REVOCABLE LIVING TRUST AGREEMENT

(New Jersey)

[// GUIDANCE: This template is drafted to comply with the New Jersey Uniform Trust Code, N.J. Stat. Ann. § 3B:31-1 et seq., and prevailing New Jersey case law on trust administration. All bracketed items must be completed or tailored before use.]

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
Schedule A – Initial Trust Property

I. DOCUMENT HEADER

1. Title and Parties

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

(a) [GRANTOR FULL LEGAL NAME], residing at [ADDRESS] (“Grantor”); and
(b) [INITIAL TRUSTEE FULL LEGAL NAME], residing at [ADDRESS], as the initial trustee hereunder (the “Trustee”).

Grantor and Trustee are sometimes referred to individually as a “Party” and collectively as the “Parties.”

2. Recitals

A. Grantor desires to create a revocable trust to hold, manage, and distribute certain property for Grantor’s benefit during Grantor’s lifetime and for the benefit of the persons identified herein after Grantor’s death.
B. Trustee is willing to accept the fiduciary responsibilities imposed by this Trust Agreement.
C. This Trust Agreement is intended to be governed by and construed in accordance with the New Jersey Uniform Trust Code and other applicable laws of the State of New Jersey.

II. DEFINITIONS

For purposes of this Trust Agreement, the following terms have the meanings set forth below. Terms defined herein have the same meaning whether singular or plural.

1. “Accounting Period” – Each calendar year ending December 31, or such shorter period as ends on the Trust’s termination.
2. “Beneficiary” – Each person or entity presently or prospectively entitled to receive distributions of income or principal, as set forth in this Trust Agreement.
3. “Incapacity” – A determination that Grantor is unable to manage his or her property or financial affairs, evidenced by (i) written certification of two licensed physicians, or (ii) an order of a court of competent jurisdiction.
4. “Probate Court” – The Superior Court of New Jersey, Chancery Division, Probate Part, or any successor court exercising probate jurisdiction.
5. “Qualified Successor Trustee” – A trustee who is (i) over 18 years of age, (ii) not adjudicated incapacitated, and (iii) willing and able to serve.
6. “Trust” – The trust created by this Trust Agreement and any additions thereto.
7. “Trust Estate” – All property, real or personal, tangible or intangible, held from time to time by the Trustee under this Trust Agreement, together with all reinvestments and proceeds thereof.

[// GUIDANCE: Insert additional defined terms as needed to match client objectives.]

III. OPERATIVE PROVISIONS

3.1 Creation of Trust

Grantor hereby transfers, assigns, and delivers to the Trustee the property listed on Schedule A, receipt of which the Trustee acknowledges, to hold, manage, invest, and distribute as provided herein. Additional property may be added to the Trust Estate by Grantor or any other person with Trustee’s consent.

3.2 Revocation and Amendment

3.2.1 Grantor’s Reserved Powers. Grantor may revoke or amend this Trust Agreement, in whole or in part, at any time by delivering to the Trustee a written instrument signed by Grantor and acknowledged before a notary public.
3.2.2 Effect of Revocation. Upon revocation, the Trustee shall promptly distribute the Trust Estate to Grantor and this Trust Agreement shall thereupon terminate.

3.3 Distributions During Grantor’s Lifetime

During Grantor’s lifetime and while not incapacitated, the Trustee shall distribute to or for the benefit of Grantor so much of the net income and principal of the Trust Estate as Grantor may request in writing. Absent Grantor’s request, the Trustee may, in Trustee’s discretion, distribute income or principal as Trustee deems necessary for Grantor’s health, education, maintenance, or support.

3.4 Distributions Upon Grantor’s Incapacity

If Grantor becomes incapacitated, the Trustee shall apply or distribute such amounts of income and principal as are necessary or advisable, in Trustee’s sole discretion, for Grantor’s health, education, maintenance, or support, taking into account any other resources reasonably available to Grantor.

3.5 Disposition Upon Grantor’s Death

3.5.1 Payment of Expenses and Debts. After Grantor’s death, the Trustee shall first pay or reserve for:
(a) Grantor’s legally enforceable debts;
(b) Estate administration expenses; and
(c) Any state or federal death taxes attributable to the Trust Estate.
3.5.2 Distribution of Remaining Trust Estate. Thereafter, the Trustee shall distribute the remaining Trust Estate as follows:
(a) [PRIMARY BENEFICIARY DISTRIBUTION TERMS];
(b) [CONTINGENT BENEFICIARY DISTRIBUTION TERMS];
(c) [CHARITABLE GIFTS, IF ANY].

