REVOCABLE LIVING TRUST AGREEMENT

(Tennessee Uniform Trust Code – Tenn. Code Ann. §§ 35-15-101 et seq.)
[// GUIDANCE: Verify all bracketed information and add supplementary provisions as needed for the particular client matter.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Establishment of Trust & Identification of Parties
IV. Trust Property & Funding Procedures
V. Revocation, Amendment & Withdrawal Rights
VI. Administration During Settlor’s Lifetime & Incapacity
VII. Disposition Upon Settlor’s Death
VIII. Trustee Provisions (Powers, Duties, Successors)
IX. Risk Allocation (Indemnification & Liability Caps)
X. Default & Remedies
XI. Dispute Resolution
XII. General Provisions
XIII. Execution Block
Exhibit A – Schedule of Trust Property

I. DOCUMENT HEADER

1.1 Title. This Revocable Living Trust Agreement (“Trust Agreement”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”).

1.2 Parties.
(a) Settlor: [SETTLOR FULL LEGAL NAME], residing at [ADDRESS] (“Settlor”).
(b) Original Trustee: [TRUSTEE FULL LEGAL NAME], residing/with principal place of business at [ADDRESS] (“Trustee”).

1.3 Name of Trust. The trust created under this Trust Agreement shall be known as the “[SETTLOR NAME] Revocable Living Trust” (the “Trust”).

1.4 Governing Law. This Trust is created under, and shall be construed in accordance with, the Tennessee Uniform Trust Code, Tenn. Code Ann. §§ 35-15-101 et seq., and other applicable laws of the State of Tennessee (“Governing Law”).

1.5 Recitals.
WHEREAS, Settlor desires to establish a revocable inter-vivos trust to hold, manage, and distribute property for the benefit of the persons designated herein; and
WHEREAS, Trustee is willing to accept the trust and to hold and administer the Trust Property (as defined below) pursuant to the terms of this Trust Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, Settlor and Trustee agree as follows:

II. DEFINITIONS

For purposes of this Trust Agreement, the following capitalized terms have the meanings set forth below. All definitions apply equally to singular and plural forms.

“Accounting” – A written report of Trust transactions prepared in accordance with Tenn. Code Ann. § 35-15-813.

“Beneficiary” – Any person or entity entitled to present or future distributions from the Trust.

“Disability” – Settlor’s incapacity as certified in writing by (i) two licensed physicians, or (ii) a Tennessee court of competent jurisdiction.
[// GUIDANCE: Consider aligning with any existing power-of-attorney definition for consistency.]

“Successor Trustee” – Any individual or corporate fiduciary appointed in accordance with Section VIII.6 to serve upon the vacancy of the office of Trustee.

“Trust Property” – All property, real or personal, tangible or intangible, transferred to or otherwise acquired by the Trustee and held subject to this Trust.

Other terms are defined where first used.

III. ESTABLISHMENT OF TRUST & IDENTIFICATION OF PARTIES

3.1 Creation. Settlor hereby creates the Trust and declares that Trustee shall hold the Trust Property, IN TRUST, for the uses and purposes, and subject to the terms, set forth herein.

3.2 Initial Funding. Concurrently with execution, Settlor transfers to Trustee [DESCRIPTION OF INITIAL ASSETS OR “the sum of Ten Dollars ($10.00) and other property listed on Exhibit A”], receipt of which Trustee acknowledges.

3.3 Additional Contributions. Settlor or any other person may, at any time, transfer additional property to the Trust by assignment, deed, beneficiary designation, or other valid instrument. Such property shall become part of the Trust Property and be administered in accordance with this Trust Agreement.

IV. TRUST PROPERTY & FUNDING PROCEDURES (TN-SPECIFIC)

4.1 Asset Transfer Formalities.
(a) Tangible Personal Property – Transferred via written assignment of ownership.
(b) Real Property – Transferred via recordable warranty deed naming the Trustee, with legal description, duly recorded in the county register of deeds.
(c) Securities – Re-registration on the books of the issuer or broker in the name “[TRUSTEE], Trustee of the [SETTLOR NAME] Revocable Living Trust dated [EFFECTIVE DATE].”
(d) Insurance/Retirement Accounts – Beneficiary designations naming the Trust or specific sub-trusts herein.

4.2 Schedule of Assets. Trustee shall maintain Exhibit A identifying all Trust Property, updated upon each receipt or disposition of assets.

4.3 Pour-Over from Will. Assets passing to the Trust under Settlor’s Last Will and Testament shall be added to and governed by this Trust upon Settlor’s death.

