REVOCABLE LIVING TRUST AGREEMENT
(District of Columbia – Draft Template)
[// GUIDANCE: This template is intended for use by licensed attorneys. Customize bracketed placeholders and modify provisions to reflect client-specific facts, the governing version of the District of Columbia Uniform Trust Code (“DC UTC”), and any federal or state tax considerations. Verify all statutory cross-references before execution.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
3.1 Creation and Funding of Trust
3.2 Revocation and Amendment
3.3 Dispositive Provisions
3.4 Trustee Powers and Duties - Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Schedule A – Initial Trust Property
- Schedule B – Fiduciary Compensation (Optional)
1. DOCUMENT HEADER
This Revocable Living Trust Agreement (“Agreement” or “Trust”) is made and entered into on [EFFECTIVE DATE] (“Effective Date”) by and between:
• [SETTLOR LEGAL NAME], residing at [SETTLOR ADDRESS] (“Settlor”); and
• [INITIAL TRUSTEE LEGAL NAME], whose principal address is [TRUSTEE ADDRESS] (“Trustee”).
The Trust is established pursuant to Title 19, Chapter 13 of the District of Columbia Code (the “DC UTC”) and shall be administered in accordance with the laws of the District of Columbia.
Recitals
A. Settlor desires to create a revocable trust to hold certain property for the benefit of Settlor during Settlor’s lifetime and for other beneficiaries thereafter.
B. Trustee is willing to accept the trusteeship and to hold, manage, and distribute the Trust Estate in accordance with the terms of this Agreement.
The parties therefore agree as follows:
2. DEFINITIONS
For purposes of this Agreement, capitalized terms have the meanings set forth below. Undefined capitalized terms have the meanings ascribed by the DC UTC.
“Accounting Period” means each calendar year ending December 31, or such shorter period concluding upon final distribution or Trustee change.
“Beneficiaries” means the persons or entities identified in Section 3.3 entitled to present or future beneficial interests.
“Claim” means any claim, demand, action, suit, arbitration, inquiry, or proceeding of whatever nature.
“DC Probate Court” means the Superior Court of the District of Columbia – Probate Division (or any successor court).
“Dispositive Event” means Settlor’s death, incapacity (as defined in Section 3.2 (b)), or other event expressly triggering mandatory distributions.
“Fiduciary” means Trustee, any Successor Trustee, or any Co-Trustee.
“Trust Estate” means all property, real or personal, tangible or intangible, transferred to or otherwise held under this Trust, together with all income, accretions, substitutions, and reinvestments.
“Trust Protector” (if appointed) means the person or entity designated in Section 3.4 (k) with limited oversight powers.
“UTC” means the District of Columbia Uniform Trust Code (Title 19, Chapter 13, D.C. Code), as amended.
[// GUIDANCE: Add or delete definitions to match customized provisions.]
3. OPERATIVE PROVISIONS
3.1 Creation and Funding of Trust
(a) Declaration. Settlor hereby transfers, assigns, and delivers to Trustee the property described on Schedule A (the “Initial Trust Property”), receipt of which Trustee acknowledges. Additional property may be transferred to the Trust at any time by Settlor or any other person, by inter vivos transfer, by beneficiary designation, or by testamentary disposition (e.g., pour-over will clause).
(b) Title to Trust Assets. All Trust Estate shall be titled in the name of “[INITIAL TRUSTEE NAME], Trustee of the [SETTLOR NAME] Revocable Living Trust dated [EFFECTIVE DATE], and any amendments thereto.” Title documents shall not reference any Beneficiary to preserve privacy.
(c) Funding Formalities. To effectuate transfer of:
(i) Real property located in the District of Columbia – execute and record a deed of conveyance compliant with D.C. Code § 42-601 et seq.;
(ii) Motor vehicles – execute a certificate of title assignment; and
(iii) Securities or accounts – complete the custodian’s or transfer agent’s change-of-ownership forms.
[// GUIDANCE: Include specific funding steps for each asset class held by the client.]
3.2 Revocation and Amendment
(a) Revocation. During Settlor’s lifetime and capacity, Settlor may revoke this Trust, in whole or in part, by (i) a signed writing delivered to Trustee, or (ii) any other method authorized by the DC UTC clearly indicating intent to revoke.
