REVOCABLE LIVING TRUST AGREEMENT

(Commonwealth of Kentucky)

[// GUIDANCE: Replace all bracketed, ALL-CAPS placeholders before execution. Remove all GUIDANCE comments during finalization.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

1. Parties
   1.1 This Revocable Living Trust Agreement (this “Agreement” or “Trust”) is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
   a. Settlor: [SETTLOR LEGAL NAME], residing at [SETTLOR ADDRESS] (“Settlor”); and
   b. Initial Trustee: [INITIAL TRUSTEE LEGAL NAME], residing at [TRUSTEE ADDRESS] (“Trustee”).

2. Recitals
   2.1 Settlor desires to create a revocable inter-vivos trust under the Kentucky Uniform Trust Code, KRS Chapter 386B (the “KY UTC”), to hold, manage, and distribute certain property for the benefit of the beneficiaries designated herein.
   2.2 Trustee is willing to hold and administer the Trust Estate upon the terms set forth in this Agreement.
   2.3 Settlor, having supplied the initial Trust Corpus and intending to provide additional property from time to time, now enters into this Agreement with Trustee to declare the Trust and set forth their respective rights, duties, and liabilities.

3. Consideration
   3.1 The mutual promises herein, together with the transfer of property described in Section III.1, constitute good and sufficient consideration.

4. Governing Law and Jurisdiction
   4.1 This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky, without regard to its conflict-of-laws principles, and subject to the exclusive jurisdiction of the state probate court of [COUNTY], Kentucky, as more fully set forth in Article VIII.

II. DEFINITIONS

Unless otherwise indicated, the following capitalized terms shall have the meanings set forth below. Defined terms apply equally to singular and plural forms.

“Affiliate” – Any entity controlling, controlled by, or under common control with the referenced Person.
“Agreement” – This Revocable Living Trust Agreement, as amended.
“Beneficiary” – Each Person identified in Schedule A or otherwise entitled to receive distributions from the Trust.
“Code” – The Internal Revenue Code of 1986, as amended.
“In Capacity” – Acting solely in a fiduciary capacity on behalf of the Trust and not individually.
“KY UTC” – The Kentucky Uniform Trust Code, KRS Chapter 386B, as amended.
“Person” – An individual, corporation, partnership, limited liability company, trust, estate, or other legal entity.
“Trust” – The trust created under this Agreement.
“Trust Assets” or “Trust Estate” – All property, real or personal, tangible or intangible, transferred to or acquired by the Trust from time to time.
“Trustee” – The Initial Trustee and any Successor Trustee duly appointed under this Agreement.

[// GUIDANCE: Add any additional defined terms unique to the client’s estate plan.]

III. OPERATIVE PROVISIONS

1. Creation and Funding of the Trust
   1.1 Settlor hereby transfers and delivers, and Trustee hereby acknowledges receipt of, the property described in Schedule B (the “Initial Trust Property”).
   1.2 Additional Assets. Settlor or any other Person may transfer additional property to the Trust at any time by deed, assignment, beneficiary designation, or other lawful conveyance.

2. Trust Purpose
   2.1 The primary purpose of this Trust is the management and distribution of Trust Assets for the benefit of the Beneficiaries in a manner consistent with Settlor’s expressed intent, to minimize probate involvement, and to provide for efficient succession of management.

3. Revocation and Amendment
   3.1 Reserving Power. In accordance with the KY UTC, Settlor reserves the right at any time and from time to time, by written instrument delivered to Trustee, to revoke, amend, or restate this Trust in whole or in part.
   3.2 Effect of Revocation. Upon complete revocation, Trustee shall promptly distribute the Trust Assets to Settlor and this Trust shall terminate.
   3.3 Incapacity of Settlor. If Settlor becomes incapacitated, this Trust shall become irrevocable unless the Durable Power of Attorney expressly authorizes the Agent to exercise Settlor’s revocation and amendment powers.

4. Distributions During Settlor’s Lifetime
   4.1 Settlor as Beneficiary. During Settlor’s lifetime, Trustee shall distribute to or for the benefit of Settlor so much of the net income and principal as Settlor may request, or as Trustee deems advisable for Settlor’s health, education, maintenance, or support (“HEMS”).
   4.2 Gift Tax Planning. Trustee may, but is not required to, make annual exclusion gifts to or for the benefit of any Beneficiary designated in writing by Settlor.

5. Distributions Upon Settlor’s Death
   5.1 Administrative Expenses and Taxes. Upon Settlor’s death, Trustee shall first pay from the Trust Estate all enforceable debts, expenses of last illness, funeral costs, and estate or inheritance taxes attributable to Trust Assets.
   5.2 Specific Bequests. Trustee shall distribute the specific gifts enumerated in Schedule C.
   5.3 Residuary Distribution. The remaining Trust Assets shall be held, managed, and distributed in accordance with Schedule D (the “Dispositive Provisions”). [// GUIDANCE: Insert outright distributions, staggered ages, lifetime trusts, special needs provisions, etc.]

