REVOCABLE LIVING TRUST AGREEMENT

State of Illinois

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Schedule A – Initial Trust Property

[// GUIDANCE: Use the internal headings for quick navigation in any modern word-processing program.]

1. DOCUMENT HEADER

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

• [FULL LEGAL NAME OF SETTLOR], an individual residing at [ADDRESS] (“Settlor”); and
• [FULL LEGAL NAME OF ORIGINAL TRUSTEE], whose principal address is [ADDRESS] (“Trustee”).

[// GUIDANCE: Where co-trustees are desired, insert additional Trustee names and adjust plural references throughout.]

1.2 Recitals.
A. Settlor desires to establish a revocable inter vivos trust (the “Trust”) pursuant to 760 ILCS 3/ et seq., to hold, manage, and distribute certain property for the benefit of the persons hereinafter identified.
B. Trustee is willing to accept the Trust and to administer it in accordance with this Agreement.

1.3 Consideration.
In consideration of the mutual covenants herein and other good and valuable consideration, receipt of which is acknowledged, the parties agree as follows.

2. DEFINITIONS

For ease of reference, the following capitalized terms shall have the meanings set forth below (alphabetically):

“Accounting Period” – A calendar year unless otherwise elected in writing by Trustee.
“Beneficiary” – Any person or entity identified in Sections 3.5 or 3.6 as eligible to receive distributions.
“Disability” – Settlor’s inability, by reason of physical or mental impairment, to manage Settlor’s affairs, as certified in writing by (i) two licensed physicians or (ii) a court of competent jurisdiction.
“Distribution Standards” – The health, education, maintenance, and support standard within the meaning of §§ 2041 and 2514 of the Internal Revenue Code.
“Primary Residence” – The real property located at [ADDRESS] or any future principal dwelling owned by the Trust.
“Successor Trustee” – Any person or institution designated in Section 5.2 to serve upon the resignation, incapacity, or removal of the prior Trustee.
“Trust Estate” – All property transferred to or subsequently acquired by the Trust, including earnings and accretions.

[// GUIDANCE: Add or delete defined terms to match the customized drafting.]

3. OPERATIVE PROVISIONS

3.1 Creation and Funding.

(a) Concurrently with execution, Settlor hereby transfers to Trustee the property described on Schedule A.
(b) Additional property may be added at any time by Settlor or any other person, by qualified beneficiary designation, deed, assignment, or other valid conveyance.

3.2 Revocation and Amendment.

Settlor may revoke or amend this Agreement, in whole or in part, at any time during Settlor’s lifetime and capacity, by delivering to Trustee a written instrument executed by Settlor and acknowledged before a notary. No other person may revoke or amend the Trust except as expressly provided herein. Nothing in this Section shall limit Trustee’s ministerial authority under 760 ILCS 3/602(b).

3.3 Management During Settlor’s Lifetime.

While Settlor is living and not under Disability:
(a) Trustee shall pay to or for the benefit of Settlor so much of the net income and principal of the Trust Estate as Settlor may request in writing; and
(b) Any undistributed income shall be added to principal annually.

3.4 Management Upon Settlor’s Disability.

Upon a determination of Settlor’s Disability:
(a) Trustee shall apply or distribute income and principal for Settlor’s benefit under the Distribution Standards;
(b) Settlor’s power to revoke or amend shall be suspended during Disability; and
(c) A subsequently executed durable power of attorney shall not override this Section unless expressly referencing it.

3.5 Disposition at Settlor’s Death.

Upon Settlor’s death, Trustee shall first pay legally enforceable debts, funeral expenses, administrative costs, and any estate taxes attributable to the Trust Estate. Thereafter, Trustee shall distribute the remaining Trust Estate as follows:
1. Specific Gifts: [DESCRIPTION / % TO NAMED BENEFICIARIES].
2. Residuary: [DESCRIPTION / % TO NAMED BENEFICIARIES].

[// GUIDANCE: Insert alternate sub-trusts (e.g., credit shelter, marital, GST) as needed for tax planning.]

