REVOCABLE LIVING TRUST AGREEMENT

(Indiana – Draft Template)

[// GUIDANCE: This template is intentionally comprehensive. Delete any provisions that are unnecessary for your particular matter, and customize all bracketed placeholders before use.]

TABLE OF CONTENTS

1. Document Header
2. Article I – Definitions
3. Article II – Creation of Trust and Funding
4. Article III – Revocation, Amendment, and Grantor Powers
5. Article IV – Trustee Provisions
6. Article V – Distributions and Beneficiary Provisions
7. Article VI – Representations & Warranties
8. Article VII – Covenants & Restrictions
9. Article VIII – Events of Default & Remedies
10. Article IX – Risk Allocation
11. Article X – Dispute Resolution
12. Article XI – General Provisions
13. Execution Block
14. Schedule A – Trust Property

DOCUMENT HEADER

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

1. [GRANTOR NAME], an individual residing at [ADDRESS, COUNTY, STATE OF INDIANA] (“Grantor”); and
2. [INITIAL TRUSTEE NAME], an individual residing at [ADDRESS], who hereby accepts appointment as the initial trustee hereunder (the “Trustee”).

Recitals
A. Grantor desires to create a revocable trust pursuant to the Indiana Trust Code, Ind. Code Title 30, Article 4 (the “Indiana Trust Code”), to hold and administer property for Grantor’s benefit during Grantor’s lifetime and thereafter for the benefit of the beneficiaries designated herein.
B. Trustee is willing to hold the trust estate pursuant to the terms and conditions of this Agreement.
C. The parties intend that this Agreement be construed and enforced in accordance with Indiana law, subject to the jurisdiction of the courts specified below.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

ARTICLE I

DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below (alphabetically):

“Accounting Period” – Each calendar year ending December 31 or such shorter period as the Trustee shall determine for interim reports.

“Beneficiary(ies)” – The person(s) or entity(ies) identified in Article V entitled to present or future distributions of income or principal.

“Disability” – Grantor’s inability to manage property or financial affairs as certified in writing by two (2) licensed physicians or as otherwise defined under the Indiana Trust Code.

“Family Line” – Grantor’s lawful lineal descendants, per stirpes.

“Income” – Receipts classified as income pursuant to the Indiana Principal and Income Act of 1931, as amended.

“Principal” – Trust property other than Income.

“Protected Person” – Any Beneficiary under age 21, or any Beneficiary then under a legal disability.

“Successor Trustee” – Any person or institution appointed pursuant to Section 4.2 to serve upon a vacancy in the office of Trustee.

[// GUIDANCE: Add, delete, or modify defined terms as appropriate for the assets and dispositive scheme involved.]

ARTICLE II

CREATION OF TRUST AND FUNDING

2.1 Creation. Grantor hereby establishes the [GRANTOR NAME] Revocable Living Trust (the “Trust”) under Indiana law and transfers to the Trustee the property described on Schedule A, receipt of which the Trustee acknowledges (the “Trust Estate”).

2.2 Additional Property. Grantor or any other person may, at any time, transfer additional property to the Trustee by gift, assignment, beneficiary designation, or other written conveyance acceptable to the Trustee, and such property shall become part of the Trust Estate and subject to this Agreement.

2.3 Title to Assets. Title to Trust assets shall be taken and held in the name of “[TRUSTEE NAME], Trustee of the [GRANTOR NAME] Revocable Living Trust dated [EFFECTIVE DATE],” or in such other manner that clearly identifies such assets as Trust property.

2.4 Pour-Over Receipts. Property payable to the Trust under Grantor’s will, beneficiary designations, or otherwise shall, upon receipt by the Trustee, be held and administered as part of the Trust Estate.

