REVOCABLE LIVING TRUST AGREEMENT
(State of Louisiana)
[// GUIDANCE: This template is drafted for a single-Settlor, revocable, inter-vivos trust governed by the Louisiana Trust Code, La. Rev. Stat. §§ 9:1731 et seq. Adapt for multiple Settlors, married regimes, or special-needs planning as required.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
3.1 Creation and Declaration of Trust
3.2 Identification of Trust Estate
3.3 Revocation and Amendment
3.4 Management During Settlor’s Capacity
3.5 Incapacity of Settlor
3.6 Distribution on Settlor’s Death
3.7 Spendthrift Protection
3.8 Successor Trustee Appointment
3.9 Trustee Powers
3.10 Compensation and Reimbursement - Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Schedule A – Initial Trust Property Listing
1. DOCUMENT HEADER
This Revocable Living Trust Agreement (“Trust Agreement”) is made and entered into effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
• [SETTLOR NAME], a domiciliary of the Parish of [PARISH], State of Louisiana (“Settlor”); and
• [INITIAL TRUSTEE NAME], whose mailing address is [ADDRESS] (“Trustee”).
RECITALS
A. Settlor desires to create a revocable inter-vivos trust pursuant to the Louisiana Trust Code, La. Rev. Stat. §§ 9:1731 et seq., to hold, manage, and distribute certain property for the benefit of the Settlor during lifetime and for other Beneficiaries after Settlor’s death.
B. Trustee is willing to accept the trust and to administer the Trust Estate in accordance with the terms hereof.
C. The parties intend that this Trust Agreement constitute an authentic act under Louisiana law, executed before a Notary Public and two competent witnesses.
NOW, THEREFORE, in consideration of the promises and mutual covenants herein, the parties agree as follows:
2. DEFINITIONS
For ease of reference, capitalized terms have the meanings set forth below. Terms defined in a singular form include the plural and vice-versa.
“Accounting Period” – Each calendar year ending December 31, unless Trustee selects another twelve-month period.
“Beneficiary” – Individually, any person or entity entitled to current or future distributions from the Trust Estate; collectively, the “Beneficiaries.”
“Code” – The Internal Revenue Code of 1986, as amended.
“Disability” or “Incapacity” – A determination, in writing, by two licensed physicians that Settlor is unable to manage Settlor’s property or financial affairs.
“Louisiana Trust Code” – La. Rev. Stat. §§ 9:1731 et seq.
“Qualified Successor Trustee” – A trustee meeting the qualifications stated in Section 3.8.
“Trust” or “Trust Estate” – All property described in Section 3.2 and any additional property hereafter transferred to or acquired by the Trust, together with all income, proceeds, and replacements thereof.
“Trustee” – The person(s) or institution(s) serving from time to time, including any Successor Trustee duly appointed under this Trust Agreement.
3. OPERATIVE PROVISIONS
3.1 Creation and Declaration of Trust
Settlor hereby transfers, assigns, and delivers to Trustee the property identified on Schedule A, receipt of which Trustee acknowledges, to hold in trust, revocably, under the terms of this Trust Agreement and the Louisiana Trust Code. Additional property may be added at any time by Settlor or any other person with Trustee’s consent.
3.2 Identification of Trust Estate
The initial Trust Estate consists of the assets described on Schedule A. Title to all Trust property shall be held in the name “[TRUSTEE NAME], Trustee, [SETTLOR NAME] Revocable Living Trust dated [EFFECTIVE DATE].”
[// GUIDANCE: Follow Louisiana asset-transfer formalities. Real estate must be conveyed via authentic act and recorded. Vehicles require OMV title transfer. Financial accounts need updated ownership documentation.]
3.3 Revocation and Amendment
A. Settlor’s Reserved Power – Settlor may revoke or amend this Trust, in whole or in part, at any time by executing a written instrument delivered to Trustee.
B. Effect of Revocation – Upon revocation, Trustee shall promptly convey the Trust Estate to Settlor or Settlor’s designee and render a final accounting.
C. Non-Revocable Provisions – Any waiver of Trustee liability or indemnity shall remain binding notwithstanding revocation to the extent permitted by applicable law.
3.4 Management During Settlor’s Capacity
During Settlor’s lifetime and capacity:
1. Trustee shall distribute to or for the benefit of Settlor so much of the net income and principal as Settlor may request.
2. Absent Settlor’s request, Trustee may distribute income or principal for Settlor’s health, education, maintenance, and support (“HEMS”) in Settlor’s accustomed manner of living.