6. Trustee Powers and Duties
   6.1 Powers. Subject to the fiduciary duties imposed by law, Trustee shall have all powers granted to trustees under the KY UTC, including but not limited to the powers enumerated in Schedule E (collectively, the “Trustee Powers”).
   6.2 Standard of Care. Trustee shall administer the Trust in good faith, in accordance with its terms and purposes, and in the interests of the Beneficiaries, using the prudent investor standard unless otherwise provided herein.
   6.3 Accounting. Trustee shall furnish at least annual written reports to the current permissible distributees and, upon request, to remainder beneficiaries.

7. Successor Trustee Provisions
   7.1 Resignation. Trustee may resign upon sixty (60) days’ written notice to Settlor (if living) and the Adult Beneficiaries.
   7.2 Removal. Settlor (if competent) or a majority of the Adult Beneficiaries may remove Trustee at any time by written notice and appointment of a Successor Trustee.
   7.3 Appointment of Successor. If a vacancy occurs, the next Successor Trustee listed in Schedule F shall serve. If no listed Successor is willing and able, a court of competent jurisdiction shall appoint a corporate fiduciary with trust powers.
   7.4 Transfer of Records. Resigning or removed Trustee shall promptly transfer all Trust property, records, and accounts to the Successor Trustee and shall execute all documents necessary to effectuate the transfer.

8. Compensation and Reimbursement
   8.1 Compensation. Trustee shall be entitled to reasonable compensation commensurate with services rendered, or, if a corporate fiduciary, in accordance with its published fee schedule in effect at the time services are rendered.
   8.2 Expenses. Trustee shall be reimbursed from the Trust Estate for all reasonable costs and expenses incurred In Capacity.

IV. REPRESENTATIONS & WARRANTIES

1. Settlor Representations
   1.1 Settlor is the sole owner of the property transferred to the Trust and has full legal right and authority to transfer such property free of liens, claims, and encumbrances, except as disclosed in writing to Trustee.
   1.2 Settlor is of legal age, of sound mind, and not acting under duress or undue influence.

2. Trustee Representations
   2.1 Trustee accepts the trusteeship created herein and agrees to administer the Trust in accordance with its terms and applicable law.
   2.2 Trustee is not under any conflict of interest that would impair faithful performance of fiduciary duties.

3. Survival
   3.1 The representations and warranties set forth in this Article IV shall survive execution of this Agreement and any subsequent amendment.

V. COVENANTS & RESTRICTIONS

1. Trustee Covenants
   1.1 Compliance. Trustee shall comply with all applicable federal, state, and local laws, including tax reporting and withholding obligations.
   1.2 Recordkeeping. Trustee shall maintain complete and accurate books and records and shall permit reasonable inspection by Beneficiaries entitled under the KY UTC.
   1.3 Confidentiality. Trustee shall keep all Trust information confidential, except as disclosure is required by law or necessary for administration.

2. Beneficiary Restrictions
   2.1 Spendthrift Clause. No interest of any Beneficiary shall be subject to voluntary or involuntary alienation, assignment, or attachment prior to actual receipt.
   2.2 No Interference. Beneficiaries shall not interfere with Trustee’s administration; any dispute shall be resolved exclusively as provided in Article VIII.

VI. DEFAULT & REMEDIES

1. Events of Default
   1.1 Breach of Fiduciary Duty. Trustee’s willful misconduct, gross negligence, or material breach of fiduciary duty.
   1.2 Failure to Account. Failure by Trustee to provide required accountings within thirty (30) days of written demand.
   1.3 Insolvency. Trustee becomes insolvent or subject to bankruptcy proceedings.

2. Notice and Cure
   2.1 Written Notice. Any Interested Person may deliver written notice specifying the alleged default.
   2.2 Cure Period. Trustee shall have thirty (30) days from receipt to cure or contest the allegation.

3. Remedies
   3.1 Removal. Upon uncured default, Interested Persons may seek removal of Trustee in the designated probate court.
   3.2 Injunctive Relief. Beneficiaries may seek temporary or permanent injunctive relief to prevent dissipation or mismanagement of Trust Assets.
   3.3 Fee Shifting. Trustee shall reimburse the Trust for attorney fees and costs incurred due to Trustee’s breach as determined by the court.

VII. RISK ALLOCATION

1. Trustee Indemnification
   1.1 To the fullest extent permitted by law, Trustee shall be indemnified and held harmless out of the Trust Assets against any claim, liability, or expense (including attorney fees), except to the extent resulting from Trustee’s willful misconduct or gross negligence.

