Special Needs Trust - Montana

MONTANA THIRD-PARTY SPECIAL NEEDS TRUST

This irrevocable trust is signed on [DATE] by [SETTLOR FULL LEGAL NAME] of [ADDRESS] (Settlor) and [INITIAL TRUSTEE FULL LEGAL NAME] of [ADDRESS] (Trustee), for [BENEFICIARY FULL LEGAL NAME], born [DATE OF BIRTH] (Beneficiary). Settlor transfers the property actually delivered under Schedule A. Trustee accepts the trusteeship and that property. Settlor's purpose is to provide additional goods and services for Beneficiary through a discretionary third-party trust.

1. Trust property and third-party funding

Trustee holds the Schedule A property, its proceeds, and later property validly transferred to and accepted by Trustee. A Schedule A listing alone does not replace a deed, assignment, account retitling, or other transfer needed for a particular asset. No property belonging to Beneficiary or Beneficiary's spouse may be added to this third-party trust. Trustee shall decline such property and seek separate benefits advice if it is offered. Trustee shall keep trust property separate from personal property and maintain adequate records.

2. Irrevocability and beneficiaries

Settlor irrevocably transfers the Schedule A property and reserves no power to revoke this trust or receive its assets. Beneficiary is the sole person eligible for distributions during Beneficiary's life. Remainder recipients are named in Section 7. Any later modification or termination must follow applicable law; this instrument does not authorize Trustee to change the beneficiaries or make an indefinite class designation.

3. Distributions during Beneficiary's life

Trustee may, in Trustee's good-faith discretion, pay for goods, services, care, education, transportation, housing, recreation, and other needs that improve Beneficiary's welfare. No person may compel a distribution merely because an expense is permitted. Trustee shall consider the likely effect of a proposed distribution on any means-tested benefit Beneficiary actually receives and may consult a qualified benefits adviser before payment. Trustee may make a distribution despite an adverse benefit effect when Trustee reasonably determines that Beneficiary's needs warrant it; Trustee shall document the decision. This trust does not promise that every distribution or asset will be disregarded by a benefit program.

Trustee may pay a provider directly or reimburse a properly documented expense, and may make a direct payment to Beneficiary when appropriate after considering benefit effects. Trustee shall not use trust property to satisfy Settlor's personal support obligations. Trust funds must be used for Beneficiary's benefit during Beneficiary's life, subject to proper administration expenses.

4. Spendthrift interests

Beneficiary's interest is held subject to a spendthrift trust: Beneficiary may not transfer it voluntarily, and creditors may not reach it involuntarily before distribution, to the extent Mont. Code Ann. §§ 72-38-502 and 72-38-504 allow. This clause does not bar any claim that law permits. Trustee's discretion remains subject to fiduciary duties and court review for abuse.

5. Trustee administration

Trustee may retain, invest, sell, exchange, lease, insure, and distribute trust property, hire appropriate professionals, and pay reasonable administration expenses, subject to Mont. Code Ann. §§ 72-38-801, 72-38-804, 72-38-810, and 72-38-815. Trustee shall administer promptly, in good faith, with reasonable care, skill, and caution; keep an inventory and records of receipts and disbursements; and preserve the beneficiary-focused purpose. Trustee may receive [reasonable compensation / no compensation] and reimbursement of proper expenses.

Trustee shall give qualified beneficiaries the information, notices, and reports required by Mont. Code Ann. § 72-38-813, including its 60-day acceptance notice, annual reports to current permissible distributees and requesting qualified beneficiaries, and final report. This instrument does not waive those duties. A beneficiary's silence does not by itself approve an accounting.

6. Successor trustees

If Trustee dies, resigns, is removed, or cannot serve, [FIRST SUCCESSOR FULL NAME AND ADDRESS] serves, then [SECOND SUCCESSOR FULL NAME AND ADDRESS]. A successor accepts by signed writing and receives trust property and records. If neither serves, fill the vacancy under Mont. Code Ann. § 72-38-704, including unanimous qualified-beneficiary selection before court appointment. Trustee may resign with court approval or upon at least 30 days' notice to qualified beneficiaries, living Settlor, and all cotrustees under § 72-38-705. Settlor, a cotrustee, or a beneficiary may seek court removal under § 72-38-706. A retiring Trustee shall promptly deliver property and records to the successor.

7. Termination and complete remainder

This trust ends at Beneficiary's death or earlier if trust property is exhausted or a lawful court order terminates it. Trustee shall pay proper administration expenses and liabilities, reserve a reasonable amount for unresolved obligations, and distribute all remaining property, 100%, outright to [PRIMARY REMAINDER BENEFICIARY FULL NAME OR ORGANIZATION AND ADDRESS] if living or existing at Beneficiary's death. Otherwise all remaining property, 100%, goes to [ALTERNATE REMAINDER BENEFICIARY FULL NAME OR ORGANIZATION AND ADDRESS]. If neither takes, all remaining property, 100%, goes to [FINAL ALTERNATE FULL NAME OR ORGANIZATION AND ADDRESS]. Complete each recipient field before signing. Any government claim is paid only if applicable law makes it payable; this instrument does not create an automatic reimbursement gift.

8. Liability, governing law, and severability

This instrument creates no blanket cap at the value of trust assets. Trustee liability and any protection for contracts or torts are governed by Mont. Code Ann. §§ 72-38-1008 and 72-38-1010, including the rule that exculpation cannot cover bad-faith or recklessly indifferent breach. Montana law governs construction and administration, subject to mandatory law applicable to particular property. A proceeding concerning internal trust affairs belongs in a district court with jurisdiction under Mont. Code Ann. § 72-38-201; venue follows applicable law. If one clause is unenforceable, the rest remains effective to the extent it can carry out Settlor's purpose.

9. Signatures

Settlor signs to create and fund this trust. Trustee signs to accept the trusteeship and acknowledge receipt of the property actually delivered under Schedule A.

SETTLOR

Signature: ______________________________ Date: __________

Printed name: [SETTLOR FULL LEGAL NAME]

TRUSTEE

Signature: ______________________________ Date: __________

Printed name: [INITIAL TRUSTEE FULL LEGAL NAME]

Optional acknowledgment

State of Montana, County of [COUNTY]. On [DATE], [SETTLOR NAME] and [TRUSTEE NAME] personally appeared before me, proved their identities to my satisfaction, and acknowledged signing this instrument.

Notary signature: ______________________________

Commission expiration: ________________________

Official seal: [AFFIX HERE]

Schedule A — Initial property and receipt

Describe property actually transferred, its current title, and any separate transfer document. Attach and sign extra pages if necessary.

1. [ASSET DESCRIPTION, TITLE/ACCOUNT IDENTIFIER, TRANSFER METHOD]
2. [ASSET DESCRIPTION, TITLE/ACCOUNT IDENTIFIER, TRANSFER METHOD]

Settlor confirms transfer of the listed property. Trustee acknowledges receipt, except [NONE OR DESCRIBE EXCEPTION].

Settlor signature: __________________________ Date: __________

Trustee signature: __________________________ Date: __________