(b) Incapacity Standard. “Incapacity” means a determination by two licensed physicians (or one physician and one licensed psychologist) that Settlor lacks the ability to manage property and financial affairs. Until written notice of such determination is received by Trustee, Trustee may rely conclusively on Settlor’s capacity.
(c) Amendment. Settlor may amend this Trust by an instrument in writing signed by Settlor and delivered to Trustee. Any amendment shall be effective only with respect to Trust property held thereafter and shall not increase Trustee’s compensation without Trustee’s written consent.
3.3 Dispositive Provisions
(a) Lifetime Distributions. During Settlor’s lifetime, Trustee shall distribute to or for Settlor’s benefit so much of the net income and principal as Settlor directs in writing, or, in the absence of direction, as Trustee deems necessary for Settlor’s health, education, support, and maintenance, considering Settlor’s other resources.
(b) Upon a Dispositive Event:
(i) Specific Gifts. Upon Settlor’s death, Trustee shall distribute the following specific gifts free of trust:
• [DESCRIPTION OF GIFT] to [BENEFICIARY NAME];
• [ADDITIONAL GIFTS].
(ii) Residual Trust. The remaining Trust Estate shall be held in continuing trust for the benefit of [PRIMARY BENEFICIARY] under the terms of subsection (c).
(c) Continuing Trust Terms. Until [PRIMARY BENEFICIARY] attains [AGE], Trustee may distribute income and principal for [PRIMARY BENEFICIARY]’s health, education, support, and maintenance (“HEMS Standard”). Upon reaching [AGE], all remaining assets shall be distributed outright. If [PRIMARY BENEFICIARY] predeceases distribution in full, the remainder shall be distributed per stirpes to [PRIMARY BENEFICIARY]’s descendants, or, if none, to the persons who would take under the District of Columbia intestacy laws as if Settlor had died intestate as of that date.
(d) Spendthrift. To the maximum extent permitted by law, no Beneficiary’s interest shall be subject to voluntary or involuntary transfer, assignment, or encumbrance prior to actual receipt.
3.4 Trustee Powers and Duties
(a) General Powers. Trustee shall have all powers granted by the DC UTC, including but not limited to the powers under §§ 815–816 UTC (generic reference), as well as the specific powers enumerated below, to be exercised in a fiduciary capacity and in Settlor’s best interest.
(b) Investment Authority. Trustee may invest and reinvest Trust assets in any kind of property or investment that a prudent investor would consider, without being restricted to investments authorized for trustees by any jurisdiction’s laws.
(c) Delegation. Trustee may delegate investment and administrative functions in accordance with applicable UTC prudence standards, provided Trustee exercises reasonable care in selecting and monitoring the agent.
(d) Distribution Authority. Trustee’s determinations regarding distributions, allocations between income and principal, and interpretation of Trust terms shall be conclusive and binding absent bad faith.
(e) Special Powers. Trustee may:
(i) create or participate in family-limited partnerships, LLCs, or other entities;
(ii) exercise tax elections, including selection of fiscal year and discretionary allocation of receipts between income and principal; and
(iii) divide or combine trusts for administrative convenience if no beneficiary’s beneficial interest is materially impaired.
(f) Duty to Inform and Report. Trustee shall provide accountings to the Beneficiaries at least annually and upon reasonable request, consistent with UTC §§ 813-814.
(g) Successor Trustee Procedures.
(i) Resignation. Trustee may resign by giving thirty (30) days’ written notice to Settlor (if living) and the then-current adult Beneficiaries.
(ii) Removal. Settlor (while living) or a court of competent jurisdiction may remove Trustee with or without cause.
(iii) Vacancy. If the office of Trustee becomes vacant, the next Successor Trustee named below shall serve. If all named successors are unable or unwilling, a majority of the adult current Beneficiaries may appoint a qualified corporate fiduciary or individual resident of the United States.
