Brecksville, Ohio Lawyer and Hudson, Ohio Lawyer for Estate Planning (Wills, Trusts), Probate, Real Estate & Business Law

phone icon330.665.5000
divider

Brecksville, Ohio Trust Lawyer

Brecksville, Ohio Trust Lawyer Provides Sample Trust

separator

Brecksville, Ohio Trust Lawyer

Valente Law’s Brecksville, Ohio Trust Lawyer, Eric Valente provides estate planning lawyer services relating to trusts.

There are many types of trusts, including:

Revocable Living Trust Lawyer

Revocable living trusts are common estate planning tools. Sample of Brecksville, Ohio Trust AgreementSee below for a sample draft of a Brecksville, Ohio Trust document.

Asset Protection Trust Lawyer

Asset protection trusts are specialized trusts to protect assets from lawsuits and creditors. In Ohio, asset protection trusts are permitted by a specific state law, referred to as the Ohio Legacy Trust Act, found in Chapter 5816 of the Ohio Revised Code

Medicaid Trusts

Medicaid trusts are specialized irrevocable trusts to protect your assets from nursing home expenses, and qualify for Medicaid. Medicaid laws are very technical, and Medicaid Trusts must meet many specific requirements. Among other things, a Medicaid trust must not trigger a violation of the 5 year look back period in the Ohio Medicaid Law in the Ohio Administrative Code 5160 

Brecksville, Ohio Trust Resources

Brecksville, Ohio trusts that require judicial intervention would fall under the jurisdiction of the Cuyahoga County Probate Court.

Brecksville, Ohio Trust laws are covered in Chapter 5801 of the Ohio Revised Code (AKA Ohio Trust Code).

Benefits of Trusts

Trusts have many benefits in your estate planning. Trusts allow for things that you cannot accomplish with a simple will based estate plan. First, trusts allow for total privacy, as opposed to public probate process. Second, trusts can be handled much more cost effective, when compared with probate estate administration. Third, trusts allow for assets to be held in trust and managed by a trustee to protect against an irresponsible beneficiary exhausting the trust assets.

Brecksville, Ohio Trust Lawyer Sample Trust Agreement

Here is a sample draft of a Brecksville, Ohio Trust document provided. This is not a substitute for legal advice and should be used with extreme caution unless with the assistance of an estate planning lawyer or trust attorney.

ESTATE PLANNING PORTFOLIO OF

________________

and

________________

Prepared By:

ERIC VALENTE, Brecksville, Ohio Trust Lawyer

Attorney at Law

VALENTE LAW, LLC

7650 Chippewa Road, Suite 214

Brecksville, Ohio 44141

(440) 792-6777

The ________________ and ________________ Living Trust

THIS TRUST AGREEMENT is entered into by ________________ and ________________, as Trustors, and ________________ and ________________, as co-Trustees (hereinafter referred to as “Trustee”). For all purposes hereunder, the words “we”, “us”, “our”, “their”, and similar pronouns, shall refer to Trustors, ________________ and ________________, and shall be construed as the possessive when the context would so indicate.ARTICLE I

RECITALS AND CONVEYANCE

WHEREAS, we desire to establish a trust [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]NOW, THEREFORE, the Trustee acknowledges receipt of the trust fund and shall hold the same in trust under the following terms, conditions and provisions:ARTICLE II

DECLARATIONS

2.A.     Name. This trust shall be known as ________________ and ________________, or their successors in trust, under the ________________ and ________________ LIVING TRUST, dated __________________, and any amendments thereto.

2.B.     Family. We, ________________ and ________________, sometimes hereinafter referred to as husband and/or wife, are married.We have [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

2.C.     Successor Trustees.

  • If either of us shall cease to act for any reason, during our joint lifetimes, the other of us shall act as sole Trustee of the trust.
  • After the death or disability of either of us, the survivor of us shall act as sole Trustee of the trust.
  • In the event that both of us cease to act for any reason, [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

2.D.     Trust Fund.(1)        It is our intention that all property transferred to this trust, [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

2.E.      Definitions. For any interpretation of this Trust Agreement, the following definitions shall apply:

