REVOCABLE LIVING TRUST AGREEMENT
(“Trust Agreement”)
TABLE OF CONTENTS
- Document Header
- Definitions
- Creation of Trust; Funding; Revocation & Amendment
- Dispositive Provisions
- Trustee Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default, Removal & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
1.1 Parties.
(a) Grantor/Settlor: [GRANTOR FULL LEGAL NAME], of [ADDRESS] (“Grantor”).
(b) Initial Trustee: [TRUSTEE FULL LEGAL NAME], of [ADDRESS] (“Trustee”).
1.2 Trust Name. The trust created herein shall be known as “[CUSTOM TRUST NAME]” (the “Trust”).
1.3 Effective Date. This Trust Agreement is made and entered into as of [MM/DD/YYYY] (the “Effective Date”).
1.4 Governing Law & Jurisdiction.
(a) This Trust is governed by and shall be construed in accordance with the laws of the State of Washington, including, without limitation, Wash. Rev. Code Ann. Title 11, ch. 11.103 et seq. (Uniform Trust Code) and ch. 11.98 (Trustee Powers).
(b) The exclusive forum for trust administration matters shall be the [COUNTY] Superior Court sitting in probate (the “Designated Probate Court”).
1.5 Recitals.
A. Grantor desires to: (i) establish a revocable living trust to hold certain property during Grantor’s lifetime, and (ii) provide for the management and disposition of such property during incapacity and upon death.
B. Trustee is willing to accept the trusteeship and to administer the Trust in accordance with the terms herein.
C. Grantor hereby delivers to Trustee the property described in Schedule A attached hereto (the “Initial Trust Estate”) and intends to transfer additional property from time to time in accordance with Section 3.2.
2. DEFINITIONS
For ease of reference, capitalized terms used in this Trust Agreement shall have the meanings set forth below. Undefined capitalized terms have the meaning given by applicable Washington law.
“Accounting Period” means each calendar year or such shorter period ending upon the termination of the Trust or a change of Trustee.
“Beneficiary” means any person or entity entitled to receive distributions of income or principal, presently or in the future, under Article 4.
“Disability” or “Incapacity” means Grantor’s inability to manage property or financial affairs, as determined under Section 5.11.
“Grantor” has the meaning set forth in Section 1.1(a) and includes any co-grantor.
“Qualified Successor Trustee” means a successor trustee meeting the eligibility requirements of Section 5.5.
“Trust Estate” means all property, tangible or intangible, real or personal, transferred to the Trust, together with all accumulations and replacements thereof.
“UTC” means the Washington Uniform Trust Code, Wash. Rev. Code Ann. ch. 11.103.
[// GUIDANCE: Add, remove, or revise defined terms to match client-specific drafting.]
3. CREATION OF TRUST; FUNDING; REVOCATION & AMENDMENT
3.1 Creation. Grantor hereby creates the Trust as a revocable inter-vivos trust pursuant to Wash. Rev. Code Ann. § 11.103.040 and grants the Trustee all powers necessary to hold, administer, and distribute the Trust Estate.
3.2 Funding & Asset Transfer Procedures.
(a) Grantor may transfer additional assets to the Trust by assignment, deed, beneficiary designation, or any other lawful conveyance.
(b) Title to real property shall be conveyed by properly executed warranty deed or statutory warranty deed naming “[TRUSTEE NAME], Trustee of the [CUSTOM TRUST NAME] dated [EFFECTIVE DATE]” as grantee, and duly recorded in the county where the property is situated.
(c) Personal property shall be transferred by assignment of ownership or delivery of possession together with a written assignment referencing this Trust.
3.3 Revocation & Amendment. During Grantor’s lifetime and capacity, Grantor may revoke or amend this Trust, in whole or in part, by a written instrument delivered to the Trustee. The Trustee shall have no duty to act on any revocation or amendment unless and until actually received.
3.4 Grantor’s Rights. While living and not Disabled, Grantor reserves (i) all beneficial interest in the Trust Estate, (ii) the right to direct the Trustee regarding investments and distributions, and (iii) the right to add or withdraw assets at will.
3.5 Spendthrift Protection. Except as otherwise provided by law, the interest of any Beneficiary other than Grantor shall be held subject to a spendthrift trust as defined in Wash. Rev. Code Ann. § 11.103.050(5).
4. DISPOSITIVE PROVISIONS
4.1 During Grantor’s Lifetime. The Trustee shall distribute to or for the benefit of Grantor as much of the net income and principal as Grantor may request; absent request, Trustee may distribute as Trustee deems necessary for Grantor’s health, education, maintenance, and support (“HEMS Standard”).
4.2 Upon Grantor’s Incapacity. If Grantor is Disabled, Trustee shall use the Trust Estate for Grantor’s HEMS, taking into account other available resources known to Trustee.
4.3 At Grantor’s Death. Upon receipt of Grantor’s death certificate, Trustee shall:
(a) Pay all enforceable debts, expenses of last illness, funeral costs, and legally imposed taxes;
(b) Allocate the remaining Trust Estate among the Beneficiaries in the shares and on the terms set forth in Schedule B (the “Testamentary Distributions”).
