REVOCABLE LIVING TRUST AGREEMENT

(Maryland – Draft Template)

[// GUIDANCE: This template is designed for use under the Maryland Trust Act (Md. Code Ann., Est. & Trusts § 14.5-101 et seq.). Bracketed items must be completed or deleted by counsel. All statutory references are to the Maryland Code, Estates & Trusts Article (“E&T”) unless otherwise noted.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Creation of Trust; Funding; Revocation & Amendment
4. Beneficial Interests & Distributions
5. Trustee Provisions
6. Fiduciary Accounting; Tax Matters
7. Asset Management & Investment Standards
8. Representations & Warranties
9. Covenants & Restrictions
10. Default & Remedies
11. Risk Allocation
12. Dispute Resolution
13. General Provisions
14. Execution Block
15. Schedule A – Initial Trust Property
16. Schedule B – Successor Trustee Acceptance (optional)

1. DOCUMENT HEADER

1.1 Parties

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

• Settlor/Grantor: [FULL LEGAL NAME], residing at [ADDRESS] (“Settlor”); and
• Initial Trustee: [FULL LEGAL NAME] of [ADDRESS] (the “Trustee”).

[// GUIDANCE: When the Settlor will serve as initial Trustee, list the Settlor in both capacities.]

1.2 Recitals

A. Settlor desires to establish a revocable trust pursuant to E&T § 14.5-602 to hold, manage, and distribute property for the benefit of the beneficiaries designated herein.
B. Trustee is willing to accept the trusteeship and hold the trust property subject to the terms of this Agreement.
C. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland, without regard to conflict-of-laws principles.

2. DEFINITIONS

For purposes of this Agreement, capitalized terms have the meanings set forth below. Defined terms appear alphabetically.

“Accounting Period” means each calendar year ending December 31 or such shorter period as may be required by applicable law or upon termination.
“Beneficiary” means each person or entity identified in Section 4.1 or as may later become entitled to trust benefits under this Agreement.
“Disabling Condition” means the Settlor’s inability to manage property or financial affairs as certified in writing by two licensed physicians.
“Distribution Date” means any date on which income or principal is required or permitted to be distributed under Section 4.
“Event of Default” has the meaning assigned in Section 10.1.
“Fiduciary” includes the Trustee, any Successor Trustee, and any Co-Trustee.
“Mandatory Distribution” means a distribution the Trustee is required to make pursuant to Section 4.2.
“Permitted Transferee” means any transferee approved under Section 9.2.
“Schedule A” means the listing of property attached hereto and incorporated herein that constitutes the initial trust corpus.
“Successor Trustee” has the meaning set forth in Section 5.6.
“Trust” means the trust established by this Agreement and any additions thereto.
“Trust Assets” means all property at any time constituting the trust corpus, together with all accumulations, reinvestments, and proceeds.

3. OPERATIVE PROVISIONS

3.1 Creation of Trust

3.1.1 Transfer of Property. Pursuant to E&T § 14.5-401, Settlor hereby transfers, assigns, and delivers to Trustee the property described on Schedule A, receipt of which is acknowledged, to hold in trust for the purposes herein stated.
3.1.2 Additional Contributions. Settlor or any other person, with Trustee’s consent, may transfer additional property to the Trust at any time.

3.2 Revocation and Amendment

3.2.1 Power to Revoke. During the Settlor’s lifetime, this Trust is revocable within the meaning of E&T § 14.5-601. Settlor may revoke the Trust, in whole or in part, by a written instrument signed by Settlor and delivered to Trustee.
3.2.2 Power to Amend. Settlor may amend any provision of this Agreement by a written instrument signed by Settlor and delivered to Trustee; provided, however, that no amendment shall impose a material obligation upon a Trustee who is not the Settlor without such Trustee’s written consent.
3.2.3 Effect of Revocation or Amendment. Upon revocation, Trustee shall transfer the remaining Trust Assets to Settlor or as Settlor directs. Any amendment shall be effective only as to the provisions expressly altered.