  • Beneficiary. The term “beneficiary” or “beneficiaries” shall mean any person and/or entity then eligible to receive current income or whose right to receive assets from the trust is currently vested;
  • Cease to Act. The phrase “cease to act” shall mean the resignation, death, incapacity or disappearance of a Trustee;
  • Code. Any reference to the “Code” shall refer to the Internal Revenue Code of 1986, as amended, and to any regulations pertaining to the referenced sections;
  • Descendants. The term “descendants” shall include a person’s lineal descendants of all generations;
  • Disappearance. The term “disappearance” shall mean the individual’s whereabouts remain unknown for a period of sixty (60) days. If any beneficiary (including either of us) is not seen or heard of for a period of one year and no body has been recovered, it shall be presumed that such beneficiary is not alive;
  • Education. As used in this Trust Agreement, the term “education” or “educational purposes” shall include any course of study or instruction which may, in the Trustee’s discretion, be useful in preparing a beneficiary for any vocation consistent with such beneficiary’s abilities and interests. Distributions for education may include tuition, fees, books, supplies, living expenses, travel and spending money to the extent that they are reasonable and necessary, again in the Trustee’s absolute discretion;
  • Incapacity.
    • In the case of a question or dispute, incapacitation of a Trustee (whether such Trustee shall be either of us or a designated successor) shall be evidenced by written certification of two (2) physicians;
    • If there is no question or dispute, incapacitation of a Trustee shall be established by the written declaration of only one doctor;
  • Issue. The term “issue” shall refer to lineal descendants of all degrees and shall include adopted persons; provided however, that such term shall refer only to the issue of lawful marriages and illegitimate children only if a parent/child relationship existed between such child and his or her parent, living or deceased, as determined under Ohio law. However, even though our children are the biological children of our prior marriages, we both hereby declare that they should each be considered as if they were the biological children and issue of our marriage. A child in gestation which is later born alive and survives for thirty (30) days shall be considered as issue in being throughout the period of gestation;
  • Legal Representative or Personal Representative. As used in this Trust Agreement, the term “legal representative” or “personal representative” shall mean a person’s guardian, conservator, executor, administrator, trustee, or any other person or entity personally representing a person or the person’s estate;
  • Majority. The term “majority” shall mean more than one-half (1/2), and, in the event of a deadlock, shall be determined in accordance with the Ohio Uniform Trust Code;
  • Per Stirpes. Whenever a distribution is to be made “per stirpes”, the assets are to be divided into as many shares as there are then-living children and deceased children who left living descendants. Each living child shall receive one share and each deceased child’s share shall be divided among such deceased child’s then-living descendants in the same manner;
  • Principal and Income. The determination by the Trustee in all matters as to what shall constitute principal of the trust, gross income therefrom and distributable net income under the terms of the trust shall be governed by the provisions of the Principal and Income Act of the State of Ohio, except as to any of such matters as may otherwise be provided for in this instrument. In the event and to the extent that any of such matters relating to what constitutes principal or income of the trust and in the allocation of receipts and disbursements between these accounts is not provided for either in this Trust Agreement or in such Principal and Income Act, the Trustee has full power and authority to determine such matters;
  • Pronouns and Gender. In this Trust Agreement, the feminine, masculine or neuter gender, and the singular or plural number, shall be deemed to include the others whenever the context so indicates;
  • Qualified Beneficiary. The term “Qualified Beneficiary” shall mean any person and/or entity then eligible to receive current income or whose right to receive assets from the trust is currently vested as well as those who could receive distributions after termination of the interests of current beneficiaries;
  • Request in Writing. When either of us is acting as the Trustee or as a co-Trustee, the requirement of a writing to be signed by either of us as a Trustor and/or a beneficiary and delivered to either of us as the Trustee shall be waived; and,
  • Trustee. Any reference to “Trustee” shall be deemed to refer to whichever individual, individuals (including us) or corporation shall then be acting as the Trustee.

2.F.      Governing Law. This Trust Agreement is a Brecksville, Ohio contract and creates an Ohio trust; all of the terms and provisions hereof shall be interpreted according to the Ohio Uniform Trust Code, except as shall be specifically modified herein. Nevertheless, the Trustee may change the situs of administration of the trust from one jurisdiction to another, thereby allowing this trust to be regulated and governed by the laws of another jurisdiction. Such action may be taken for any purpose the Trustee deems appropriate including minimization of taxes.2.G.     Restrictions. The interest of any beneficiary [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

2.H.     Maximum Duration of Trusts. Regardless of any other provision herein, [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

2.I.       No-Contest Provision. To the extent permitted under the laws of the State of Ohio, [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]The Trustee is hereby authorized to defend, at the expense of the trust fund, any contest or other attack of any nature on this Trust Agreement or any of its provisions.

