**REVOCABLE LIVING TRUST AGREEMENT
OF [SETTLOR NAME]**
(A Montana Trust Governed by the Montana Uniform Trust Code)
TABLE OF CONTENTS
- Document Header & Recitals
- Definitions
- Operative Provisions
3.1 Creation & Funding
3.2 Revocation & Amendment
3.3 Lifetime Administration
3.4 Incapacity Administration
3.5 Post-Death Administration & Distribution - Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Schedule A – Initial Trust Property
- [Optional] Schedule B – Successor Trustee Acceptance
[// GUIDANCE: Update page numbers after final formatting.]
1. DOCUMENT HEADER & RECITALS
1.1 Title & Parties
This Revocable Living Trust Agreement (“Agreement”) is made effective as of [EFFECTIVE DATE] (“Effective Date”) by and between:
(a) [SETTLOR NAME], of [SETTLOR ADDRESS] (“Settlor”); and
(b) [INITIAL TRUSTEE NAME], of [TRUSTEE ADDRESS] (“Trustee”).
1.2 Trust Name
The trust created by this Agreement shall be known as “The [SETTLOR NAME] Revocable Living Trust dated [EFFECTIVE DATE]” (the “Trust”).
1.3 Recitals
A. Settlor desires to create a revocable inter vivos trust pursuant to the Montana Uniform Trust Code, Mont. Code Ann. Title 72, Chapter 38, as amended (the “MUTC”), to manage and distribute property for the benefit of Settlor and the Beneficiaries designated herein.
B. Trustee is willing to hold, manage, and distribute the Trust Estate in accordance with this Agreement.
C. The parties intend that this instrument comply with all applicable requirements of Montana trust law and be fully enforceable in the state probate court of [COUNTY], Montana.
2. DEFINITIONS
For ease of reference, the following terms shall have the meanings set forth below. Capitalized terms not defined herein shall have the meanings assigned by applicable law.
“Accounting Period” – A calendar year ending December 31, unless the Trustee elects another fiscal year permitted by law.
“Beneficiary” – Each person or entity entitled to current or future distributions under this Agreement, including any lawful issue of a deceased Beneficiary, all as further described in Section 3.5.
“Dispositive Provisions” – The provisions in Section 3.5 governing distribution of the Trust Estate upon Settlor’s death.
“Fiduciary Duties” – All duties imposed on a trustee under the MUTC, as modified by this Agreement.
“Hazardous Materials” – Any substance regulated by federal, state, or local environmental laws.
“Incapacity” – The inability of the Settlor, as determined under Section 3.4, to manage property and financial affairs.
“Initial Trust Property” – The property described in Schedule A, together with all additions, substitutions, and accretions, collectively referred to as the “Trust Estate” or “Trust Assets.”
“Permitted Investments” – All investments authorized by the MUTC, subject to the prudent investor rule and any specific restrictions in Section 5.2.
“Successor Trustee” – Any person or entity appointed and serving pursuant to Section 3.6.
“Trustee” – The Initial Trustee or any Successor Trustee then serving.
3. OPERATIVE PROVISIONS
3.1 Creation & Funding
3.1.1 Establishment. Settlor hereby delivers and assigns to Trustee the Initial Trust Property to hold in trust, together with any future property added by gift, transfer, conveyance, devise, or other means.
3.1.2 Additional Transfers. Settlor or any other person may transfer additional assets to the Trust by written assignment, deed, or beneficiary designation. All such assets shall become part of the Trust Estate upon acceptance by the Trustee.
[// GUIDANCE: Attach separate assignment documents for non-probate transfers such as TOD, POD, or beneficiary designations.]
3.2 Revocation & Amendment
(a) Reserved Right. During Settlor’s lifetime and capacity, Settlor may revoke or amend this Agreement, in whole or in part, by delivering a signed, written instrument to the Trustee.
(b) Effective Time. A revocation or amendment shall be effective upon actual receipt by the Trustee, unless the instrument specifies a later date.
(c) Partial Revocation. Revocation of specific provisions shall not invalidate the remainder of the Agreement.
3.3 Lifetime Administration
3.3.1 Distributions. During Settlor’s lifetime and capacity, Trustee shall distribute to or for Settlor’s benefit so much of the net income and principal as Settlor shall request.
3.3.2 Tax Reporting. All items of income, deduction, and credit shall be reported on Settlor’s individual income tax return as provided under Subpart E, Part I, Subchapter J, Chapter 1 of the Internal Revenue Code.
3.3.3 Investment Authority. Subject to Section 5.2 and the prudent investor rule, Trustee may invest and reinvest the Trust Estate in Permitted Investments.