V. REVOCATION, AMENDMENT & WITHDRAWAL RIGHTS

5.1 Revocation. Settlor reserves the unrestricted right to revoke this Trust, in whole or in part, during Settlor’s lifetime by a signed written instrument delivered to Trustee.

5.2 Amendment. Settlor may amend any provision hereof by similar signed written instrument. Trustee shall implement any amendment promptly upon receipt.

5.3 Withdrawal of Property. Settlor may direct Trustee, in writing, to distribute any Trust Property to Settlor at any time.

5.4 Effect of Disability. The foregoing rights shall be exercisable by Settlor’s court-appointed conservator or attorney-in-fact only if (i) expressly authorized in the appointing instrument, and (ii) consistent with Tennessee law governing fiduciary powers.

VI. ADMINISTRATION DURING SETTLOR’S LIFETIME & INCAPACITY

6.1 Lifetime Beneficial Interest. During Settlor’s lifetime and capacity, Trustee shall distribute to or for the benefit of Settlor so much of the net income and principal of the Trust Property as Settlor may request.

6.2 Disability Administration. Upon Settlor’s Disability, Trustee shall apply income and principal for Settlor’s health, education, maintenance, and support (“HEMS Standard”). Trustee may also make gifts on Settlor’s behalf in amounts consistent with Settlor’s established pattern of giving or as permitted under Tenn. Code Ann. § 35-15-816(27).

6.3 Accounting. During Disability, Trustee shall provide annual Accountings to the person or entity serving as Conservator/Agent and to any court as may be required.

VII. DISPOSITION UPON SETTLOR’S DEATH

7.1 Trust Becomes Irrevocable. Upon Settlor’s death, this Trust shall become irrevocable and shall be administered in accordance with this Section VII and the remaining provisions hereof.

7.2 Payment of Debts & Expenses. Trustee may pay Settlor’s enforceable debts, last illness and funeral expenses, and estate administration expenses from Trust Property, but only to the extent that other resources are insufficient.

7.3 Specific Bequests. Trustee shall distribute the following specific gifts:
(a) [DESCRIPTION OF SPECIFIC GIFT] to [BENEFICIARY].
(b) [ADDITIONAL GIFTS].

7.4 Residuary Distribution. After satisfaction of Sections 7.2 and 7.3, Trustee shall distribute the remaining Trust Property:
Option A – outright to [PRIMARY RESIDUARY BENEFICIARIES] in equal shares, per stirpes; or
Option B – in continuing trusts as set forth in [APPENDIX/SUB-TRUST ARTICLE].
[// GUIDANCE: Choose or expand distribution scheme to address minors, spendthrift protections, or special-needs beneficiaries.]

7.5 Tax Provisions. Trustee may make elections under Subtitle B of the Internal Revenue Code and Tennessee inheritance tax law (if applicable) to minimize overall tax liability, and charge any resulting tax to principal.

VIII. TRUSTEE PROVISIONS

8.1 Acceptance & Qualification. Each Trustee shall signify acceptance in writing and shall not be required to post bond unless mandated by a Tennessee court.

8.2 Trustee Powers. In addition to statutory powers under Tenn. Code Ann. § 35-15-815, Trustee may:
(a) invest without regard to diversification under the prudent investor rule;
(b) employ professionals and delegate investment functions;
(c) continue or dispose of any business interest;
(d) distribute in cash or in kind, pro rata or non-pro rata.
[// GUIDANCE: Expand or curtail powers to match the client’s risk tolerance.]

8.3 Duties. Trustee shall administer the Trust solely in the interests of the Beneficiaries, act with prudence, and keep adequate records, subject to Tenn. Code Ann. §§ 35-15-801 et seq.

8.4 Compensation & Reimbursement. Trustee is entitled to reasonable compensation and reimbursement of properly incurred expenses.

8.5 Resignation & Removal.
(a) Resignation – Any Trustee may resign by 30 days’ written notice to Settlor (if living) or to the adult Beneficiaries and any co-trustee.
(b) Removal – Settlor (if living), or a majority in interest of adult Beneficiaries after Settlor’s death, may remove a Trustee by written notice and appoint a Successor Trustee.

8.6 Successor Trustee Rules (TN-SPECIFIC).
(a) Designated Successor. Upon vacancy, [NAME] shall serve as Successor Trustee. If he/she is unwilling or unable, [ALTERNATE NAME] shall serve.
(b) Court Appointment. If no designated Successor Trustee is able to serve, any interested party may petition the [COUNTY] Chancery or Probate Court for appointment.
(c) Transfer of Title. Title to Trust Property shall vest in the Successor Trustee immediately upon acceptance, without need for further conveyance, pursuant to Tenn. Code Ann. § 35-15-704.