[// GUIDANCE: Insert sub-trusts (e.g., marital, credit-shelter, testamentary trusts) if estate-planning objectives require.]

IV. REPRESENTATIONS & WARRANTIES

4.1 Grantor’s Representations. Grantor represents and warrants that:
(a) Grantor is at least 18 years old and of sound mind;
(b) Grantor has full right, title, and authority to transfer each asset listed on Schedule A; and
(c) Execution of this Trust Agreement does not violate any prior agreement or legal restriction binding on Grantor.

4.2 Trustee’s Representations. Trustee represents and warrants that:
(a) Trustee is a Qualified Successor Trustee;
(b) Trustee accepts the fiduciary duties imposed by this Trust Agreement and applicable law; and
(c) Trustee will administer the Trust Estate solely in the interests of the Beneficiaries.

4.3 Survival. All representations and warranties herein shall survive the execution and delivery of this Trust Agreement and any subsequent additions to the Trust Estate.

V. COVENANTS & RESTRICTIONS

5.1 Trustee Duties. The Trustee shall:
(a) Administer the Trust in good faith and in accordance with its terms and New Jersey law;
(b) Act impartially among Beneficiaries and avoid self-dealing;
(c) Keep accurate books and records and provide annual statements to the Beneficiaries;
(d) Invest and manage Trust assets as a prudent investor [OPTIONAL: subject to any specific investment directives in Schedule B].

5.2 Prohibited Transactions. Except with court approval or unanimous written consent of all adult, competent Beneficiaries, the Trustee shall not:
(a) Borrow Trust assets;
(b) Pledge Trust assets for the Trustee’s personal benefit;
(c) Engage in transactions that present a conflict of interest.

5.3 Notice Obligations. Trustee shall provide written notice to the Beneficiaries and any Successor Trustee within 30 days of:
(a) The resignation, incapacity, or death of any Trustee;
(b) Any material change in the Trust’s investment strategy or distribution policy.

5.4 Successor Trustee Procedures.
(a) Designation. Grantor hereby nominates [PRIMARY SUCCESSOR TRUSTEE] as first successor trustee and [SECOND SUCCESSOR TRUSTEE] as second successor trustee.
(b) Acceptance. A Successor Trustee shall accept the trusteeship in writing and provide a signed acceptance to all adult Beneficiaries.
(c) Transfer of Property. Title to Trust assets shall vest automatically in the Successor Trustee without the need for probate; the former Trustee (or personal representative) shall execute all instruments reasonably requested to effectuate such transfer.

[// GUIDANCE: NJ law permits corporate trustees; insert corporate fiduciary language if applicable.]

VI. DEFAULT & REMEDIES

6.1 Events of Default. The following constitute Events of Default:
(a) Breach of fiduciary duty by the Trustee;
(b) Failure to render required accounting within 60 days after written request;
(c) Willful misconduct or gross negligence in administering the Trust Estate.

6.2 Notice and Cure. Before seeking judicial relief, a Beneficiary shall deliver written notice specifying the alleged default and allow the Trustee a 30-day cure period, unless irreparable harm would result.

6.3 Remedies. Upon an uncured Event of Default, a Beneficiary or Co-Trustee may:
(a) Seek removal or suspension of the Trustee in the Probate Court;
(b) Compel an accounting or restitution;
(c) Seek injunctive relief to prevent dissipation of Trust assets.

6.4 Attorneys’ Fees. The Probate Court may award reasonable attorneys’ fees and costs to the prevailing party, payable from the Trust Estate or personally from the Trustee, as the court deems just.

VII. RISK ALLOCATION

7.1 Indemnification of Trustee.
(a) Scope. Except for losses arising from Trustee’s willful misconduct or gross negligence, the Trustee shall be indemnified from the Trust Estate against all claims, liabilities, and expenses (including reasonable attorneys’ fees) incurred by reason of acting as Trustee.
(b) Procedure. Trustee shall promptly notify the Beneficiaries of any claim. The indemnity shall be advanced as incurred, subject to refund if a court later determines the Trustee is not entitled to indemnification.