3.5 Incapacity of Settlor
Upon Settlor’s Disability:
a. Trustee shall apply trust income and principal for Settlor’s HEMS, considering Settlor’s other resources.
b. Trustee may utilize a durable power of attorney held by Settlor to coordinate benefits.
c. Trustee shall provide annual written accountings to [DESIGNATED PROTECTOR/RELATIVE] until Settlor regains capacity or dies.
3.6 Distribution on Settlor’s Death
A. Administrative Trust – Upon Settlor’s death, the Trust shall become irrevocable and shall continue as an administrative trust. Trustee shall:
i. Pay Settlor’s legally enforceable debts, funeral expenses, and estate administration costs;
ii. Pay or reserve for state and federal estate or inheritance taxes attributable to Trust assets; and
iii. Thereafter distribute the remaining Trust Estate as follows:
- Specific Bequests:
• [BENEFICIARY NAME] – [PERCENTAGE/SUM OR DESCRIPTION OF PROPERTY] - Residuary Trust Estate:
• [BENEFICIARY NAME] – [PERCENTAGE]
• [BENEFICIARY NAME] – [PERCENTAGE]
B. Contingent Beneficiaries – If a primary Beneficiary fails to survive Settlor by thirty (30) days, that Beneficiary’s share shall lapse into the Residuary Trust Estate unless otherwise provided.
3.7 Spendthrift Protection
All interests of Beneficiaries are subject to a spendthrift trust as authorized by La. Rev. Stat. § 9:2005. No Beneficiary may anticipate, assign, or encumber such interest, nor shall it be subject to the claims of creditors, until actually distributed by Trustee.
3.8 Successor Trustee Appointment
A. Order of Succession:
1. [FIRST SUCCESSOR TRUSTEE NAME];
2. [SECOND SUCCESSOR TRUSTEE NAME];
3. A corporate fiduciary qualified to act in Louisiana, selected by a majority of the adult Beneficiaries.
B. Qualifications – Any individual successor must be (i) at least 21 years old, (ii) not under a legal incapacity, and (iii) capable of furnishing a fidelity bond if required by Section 7.3.
C. Acceptance – A successor accepts office by executing a written acceptance attached to this Trust Agreement.
D. Resignation/Removal – Trustee may resign upon 30 days’ written notice. A Qualified Successor Trustee may remove a Trustee for cause, defined as gross misconduct, incapacity, or persistent failure to account.
3.9 Trustee Powers
Subject to fiduciary duties imposed by the Louisiana Trust Code, Trustee shall have, without court order, all powers set forth in La. Rev. Stat. § 9:2111, including, without limitation, to invest, reinvest, lease, exchange, and encumber Trust property; vote securities; delegate investment management; and prosecute or defend claims.
3.10 Compensation and Reimbursement
Trustee shall be entitled to reasonable compensation in accordance with La. Rev. Stat. § 9:2089 and reimbursement for proper expenses incurred. If Trustee is a corporate fiduciary, its then-current published fee schedule shall apply.
4. REPRESENTATIONS & WARRANTIES
4.1 Settlor represents that:
a. Settlor has full legal right and authority to establish and fund this Trust;
b. Property transferred to the Trust is free of undisclosed liens or claims; and
c. Execution of this Trust does not violate any marital contract or court order.
4.2 Trustee represents that:
a. Trustee is eligible and willing to serve;
b. Trustee will faithfully perform duties in accordance with this Trust Agreement and applicable law; and
c. Trustee is not currently suspended or removed as a fiduciary by any court.
The foregoing representations survive acceptance of the Trust and any successor trustee appointment.
5. COVENANTS & RESTRICTIONS
5.1 Trustee shall keep accurate books and records and provide annual accountings within ninety (90) days after each Accounting Period to all income Beneficiaries.
5.2 Beneficiaries shall furnish Trustee with current contact information and any requested tax identification documentation.
5.3 No party may assign duties under this Trust except as expressly permitted herein.
5.4 Trustee shall comply with all applicable federal and state tax filing and reporting obligations, including issuance of K-1s where required.
6. DEFAULT & REMEDIES
6.1 Events of Default –
a. Trustee’s willful misconduct, gross negligence, or material breach of fiduciary duty;
b. Failure to provide required accountings within thirty (30) days after written demand;
c. Misappropriation or commingling of Trust assets.
6.2 Notice and Cure – Any Beneficiary alleging default shall give written notice specifying the default. Trustee shall have thirty (30) days to cure unless the default is incapable of cure or involves misappropriation.
