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Form #1027Combined Inter Vivos and Land Trust
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Trust Agreement - Free Legal Form
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Combined inter vivos and
land trust.
TRUST
AGREEMENT, Dated _________ and known as Land Trust number _________
IT IS AGREED:
_________[Name] as trustee under this
instrument, is about to take legal and equitable title to the following
described real estate in _________[city], _________[state],
otherwise known as: _________[legal description].
When the trustee has taken title to the real estate or
has accepted in writing title to any other property conveyed to it as trustee
under this instrument, the trustee will hold it for the uses and purposes and
on the trusts stated below. Any other property conveyed to the trustee without
written acceptance by the trustee shall not be subject to this agreement.
The following named persons and their successors in
interest shall be entitled to the earnings, avails, and proceeds of the real
estate according to the respective interests set forth here:
_________, not personally but solely as trustee of the
_________ Trust dated _________.
The power of direction referred to shall be in the
trustee from time to time of the _________ Trust dated _________.
The name of any beneficiary may not be disclosed to
the public.
The trustee shall receive for its services in
accepting this trust and taking title under this instrument the sum of $_____.
In addition, each year the trustee shall receive a reasonable fee in advance
for holding title after one year from the date and also a reasonable fee for
executing deeds, mortgages, or other instruments. It shall receive reasonable
compensation for any special services which may be rendered by it and for
taking and holding any other property which may later be conveyed to it under
this instrument. The beneficiaries jointly and severally agree to pay the above
fees, charges, and other compensation. If the value of the property is
increased for any reason after the trustee has accepted title to it, the
trustee shall be entitled to a reasonable additional annual fee.
The trustee shall receive no other fee for its
services in connection with this trust.
Written inquiries, legal notices, bills and other
similar matters should be forwarded to: the trustee of the _________ Trust
dated _________ at _________[address].
The following name(s) should be furnished to a person
making an oral inquiry: _________.
In the event of the death or resignation of the
trustee, the successor trustee shall be _________[name] of _________[city].
The interest of every beneficiary and of any person
who may become entitled to any interest under this trust shall consist only of
(1) the power to direct the trustee to deal with title to the property; (2) the
power to manage, possess, use, and control the property; and (3) the right to
receive the earnings, avails, and proceeds from leases and other uses and from
mortgages, sales, and other dispositions of the property. These rights and
powers shall be personal property and may be assigned this way. On the death of
any beneficiary, his or her interest, except as otherwise specifically
provided, shall pass to his or her executor or administrator and not to his or
her heirs at law. No beneficiary at any time shall have any right, title, or
interest in or to any portion of the legal or equitable title to the property.
The death of any beneficiary shall not terminate the trust or affect the rights
or powers of the trustee or of the beneficiaries except as provided by law.
No
assignment of any beneficial interest shall be binding on the trustee until the
original or executed duplicate of the assignment is delivered to the trustee
and accepted by it in writing. Every assignment of any beneficial interest,
the original or duplicate of which shall not have been
so delivered to and accepted by the trustee, shall be ineffective as to all
subsequent assignees or purchasers without notice.
The trustee shall have no obligation to file any
income, profit, or other tax reports or returns or to pay those or any other
taxes. The beneficiaries will make all tax returns and reports, and pay general
real estate and all other taxes or charges payable with respect to the property
and to the earnings, avails, and proceeds of the property or based on their
interests under this agreement.
If the trustee makes any advances or incurs any
expenses on account of this trust or the property or incurs any expenses by
reason of being made a party of any litigation in connection with this trust or
the property, or if the trustee is compelled to pay money on account of this
trust or the property, whether for breach of contract, injury to person or
property, fines or penalties under any law, or otherwise, the beneficiaries
jointly and severally on demand shall pay to the trustee, with interest at the
highest rate per year permitted by law the amount of all expenses, advances, or
payments made by the trustee, plus all its expenses, including attorney fees.
The trustee shall not be obliged to convey, transfer, or otherwise deal with
the property or any part of it until all of the payments, advances, and
expenses made or incurred by it have been paid, with interest.
The trustee shall not be obligated to pay any money
for this trust or the property or to prosecute or defend any legal proceeding
involving this trust or the property unless it elects to do so and is furnished
with sufficient funds or indemnified to its satisfaction. If the trustee is
served with process or notice of legal proceedings or of any other matter
concerning the trust or the property, the sole duty of the trustee shall be to
forward the process or notice to the person named here as the person to whom inquiries
or notices shall be sent, or, in the absence of such designation, to the
beneficiaries. The latest address appearing in the records of the trustee shall
be used for all mailings.
It shall not be the duty of the purchaser of the
property or of any part of it to see to the application of the purchase money,
nor shall anyone who may deal with the trustee be required or privileged to
inquire into the necessity or expediency of any act of the trustee, or into the
provisions of this agreement.
