REVOCABLE LIVING TRUST AGREEMENT
(State of Missouri)
[// GUIDANCE: This template is drafted for Missouri domiciled Settlors and contemplates governance under the Missouri Uniform Trust Code (“MUTC”). Customize bracketed items, add or delete optional language as appropriate, and attach a fully-completed Schedule of Trust Property (Exhibit A).]
TABLE OF CONTENTS
- Document Header
- Definitions
- Establishment of Trust; Funding; Revocability
- Distributions During Settlor’s Lifetime
- Distributions Upon Settlor’s Incapacity
- Distributions Upon Settlor’s Death
- Trustee Powers and Duties
- Successor Trustee Provisions
- Trustee Compensation; Indemnification; Liability Limitations
- Default; Removal; Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Exhibit A – Schedule of Trust Property
1. DOCUMENT HEADER
1.1 Title and Parties.
This Revocable Living Trust Agreement (“Trust Agreement”) is executed as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
(a) Settlor: [NAME OF SETTLOR], of [ADDRESS] (“Settlor”); and
(b) Initial Trustee: [NAME OF INITIAL TRUSTEE], of [ADDRESS] (“Trustee”).
1.2 Recitals.
A. Settlor desires to create a revocable trust for the principal purpose of holding, managing, and distributing certain property of Settlor during Settlor’s lifetime and after Settlor’s death.
B. Trustee is willing to accept the trust and administer it according to the terms herein.
C. Settlor intends that the Trust be governed by the laws of the State of Missouri and qualify as a “revocable trust” within the meaning of applicable Missouri trust law.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Settlor and Trustee agree as follows:
2. DEFINITIONS
Unless the context clearly indicates otherwise, the following capitalized terms shall have the meanings set forth below. Defined terms appear alphabetically for ease of reference.
“Accounting Period” – Each calendar year ending December 31, unless the Trustee elects a different fiscal year permitted by law.
“Beneficiary” – Any person or entity entitled to receive distributions of income or principal, whether current, remainder, or contingent.
“Disability” – Settlor’s incapacity as determined under Section 5.1.
“Marital Trust” – The trust, if any, created under Section 5.4(a).
“Probate Court” – The Circuit Court of [COUNTY], Missouri, Probate Division, or any successor court exercising probate jurisdiction.
“Qualified Successor Trustee” – A trustee who meets the requirements of Section 8.2.
“Revocation Instrument” – A written instrument signed by Settlor that expressly revokes or amends this Trust Agreement.
“Trust” – The trust created hereby, to be known as “[SETTLOR] REVOCABLE LIVING TRUST dated [EFFECTIVE DATE].”
“Trust Estate” – All property, tangible or intangible, real or personal, now or hereafter held by the Trustee under this Trust Agreement, including all reinvestments and substitutions.
[// GUIDANCE: Add any additional defined terms required for complex estate planning structures.]
3. ESTABLISHMENT OF TRUST; FUNDING; REVOCABILITY
3.1 Creation. Settlor hereby transfers, assigns, and delivers to Trustee the property described on Exhibit A, receipt of which Trustee acknowledges, to have and to hold in trust under the terms of this Trust Agreement.
3.2 Additional Property. Settlor or any other person may, at any time, transfer additional property to the Trustee, and all such property shall thereafter constitute part of the Trust Estate.
3.3 Revocability and Amendment.
(a) Settlor reserves the right at any time and from time to time, during Settlor’s lifetime and capacity, to revoke or amend this Trust Agreement, in whole or in part, by executing a Revocation Instrument and delivering it to the Trustee.
(b) Any revocation or amendment shall be effective upon delivery unless the Revocation Instrument expressly provides otherwise.
3.4 Separate Property Character. Property transferred to this Trust shall retain its separate or marital character in accordance with Missouri law.
4. DISTRIBUTIONS DURING SETTLOR’S LIFETIME
4.1 Income and Principal. During Settlor’s lifetime and capacity, the Trustee shall distribute to or for the benefit of Settlor such amounts of income and/or principal as Settlor may request.