6.3 Remedies –
a. Removal and appointment of a Successor Trustee under Section 3.8;
b. Surcharge of Trustee’s compensation;
c. Injunctive relief to protect Trust assets;
d. Recovery of reasonable attorney fees and costs incurred in enforcing the Trust.
7. RISK ALLOCATION
7.1 Indemnification of Trustee
Except to the extent arising from Trustee’s willful misconduct or gross negligence, Trustee and its agents are indemnified out of the Trust Estate against all claims, liabilities, and expenses, including reasonable attorney fees, incurred in the good-faith administration of the Trust.
7.2 Limitation of Liability
The liability of Trustee shall be limited solely to the assets of the Trust Estate; no personal liability shall attach to Trustee for obligations incurred as fiduciary.
7.3 Insurance & Bond
Trustee shall procure fiduciary liability insurance in coverage amounts reasonably appropriate to the size of the Trust Estate. A bond shall not be required unless a court of competent jurisdiction so orders or Beneficiaries holding a majority interest in the Trust Estate demand it in writing.
7.4 Force Majeure
Trustee shall not be liable for failure to act when prevented by events beyond Trustee’s reasonable control, including natural disasters, acts of war or terrorism, or governmental actions impeding performance.
8. DISPUTE RESOLUTION
8.1 Governing Law
This Trust Agreement and all disputes hereunder shall be governed by and construed in accordance with the laws of the State of Louisiana, without regard to its conflicts of law principles.
8.2 Forum Selection
Exclusive venue for any judicial proceeding relating to this Trust shall lie in the [PARISH] Parish District Court, Probate Division (or its successor court).
8.3 Optional Arbitration
[OPTIONAL – STRIKE OR COMPLETE] Any dispute not resolved informally within sixty (60) days may, at the written election of all parties to the dispute, be submitted to binding arbitration administered by the American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules. Judgment on any award may be entered in the court specified in Section 8.2.
8.4 Jury Waiver
Consistent with Louisiana probate practice, the parties acknowledge that matters relating to trust administration are ordinarily tried to the court without a jury.
8.5 Injunctive Relief
Notwithstanding any agreement to arbitrate, Trustee or any Beneficiary may seek provisional or declaratory relief from the court of competent jurisdiction to enforce trust terms or protect Trust assets.
9. GENERAL PROVISIONS
9.1 Amendment and Waiver
Except as otherwise provided herein, no amendment or waiver of any provision shall be effective unless in writing, executed by Settlor (if living) and Trustee.
9.2 Assignment
Beneficiaries’ interests are non-assignable except after distribution. Trustee may delegate ministerial functions but remains responsible for fiduciary decisions.
9.3 Successors and Assigns
This Trust Agreement binds and inures to the benefit of the parties’ permitted successors and assigns.
9.4 Severability
If any provision is held invalid, illegal, or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to comply with applicable law.
9.5 Entire Agreement
This Trust Agreement constitutes the complete and exclusive statement of the terms of the trust and supersedes all prior agreements, written or oral, relating to the subject matter hereof.
9.6 Counterparts; Electronic Signatures
This Trust Agreement may be executed in counterparts, each of which is deemed an original. Facsimile, PDF, and electronic signatures shall be deemed originals and enforceable.
10. EXECUTION BLOCK
Executed in [CITY], Louisiana, on the dates indicated below, in the presence of the undersigned Notary Public and the two undersigned competent witnesses, who hereby attest to the voluntary execution of this authentic act.
Settlor:
[SETTLOR NAME], Settlor
Date: _______
Trustee:
[TRUSTEE NAME], Trustee
Date: _______
Acceptance by Successor Trustee (if applicable):
[SUCCESSOR TRUSTEE NAME], Successor Trustee
Date: _______
Witnesses:
-
_____ Date: ___
[PRINT NAME: ___] -
_____ Date: ___
[PRINT NAME: ___]
Notary Public:
Notary Public Signature
Printed Name: ___
Notary ID / Bar Roll No.: __
Commission Expires: ___
11. SCHEDULE A
Initial Property Transferred to the Trust
- Real Property – [Legal description of property located at _, Parish of _, Louisiana.]
- Bank Account – [Bank], Account No. [XXXXXX], titled in the name of Trustee.
- Brokerage Account – [Firm], Account No. [XXXXXX].
- Life Insurance – Policy No. [__], [INSURANCE COMPANY], with Trustee designated as owner and beneficiary.
- Other Assets – ________.
[// GUIDANCE: Attach deeds, assignments, or transfer documents as separate exhibits. File real estate conveyances in the conveyance records of the parish in which the property is situated in accordance with La. Civ. Code arts. 518 et seq.]
END OF DOCUMENT