3.3 Settlor Incapacity

If Settlor becomes subject to a Disabling Condition, the Trust shall continue subject to the provisions herein; all powers reserved to Settlor shall thereafter be exercisable by the individual or corporate fiduciary acting as agent under Settlor’s [DURABLE POWER OF ATTORNEY] or, if none, by the then-serving Trustee, subject to E&T § 14.5-603.

4. BENEFICIAL INTERESTS & DISTRIBUTIONS

4.1 Designation of Beneficiaries

[PRIMARY BENEFICIARY NAME] – [relationship];
[CONTINGENT BENEFICIARY NAME] – [relationship];
[CHARITABLE OR ADDITIONAL BENEFICIARIES].

[// GUIDANCE: Insert dispositive provisions tailored to client objectives: outright distributions, staggered distributions by age, discretionary trusts, special needs sub-trusts, etc.]

4.2 Distributions During Settlor’s Lifetime

a. Income. All net income shall be distributed to Settlor at least annually.
b. Principal. Trustee may distribute to Settlor as much principal as Settlor requests in writing.

4.3 Distributions Upon Settlor’s Death

a. Expenses & Taxes. Trustee shall first pay Settlor’s enforceable debts, funeral expenses, and estate administration costs, and allocate/charge estate and inheritance taxes consistent with Maryland apportionment law.
b. Remaining Trust Assets. Thereafter, Trust Assets shall be held, managed, and distributed for the benefit of the Beneficiaries pursuant to the dispositive plan in Section 4.1.

4.4 Spendthrift Protection

Except as otherwise provided by E&T § 14.5-502, no Beneficiary shall have the power to anticipate, pledge, assign, sell, or otherwise transfer any interest in the Trust, nor shall such interest be liable for or subject to the debts, liabilities, or obligations of any Beneficiary.

5. TRUSTEE PROVISIONS

5.1 Trustee Powers

Subject to E&T § 14.5-801 – 816, Trustee shall have all powers necessary or convenient to administer the Trust, including but not limited to those enumerated in Appendix 1 of the Maryland Trust Act and any powers granted under E&T § 15-102.

5.2 Duty of Loyalty & Prudence

Trustee shall administer the Trust solely in the interests of the Beneficiaries and with the care, skill, and prudence a prudent person would exercise, consistent with E&T § 14.5-801 and § 14.5-804.

5.3 Bond

[×] No bond shall be required of any Trustee unless required by a court of competent jurisdiction.
[ ] Bond in the amount of $[AMOUNT] shall be furnished.

5.4 Compensation & Expenses

Trustee shall be entitled to reasonable compensation and reimbursement of properly incurred expenses. If Trustee is a corporate fiduciary, its published fee schedule in effect at the time services are rendered shall apply.

5.5 Resignation

Trustee may resign at any time by delivering thirty (30) days’ prior written notice to Settlor (if living) and to all Qualified Beneficiaries as defined in E&T § 14.5-103(q).

5.6 Removal & Successor Trustees

a. Removal. Settlor (if not serving as Trustee) or a majority in interest of the Qualified Beneficiaries may remove a Trustee with or without cause by written notice.
b. Successor Appointment. Upon a vacancy, the office of Trustee shall be filled in the following order:
1. By the person(s) nominated in Schedule B;
2. If none, by a person appointed by the unanimous written consent of the Qualified Beneficiaries;
3. If still none, by the Circuit Court sitting in probate jurisdiction pursuant to E&T § 14.5-705.
c. Acceptance. A Successor Trustee shall accept the trusteeship in writing and shall thereupon succeed to all rights, powers, and duties of Trustee without need for court approval.

5.7 Co-Trustees

When more than one Trustee is serving, the Trustees shall act by majority vote unless otherwise provided herein. A dissenting Trustee shall not be liable for actions taken by the majority provided the dissent is expressed in a signed writing delivered to each co-trustee.

6. FIDUCIARY ACCOUNTING; TAX MATTERS

6.1 Accounting. Trustee shall maintain accurate books and records and shall provide annual statements of receipts, disbursements, and assets to Settlor (if living) and to each Qualified Beneficiary, unless waived in writing.