4.2 Withdrawal Power. If Settlor is serving as Trustee, Settlor may withdraw any part of the Trust Estate at any time without liability to any Beneficiary.
4.3 Gift Provisions (Optional). [OPTIONAL] The Trustee may, upon Settlor’s written direction, make gifts to the Beneficiaries or charities described in Section 4.4, provided that such gifts do not impair Settlor’s maintenance and support.
4.4 Charitable Distributions (Optional). [OPTIONAL] The Trustee may distribute up to $[AMOUNT] annually to [NAME OF CHARITY], an organization described in § 501(c)(3) of the Internal Revenue Code.
5. DISTRIBUTIONS UPON SETTLOR’S INCAPACITY
5.1 Determination of Disability. Settlor shall be deemed disabled if:
(a) two licensed physicians certify in writing that Settlor is unable to manage Settlor’s property and financial affairs; or
(b) the Probate Court issues an order adjudicating Settlor incapacitated.
[// GUIDANCE: Missouri allows certification by one physician for certain documents; two gives stronger evidentiary footing.]
5.2 During Disability. During any period of Disability, the Trustee shall apply so much income and principal as the Trustee, in Trustee’s sole discretion, deems necessary for Settlor’s health, education, maintenance, and support (“HEMS Standard”), taking into account any other resources reasonably available to Settlor.
5.3 Termination of Disability. The Disability period shall end upon written certification by two physicians (or court order) that Settlor has regained capacity.
6. DISTRIBUTIONS UPON SETTLOR’S DEATH
6.1 Administrative Trust. Upon Settlor’s death, the Trust shall become irrevocable. The Trustee shall first pay or reserve for:
(a) Settlor’s enforceable debts and final expenses;
(b) expenses of administering Settlor’s estate and this Trust;
(c) all estate, inheritance, generation-skipping, and similar taxes attributable to Settlor’s taxable estate.
6.2 Specific Bequests. After satisfaction of Section 6.1, Trustee shall distribute the following:
(a) Tangible Personal Property. All household goods, jewelry, and other tangible items to [BENEFICIARY NAME] or, if none survives, to Settlor’s then-living descendants, per stirpes.
(b) Cash Bequest. $[AMOUNT] to [BENEFICIARY NAME OR CHARITY].
6.3 Residual Division. The remaining Trust Estate shall be allocated as follows:
(a) Marital Trust. [OPTIONAL] If Settlor is married at death, a Marital Trust qualifying for the federal estate tax marital deduction shall be funded with an amount equal to the minimum required to reduce federal estate tax to zero.
(b) Family Trust. The balance shall be distributed to the “Family Trust” for the benefit of Settlor’s descendants as provided in Section 6.4.
6.4 Family Trust Terms. Income and principal may be distributed among Settlor’s descendants for HEMS; the trust shall terminate in favor of Settlor’s then-living descendants, per stirpes, upon the youngest descendant reaching age [AGE]. Trustee may establish further sub-trusts as appropriate.
7. TRUSTEE POWERS AND DUTIES
7.1 Powers. In addition to powers under Missouri law, Trustee shall have all powers a prudent individual would have with respect to managing comparable property, including but not limited to the powers to:
(a) Invest and reinvest in any kind of property;
(b) Retain non-productive assets;
(c) Acquire real property, mortgages, or interests therein;
(d) Engage agents, custodians, and professional advisors;
(e) Make tax elections;
(f) Partition or distribute property in cash or in-kind;
(g) Merge or consolidate trusts when beneficial and lawful.
7.2 Prudent Investor Standard. Trustee shall invest the Trust Estate in accordance with Missouri’s prudent investor rule.
7.3 Duty to Inform and Report. Trustee shall provide the Beneficiaries with:
(a) Notice of the Trust’s existence within sixty (60) days after becoming irrevocable;
(b) Annual accountings within sixty (60) days after each Accounting Period; and
(c) Such other information as reasonably requested.