(iv) Successor Trustee List:
1. [FIRST SUCCESSOR TRUSTEE NAME]
2. [SECOND SUCCESSOR TRUSTEE NAME]
3. [CORPORATE FIDUCIARY NAME]
(h) Co-Trustees. If at any time more than one Trustee is serving, any one Trustee may act for the Trust unless otherwise required by unanimous consent under DC UTC § 703.
(i) Trustee Compensation. Trustee shall be entitled to reasonable compensation in accordance with Schedule B or, if absent, the customary fees charged by corporate fiduciaries in the District of Columbia for trusts of similar size and complexity.
(j) Trustee Succession Documents. Upon resignation, removal, or incapacity, the outgoing Trustee shall (i) deliver a final accounting, (ii) transfer title to Trust assets to the Successor Trustee, and (iii) execute all documents reasonably necessary to effectuate the transfer within thirty (30) days.
(k) Trust Protector (Optional). Settlor may designate a Trust Protector with authority to (i) remove and replace Trustee, (ii) approve Trustee compensation, and (iii) consent to amendments under Section 3.2(c) that affect Beneficiary rights.
4. REPRESENTATIONS & WARRANTIES
(a) Settlor represents and warrants that:
(i) Settlor is of legal age, of sound mind, and the sole owner of the Initial Trust Property;
(ii) No bankruptcy, insolvency, or similar proceeding is pending against Settlor; and
(iii) Transfer of the Initial Trust Property does not violate any court order or contractual restriction.
(b) Trustee represents and warrants that:
(i) Trustee is qualified and willing to serve and has not been convicted of a felony involving dishonesty;
(ii) Trustee has reviewed this Agreement and understands all fiduciary duties imposed by law; and
(iii) Trustee will obtain and maintain any licenses or bonding required by applicable law.
All representations and warranties survive the Effective Date for so long as the Trust remains revocable and thereafter to the extent necessary to enforce indemnification obligations.
5. COVENANTS & RESTRICTIONS
(a) Settlor covenants to execute all additional documents reasonably requested by Trustee to perfect title to Trust assets.
(b) Trustee covenants to administer the Trust strictly in accordance with this Agreement and the DC UTC, using at least the skill of a prudent person familiar with trust administration.
(c) Beneficiaries covenant not to challenge (i) Trustee’s reasonable, good-faith investment decisions or (ii) any distribution made in accordance with a HEMS standard. Breach waives the Beneficiary’s right to future discretionary distributions for a period of twelve (12) months following written notice.
6. DEFAULT & REMEDIES
(a) Trustee Default. “Event of Default” means Trustee’s (i) willful misconduct, (ii) gross negligence, or (iii) material breach of fiduciary duty. Upon an Event of Default:
1. Any Beneficiary may provide written notice to Trustee specifying the default (“Default Notice”);
2. Trustee shall have thirty (30) days to cure; if uncured, Beneficiaries holding a majority of beneficial interests may remove Trustee and appoint a Successor Trustee; and
3. Trustee shall be liable for damages proximately caused by the default, subject to Section 7.2 (Liability Cap).
(b) Beneficiary Default. If a Beneficiary contests the validity of this Agreement or Settlor’s estate plan, that Beneficiary’s share shall be forfeited and distributed as if the Beneficiary had predeceased Settlor without descendants (“No-Contest Clause”).
(c) Attorney Fees. In any proceeding arising under or relating to this Agreement, the prevailing party is entitled to reasonable attorney fees and costs, chargeable against the non-prevailing party’s share of the Trust Estate or, if the non-prevailing party is Trustee, personally against Trustee (subject to Section 7.2).
7. RISK ALLOCATION
7.1 Trustee Indemnification
The Trust Estate shall indemnify and hold Trustee harmless from and against any Claim, liability, or expense, including attorney fees, arising from Trustee’s good-faith administration of the Trust, except for matters resulting from Trustee’s willful misconduct or gross negligence.
7.2 Limitation of Liability
Trustee’s liability, in the aggregate, shall not exceed the total value of the Trust Estate at the time the liability arises. No personal assets of Trustee shall be subject to satisfaction of any Claim relating to Trust administration, except as otherwise provided by statute for willful misconduct or gross negligence.