4.4 Contingent Beneficiary Provisions. If a Beneficiary does not survive Grantor by [30] days, that Beneficiary’s share shall lapse into the residuary trust or, if none, shall be distributed to Grantor’s heirs-at-law as determined under Washington intestacy statutes then in effect.
[// GUIDANCE: Tailor distribution scheme in Schedule B.]
5. TRUSTEE PROVISIONS
5.1 Acceptance & Standard of Care. Trustee accepts the office of trustee and shall administer the Trust in good faith, in accordance with its terms and applicable law, and with the care, skill, and prudence of a prudent person dealing with the property of another.
5.2 General Powers. Trustee shall have all powers granted under Wash. Rev. Code Ann. § 11.98.070, as amended, and any other powers reasonably necessary or advisable to carry out the purposes of the Trust.
5.3 Specific Powers. Without limiting the foregoing, Trustee may:
(a) Retain, buy, or sell Trust assets;
(b) Delegate investment management to a qualified adviser;
(c) Borrow against Trust assets and encumber real property;
(d) Make elections for federal and state tax purposes;
(e) Divide or combine Trust assets for administrative convenience; and
(f) Rely conclusively on certificates of incumbency, incumbency, or other instruments believed to be authentic.
5.4 Bond. No bond or other security shall be required of any Trustee unless ordered by the Designated Probate Court for good cause.
5.5 Successor Trustee Rules.
(a) Designated Successor. [NAME OF FIRST SUCCESSOR] is hereby appointed as first successor trustee to serve if the initial Trustee resigns, dies, becomes incapacitated, or is removed. Subsequent successors shall serve in the order listed in Schedule C.
(b) Eligibility. A Qualified Successor Trustee must be (i) at least 21 years old, (ii) not adjudicated incapacitated, and (iii) not a person whose appointment would result in adverse tax consequences under IRC § 672(c).
(c) Appointment Procedure. Vacancy shall be filled by (i) the next named successor, or (ii) unanimous written consent of the adult Beneficiaries if no named successor is willing or able to serve, subject to court approval under Wash. Rev. Code Ann. § 11.98.039.
(d) Acceptance. A successor accepts trusteeship by executing a written acceptance and delivering it to the resigning Trustee or, if none, to the Designated Probate Court.
5.6 Resignation. Trustee may resign upon 30 days’ written notice to Grantor (if living), to the adult Beneficiaries, and to the named successor.
5.7 Removal. Grantor (while living and competent) or, after Grantor’s death, a majority of adult Beneficiaries may remove a Trustee for cause, including serious breach of trust, noncooperation, or persistent failure to administer effectively. Removal shall be by written instrument delivered to the Trustee and filed with the Designated Probate Court.
5.8 Compensation & Reimbursement. Trustee shall be entitled to reasonable compensation in accordance with its published fee schedule or as otherwise agreed in writing, and to reimbursement of properly incurred expenses.
5.9 Accounting. Trustee shall provide an annual written accounting for each Accounting Period to the adult Beneficiaries and, upon written request, to any permissible distributee.
5.10 Limitation on Trustee Liability. Except for acts involving willful misconduct or gross negligence, Trustee’s liability shall be limited to the Trust Estate.
5.11 Determination of Disability. Disability shall be established by:
(a) Certification from two licensed physicians that Grantor is unable to manage financial affairs, OR
(b) A final judicial determination of incapacity by a court of competent jurisdiction.
5.12 Taxes. During Grantor’s life, Grantor’s Social Security number shall serve as the Trust’s taxpayer identification number. After Grantor’s death or at Grantor’s written election, Trustee shall obtain a separate EIN and file fiduciary returns.
6. REPRESENTATIONS & WARRANTIES
6.1 Grantor.
(a) Grantor is of legal age, of sound mind, and has full power and authority to create this Trust and transfer assets thereto;
(b) All property transferred to the Trust is, to the best of Grantor’s knowledge, free and clear of liens and claims except as disclosed in writing to Trustee.
6.2 Trustee.
(a) Trustee has reviewed and understands the fiduciary duties imposed by Washington law and this Agreement;
(b) Trustee is not disqualified from serving under Section 5.5(b);
(c) Trustee possesses the capability to perform required duties.
6.3 Survival. The representations and warranties shall survive execution of this Agreement and continue in full force and effect.
7. COVENANTS & RESTRICTIONS
7.1 Recordkeeping. Trustee shall maintain accurate books and records, including supporting documentation for all receipts, disbursements, and tax filings, for not less than seven (7) years.
7.2 Confidentiality. Except as required by law or court order, Trustee shall keep Trust information confidential and disclose it only to Beneficiaries, their legal representatives, or professional advisers with a need to know.
7.3 Notice of Legal Proceedings. Trustee shall notify Grantor (if living) and adult Beneficiaries promptly upon receiving notice of any litigation or governmental investigation involving the Trust.
7.4 No Self-Dealing. Trustee shall not engage in transactions that constitute self-dealing or conflicts of interest unless expressly authorized by this Agreement or by the Designated Probate Court after full disclosure.