2.5 Asset Transfer Procedures.
a. Real Property. Deeds conveying Indiana real estate to the Trust shall be recorded in the office of the Recorder of the county where the real estate is located.
b. Tangible Personal Property. Delivery of possession or a written assignment shall constitute effective transfer.
c. Intangibles. Assignment, change-of-beneficiary forms, or account retitling shall be executed in accordance with the issuer’s requirements.

[// GUIDANCE: Indiana recognizes a present transfer of property as necessary to create a valid inter vivos trust. Retitle or assign each asset promptly to avoid probate inclusion.]

ARTICLE III

REVOCATION, AMENDMENT, AND GRANTOR POWERS

3.1 Revocation or Amendment. During Grantor’s lifetime and while not under Disability, Grantor may revoke or amend this Agreement, in whole or in part, by delivering a written, signed instrument to the Trustee.

3.2 Grantor’s Rights During Lifetime. Until Disability:
a. Grantor may direct the Trustee with respect to investments and distributions.
b. Grantor may withdraw any part or all of the Trust Estate at any time.

3.3 Effect of Disability. Upon Grantor’s Disability:
a. Grantor’s withdrawal rights shall be suspended.
b. Trustee shall manage and distribute the Trust Estate for Grantor’s health, education, maintenance, and support (“HEMS”) in Grantor’s accustomed manner of living.

3.4 Grantor Trust Status. The Trust shall be treated as a grantor trust for federal and Indiana income tax purposes, and all items of income, deduction, and credit shall be reportable by Grantor.

ARTICLE IV

TRUSTEE PROVISIONS

4.1 Acceptance and Duties. Trustee accepts the Trust and agrees to administer the Trust Estate in good faith, in accordance with the Indiana Trust Code and the terms of this Agreement.

4.2 Successor Trustee Rules.
a. Designation. Upon the resignation, removal, incapacity, or death of the Trustee, the following Successor Trustee(s) shall serve, in the order named: [SUCCESSOR TRUSTEE #1], then [SUCCESSOR TRUSTEE #2], then [SUCCESSOR TRUSTEE #3].
b. Qualification. A Successor Trustee must be at least 21 years of age and not under a legal disability.
c. Acceptance. A Successor Trustee shall accept the trusteeship in writing and, upon acceptance, shall have all rights, powers, and duties of the original Trustee.
d. Bond. No Trustee shall be required to furnish bond unless demanded by a court of competent jurisdiction.

4.3 Resignation or Removal.
a. Resignation. Trustee may resign by giving 30 days’ written notice to Grantor (if living) and to each adult Beneficiary.
b. Removal. Grantor (if living and competent) or, after Grantor’s death or Disability, a majority in interest of the adult Beneficiaries may remove Trustee by delivering written notice and appointing a qualified Successor Trustee.

4.4 Trustee Powers. In addition to all powers granted by law, Trustee may exercise, without court order, the powers enumerated in Exhibit B of the Indiana Trust Code and any successor provisions, including but not limited to: buy, sell, invest, borrow, lease, compromise claims, delegate investment functions, and employ professionals.

4.5 Co-Trustees. If at any time two or more Trustees serve, they shall act by majority decision unless otherwise provided; any Trustee may delegate ministerial acts to a co-Trustee.

4.6 Compensation. Trustee shall be entitled to reasonable compensation consistent with Indiana law and industry standards, and to reimbursement of properly incurred expenses.

ARTICLE V

DISTRIBUTIONS AND BENEFICIARY PROVISIONS

5.1 Lifetime Distributions. While Grantor is living and not Disabled, Trustee shall distribute so much of the income and principal to or for Grantor as Grantor directs or, absent direction, as Trustee deems appropriate for Grantor’s HEMS.

5.2 Disability Distributions. During Grantor’s Disability, Trustee shall apply or expend so much of the Trust Estate as Trustee deems advisable for Grantor’s HEMS, taking into account other resources available to Grantor.