2.J.       Presumptions. Any beneficiary who shall not be living [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

2.K.     Special Distributions. If any income and/or principal of any trust hereunder ever vests outright under the provisions of this Trust Agreement in a person not [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

ARTICLE IIITRUSTEESHIP

  • Successor Trustees. We may, during our joint lifetimes, appoint individuals or corporations as co-Trustees or successor Trustees, by a written instrument other than a Will delivered to the other Trustee(s), if any are then-acting. Upon the death of the first of us, the survivor may appoint, by the same method, individuals or corporations as co-Trustees or successor Trustees.

Appointment of Trustee. If there is no Trustee acting hereunder, then [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

  • Resignation. Any Trustee may resign at any time by [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Liability. No successor Trustee shall be under any obligation to examine the accounts of any prior Trustee, and a successor Trustee shall be exonerated from all liability arising from any prior Trustee’s acts or negligence [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Bond. No bond shall be required of any person or institution named in this Trust Agreement as the Trustee.
  • Compensation. A Trustee shall be entitled to receive, out of the income and principal of the trust fund, compensation for services hereunder to be determined, if a corporate Trustee, by the application of the current rates then charged by the Trustee for trusts of a similar size and character, and, if the Trustee shall be an individual, a reasonable rate for trusts of a similar size and character. The Trustee shall also be entitled to reimbursement for all travel and other necessary expenses incurred in the discharge of the Trustee’s duties. The Trustee may impose any Trustee fees or other expenses of the trust against the principal or income of the trust fund without any duty to seek reimbursement from the interest not charged.
  • Reports. While [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Payments to Beneficiaries.
  • The Trustee shall pay the net income of any trust hereunder to the beneficiary to whom such income is directed to be paid, at such times as shall be convenient to such beneficiary and agreed to by t[CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Division of Trust Fund. There shall be no requirement for the physical segregation or division of any trusts created hereunder except as segregation or division may be required by the termination of any of the trusts, but the Trustee shall keep separate accounts for the different undivided interests.
  • Trustee Authority.
  • Any Trustee may appoint an “Attorney-in-Fact” [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Release of Healthcare Information, including HIPAA Authority. We intend [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Life Insurance. Upon the death of either of us, [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Retirement Accounts. To the extent any trust hereunder is the beneficiary of a Retirement Account [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
    • “Retirement Account” means amounts held in or payable pursuant to a plan (of whatever type) qualified under Code §401, or an individual retirement arrangement under Code §408, or a Roth IRA under Code §408A, or a tax-sheltered annuity under Code §403 or any other benefit subject to the distribution rules of Code §401(a)(9), or the corresponding provisions of any subsequent federal tax law. It is our intention that this trust qualify as a “conduit trust” under Code §401(a)(9) so that the trust’s beneficiaries shall be considered designated beneficiaries for purposes of the minimum distribution rules, and that distributions may therefore be taken over the trust beneficiary’s life expectancy (or the life expectancy of the oldest trust beneficiary).
  • The Retirement Accounts shall not be subject to the claims of any creditor of either of our estates, they shall not be used for the satisfaction of any distributions to a non “designated beneficiary” (as that term is defined in Treas. Reg. §1.401(a)(9)-4, Q&A 1) and they shall not be applied to the payment of the debts, taxes of either of us or other claims or charges against either of our estates unless and until all other assets available for such purposes have been exhausted, and even then only to the minimum extent that would be required under applicable law in the absence of any specific provision on this subject in this Trust, and, under no circumstances, shall they be used for such purpose after September 30 of the year following the death of the owner of the Account.
  • Powers of Invasion. A discretionary power given to a Trustee of any trust created hereunder to [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Release of Powers. Each Trustee shall [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

ARTICLE IVTRUSTEE’S POWERS

Subject to the provisions and limitations set forth expressly herein, [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

ARTICLE VOUR RETAINED POWERS

5.A.     Revocation. During our joint lifetimes, [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY].

5.B.     Amendment. We [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY].