6.2 Tax Returns. Trustee shall file all required federal and state tax returns, may elect to treat the Trust as a grantor trust under Subchapter J of the Internal Revenue Code, and is authorized to obtain taxpayer identification numbers as necessary.

6.3 Allocation of Receipts & Disbursements. Trustee shall allocate income and principal in accordance with the Maryland Uniform Principal and Income Act (E&T Title 15, Subtitle 5).

7. ASSET MANAGEMENT & INVESTMENT STANDARDS

7.1 Prudent Investor Rule. Trustee shall invest and manage Trust Assets in good faith and consistent with the Maryland prudent investor rule (E&T § 15-114).

7.2 Investment Vehicles. Trustee may invest in common trust funds, mutual funds, ETFs, real estate, private equity, or other assets deemed appropriate, without restriction to legal list investments.

7.3 Delegation. Trustee may delegate investment functions to qualified agents pursuant to E&T § 14.5-807, provided Trustee exercises reasonable care in selecting, instructing, and monitoring each agent.

8. REPRESENTATIONS & WARRANTIES

8.1 Settlor Representations. Settlor represents and warrants that:
a. Settlor has full legal capacity under E&T § 14.5-602 to create this revocable trust;
b. All property listed on Schedule A is lawfully owned and transferable; and
c. Execution of this Agreement will not violate any contractual, testamentary, or statutory obligation.

8.2 Trustee Representations. Trustee represents and warrants that:
a. Trustee has reviewed this Agreement and accepts the fiduciary responsibilities herein; and
b. Trustee is not subject to any legal disability that would impair performance of fiduciary duties.

8.3 Survival. The representations and warranties in this Section shall survive the execution and any amendment of this Agreement.

9. COVENANTS & RESTRICTIONS

9.1 Settlor Covenants. During the Settlor’s lifetime, Settlor covenants to:
a. Execute all documents necessary to retitle property to the Trust;
b. Provide Trustee with information reasonably requested for administration.

9.2 Transfer Restrictions. No Beneficiary may sell, assign, or otherwise transfer an interest herein except to a Permitted Transferee with Trustee’s prior written approval. Any prohibited transfer shall be void.

9.3 Notice Obligations. Settlor (if not serving as Trustee) and Trustee shall promptly notify each other of any litigation, creditor claim, or governmental inquiry involving the Trust Assets.

9.4 Compliance. Trustee shall comply with all applicable federal and Maryland laws, including without limitation the Bank Secrecy Act, anti-money laundering regulations, and Maryland fiduciary standards.

10. DEFAULT & REMEDIES

10.1 Events of Default

Each of the following constitutes an “Event of Default”:
a. Trustee’s willful misconduct, gross negligence, or material breach of fiduciary duty;
b. Trustee’s failure to account after thirty (30) days’ written demand;
c. Misappropriation or commingling of Trust Assets;
d. Insolvency or bankruptcy of an individual Trustee.

10.2 Notice & Cure

Upon an Event of Default, Settlor (if living) or any Qualified Beneficiary may deliver written notice specifying the default. Trustee shall have fifteen (15) days to cure unless the default is incapable of cure or involves misappropriation, in which case removal may be immediate.

10.3 Remedies

If the default remains uncured, the following remedies shall be available:
1. Removal of Trustee under Section 5.6;
2. Surcharge against Trustee limited to Trust Assets pursuant to Section 11.2;
3. Injunctive relief in the appropriate state probate court to protect Trust property;
4. Any other equitable or legal remedy available under Maryland law.

11. RISK ALLOCATION

11.1 Indemnification of Trustee

The Trustee, and each former Trustee, shall be indemnified and held harmless out of the Trust Assets from and against any loss, liability, or expense, including reasonable attorney’s fees, incurred by reason of any act or omission within the scope of fiduciary authority, except for losses resulting from the Trustee’s fraud, willful misconduct, or gross negligence.

11.2 Limitation of Liability

No Trustee shall be personally liable to any person for any action taken or omitted in good faith and in accordance with the terms of this Agreement. Any monetary judgment against a Trustee shall be satisfied solely from the Trust Assets and not from the Trustee’s separate property.