3.6 Lapse or Disclaimer.

If any Beneficiary predeceases Settlor or disclaims an interest, such share shall pass per stirpes to the Beneficiary’s descendants, or, if none, shall pour over to the Residuary.

3.7 Spendthrift Protection.

To the maximum extent permitted by Illinois law, no Beneficiary may voluntarily or involuntarily alienate, assign, or encumber any interest in the Trust prior to actual receipt.

3.8 Trustee Powers.

Subject to the fiduciary duties imposed by law, Trustee shall have all powers granted to a trustee under the Illinois Trust Code, including, without limitation, the powers to:
(a) buy, sell, or exchange Trust assets;
(b) invest in any kind of property or security;
(c) retain non-income-producing assets;
(d) borrow money and encumber Trust property;
(e) compromise claims; and
(f) make tax elections.

[// GUIDANCE: Delete or supplement powers to reflect the clients’ investment philosophy.]

4. REPRESENTATIONS & WARRANTIES

4.1 Settlor represents that:
(a) Settlor has full legal capacity to execute this Agreement;
(b) The transfer of property to the Trust does not violate any third-party rights or existing contractual obligations; and
(c) All information provided to Trustee regarding Trust assets is accurate and complete.

4.2 Trustee represents that:
(a) Trustee is qualified and willing to serve; and
(b) Trustee shall discharge all fiduciary duties with the care, skill, and prudence of a reasonable person familiar with such matters.

Survival. All representations and warranties shall survive execution and any subsequent amendment or restatement of this Agreement.

5. COVENANTS & RESTRICTIONS

5.1 Trustee’s Ongoing Covenants.

(a) Maintain complete and accurate books and records;
(b) Provide annual written accountings to [PERSON(S) ENTITLED TO ACCOUNTINGS] within 90 days after each Accounting Period;
(c) File all fiduciary income tax returns and information returns required by applicable law;
(d) Maintain adequate insurance on Trust assets where commercially reasonable.

5.2 Successor Trustee Provisions.

(a) Designations. If the acting Trustee resigns, is removed, or ceases to serve, the next Successor Trustee shall be [NAME OF FIRST SUCCESSOR TRUSTEE], followed by [ALTERNATE SUCCESSOR TRUSTEE].
(b) Acceptance. A Successor Trustee shall accept the trusteeship by executing an Acceptance of Trust and delivering it to Settlor (if living) or to the adult income Beneficiaries.
(c) Transfer of Records and Assets. The prior Trustee shall deliver all Trust property and records to the Successor Trustee within thirty (30) days of the latter’s acceptance.
(d) Bond. No bond shall be required of any Trustee unless requested by all adult qualified Beneficiaries or ordered by the probate division of the circuit court.

5.3 Restrictions on Trustee.

Without prior court approval or unanimous written consent of all adult qualified Beneficiaries, Trustee shall not:
(a) Engage in any act of self-dealing;
(b) Commingle Trust funds with personal funds; or
(c) Make distributions that would cause inclusion of Trust property in Trustee’s gross estate under the Internal Revenue Code.

6. DEFAULT & REMEDIES

6.1 Events of Default.
(a) Gross negligence, willful misconduct, or fraud by Trustee;
(b) Persistent failure to provide required accountings;
(c) Breach of any covenant set forth in Section 5; or
(d) Failure to accept or resign upon request as provided herein.

6.2 Notice & Cure.
Qualified Beneficiaries may deliver written notice of default to Trustee specifying the default in reasonable detail. Trustee shall have thirty (30) days to cure, or such longer period as is reasonably necessary so long as Trustee commences cure within that period.

6.3 Remedies.
If a default remains uncured, Beneficiaries may:
(a) Petition the circuit court, probate division, of [COUNTY], Illinois, for removal of Trustee and appointment of a Successor Trustee;
(b) Seek injunctive relief to enforce the Trust; and/or
(c) Recover damages limited as provided in Section 7.2.