This agreement shall not be recorded but any recording
shall not be notice of the rights of any person derogatory to the title or
powers of the trustee. In this agreement the plural includes the singular, and
vice versa, and the masculine gender includes the feminine.
The trustee may, at any time, resign by sending by
registered or certified mail, a notice of that intention to each of the then
beneficiaries at his or her latest address appearing in the records of the
trustee. In the event of the resignation or the death of the trustee, unless a
successor trustee is set forth in this trust agreement, the person or persons
then entitled to direct the trustee in the disposition of the property may
appoint a successor or successors to the trust property by any method allowed
by the statutes of the State of _________. In lieu of this method, the person
or persons may appoint a successor or successors to the trust property, in
writing, and obtain the written consent to the appointment by the successors or
successors of the trust property. The person or persons then entitled to direct
the trustee in the disposition of the property shall file a declaration of
appointment of the successor or successors in the office of the Recorder of
Deeds in the county in which the trust property is located or with the
Registrar of Titles of the county in which the trust property is situated if
the title to the trust property is registered under an act entitled _________["An
Act Concerning Land Titles Approved May 1, 1987"] as now or later
amended. The declaration shall set forth the legal description of the trust
property, the name and address of the former trustee, and the name and address
of the successor in trust, and be signed by a party with personal knowledge of
the terms of this agreement and of the actions taken by the person or persons
entitled to direct the trustee in the disposition of the property. If requested
by the Registrar of Titles or any title insurer insuring title to the property,
the person or persons then entitled to direct the trustee in the disposition of
the property may provide a copy of this trust agreement to that party but this
agreement shall not be recorded or registered in any county.
Solely on
the resignation of the trustee, if no successor trustee is set forth in this
trust agreement, the person or persons then entitled to direct the trustee in
the disposition of the property, may either proceed in accordance with the
foregoing paragraph or may appoint a successor, in writing, and the trustee
shall then convey or transfer the property to that successor. If no notice of
resignation is given by the trustee, the trustee may convey or transfer the
trust property to the beneficiaries in accordance with
their interests under this instrument and the conveyance may be recorded or
registered, as the case may be, by the trustee. This recording or registration
shall constitute delivery of the conveyance or transfer to the beneficiaries.
The trustee, at its option, may file a complaint for
appropriate relief in any court of competent jurisdiction.
Every successor trustee shall become fully vested with
all the title, estate, rights, powers, and trusts, and shall be subject to the
duties and obligations, of its predecessor.
It is agreed by the parties and by any person who may
later acquire any interest in this trust that the trustee will deal with the
trust property including cash or other assets of any kind which may have become
subject to the trust only when authorized to do so in writing.
On the written direction of the party or parties
designated here as having the power of direction the trustee will make deeds
for the trust property, or mortgages or trust deeds (which may include a waiver
of the right of redemption from sale under an order or decree of foreclosure),
execute leases or otherwise deal with the title to the trust property,
including cash or other assets subject to the trust. The beneficiaries, by
written instrument delivered to the trustee, may revoke the foregoing power of
direction and designate the person later to exercise the power. This instrument
shall be signed by all the then beneficiaries. The trustee shall not be
required to inquire into the propriety of any direction.
The trustee shall not be required to assume any
personal obligations or liability in dealing with the property or to make
itself liable for any damages, costs, expenses, fines, or penalties, or to deal
with title to the property so long as any money is due to it under this
instrument.
The beneficiaries have the sole possession,
management, and control of the selling, renting, repairing, maintaining, and
handling of the property, and the trustee shall have no right or duty in
respect to any matters of this nature. The beneficiaries have the right to
execute leases and collect rents in their own name or through their agents. The
trustee shall have no right or duty in respect to the payment of taxes,
assessments, insurance, litigation, or other matters relating to the property,
except on written direction accepted by it and after the payment to it of all
money necessary in its opinion to carry out the directions without liability to
it. The beneficiaries are not the agents of the trustee for any purpose and do
not have any authority to contract or to execute leases or do any other act for
or in the name of the trustee or to obligate the trustee personally or as
trustee.
The trustee shall not be required to execute any
instrument containing covenants of warranty.
If any property remains in this trust twenty years
from the date of this agreement or any extension of it, it shall be sold at
public sale by the trustee on reasonable notice as determined by it and the net
proceeds of the sale shall be divided among those who are then entitled to the
proceeds under this agreement in the proportions in which they are then
entitled.
The trustee has signed and accepted this trust
agreement the day and date written above.
_______________
[Signature of Trustee]
And on the day, stated above, the beneficiaries have
signed this Declaration of Trust and Trust Agreement in order to signify their
assent to its terms.
_______________
[Signature of beneficiary]
Address and Telephone
_________
_______________
[Signature of beneficiary]
Address and Telephone
_________
Signature and address of any person(s)
having a power of direction if other than a beneficiary:
_______________
[Signature of person]
Address and Telephone
_________
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