5.3 Disposition Upon Grantor’s Death. Upon Grantor’s death, Trustee shall:
a. Pay funeral and last illness expenses, enforceable debts, and estate administration costs.
b. Pay all estate and inheritance taxes attributable to the Trust.
c. Thereafter distribute the remaining Trust Estate as follows:
i. Specific Bequests: [DESCRIBE IF ANY];
ii. Residuary: [PERCENTAGE]% to [PRIMARY BENEFICIARY A], [PERCENTAGE]% to [PRIMARY BENEFICIARY B], per stirpes.

5.4 Spendthrift. The interests of Beneficiaries are subject to a spendthrift limitation to the maximum extent permitted by law and shall not be subject to voluntary or involuntary transfer, assignment, or pledge.

5.5 Minor or Protected Beneficiaries. Trustee may distribute property for a Protected Person by payment to a guardian, custodian under the Indiana Uniform Transfers to Minors Act, or otherwise for the Beneficiary’s benefit.

ARTICLE VI

REPRESENTATIONS & WARRANTIES

6.1 Grantor Representations. Grantor represents that:
a. Grantor has full legal capacity to execute and fund this Agreement.
b. All property listed on Schedule A is presently owned by Grantor and transferable to the Trust free of adverse claims.

6.2 Trustee Representations. Trustee represents that:
a. Trustee has reviewed this Agreement and is willing to serve.
b. Trustee has the requisite capacity and authority to perform the trustee’s duties.

6.3 Survival. The representations and warranties set forth in this Article shall survive execution and funding of the Trust.

ARTICLE VII

COVENANTS & RESTRICTIONS

7.1 Trustee Covenants. Trustee shall:
a. Administer the Trust solely in the interests of the Beneficiaries.
b. Invest prudently, with reasonable care, skill, and caution, consistent with the Indiana prudent investor standard.
c. Keep accurate books and records and provide annual accountings to the persons entitled thereto.

7.2 Prohibited Transactions. Unless specifically authorized by a court, Trustee shall not engage in self-dealing, borrow from the Trust Estate, or commingle Trust property with personal assets.

7.3 Notice and Cure. Any Beneficiary asserting a breach of this Article shall give Trustee written notice specifying the alleged breach and a 30-day period to cure before initiating an action.

ARTICLE VIII

EVENTS OF DEFAULT & REMEDIES

8.1 Events of Default. For purposes of this Agreement, an “Event of Default” occurs if:
a. Trustee commits a material breach of fiduciary duty;
b. Trustee becomes insolvent or files for bankruptcy;
c. Trustee is adjudicated incompetent; or
d. Trustee fails to comply with a lawful order of a court of competent jurisdiction concerning the Trust.

8.2 Notice of Default. A Beneficiary or co-Trustee shall give written notice to Trustee specifying the Default.

8.3 Cure Period. Trustee shall have 30 days after receipt of notice to cure the Default, unless the Default is incapable of cure.

8.4 Remedies. Upon an uncured Default, any Beneficiary or co-Trustee may:
a. Seek Trustee’s removal and surcharge;
b. Demand an accounting;
c. Petition for appointment of a Successor Trustee;
d. Pursue any other remedy available at law or in equity, including injunctive relief for Trust enforcement.

8.5 Attorneys’ Fees and Costs. In any action to enforce this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs from the party in breach, chargeable against that party’s interest in the Trust Estate.

ARTICLE IX

RISK ALLOCATION

9.1 Trustee Indemnity. To the fullest extent permitted by law, the Trust Estate shall indemnify and hold harmless the Trustee and each Successor Trustee (each, an “Indemnified Party”) against all claims, liabilities, and expenses, including attorneys’ fees, incurred by reason of any act or omission within the scope of the trustee’s authority, except for acts or omissions arising from the Indemnified Party’s willful misconduct or gross negligence.

9.2 Limitation of Liability. The liability of the Trustee and each Indemnified Party shall be limited to the assets of the Trust Estate; no personal assets of any Indemnified Party shall be subject to collection for Trust obligations.