6.4 Attorney Fees.
The prevailing party in any action to enforce this Agreement shall be entitled to reasonable attorneys’ fees and costs, payable from the Trust Estate except in cases of Trustee misconduct, in which event such fees and costs shall be payable personally by the Trustee.

7. RISK ALLOCATION

7.1 Indemnification of Trustee.

Except in cases of Trustee’s fraud, willful misconduct, or gross negligence, the Trust Estate shall indemnify and hold the Trustee harmless from and against any and all claims, liabilities, and expenses, including reasonable attorneys’ fees, arising from the good-faith performance of Trustee’s duties.

7.2 Limitation of Liability.

Trustee’s liability to any person, including Beneficiaries, shall under all circumstances be limited to the value of the Trust Estate. No personal liability shall attach to Trustee for any action taken in good faith and in a manner reasonably believed to be in the best interests of the Trust.

7.3 Insurance.

Trustee may purchase and maintain fiduciary or errors-and-omissions insurance payable from the Trust Estate.

7.4 Force Majeure.

Trustee shall not be deemed in violation of this Agreement for delays or failures in performance resulting from events beyond Trustee’s reasonable control, including but not limited to acts of God, war, pandemic, or changes in law.

8. DISPUTE RESOLUTION

8.1 Governing Law.
This Agreement and all rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of Illinois relating to trusts and estates, without regard to conflict-of-laws principles.

8.2 Forum Selection.
Exclusive jurisdiction and venue for all proceedings concerning the Trust shall lie in the probate division of the Circuit Court of [COUNTY], Illinois.

8.3 Optional Arbitration.
[OPTIONAL – STRIKE IF NOT DESIRED] Any controversy or claim arising out of or relating to the administration or interpretation of this Trust may, upon written agreement of all parties, be submitted to binding arbitration in [CITY], Illinois, administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment upon the award rendered may be entered in any court of competent jurisdiction.

8.4 Injunctive Relief.
Nothing herein shall limit the right of any party to seek temporary, preliminary, or permanent injunctive relief in the designated probate court to enforce the provisions of this Trust.

[// GUIDANCE: Pursuant to metadata, omit jury-trial waiver – Illinois probate proceedings are non-jury by default.]

9. GENERAL PROVISIONS

9.1 Amendment & Waiver.
Subject to Section 3.2, no amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and executed by the Settlor (if living) and the Trustee. No waiver of any breach shall be deemed a waiver of any subsequent breach.

9.2 Assignment.
Except as expressly provided, no party may assign or delegate any rights or duties hereunder without prior written consent of the other parties.

9.3 Successors & Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and permitted assigns.

9.4 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 replaced by a valid, enforceable provision that most closely reflects the parties’ original intent.

9.5 Integration.
This Agreement constitutes the entire understanding of the parties with respect to the Trust and supersedes all prior agreements, oral or written, relating thereto.

9.6 Counterparts; Electronic Signatures.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures transmitted electronically or by facsimile shall be deemed binding and effective.

10. EXECUTION BLOCK

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

[Optional – Additional Trustees follow same format]

Notary Acknowledgment

State of Illinois )
) ss.
County of [COUNTY] )

On this ___ day of ____, 20__, before me, the undersigned Notary Public, personally appeared [SETTLOR] and [TRUSTEE], personally known to me or proved to me on the basis of satisfactory evidence to be the individuals 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: ______

[// GUIDANCE: Illinois does not require notarization for trust validity, but notarization simplifies real-property conveyancing and recognition by financial institutions.]

11. SCHEDULE A – INITIAL TRUST PROPERTY

1. Primary Residence: [LEGAL DESCRIPTION / ADDRESS]
2. Brokerage Account No. [XXXX-XXXX] held at [INSTITUTION]
3. Cash: $[AMOUNT] deposited to Trust checking account at [BANK]
4. [ADDITIONAL ASSETS]

[// GUIDANCE: Attach deeds, assignments, or transfer documents as separate exhibits.]