8.7 Co-Trustees. Unless otherwise stated, co-trustees may act by majority. A dissenting trustee shall not be liable for the acts of the majority if the dissent is recorded in writing.

IX. RISK ALLOCATION (INDEMNIFICATION & LIABILITY CAPS)

9.1 Trustee Indemnity. To the fullest extent permitted by Governing Law, Trustee shall be indemnified from the Trust Property against all claims, liabilities, and expenses arising from administration of the Trust, except for matters resulting from Trustee’s willful misconduct or bad faith.

9.2 Limitation of Liability. Trustee’s liability to any person, including Beneficiaries, shall in no event exceed the fair market value of the Trust Property at the time of the claim (“Trust Assets Cap”).

9.3 Exculpation. No Trustee shall be liable for any loss sustained by the Trust except loss caused by the Trustee’s intentional wrongdoing.

X. DEFAULT & REMEDIES

10.1 Event of Default. For purposes of this Article, an “Event of Default” occurs if a Trustee:
(a) commits a material breach of fiduciary duty;
(b) is adjudicated bankrupt;
(c) becomes incapacitated; or
(d) is convicted of a felony involving dishonesty.

10.2 Notice & Cure. Upon written notice of an Event of Default, Trustee shall have 30 days to cure, except where cure is impossible or prohibited by court order.

10.3 Remedies. If uncured, the Beneficiaries or any co-trustee may:
(a) seek Trustee’s removal per Section 8.5(b);
(b) apply to the state probate court for surcharge, injunctive relief, or other equitable remedy; and/or
(c) compel arbitration if the Arbitration Option in Section 11.3 is elected.

10.4 Attorneys’ Fees. A prevailing party in any action to enforce this Trust is entitled to reasonable attorneys’ fees and costs, payable from the non-prevailing party’s share of the Trust Property or personal assets, as the court may direct.

XI. DISPUTE RESOLUTION

11.1 Governing Law. This Trust shall be governed by and construed in accordance with the laws of the State of Tennessee, without regard to its conflict-of-laws principles.

11.2 Forum Selection. Exclusive jurisdiction and venue for any proceeding concerning the administration of the Trust shall lie in the [COUNTY] Probate Court of the State of Tennessee (the “State Probate Court”).

11.3 Arbitration (Optional).
[ARBITRATION_ELECTION: Yes / No]
If “Yes,” then, except for requests for (i) injunctive relief to preserve Trust assets or (ii) interpretation of Trust terms reserved to the State Probate Court, any dispute shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. Judgment on the award may be entered in the State Probate Court.
[// GUIDANCE: Strike or retain clause in its entirety based on client preference.]

11.4 Jury Waiver. Consistent with probate practice, the parties acknowledge that proceedings in the State Probate Court are conducted without a jury.

11.5 Injunctive Relief. Nothing herein shall limit the right of any party to seek temporary, preliminary, or permanent injunctive relief from the State Probate Court to enforce fiduciary duties or prevent waste or dissipation of Trust assets.

XII. GENERAL PROVISIONS

12.1 Amendment & Waiver. Except as otherwise provided herein, no amendment or waiver of any provision of this Trust Agreement shall be effective unless in writing and signed by Settlor (if living) and Trustee. Waiver of any provision shall not constitute waiver of any other provision.

12.2 Spendthrift. The interest of any Beneficiary hereunder shall not be subject to voluntary or involuntary transfer, assignment, or encumbrance prior to actual receipt, nor to claims of such Beneficiary’s creditors, pursuant to Tenn. Code Ann. § 35-15-502.

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

12.4 Headings. Headings are for convenience only and do not affect interpretation.

12.5 Counterparts; Electronic Signatures. This Trust 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 for all purposes.

12.6 Entire Agreement. This Trust Agreement, including all Exhibits, constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior discussions and writings.

XIII. EXECUTION BLOCK

IN WITNESS WHEREOF, the Settlor and Trustee have executed this Revocable Living Trust Agreement effective as of the date first above written.

[// GUIDANCE: Tennessee law does not strictly require notarization for inter-vivos trusts, but notarization is strongly recommended to facilitate recording of deeds and financial institution acceptance.]

ACKNOWLEDGMENT

State of Tennessee )
County of [COUNTY] )

On this _ day of _, 20__, before me, the undersigned Notary Public in and for said State, 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.

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

Notary Public
My commission expires: ____

EXHIBIT A – SCHEDULE OF TRUST PROPERTY

[LIST OR ATTACH SEPARATE SCHEDULE]

1. [Description of Asset]
2. [Account # / Policy #]
3. [Real Property Legal Description]

[// GUIDANCE: Update this Exhibit each time assets are added to or removed from the Trust.]