3.4 Incapacity Administration
3.4.1 Determination of Incapacity. Incapacity shall be established by a written opinion of two licensed physicians or by a court of competent jurisdiction.
3.4.2 Distributions During Incapacity. If Settlor is incapacitated, Trustee shall apply income and principal for Settlor’s health, education, maintenance, and support (“HEMS”), considering Settlor’s other resources.
3.4.3 Restoration of Capacity. Upon written certification by Settlor’s attending physician that capacity has been restored, Trustee shall resume administration under Section 3.3.
3.5 Post-Death Administration & Distribution
3.5.1 Payment of Expenses & Taxes. Upon Settlor’s death, Trustee shall pay (a) last illness, funeral, and administration expenses, (b) legally enforceable debts, and (c) estate and inheritance taxes attributable to the Trust Estate.
3.5.2 Distribution Scheme. After satisfying Section 3.5.1, Trustee shall distribute the remaining Trust Estate as follows:
(a) Specific Gifts. The specific gifts identified in Exhibit 1 shall be distributed outright.
(b) Residue. The remaining Trust Estate (“Residue”) shall be distributed to the Beneficiaries in the percentages listed below:
i. [BENEFICIARY A] – [] %
ii. [BENEFICIARY B] – [] %
iii. [BENEFICIARY C] – [] %
3.5.3 Contingent Disposition. If a Beneficiary predeceases Settlor, that Beneficiary’s share shall pass per stirpes to his or her issue, or, if none, shall be added proportionally to the surviving shares.
3.5.4 Trusts for Minors or Incapacitated Beneficiaries. Shares for beneficiaries under age [] or legally incapacitated shall be held in separate trusts administered under Annex “Minor Trust Terms.”
3.6 Trusteeship
3.6.1 Acceptance. The Initial Trustee accepts trusteeship by executing this Agreement.
3.6.2 Resignation. Trustee may resign upon 30 days’ written notice to Settlor (if living) or the adult remainder Beneficiaries.
3.6.3 Removal. Settlor may remove any Trustee by written notice. After Settlor’s death or incapacity, the adult Beneficiaries acting by majority may remove a Trustee for cause (e.g., breach of trust, incapacity).
3.6.4 Successor Trustee Appointment. If the office of Trustee is vacant, the following persons, in order of priority, shall serve:
(a) [FIRST SUCCESSOR TRUSTEE]
(b) [SECOND SUCCESSOR TRUSTEE]
(c) Any person unanimously selected by the adult Beneficiaries.
3.6.5 Powers & Duties. Each Trustee shall have all powers granted under the MUTC and this Agreement, subject to the Fiduciary Duties.
3.6.6 Bond. [REQUIRED/WAIVED] unless ordered by a court of competent jurisdiction.
4. REPRESENTATIONS & WARRANTIES
4.1 Settlor’s Authority. Settlor represents that Settlor has full legal capacity and title to all property transferred to the Trust.
4.2 Trustee’s Authority & Qualifications. Trustee represents that Trustee is qualified under Montana law to serve and is not disqualified by conflict of interest, bankruptcy, or felony conviction.
4.3 Non-Contravention. Execution and performance will not violate any contract, judgment, or law applicable to the parties.
4.4 Survival. The representations and warranties shall survive the execution of this Agreement and any resignation or removal of a Trustee.
5. COVENANTS & RESTRICTIONS
5.1 Recordkeeping. Trustee shall keep accurate books and records and provide annual statements to Settlor (or to the adult Beneficiaries after Settlor’s death).
5.2 Investment Guidelines. Trustee shall:
(a) diversify assets unless, under the circumstances, it is prudent not to do so;
(b) avoid investments prohibited by the MUTC or this Agreement;
(c) obtain and maintain adequate insurance on real property.
5.3 Environmental Compliance. Trustee shall not knowingly acquire or retain any real property containing Hazardous Materials except as a prudent trustee would under the circumstances.
5.4 Notice of Significant Events. Trustee shall promptly notify the Beneficiaries of any material litigation, environmental claim, or other matter that could substantially affect the Trust Estate.
6. DEFAULT & REMEDIES
6.1 Events of Default. The following constitute a “Default” by the Trustee:
(a) willful misconduct or gross negligence;
(b) breach of Fiduciary Duties resulting in material loss;
(c) failure to provide required reports within 60 days after written notice.
6.2 Cure Period. Beneficiaries shall provide written notice specifying the Default. Trustee shall have 30 days to cure, unless the breach is incapable of cure or immediate relief is necessary.
