REVOCABLE LIVING TRUST AGREEMENT

(Colorado)

[// GUIDANCE: This template is drafted for use under Colorado law (C.R.S. Title 15, Art. 5 et seq.). All bracketed terms must be customized before execution. Attach separate Schedules for property funding, beneficiary information, and fiduciary contact details.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Creation, Funding, and Purpose of the Trust
4. Dispositive Provisions During Settlor’s Lifetime
5. Dispositive Provisions Upon Settlor’s Death or Incapacity
6. Revocation, Amendment, & Restatement
7. Trusteeship
8. Trustee Powers, Duties, & Standards of Care
9. Liability, Indemnification, & Risk Allocation
10. Accounting, Records, & Tax Matters
11. Default & Remedies
12. Dispute Resolution
13. General Provisions
14. Execution Block
15. Acknowledgments, Notarization & Witness Affidavit
16. Schedule A – Assignment of Trust Property
17. Schedule B – Beneficiary & Distribution Scheme
18. Schedule C – Fiduciary Contact Information

1. DOCUMENT HEADER

THIS REVOCABLE LIVING TRUST AGREEMENT (“Agreement”) is entered into and made effective as of [EFFECTIVE DATE] (the “Effective Date”), by and between:

(a) Settlor: [SETTLOR LEGAL NAME], residing at [SETTLOR ADDRESS]; and
(b) Initial Trustee: [TRUSTEE LEGAL NAME], residing at/with its principal office at [TRUSTEE ADDRESS].

The Settlor hereby declares that all property now or hereafter conveyed to the Trustee shall be held, administered, and distributed in accordance with the terms of this Agreement and the Colorado Uniform Trust Code, Colo. Rev. Stat. § 15-5-101 et seq. (the “CUTC”).

2. DEFINITIONS

Unless the context clearly requires otherwise, capitalized terms have the meanings set forth below:

“Accounting Period” – Each calendar year ending December 31, or such shorter period from the Effective Date until the first December 31, and each period thereafter until Trust termination.

“Affiliate” – Any person or entity directly or indirectly controlling, controlled by, or under common control with the party in question.

“Beneficiary” – Any person or entity presently entitled, or who may become entitled, to distributions from the Trust.

“Disability” – The Settlor’s inability to manage property or financial affairs as certified in writing by two licensed physicians or as determined by a court of competent jurisdiction.

“Distribution Event” – The first to occur of: (i) Settlor’s death; (ii) the Settlor’s Disability; or (iii) any other event designated in Schedule B.

“Trust” – The revocable living trust created under this Agreement, known as the “[TRUST NAME] Revocable Trust.”

“Trust Estate” – All tangible and intangible property, real or personal, together with all income, reinvestments, and proceeds, held by the Trustee under this Agreement.

“Trustee” – The Initial Trustee, any successor trustee, and any co-trustee appointed in accordance with Section 7.

[// GUIDANCE: Add or delete defined terms as needed. Maintain alphabetical order.]

3. CREATION, FUNDING, AND PURPOSE OF THE TRUST

3.1 Establishment. The Settlor hereby creates a revocable inter vivos trust, effective upon execution, to hold legal title to the Trust Estate, subject to the Settlor’s retained powers.

3.2 Initial Funding. Concurrently with execution, Settlor transfers to the Trustee the property described in Schedule A. Additional property may be added by the Settlor or any other person, by inter vivos transfer, assignment, beneficiary designation, or testamentary disposition.

3.3 Separate Property Status. Assets transferred remain the Settlor’s separate property unless expressly designated otherwise in writing.

3.4 Purpose. The Trust is established (a) to hold, manage, and conserve property during Settlor’s lifetime; (b) to provide for Settlor and Beneficiaries upon Disability; (c) to avoid probate administration at Settlor’s death; and (d) for any further purposes permitted by law and consistent with this Agreement.

4. DISPOSITIVE PROVISIONS DURING SETTLOR’S LIFETIME

4.1 Retained Rights of Settlor. During Settlor’s lifetime and capacity, Settlor shall be the sole Beneficiary and may direct the Trustee regarding investment, management, or distribution of Trust income or principal.