8. DEFAULT, REMOVAL & REMEDIES
8.1 Events of Default. Each of the following constitutes a “Trustee Default”:
(a) Breach of fiduciary duty causing material harm;
(b) Failure to render required accountings within ninety (90) days after written demand;
(c) Misappropriation or commingling of Trust assets;
(d) Conviction of a felony involving dishonesty.
8.2 Notice & Cure. Grantor or a Beneficiary may give written notice of default specifying the nature of the breach. Trustee shall have thirty (30) days to cure unless the breach is incapable of cure.
8.3 Remedies. If default is not timely cured, Grantor or any Beneficiary may petition the Designated Probate Court for (i) removal of Trustee, (ii) appointment of a temporary or permanent successor, (iii) surcharge, (iv) injunctive relief, and/or (v) any other relief available under Wash. Rev. Code Ann. ch. 11.96A (TEDRA).
8.4 Attorney Fees & Costs. In any proceeding arising under or relating to this Trust, the court may award attorney fees, costs, and expenses in its discretion as permitted by Wash. Rev. Code Ann. § 11.96A.150.
9. RISK ALLOCATION
9.1 Indemnification of Trustee. Trustee, and each successor trustee, shall be indemnified, held harmless, and reimbursed out of the Trust Estate against all claims, liabilities, and expenses, including reasonable attorney fees, except to the extent arising from Trustee’s willful misconduct or gross negligence.
9.2 Limitation of Liability. All liabilities of Trustee shall be limited to the Trust Estate; no personal liability shall attach to Trustee or to Trust beneficiaries.
9.3 Insurance. Trustee may obtain and maintain fiduciary liability insurance payable from the Trust Estate if commercially available on reasonable terms.
9.4 Force Majeure. Trustee shall not be liable for delays or failures to act arising from events beyond reasonable control, including natural disasters, war, terrorism, or governmental actions.
10. DISPUTE RESOLUTION
10.1 Governing Law. This Agreement is governed by Washington law without regard to conflict-of-laws principles.
10.2 Forum Selection. Exclusive jurisdiction for probate and trust matters lies in the Designated Probate Court.
10.3 Optional Arbitration. Any dispute that is not required to be heard in probate (e.g., claims against third parties) may, upon mutual written agreement of all parties to the dispute, be submitted to binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules then in effect.
10.4 Jury Waiver. To the fullest extent permitted by law, the parties waive any right to a jury trial in proceedings relating to the Trust; provided, however, nothing herein shall be construed to confer a jury right in probate proceedings where none exists.
10.5 Injunctive Relief. Nothing in this Article limits the right of any party to seek temporary, preliminary, or permanent injunctive relief from the Designated Probate Court to enforce fiduciary duties or preserve Trust assets.
11. GENERAL PROVISIONS
11.1 Amendment & Waiver. No provision may be amended or waived except by a writing signed by Grantor (if living), or by Trustee with court approval after Grantor’s death. No waiver of any breach constitutes a continuing waiver.
11.2 Assignment. No Beneficiary may assign, pledge, or encumber any interest in the Trust, voluntarily or involuntarily, prior to actual distribution.
11.3 Successors & Assigns. The terms of this Agreement bind and benefit the parties and their respective legal representatives, successors, and permitted assigns.
11.4 Severability. If any provision is held unenforceable, the remaining provisions shall remain in full force, and the court shall reform the Agreement to effectuate Grantor’s intent.
11.5 Integration. This Agreement constitutes the entire agreement among the parties with respect to the Trust and supersedes all prior writings and oral statements.
11.6 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together constitute one instrument.
11.7 Electronic Signatures. Signatures delivered by electronic means (e.g., DocuSign, PDF) shall be deemed originals for all purposes.
11.8 Headings. Headings are for convenience only and do not affect interpretation.
12. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties have executed this Revocable Living Trust Agreement as of the Effective Date.
| Grantor | Date |
|---|---|
| [GRANTOR NAME] | _______ |
| Trustee | Date |
|---|---|
| [TRUSTEE NAME], Trustee | _______ |
STATE OF WASHINGTON )
COUNTY OF [_____] ) ss.
On this ___ day of __, 20, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME] and [TRUSTEE NAME], known to me or proven to be the persons whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained.
Notary Public ____
My commission expires: __
SCHEDULE A – INITIAL TRUST ESTATE
[List detailed description of assets, account numbers, real property legal descriptions, etc.]
SCHEDULE B – TESTAMENTARY DISTRIBUTIONS
[Insert specific shares, sub-trusts for minor beneficiaries, charitable gifts, etc.]
SCHEDULE C – ORDER OF SUCCESSOR TRUSTEES
- [NAME, ADDRESS]
- [NAME, ADDRESS]
- [NAME, ADDRESS]
[// GUIDANCE: Review Washington-specific funding requirements for each asset class—e.g., motor vehicle title transfer via Washington DOL Form TD-420-001; beneficiary designations for retirement assets should name “Trustee of the [CUSTOM TRUST NAME]” to preserve tax deferral.]