5.C.     Powers Personal to Us. Our powers t[CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

5.D.     Tangible Personal Property. While either of us is living, we reserve the right to retain the [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]

5.E.      Residential Property. We reserve the right to have complete and unlimited, possession, use and control of any real property which may ever constitute an asset of the trust estate and [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]ARTICLE VIDISPOSITION OF TRUST FUND

  • Trustee’s Basic Duties. During the term o[CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Disposition During Our Joint Lifetimes. During our joint lifetimes, we shall be equally entitled to the entire net income of the [CONSULT WITH TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Disposition During Incapacity. If at any time during our joint lifetimes, in the Trustee’s discretion, either of us has become physically or mentally incapacitated, whether or not a court of any jurisdiction has declared him or her incompetent, mentally ill, or in need of a conservator and/or a guardian, the Trustee shall [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY].
  • Administration of the Trust Fund at the Death of the First of Us. The first of us to die shall be called the “Deceased Spouse” [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Authorized Actions at Our Deaths. At and after the death of either of us, the Trustee [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • Distribution at Surviving Spouse’s Death. On the death of the Surviving Spouse, the Trustee shall hold, administer and distribute[CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY]
  • The Trustee shall divide the rest, remainder and residue of the Trust Estate in fractional amounts as follows:

BENEFICIARY                   RELATIONSHIP                             SHARE

__________________                        ________                                            50%

__________________                        ________                                            50%

The Trustee shall divide our trust into fractional shares as described above, and [CONSULT WITH Brecksville, Ohio TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY].

6.H.     Generation Skipping Tax Provisions. The [CONSULT WITH BRECKSVILLE, OHIO TRUST LAWYER FOR UNIQUE ESTATE PLANNING LANGUAGE – THIS SAMPLE PROVIDED FOR EXAMPLE AND GENERAL PURPOSES ONLY] Executed on __________________, in Brecksville, Ohio CUYAHOGA County.Executed on __________________, in Brecksville, Ohio CUYAHOGA County.

_____________________________________      ______________________________________________________,                                               ________________,Trustor                                                                    Trustor

We hereby acknowledge receipt of the trust fund, accept the terms of this LIVING TRUST, and covenant that we will execute the trust with all due fidelity.____________________________________      ______________________________________________________,                                               ________________,Co-Trustee                                                              Co-Trustee

STATE OF OHIO                                            )

COUNTY OF CUYAHOGA                            )

The foregoing instrument was acknowledged before me on this __________________, by ________________ and ________________ in Brecksville, Ohio.(SEAL)