9.3 Insurance. Trustee may, but is not obligated to, purchase liability insurance (at Trust expense) covering the Trustee in the performance of fiduciary duties.

9.4 Force Majeure. Trustee shall not be liable for delays or failures in performance resulting from events beyond the Trustee’s reasonable control, including but not limited to natural disasters, governmental actions, or market disruptions.

ARTICLE X

DISPUTE RESOLUTION

10.1 Governing Law. This Agreement and all Trust matters shall be governed by and construed in accordance with the laws of the State of Indiana, without regard to its conflict-of-laws provisions.

10.2 Forum Selection. All judicial proceedings relating to the Trust shall be brought exclusively in the probate or superior court of [COUNTY], Indiana having jurisdiction over trusts (the “Designated Court”).

10.3 Optional Arbitration. [ARBITRATION_ELECTION: “If selected, any dispute not within the exclusive jurisdiction of the Designated Court shall be resolved by binding arbitration administered by [ARBITRATION AGENCY] in accordance with its rules for commercial disputes, and judgment on the award may be entered in any court of competent jurisdiction.” / “(Reserved – no arbitration.)”]

10.4 Jury Waiver. The parties acknowledge that the Designated Court sits without a jury in probate matters; accordingly, no jury trial right exists or is waived herein.

10.5 Injunctive Relief. Nothing herein shall limit a party’s right to seek provisional or injunctive relief from the Designated Court to enforce trust terms or preserve Trust assets.

ARTICLE XI

GENERAL PROVISIONS

11.1 Notices. Any notice required or permitted under this Agreement shall be in writing and deemed given when delivered personally, by certified mail (return receipt requested), reputable overnight courier, or electronic means with confirmation of receipt, to the addresses shown in the Trust records or such other address as a party may designate.

11.2 Amendment and Waiver. Subject to Article III, no amendment or waiver of any provision of this Agreement shall be effective unless in a written instrument executed by the party against whom enforcement is sought. No waiver shall constitute a continuing waiver unless expressly so stated.

11.3 Assignment. No right or interest under this Agreement may be assigned by any Beneficiary prior to actual receipt, except as may be permitted under applicable spendthrift laws.

11.4 Successors and Assigns. This Agreement shall inure to the benefit of and bind the parties’ respective heirs, personal representatives, successors, and assigns.

11.5 Severability. If any provision of this Agreement 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 and comply with applicable law.

11.6 Entire Agreement. This Agreement constitutes the entire understanding among the parties with respect to the subject matter and supersedes all prior agreements or understandings, whether written or oral, relating thereto.

11.7 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 delivered by facsimile, PDF, or other electronic means shall be deemed original signatures for all purposes.

EXECUTION BLOCK

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

[// GUIDANCE: Indiana does not mandate notarization of a trust agreement for validity, but notarization is strongly recommended to facilitate transfer of real property and to evidence authenticity.]

STATE OF INDIANA )
COUNTY OF [_] ) SS:

On this _ day of _, 20__, before me, the undersigned, a Notary Public in and for said State, personally appeared [GRANTOR NAME] and [INITIAL TRUSTEE NAME], known to me (or satisfactorily proven) to be the persons whose names are subscribed within this instrument, and acknowledged that they executed the same for the purposes therein contained.

Notary Public
My Commission Expires: __
County of Residence: ____

SCHEDULE A

TRUST PROPERTY

1. Checking Account No. __ held at ____ Bank
2. Brokerage Account No. __ held with ____ Securities
3. Real Property: [LEGAL DESCRIPTION of property located at _, County of _, Indiana]
4. Personal Property: Household furnishings, jewelry, artwork, and other tangible personal property of Grantor located at Grantor’s residence.
5. Life Insurance Policy No. __ issued by ____, designating the Trustee as beneficiary.

[// GUIDANCE: Attach assignments, deeds, or other transfer instruments behind this Schedule as needed.]

End of Document