8. SUCCESSOR TRUSTEE PROVISIONS
8.1 Order of Succession. If the office of Trustee becomes vacant, the next Trustee shall serve in the following order:
(a) [NAME OF FIRST SUCCESSOR TRUSTEE];
(b) [NAME OF SECOND SUCCESSOR TRUSTEE];
(c) A corporate fiduciary having trust powers and principal place of business in Missouri selected by a majority of the adult Beneficiaries.
8.2 Qualifications. Every Successor Trustee shall be:
(a) at least 21 years of age;
(b) not under a legal disability; and
(c) not an individual who is, at the time of appointment, subject to a conflict of interest materially adverse to the Trust or its Beneficiaries.
8.3 Acceptance. A Successor Trustee shall accept the trusteeship by executing an acceptance and filing it with the outgoing Trustee or, if none, by filing with the Probate Court and providing notice to each adult Beneficiary.
8.4 Bond. No Trustee shall be required to furnish bond or surety unless requested by (i) Settlor during lifetime, (ii) a majority of Beneficiaries after Settlor’s death, or (iii) ordered by the Probate Court.
8.5 Resignation. A Trustee may resign by delivering written notice to Settlor (if living) and all adult Beneficiaries at least 30 days prior to the effective date.
8.6 Removal. The Probate Court, or Settlor while living, may remove a Trustee for cause, including but not limited to breach of fiduciary duty, incapacity, or persistent failure to administer the Trust in accordance with its terms.
9. TRUSTEE COMPENSATION; INDEMNIFICATION; LIABILITY LIMITATIONS
9.1 Compensation. Trustee shall be entitled to reasonable compensation consistent with Missouri fiduciary fee schedules or as otherwise agreed in writing.
9.2 Expense Reimbursement. Trustee is entitled to reimbursement from the Trust Estate for expenses reasonably incurred in the administration of the Trust.
9.3 Indemnification. The Trust Estate shall indemnify and hold Trustee harmless from and against any and all claims, liabilities, and expenses, including reasonable attorney fees, arising from the proper administration of the Trust, except to the extent caused by Trustee’s willful misconduct or gross negligence.
9.4 Limitation of Liability. The liability of Trustee to Beneficiaries or third parties shall be limited to the value of the Trust Estate; no personal liability shall attach to Trustee in the absence of willful misconduct or gross negligence.
10. DEFAULT; REMOVAL; REMEDIES
10.1 Events of Default. Each of the following constitutes a default:
(a) Trustee’s breach of fiduciary duty;
(b) Failure to account for Trust assets;
(c) Misappropriation or self-dealing;
(d) Incapacity or insolvency of Trustee; or
(e) Failure to act in a reasonable period.
10.2 Notice and Cure. Any Beneficiary may provide written notice specifying the nature of the default. Trustee shall have thirty (30) days to cure, unless impracticable or prohibited by law.
10.3 Remedies. Upon default, Beneficiaries or the Probate Court may:
(a) compel performance;
(b) surcharge the Trustee;
(c) remove or suspend the Trustee;
(d) appoint a Special Fiduciary; and/or
(e) pursue any other remedies available at law or equity.
10.4 Attorney Fees. In any proceeding arising out of the administration of this Trust, the court may award reasonable attorney fees and costs, payable from the Trust Estate or as otherwise equitably determined.
11. RISK ALLOCATION
11.1 Insurance. Trustee shall maintain appropriate insurance (e.g., property, casualty, fiduciary liability) to protect the Trust Estate where commercially reasonable.
11.2 Force Majeure. Trustee shall not be liable for any loss to the Trust Estate caused by events beyond Trustee’s reasonable control, including but not limited to war, terrorism, natural disaster, or governmental action (“Force Majeure Event”). Trustee shall use commercially reasonable efforts to mitigate the effects of any Force Majeure Event.