4.2 Distributions for Settlor. Subject to Section 4.1, Trustee shall distribute to or for Settlor’s benefit so much of the income and principal as Settlor directs, or, absent direction, as Trustee determines necessary for Settlor’s health, education, support, or maintenance (“HEMS Standard”).

4.3 Settlor’s Powers. While living and competent, Settlor reserves the power to:
(a) Revoke or amend the Trust (Section 6);
(b) Add or withdraw assets;
(c) Replace or appoint Trustees; and
(d) Exercise any other power consistent with Colo. Rev. Stat. § 15-5-602.

5. DISPOSITIVE PROVISIONS UPON SETTLOR’S DEATH OR INCAPACITY

5.1 Disability. Upon Settlor’s Disability:
(a) Trustee shall first satisfy Settlor’s HEMS needs;
(b) Thereafter, Trustee may make discretionary distributions to the Beneficiaries listed in Schedule B, consistent with any stated percentages or limitations.

5.2 Death of Settlor. Upon Settlor’s death, Trustee shall:
(a) Pay Settlor’s legally enforceable debts, funeral expenses, and estate taxes from the Trust Estate to the extent not paid by Settlor’s probate estate;
(b) Allocate specific gifts listed in Schedule B;
(c) Divide the residue into the continuing or terminating sub-trusts shown in Schedule B (e.g., Family Trust, Survivor’s Trust, GST Exempt Trust); and
(d) Distribute outright gifts or terminate sub-trusts at the times and upon the conditions set forth therein.

5.3 Spendthrift Protection. Each Beneficiary’s interest shall be held subject to a spendthrift trust under CUTC §§ 15-5-501 et seq., prohibiting voluntary or involuntary transfer, pledge, or assignment before actual receipt.

6. REVOCATION, AMENDMENT, & RESTATEMENT

6.1 Method. The Settlor may revoke or amend this Agreement, in whole or in part, by:
(a) A signed written instrument delivered to Trustee; or
(b) Any other method permitted under CUTC § 15-5-602; provided that Trustee receives written notice thereof.

6.2 Effect of Revocation. Upon revocation, Trustee shall promptly convey the Trust Estate to Settlor, subject to liabilities properly chargeable to the Trust.

6.3 Partial Amendments. Any amendment shall be deemed incorporated herein as of its effective date.
[// GUIDANCE: For a complete restatement, attach the new agreement and label it “Amended & Restated Revocable Living Trust.”]

7. TRUSTEESHIP

7.1 Initial Trustee Acceptance. The Initial Trustee accepts the office by signing in Section 14.

7.2 Successor Trustee. If the Initial Trustee resigns, becomes incapacitated, or is removed, the following persons, in the listed order, shall serve:
(a) [SUCCESSOR TRUSTEE 1];
(b) [SUCCESSOR TRUSTEE 2];
(c) A corporate fiduciary authorized to conduct trust business in Colorado, selected by majority of current adult Beneficiaries.

7.3 Resignation. A Trustee may resign by (i) 30-days’ written notice to Settlor (if living) and all adult Beneficiaries, or (ii) court approval.

7.4 Removal. Settlor (if living and competent) or a two-thirds majority of adult Beneficiaries may remove a Trustee by written instrument delivered to the Trustee and remaining Trustees.

7.5 Vacancy & Acceptance. A Successor Trustee shall accept by executing a written acceptance, acknowledging receipt of the Trust Estate, and filing any notices required under CUTC § 15-5-705.

7.6 Co-Trustees. Unless otherwise specified, co-Trustees shall act by majority. A dissenting co-Trustee shall not be liable for majority actions if the dissent is recorded in writing.

8. TRUSTEE POWERS, DUTIES, & STANDARDS OF CARE

8.1 Fiduciary Standard. Trustee shall administer the Trust in good faith, in accordance with its terms and the prudent investor rule (CUTC §§ 15-5-801 to 804; 15-1.1-101 et seq.).