7.2 Limitation of Liability. Trustee’s aggregate liability to all parties for actions taken in good faith shall not exceed the total value of the Trust Estate at the time of the act or omission giving rise to liability.

7.3 Insurance. Trustee may procure fiduciary liability insurance and pay premiums from the Trust Estate.

7.4 Force Majeure. Trustee shall not be liable for delays or failures in performance caused by events beyond Trustee’s reasonable control, including acts of God, war, terrorism, labor disputes, or governmental actions.

VIII. DISPUTE RESOLUTION

8.1 Governing Law. This Trust Agreement and all rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to its conflict-of-laws principles.

8.2 Forum Selection. The Probate Court shall have exclusive jurisdiction over all proceedings concerning the Trust, except as provided in Section 8.3.

8.3 Optional Arbitration.
[ARBITRATION OPTION – CHECK ONE]
☐ Arbitration Omitted. All disputes shall be resolved exclusively in the Probate Court.
☐ Arbitration Elected. Any dispute that the Probate Court determines is arbitrable under N.J. law shall be submitted to binding arbitration administered by [ARBITRATION FORUM] in [LOCATION] in accordance with its then-current rules. Judgment on the arbitrator’s award may be entered in any court of competent jurisdiction. The Probate Court shall retain jurisdiction to issue orders concerning trust administration pending arbitration.

8.4 Injunctive Relief. Nothing in this Article shall limit a Party’s right to seek temporary, preliminary, or permanent injunctive relief in the Probate Court to protect Trust assets.

8.5 Jury Waiver. Because probate matters in New Jersey are tried without a jury, the Parties knowingly waive any right to trial by jury on any issue triable of right by a jury.

IX. GENERAL PROVISIONS

9.1 Amendment and Waiver. Except as otherwise provided in Section 3.2, no amendment or waiver of any provision of this Trust Agreement shall be effective unless in writing and signed by Grantor (if living) and the Trustee. No waiver shall be deemed a continuing waiver of the same or any other provision.

9.2 Assignment. Interests of Beneficiaries are personal and shall not be assigned, transferred, pledged, or otherwise encumbered, voluntarily or involuntarily, before actual distribution by the Trustee (“Spendthrift Provision”).

9.3 Successors and Assigns. This Trust Agreement shall bind and inure to the benefit of the Parties and their respective heirs, executors, administrators, successors, and permitted assigns.

9.4 Severability. If any provision of this Trust Agreement is determined to be invalid or unenforceable, such provision shall be reformed to the minimum extent necessary to render it valid, and the remaining provisions shall remain in full force and effect.

9.5 Entire Agreement. This Trust Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior oral or written agreements.

9.6 Counterparts; Electronic Signatures. This Trust Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute one instrument. Signatures transmitted by facsimile, PDF, or compliant e-signature platform shall be deemed original.

9.7 Headings. Headings and sub-headings are for convenience only and shall not affect interpretation.

X. EXECUTION BLOCK

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

[OPTIONAL NOTARIZATION BLOCK – New Jersey]
State of New Jersey )
County of ____ )

On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME] and [TRUSTEE NAME], proved to me on the basis of satisfactory evidence to be the individuals whose names are subscribed to this instrument, and acknowledged that they executed the same for the purposes therein contained.

Notary Public, State of New Jersey
My Commission Expires: ____

[// GUIDANCE: Add witness signature lines if preferable or if real property will be conveyed and recording office in the relevant county requires witnessing.]

SCHEDULE A

INITIAL TRUST PROPERTY

1. Bank Account: [BANK NAME, ACCOUNT #, APPROX. BALANCE]
2. Brokerage Account: [INSTITUTION, ACCOUNT #, APPROX. BALANCE]
3. Real Property: Fee simple title to the property commonly known as [ADDRESS]; legal description attached as Exhibit A.
4. Life Insurance Policy: [ISSUER, POLICY #, FACE VALUE] (Trustee listed as owner and primary beneficiary).
5. Personal Property: [COLLECTIBLES, VEHICLES, ETC.]

[// GUIDANCE: Provide deeds, assignments, or beneficiary change forms contemporaneously to complete asset transfer procedures.]

END OF DOCUMENT