6.3 Remedies. Upon Default, the Beneficiaries may:
(a) seek suspension or removal under Section 3.6.3;
(b) compel an accounting;
(c) pursue damages limited to the Trust Assets;
(d) seek injunctive relief to prevent further harm.
6.4 Attorneys’ Fees & Costs. Trustee or Beneficiaries prevailing in any action under this Section shall be entitled to reasonable attorneys’ fees payable from the Trust Estate, unless the court orders otherwise for equitable reasons.
7. RISK ALLOCATION
7.1 Indemnification of Trustee.
(a) Scope. Trustee shall be indemnified and held harmless out of the Trust Estate against all claims, liabilities, and expenses, including attorneys’ fees, arising out of the proper administration of the Trust, except for acts of willful misconduct or gross negligence.
(b) Advancement. Trustee may advance expenses from the Trust Estate, subject to refund if later found not entitled to indemnity.
7.2 Limitation of Liability. In no event shall Trustee be personally liable for any obligation exceeding the value of the Trust Assets, except for willful misconduct or gross negligence.
7.3 Insurance. Trustee may purchase and maintain, at Trust expense, fiduciary liability insurance.
7.4 Force Majeure. Trustee shall not be liable for loss or delay caused by events beyond reasonable control, including acts of God, war, terrorism, or changes in applicable law.
8. DISPUTE RESOLUTION
8.1 Governing Law. This Agreement and all disputes shall be governed by the laws of the State of Montana, without regard to conflict-of-laws principles.
8.2 Forum Selection. Exclusive jurisdiction and venue for all trust matters shall lie in the District Court, Probate Division, of [COUNTY], Montana.
8.3 Optional Arbitration.
(a) Election. With the unanimous written consent of all adult, competent Beneficiaries and the Trustee, any dispute may be submitted to binding arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules.
(b) Injunctive Relief. Notwithstanding the foregoing, a party may seek temporary or preliminary injunctive relief in the designated probate court to preserve the Trust Estate pending arbitration.
8.4 Jury Waiver. Because probate courts in Montana sit without a jury, the parties knowingly waive any right to a jury trial.
9. GENERAL PROVISIONS
9.1 Amendment & Waiver. Except as otherwise provided, no amendment or waiver shall be effective unless in writing and signed by Settlor (if living) or, after Settlor’s death, by all adult Beneficiaries and the Trustee.
9.2 Assignment. Beneficial interests may not be voluntarily or involuntarily assigned, transferred, or pledged, except as expressly permitted herein (see Section 11 – Spendthrift).
9.3 Successors & Assigns. This Agreement shall bind and benefit the parties and their respective heirs, personal representatives, successors, and assigns.
9.4 Severability. If any provision is held invalid, the remaining provisions shall remain in full force, and the court is authorized to reform the Agreement to best effectuate Settlor’s intent.
9.5 Entire Agreement. This instrument constitutes the entire agreement between the parties with respect to the Trust and supersedes all prior understandings.
9.6 Counterparts; Electronic Signatures. This Agreement may be executed in any number of counterparts (including PDF or other electronic signature formats), each of which shall be deemed an original, and all of which together constitute one agreement.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Settlor and Trustee have executed this Revocable Living Trust Agreement as of the Effective Date.
| Settlor | Trustee |
|---|---|
| _____ | _____ |
| [SETTLOR NAME], Settlor | [TRUSTEE NAME], Trustee |
STATE OF MONTANA )
: ss.
COUNTY OF [COUNTY] )
On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [SETTLOR NAME] and [TRUSTEE NAME], known to me (or satisfactorily proven) to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.
Notary Public for the State of Montana
Residing at: ___
My Commission Expires: _____
[// GUIDANCE: Montana does not require witnesses for a trust; consider adding if lender or title insurer requests.]
11. SCHEDULE A – INITIAL TRUST PROPERTY
- Checking Account No. [_] at [BANK NAME] – $[_]
- Real Property: Lot , Block , [SUBDIVISION], [COUNTY], MT, commonly known as “[ADDRESS].”
- 100 % membership interest in [LLC NAME], a Montana limited liability company.
[// GUIDANCE: Attach deeds, assignments, or stock transfer documents as applicable.]
12. [OPTIONAL] SCHEDULE B – SUCCESSOR TRUSTEE ACCEPTANCE
I, [SUCCESSOR TRUSTEE NAME], hereby accept appointment as Successor Trustee of “The [SETTLOR NAME] Revocable Living Trust dated [EFFECTIVE DATE]” and agree to discharge the duties of Trustee according to its terms and Montana law.
[SUCCESSOR TRUSTEE NAME]
Date: _____
[END OF DOCUMENT]