8.2 Enumerated Powers. Without limiting the general fiduciary powers under C.R.S. Title 15, Trustee may:
(a) Invest, reinvest, vote, lease, improve, exchange, or sell any Trust property;
(b) Borrow money, encumber Trust assets, and guarantee obligations, limited to the Trust Estate;
(c) Employ professionals (attorneys, CPAs, investment advisers) and pay customary fees;
(d) Allocate receipts and expenses between income and principal;
(e) Make distributions in cash or in-kind, pro-rata or non-pro-rata;
(f) Divide or combine trusts for administrative convenience, provided Beneficiary interests are not materially impaired;
(g) Execute all instruments necessary to carry out Trust purposes.

8.3 Delegation. Trustee may delegate investment and management functions in a manner consistent with CUTC § 15-5-807.

8.4 Duty to Inform & Report. Trustee shall provide trust accountings at least annually and upon reasonable request, in compliance with CUTC § 15-5-813.

9. LIABILITY, INDEMNIFICATION, & RISK ALLOCATION

9.1 Trustee Personal Liability Limited to Trust Assets. To the fullest extent permitted by law, any liability of the Trustee arising from the administration of the Trust shall be satisfied solely out of the Trust Estate, and no Trustee shall be personally liable except for acts constituting willful misconduct or gross negligence.

9.2 Indemnification. The Trust shall indemnify and hold harmless each Trustee, to the extent of the Trust Estate, against any claim, liability, or expense, including reasonable attorneys’ fees, incurred by reason of its fiduciary capacity, except to the extent caused by the Trustee’s breach of trust.

9.3 Insurance. Trustee may purchase fiduciary liability insurance, payable from Trust assets, naming the Trustee as insured.

9.4 Force Majeure. Trustee shall not be liable for failure to act or delay caused by events beyond its reasonable control, including acts of God, war, terrorism, cyberattack, or changes in applicable law.

10. ACCOUNTING, RECORDS, & TAX MATTERS

10.1 Tax Identification. During Settlor’s lifetime, the Trust’s taxpayer identification number shall be Settlor’s Social Security Number; upon Settlor’s death, Trustee shall obtain a separate EIN.

10.2 Tax Treatment. The Trust shall be treated as a “grantor trust” for federal and Colorado income tax purposes while Settlor is living. After Settlor’s death, Trustee shall file fiduciary income tax returns (IRS Form 1041; Colorado DR 0106) as required.

10.3 Valuations. Trustee shall obtain annual valuations of significant Trust assets, and any time a major distribution is contemplated.

11. DEFAULT & REMEDIES

11.1 Events of Default. The following constitute defaults by a Trustee:
(a) Failure to comply with mandatory trust provisions;
(b) Self-dealing or conflict of interest not expressly authorized;
(c) Gross negligence, willful misconduct, or breach of fiduciary duty.

11.2 Notice & Cure. Any Beneficiary may serve written notice of default. Trustee has 30 days to cure, or such longer period as is reasonably necessary if the Trustee commences cure within the 30-day period and diligently proceeds.

11.3 Remedies. If uncured, Beneficiaries may seek:
(a) Removal of Trustee;
(b) Temporary or permanent injunction;
(c) Surcharge against the Trustee’s interest in Trust assets;
(d) Attorneys’ fees and costs.

11.4 Attorneys’ Fees. In any action under this Section 11, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs, payable from the Trust Estate unless the court orders otherwise.

12. DISPUTE RESOLUTION

12.1 Governing Law. This Agreement and the Trust shall be governed by and construed in accordance with the laws of the State of Colorado, without regard to conflict-of-law principles.

12.2 Forum Selection. The exclusive forum for all proceedings relating to the Trust shall be the [COUNTY] District Court (sitting in probate) or any other Colorado court of competent jurisdiction having probate/trust jurisdiction.

12.3 Optional Arbitration. By unanimous written agreement of all current adult Beneficiaries and the Trustee, any dispute may be submitted to binding arbitration administered by the American Arbitration Association (“AAA”) under the AAA Commercial Arbitration Rules, with the seat of arbitration in [CITY], Colorado.
[// GUIDANCE: Strike or keep Section 12.3 depending on client preference.]

12.4 Jury Waiver. To the extent any matter is heard in a court of law, the parties acknowledge that Colorado probate proceedings are typically tried without a jury.