7.3 Force Majeure
Trustee shall not be liable for delays or failures in performance caused by acts of God, governmental restrictions, market disruptions, cyber-attacks, or other events beyond the Trustee’s reasonable control, provided Trustee acts diligently to mitigate the effects.
8. DISPUTE RESOLUTION
(a) Governing Law. This Agreement is governed by and construed in accordance with the laws of the District of Columbia, without giving effect to conflict-of-law principles.
(b) Exclusive Forum. All judicial proceedings relating to this Trust shall be brought exclusively in the DC Probate Court.
(c) Optional Arbitration. Notwithstanding subsection (b), the parties may agree in a separate written instrument to submit any dispute to binding arbitration administered by [ARBITRATION BODY] under its applicable rules. Absent such separate agreement, arbitration is not mandated by this Trust.
(d) Jury Waiver. To the extent any matter is heard in a court of law, the parties waive trial by jury in any proceeding concerning the Trust or its administration.
(e) Injunctive Relief. Nothing herein limits the authority of any court of competent jurisdiction to issue temporary, preliminary, or permanent injunctive relief to protect the Trust Estate or enforce fiduciary duties.
9. GENERAL PROVISIONS
9.1 Amendment and Waiver. Only Settlor (while living and not incapacitated) may amend or waive any provision of this Agreement, in accordance with Section 3.2. No waiver of any provision constitutes a waiver of any other.
9.2 Assignment. Beneficial interests are non-assignable except as expressly provided by law.
9.3 Successors and Assigns. This Agreement binds and benefits the Settlor, Trustee, Successor Trustees, and Beneficiaries, and their respective heirs, legal representatives, and permitted assigns.
9.4 Severability. If any provision is held invalid or unenforceable, it shall be reformed to the minimum extent necessary, and the remaining provisions shall remain in full force.
9.5 Entire Agreement. This Agreement constitutes the entire understanding among the parties with respect to the Trust and supersedes all prior agreements or understandings, whether written or oral.
9.6 Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures delivered via facsimile, PDF, or approved electronic signature platform (e.g., DocuSign) are equally effective.
9.7 Headings. Headings are for convenience only and do not affect interpretation.
9.8 Notices. Any notice required under this Agreement must be in writing and delivered (i) by hand, (ii) by certified mail, return receipt requested, (iii) by nationally recognized overnight courier, or (iv) by encrypted email with delivery confirmation, to the receiving party’s last known address.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties have executed this Revocable Living Trust Agreement as of the Effective Date.
| Settlor | Trustee |
|---|---|
| _________ | _________ |
| [SETTLOR NAME] | [TRUSTEE NAME] |
DISTRICT OF COLUMBIA, ss.:
On this _ day of __, 20___, before me, the undersigned Notary Public, personally appeared [SETTLOR NAME] and [TRUSTEE NAME], known to me (or satisfactorily proven) to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.
Notary Public
My commission expires: ____
[// GUIDANCE: DC does not statutorily require witnesses for a trust instrument, but practitioners often obtain two disinterested witnesses for evidentiary purposes.]
11. SCHEDULE A
INITIAL TRUST PROPERTY
- Cash – $[AMOUNT] deposited in [BANK NAME], Account No. [XXXXXX]
- Real Property – [LEGAL DESCRIPTION & ADDRESS]
- Brokerage Account – [BROKER], Account No. [XXXXXX]
- Membership Interests – [LLC NAME] (% Ownership)
[Add additional items as applicable.]
12. SCHEDULE B (Optional)
FIDUCIARY COMPENSATION
Trustee shall receive annual compensation equal to the greater of (i) [__]% of the fair-market value of the Trust Estate calculated on the last business day of each calendar year, or (ii) the published standard fee schedule of [CORPORATE FIDUCIARY] as in effect from time to time. Extraordinary services (e.g., real property sales, litigation, tax audits) shall be compensated at an hourly rate of $[RATE], subject to Beneficiary notice and objection rights under UTC § 813.
[// GUIDANCE: Attach a separate Pour-Over Will, Durable Power of Attorney, and Advance Healthcare Directive to create a comprehensive estate plan. Confirm consistency among documents regarding fiduciary appointments, dispositive provisions, and defined terms.]