12. DISPUTE RESOLUTION
12.1 Governing Law. This Trust Agreement and all questions concerning its validity, construction, and administration shall be governed by and construed in accordance with the laws of the State of Missouri, without regard to conflict-of-laws principles.
12.2 Forum Selection. Exclusive jurisdiction for judicial proceedings concerning this Trust shall lie with the Probate Court.
12.3 Arbitration. [OPTIONAL] Any non-probate dispute arising under this Trust Agreement shall, at the election of (i) Settlor during lifetime, or (ii) a majority of Beneficiaries after Settlor’s death, be submitted to binding arbitration administered by [ARBITRATION ORGANIZATION] under its then-current rules. Judgment on the award may be entered by the Probate Court.
12.4 Jury Waiver. Consistent with Missouri probate practice, the parties waive any right to a jury trial in any proceeding concerning the administration of this Trust.
12.5 Injunctive Relief. Nothing in this Section 12 shall limit the right of any party to seek temporary, preliminary, or permanent injunctive relief in the Probate Court to enforce or preserve Trust provisions.
13. GENERAL PROVISIONS
13.1 Amendment and Waiver. Except as otherwise provided herein, no amendment or waiver of any provision shall be effective unless in writing signed by Settlor (if living) and delivered to Trustee. No waiver shall constitute a continuing waiver unless expressly stated.
13.2 Assignment. Except as expressly permitted, no Beneficiary may assign, transfer, encumber, or alienate any interest in the Trust; any attempted assignment shall be void.
13.3 Spendthrift. To the maximum extent allowed by law, the interests of Beneficiaries shall not be subject to the claims of their creditors, spouse, or others, nor to legal process, and may not be voluntarily or involuntarily transferred.
13.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the invalid provision shall be reformed to the minimum extent necessary to achieve its intended purpose.
13.5 Entire Agreement. This Trust Agreement constitutes the entire understanding among the parties with respect to the Trust and supersedes all prior agreements or understandings, written or oral.
13.6 Counterparts; Electronic Signatures. This Trust Agreement may be executed in counterparts, each of which shall be deemed an original. Signatures transmitted electronically (e.g., via PDF or Docusign) shall be deemed original signatures for all purposes.
13.7 Headings. Headings are inserted for convenience only and shall not affect interpretation.
14. EXECUTION BLOCK
IN WITNESS WHEREOF, Settlor and Trustee have executed this Revocable Living Trust Agreement effective as of the date first written above.
Settlor:
[NAME OF SETTLOR]
Trustee:
[NAME OF INITIAL TRUSTEE]
[OPTIONAL – CO-TRUSTEE SIGNATURE]
[NAME OF CO-TRUSTEE]
NOTARY ACKNOWLEDGMENT
State of Missouri )
) ss.
County of ____ )
On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [NAME(S) OF SIGNATORY(IES)], known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the foregoing 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: ____
[// GUIDANCE: Missouri does not require witnesses for trusts, but some practitioners include them for evidentiary strength. Add witness lines if desired.]
15. EXHIBIT A – SCHEDULE OF TRUST PROPERTY
The following property is hereby transferred to and constitutes the initial corpus of the Trust:
- Checking Account No. _ at [BANK], approximately $_.
- Real Property located at [ADDRESS], legally described as:
[LEGAL DESCRIPTION]. - 100% membership interest in [LLC NAME], a Missouri limited liability company.
- All household furniture, furnishings, and personal effects located at Settlor’s residence.
[// GUIDANCE: Attach deeds, assignments, or other transfer instruments as necessary. Remember: title to real estate must be retitled in the name of the Trustee, e.g., “[NAME OF TRUSTEE], Trustee of the [SETTLOR] Revocable Living Trust dated [EFFECTIVE DATE].”]
[// GUIDANCE: Upon finalization, record real property deeds in the applicable county recorder’s office, update beneficiary designations for life insurance and retirement accounts to “Trust” or sub-trusts as appropriate, and provide certifications of trust to financial institutions per Missouri statutes.]