16220–16249) and any additional powers reasonably necessary to administer the Trust Estate, including but not limited to:

(a) Invest and reinvest assets, including delegation of investment authority;
(b) Buy, sell, or lease real or personal property;
(c) Operate businesses or form entities;
(d) Borrow money and encumber Trust assets as security;
(e) Employ professionals and delegate powers;
(f) Allocate receipts and disbursements between income and principal.

9.2 Duty of Care and Loyalty. Trustee shall administer the Trust solely in the interest of the Beneficiaries, exercising reasonable care, skill, and caution.

9.3 Accountings. Trustee shall provide annual written accountings to Settlor (if living) and, after Settlor’s death, to each adult Beneficiary and the Probate Court upon request under Probate Code § 16062.

10. REPRESENTATIONS, WARRANTIES, AND COVENANTS

10.1 Settlor Representations.
(a) Settlor is the lawful owner of the assets transferred to the Trust and such assets are free of undisclosed liens or encumbrances.
(b) Settlor has full legal capacity to execute this Agreement.

10.2 Trustee Representations.
(a) Trustee has the authority to enter into and perform under this Agreement.
(b) Trustee shall comply with all applicable laws and regulations in administering the Trust.

10.3 Survival. The representations and warranties herein shall survive execution of this Agreement and remain enforceable for the duration of the Trust.

11. DEFAULT AND REMEDIES

11.1 Events of Default. The following constitute defaults:
(a) Breach of fiduciary duty by Trustee;
(b) Failure to provide required accountings;
(c) Misappropriation or waste of Trust assets;
(d) Failure to comply with a material provision of this Agreement.

11.2 Notice and Cure. The party alleging default shall deliver written notice specifying the default. The Trustee shall have 30 days to cure the default, or such longer period as is reasonably necessary provided diligent efforts are undertaken.

11.3 Remedies. If the default remains uncured, the Beneficiaries or Settlor may petition the Probate Court for (i) removal of Trustee, (ii) surcharge against Trustee, (iii) injunctive relief compelling performance, and/or (iv) any other equitable or legal remedy available under California law. Attorneys’ fees and costs may be awarded to the prevailing party.

12. RISK ALLOCATION

12.1 Indemnification of Trustee

To the fullest extent permitted by law, Trustee shall be indemnified and held harmless out of the Trust Estate against any and all claims, liabilities, expenses, or losses (including reasonable attorneys’ fees) incurred by reason of any act or omission within the scope of the Trustee’s authority, except to the extent arising from Trustee’s willful misconduct or gross negligence.

12.2 Limitation of Liability

Trustee shall not be personally liable for any obligation or liability arising from ownership or control of Trust property. Any liability of Trustee shall be satisfied solely from the Trust Estate and not from Trustee’s separate assets.

[// GUIDANCE: This clause fulfills the “trust_assets” liability cap requirement.]

12.3 Insurance

Trustee may purchase fiduciary liability insurance, the premiums for which shall be paid from the Trust Estate and treated as an administrative expense.

13. DISPUTE RESOLUTION

13.1 Forum Selection. Subject to § 13.2, exclusive jurisdiction and venue for any proceeding concerning this Trust shall lie with the Probate Court.

13.2 Optional Arbitration. Notwithstanding § 13.1, any party may elect binding arbitration administered by [Arbitration Provider] under its rules then in effect, provided that:
(a) The election is made in writing within 30 days after service of a petition or complaint;
(b) The arbitration shall take place in [County], California;
(c) The arbitrator(s) shall have authority to grant all remedies available at law or in equity; and
(d) Judgment on the award may be entered in any court of competent jurisdiction.

13.3 Jury Waiver. No jury trial waiver is included, consistent with California Probate Court practice.

13.4 Injunctive Relief. Nothing herein shall prevent any party from seeking temporary restraining orders or preliminary injunctions from the Probate Court to prevent irreparable harm to the Trust Estate.

14. GENERAL PROVISIONS

14.1 Amendment and Waiver. Only Settlor may amend or waive any provision prior to Settlor’s death; thereafter, no amendment is permitted except by court order. No waiver of any provision shall be effective unless in writing and signed by the party against whom enforcement is sought.

14.2 Assignment. No Beneficiary may assign, anticipate, or encumber his or her interest prior to actual receipt; all interests are subject to a spendthrift trust under Probate Code § 15300.

14.3 Severability. If any provision 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 effectuate Settlor’s intent.

14.4 Entire Agreement. This Agreement constitutes the entire understanding among the parties concerning the Trust and supersedes all prior agreements, whether written or oral, relating thereto.

14.5 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original. Signatures delivered by facsimile, .PDF, or electronic signature platform shall be deemed valid and binding.

15. EXECUTION BLOCK

IN WITNESS WHEREOF, Settlor and Trustee have executed this Revocable Living Trust Agreement as of the Effective Date.

[If Settlor and Trustee are the same individual, execute once in each capacity.]

NOTARY ACKNOWLEDGMENT – CALIFORNIA

State of California )
County of [_] )

On [Date], before me, [Name of Notary], a Notary Public, personally appeared [Name(s) of Signer(s)], who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _______
(Seal)

[// GUIDANCE: Verify notarial wording against current Cal. Civ. Code § 1189 prior to finalization.]

END OF DOCUMENT