2. Limitation of Liability
   2.1 All liabilities arising from administration of this Trust shall be limited to, and enforceable solely against, the Trust Assets, and no Trustee shall be personally liable for any debt, obligation, or liability of the Trust except as provided in Section VII.3.

3. Exculpation
   3.1 No Trustee shall be liable for any act or omission made in good faith and in reliance upon the terms of this Agreement, the KY UTC, or advice of counsel.

4. Insurance
   4.1 Trustee may purchase liability insurance with premiums payable from the Trust Estate.

5. Force Majeure
   5.1 Trustee shall not be liable for delays or failures in performance due to acts of God, war, terrorism, cyber-attacks, natural disasters, or other events beyond reasonable control, provided Trustee acts diligently to mitigate adverse effects.

VIII. DISPUTE RESOLUTION

1. Governing Law
   1.1 This Agreement shall be governed by the laws of the Commonwealth of Kentucky.

2. Forum Selection
   2.1 Exclusive Jurisdiction. All judicial proceedings shall be instituted in the state probate court of [COUNTY], Kentucky, and each party irrevocably submits to such jurisdiction.

3. Optional Arbitration
   3.1 Election. If the parties unanimously elect in writing, any dispute may be resolved by confidential, binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules.
   3.2 Injunctive Relief Carve-Out. Nothing herein shall limit a party’s right to seek injunctive relief in court for trust enforcement or preservation of Trust Assets.

4. Jury Waiver
   4.1 Because probate courts in Kentucky sit without juries in trust matters, no jury trial right exists or is waived herein.

IX. GENERAL PROVISIONS

1. Amendment and Waiver
   1.1 Except as reserved to Settlor under Section III.3, no amendment or waiver shall be effective unless in writing and signed by the party against whom enforcement is sought.

2. Assignment
   2.1 Beneficiaries may not assign, pledge, or transfer their interests except as expressly provided herein.

3. Successors and Assigns
   3.1 This Agreement shall bind and inure to the benefit of the parties and their permitted successors and assigns.

4. Severability
   4.1 If any provision is held invalid, the remaining provisions shall continue in full force, and the court is requested to reform the invalid provision to the minimum extent necessary to effectuate Settlor’s intent.

5. Integration
   5.1 This Agreement represents the entire understanding among the parties and supersedes all prior agreements with respect to the subject matter.

6. Counterparts; Electronic Signatures
   6.1 This Agreement may be executed in counterparts, each deemed an original. Signatures transmitted by electronic means (e.g., PDF, DocuSign) shall be deemed original for all purposes.

X. EXECUTION BLOCK

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

[// GUIDANCE: Kentucky does not statutorily require notarization of a trust instrument; however, notarization is strongly recommended to facilitate property transfers and bank acceptance.]

[SETTLOR NAME], Settlor
Date: _____

[INITIAL TRUSTEE NAME], Trustee
Date: _____

State of Kentucky )
County of _____ )

Subscribed, sworn to, and acknowledged before me by [SETTLOR NAME] and [INITIAL TRUSTEE NAME] on this _ day of __, 20____.

Notary Public, State at Large
My Commission Expires: _____

SCHEDULE A – Beneficiaries

[Insert list of primary, contingent, and remainder beneficiaries with identifying information.]

SCHEDULE B – Initial Trust Property

[Insert detailed description of assets (e.g., financial accounts, real estate legal descriptions, personal property).]

SCHEDULE C – Specific Bequests

[Insert each specific gift, identify asset, and beneficiary.]

SCHEDULE D – Dispositive Provisions

[Insert comprehensive distribution scheme after Settlor’s death (e.g., percentage shares, age-staggered distributions, sub-trusts).]

SCHEDULE E – Trustee Powers (Non-Exclusive)

1. Invest and reinvest without regard to diversification
2. Retain assets, including non-income-producing property
3. Buy, sell, lease, or option real estate
4. Borrow and pledge assets
5. Form or invest in entities
6. Employ professionals and delegate authority as permitted by law
7. Divide or allocate receipts and expenses between principal and income
8. Make elections under the Code and all tax laws
9. All powers granted under KRS Chapter 386B and any successor statutes

SCHEDULE F – Successor Trustees

1. [NAME, address, relationship, priority]
2. [NAME, address, relationship, priority]

[// GUIDANCE: Consider adding a corporate fiduciary as a backup.]

[// GUIDANCE: Final proofreading checklist:
• Verify consistency of defined terms
• Confirm KY UTC citations (Chapter only) remain accurate
• Ensure each Schedule is completed or marked “Reserved”
• Delete all GUIDANCE comments before executing]