12.5 Injunctive Relief. Nothing herein shall limit any party’s right to seek temporary restraining orders, preliminary injunctions, or other equitable relief to protect the Trust Estate pending final resolution.

13. GENERAL PROVISIONS

13.1 Amendment & Waiver. Except as limited herein, any provision may be amended or waived only by a written instrument executed by the Settlor (if living) or by court order.

13.2 Assignment. No Beneficiary may assign, pledge, or encumber any interest in the Trust except as expressly provided.

13.3 Successors & Assigns. This Agreement binds and benefits the parties and their respective heirs, successors, and permitted assigns.

13.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to reflect the parties’ intent.

13.5 Entire Agreement. This Agreement, together with Schedules A-C, constitutes the entire agreement respecting the Trust and supersedes all prior writings or oral statements.

13.6 Counterparts & Electronic Signatures. This Agreement may be executed in counterparts, each deemed an original, and by electronic or digital signature in compliance with Colo. Rev. Stat. § 24-71.3-101 et seq., the Colorado Uniform Electronic Transactions Act.

14. EXECUTION BLOCK

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

Settlor:

[SETTLOR LEGAL NAME]

Date: ______

Initial Trustee:

[TRUSTEE LEGAL NAME]
Title/Capacity: [INDIVIDUAL / TRUST COMPANY]

Date: ______

15. ACKNOWLEDGMENTS, NOTARIZATION & WITNESS AFFIDAVIT

State of Colorado )
County of [__] )

This instrument was acknowledged before me on [DATE] by [SETTLOR NAME] (Settlor) and [TRUSTEE NAME] (Trustee).

Notary Public
My Commission Expires: _____

[// GUIDANCE: Colorado does not require witnesses for a trust, but some practitioners include two disinterested witnesses for evidentiary purposes.]

16. SCHEDULE A – ASSIGNMENT OF TRUST PROPERTY

[// GUIDANCE: List each asset with adequate identifying information and, where necessary, attach separate assignments, deeds, account change-of-ownership forms, or vehicle title applications.]

1. Primary residence at [ADDRESS], legal description attached as Exhibit A.
2. Brokerage Account No. [####] at [INSTITUTION] (title to “[TRUST NAME] Revocable Trust dated [EFFECTIVE DATE]”).
3. 100% membership interest in [LLC NAME], a Colorado limited liability company.
4. Tangible personal property per separate memorandum.
5. Any and all additions hereafter made.

17. SCHEDULE B – BENEFICIARY & DISTRIBUTION SCHEME

1. Upon Settlor’s death, specific gifts:
   a. $[AMOUNT] to [CHARITY NAME], EIN [##-#######].
   b. [DESCRIPTION OF ITEM] to [BENEFICIARY NAME].

2. Residue:
   a. 50% to [BENEFICIARY A], outright at age [];
   b. 50% to a Continuing Trust for [BENEFICIARY B], with discretionary distributions for HEMS and mandatory final distribution at age [].

3. Contingent Beneficiaries: [NAMES] in equal shares, per stirpes.

[// GUIDANCE: Insert GST tax allocation directions, age staggered distributions, or special-needs trust provisions as appropriate.]

18. SCHEDULE C – FIDUCIARY CONTACT INFORMATION

• Initial Trustee: [NAME, ADDRESS, PHONE, EMAIL]
• Successor Trustee 1: [NAME, ADDRESS, PHONE, EMAIL]
• Accountant: [FIRM NAME & CONTACT]
• Investment Adviser: [FIRM NAME & CONTACT]

[// GUIDANCE:
1. Record a “Notice of Revocable Trust” (a/k/a Certificate of Trust) for real property matters (C.R.S. § 38-35-109(8)).
2. Verify beneficiary designations on life insurance, retirement plans, and payable-on-death accounts to the Trust or other intended recipients.
3. For motor vehicles, file Colorado DMV Form DR 2447 (Statement of Transfer) to retitle in the Trust’s name.
4. Obtain an EIN promptly upon Settlor’s death to separate Trust tax reporting.
5. Review the Trust annually for changes in assets, tax law, or family circumstances.]