11.3 Insurance

Trustee may purchase fiduciary liability insurance and pay premiums from the Trust Assets.

11.4 Force Majeure

Trustee shall not be liable for failure to perform duties when prevented by events beyond reasonable control, including natural disasters, war, terrorism, cyber-attack, or any act of governmental authority.

12. DISPUTE RESOLUTION

12.1 Governing Law

This Agreement and all questions concerning its validity, interpretation, or administration shall be governed by the laws of the State of Maryland.

12.2 Forum Selection

Any proceeding concerning the Trust shall be brought exclusively in the [COUNTY] Circuit Court sitting in probate jurisdiction (or any successor Maryland probate court).

12.3 Arbitration (Optional)

[// GUIDANCE: Delete if arbitration is not desired.]
Upon written consent of all current Qualified Beneficiaries and the Trustee, any dispute may be submitted to binding arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules. The arbitral panel shall consist of one (1) neutral arbitrator experienced in trusts and estates law. Judgment on the award may be entered in any court of competent jurisdiction.

12.4 Jury Waiver

Pursuant to the metadata instruction “no_jury_probate,” no jury waiver clause is included; Maryland probate matters are non-jury.

12.5 Injunctive Relief

Nothing herein shall limit a party’s right to seek temporary, preliminary, or permanent injunctive relief from the state probate court to protect Trust Assets pending resolution of any dispute.

13. GENERAL PROVISIONS

13.1 Amendment & Waiver. Except as otherwise provided, this Agreement may be amended only in accordance with Section 3.2. No waiver of any provision shall be effective unless in writing and signed by the party against whom the waiver is asserted.

13.2 Assignment. The interests of the Settlor and any Beneficiary are non-assignable except as expressly permitted herein. Trustee may not delegate duties except as allowed under Section 7.3.

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

13.4 Severability. If any provision is determined invalid or unenforceable, the remaining provisions shall remain in full force, and the court shall reform the invalid provision to the minimum extent necessary.

13.5 Entire Agreement. This Agreement constitutes the entire understanding among the parties with respect to the subject matter and supersedes all prior trusts, discussions, or writings.

13.6 Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original. Signatures transmitted electronically or by facsimile shall be deemed original signatures.

13.7 Headings. Section headings are for convenience only and shall not affect interpretation.

14. EXECUTION BLOCK

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

Maryland Acknowledgment

State of Maryland, County of ____, to wit:

On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared ___, known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

Notary Public
My Commission Expires: ____

[Seal]

15. SCHEDULE A – INITIAL TRUST PROPERTY

1. Cash: $[AMOUNT] deposited to [BANK] Account #[XXXX] titled in the name of “[TRUST NAME], [DATE]”.
2. Brokerage account #[XXXX] at [BROKER];
3. Deed of [PROPERTY ADDRESS] recorded at Liber _, Folio ___, transferred contemporaneously herewith;
4. [OTHER ASSETS].

16. SCHEDULE B – SUCCESSOR TRUSTEE ACCEPTANCE (Optional)

I, [NAME], hereby accept appointment as Successor Trustee under the Revocable Living Trust Agreement dated [DATE] by [SETTLOR], and agree to act in accordance with its terms.

[NAME], Successor Trustee
Date: _____

[// GUIDANCE:
1. Trust Formalities (MD) – Templates for deeds of conveyance, stock powers, vehicle assignments, and beneficiary designations should be prepared simultaneously to ensure assets are retitled to the Trust.
2. Successor Trustee Rules – Confirm nominated trustees are eligible under E&T § 14.5-705 and obtain written acceptance.
3. Asset Transfer Procedures – Real property deeds must be recorded; personal property assignments should reference this Agreement; beneficiary designations on life insurance/retirement accounts must name the Trustee.
4. Tax ID & Reporting – If Settlor is trustee and trust is revocable, use Settlor’s SSN for banking investments. Upon Settlor’s death or disability, obtain an EIN.
5. Coordination With Will – Advise drafting a Pourover Will to capture after-acquired assets.
6. Funding Letter to Client – Provide detailed instructions and sample forms for banks, brokers, and DMV.
]