________________________________________

NOTARY PUBLIC

EXHIBIT “A”OF

The ________________ and ________________ Living Trust

TRUSTEE POWERS

  • Agreements. To carry out the terms of any valid agreements which Trustors, or either of them, may have entered into during Trustors’ lifetimes regarding property owned by the trust;
  • Asset Title. To hold securities or other property in the Trustee’s name as trustee, or in “street name”, or in bearer form;
  • Bank Accounts. To open and maintain bank accounts in the name of the Trustee with any bank, trust company or savings and loan association authorized and doing business in any State of the United States of America. If more than one Trustee shall be acting, the Trustees may designate one or more of them to conduct banking activities and to make deposits, withdrawals and endorsements upon giving written notice of such designation to the bank, trust company, or savings and loan association in question; and such bank, trust company or savings and loan association shall be protected in relying upon such designation;
  • Contracts. To enter into contracts which are reasonably incident to the administration of the trust;
  • Deal with Fiduciaries. To buy from, sell to, and generally deal with the Trustee individually and as a fiduciary;
  • Depreciation Reserve. The Trustee shall not be required to establish any reserve for depreciation or to make any charge for depreciation against any portion of the income of the trust fund;
  • Divisions and Distributions. In any case in which the Trustee is required to divide any trust assets into shares for the purpose of distribution (or otherwise), such division may be in kind, including undivided interests in any real property, or partly in kind and partly in money. For such purposes, the Trustee may make such sales of trust assets as the Trustee may deem necessary on such terms and conditions as the Trustee shall deem fit, and to determine the relative value of the securities or other assets so allotted or distributed; the Trustee’s determination of values and of the property for such distribution shall be conclusive. The decision of the Trustee in distributing assets in reliance on this paragraph shall be binding, and shall not be subject to challenge by any beneficiary;
  • Indebtedness. With respect to any indebtedness owed to the trust, secured or unsecured:
  • To continue the same upon and after maturity, with or without renewal or extension, upon such terms as the Trustee deems advisable; and,
  • To foreclose any security for such indebtedness, to purchase any property securing such indebtedness and to acquire any property by conveyance from the debtor in lieu of foreclosure;
  • Invest and Reinvest. To invest, reinvest, change investments and keep the trust fund invested in any kind of property, real, personal, or mixed, including by way of illustration but not limitation, oil and gas royalties and interests; precious metals; common and preferred stocks of any corporation; bonds; notes; debentures; trust deeds; mutual funds or common trust funds, including such funds administered by a Trustee; interests in partnerships, whether limited or general and as a limited or general partner; intending hereby to authorize the Trustee to act in such manner as the Trustee shall believe to be in the best interests of the trust fund and the beneficiaries thereof. The Trustee is specifically vested with the power and authority to open, operate and maintain securities brokerage accounts wherein any securities may be bought and/or sold on margin, and to hypothecate, borrow upon, purchase and/or sell existing securities in such account as the Trustee shall deem appropriate or useful and, further, while Trustors, or either of them, are acting as a Trustee, such account(s) may deal in commodities, options, futures contracts, hedges, puts, calls and/or straddles (whether or not covered by like securities held in the brokerage account). These powers shall be construed as expanding the standards of the prudent investor rule as set forth in the Uniform Prudent Investor Act;
  • Loans. To borrow for the trust fund from any person, corporation or other entity, including the Trustee, at such rates and upon such terms and conditions as the Trustee shall deem advisable, and to pledge as security any of the assets of the trust fund for the benefit of which such loan is made; to execute, acknowledge and deliver mortgages, deeds of trust or other documents incidental thereto; to lend money upon such terms and such conditions as the Trustee deems to be in the best interests of the trust fund and the beneficiaries thereof, including the lending of money from one trust to any other trust created hereunder and to borrow on behalf of one trust from any other trust created hereunder, and further including the right to lend money to the probate estate (if any) of either Trustor but in such event such loans shall be adequately secured and shall bear the then prevailing rate of interest for loans to such persons or entities for the purposes contemplated;
  • Manage and Control. To manage, control, sell at public or private sale, convey, exchange, partition, divide, subdivide, improve, repair; to grant options and to sell upon deferred payments; to pledge or encumber by mortgage or deed of trust or any other form of hypothecation; to otherwise dispose of the whole or any part of the trust fund on such terms and for such property or cash or credit, or any combination thereof, as the Trustee may deem best; to lease for terms within or extending beyond the duration of the trust fund for any purposes; to create restrictions, easements, to compromise, arbitrate, or otherwise adjust claims in favor of or against the trust fund; to institute, compromise and defend actions and proceedings with respect to the trust fund; and to secure such insurance, at the expense of the trust fund, as the Trustee may deem advisable;
  • Professional Assistance. To employ and compensate agents, investment managers, attorneys, accountants, and other professionals deemed by the Trustee to be reasonably necessary for the administration of the trust fund, and the Trustee shall not be liable for any losses occasioned by the good faith employment of such professionals, nor shall the Trustee be liable for any losses occasioned by any actions taken by the Trustee in good faith reliance upon any advice or recommendation thereof; to pay all costs, taxes, and charges in connection with the administration of the trust fund; and to be reimbursed for all reasonable expenses, including attorneys’ fees, incurred in the management and protection of the trust fund and to pay such professionals a reasonable fee without court approval thereof. Any such payment by the Trustee of such fees shall be out of principal or income, as the Trustee may elect, or partially out of each. The discretion of the Trustee to pay these expenses from income or principal, or partially from each, should be subject to the Trustee’s fiduciary obligation to treat income beneficiaries and remaindermen equitably;
  • Purchase. To purchase property at its fair market value as determined by the Trustee from the probate estate (if any) of either Trustor;
  • Receive Assets. To receive, take possession of, sue for, recover and preserve the assets of the trust fund, both real and personal, coming to its attention or knowledge, and the rents, issues and profits arising from such assets;
  • Securities. With respect to any corporation or partnership, the stocks, bonds or interests in which may form a part of the trust estate, to act in the same manner and to exercise any and all powers which an individual could exercise as the legal owner of any such corporate stock or partnership interest, including the right to vote in person or in proxy, or to surrender, exchange or substitute stocks, bonds, or other securities as an incident to the merger, consolidation, re-capitalization or dissolution of any of such corporation, or to exercise any option or privilege which may be conferred upon the holders of such stocks, bonds, or other securities, either for the exchange or conversion of the same into other securities or for the purchase of additional securities, and to make any and all payments which may be required in connection therewith;
  • Retention of Trust Property. To retain, without liability for loss or depreciation resulting from such retention, any assets received by the Trustee or any property that may from time to time be added to the trust fund or any trust created hereunder; or any property in which the funds of any trust may from time to time be invested, for such time as the Trustee shall deem best, even though such property may represent a large percentage of the total property of the trust fund or it would otherwise be considered a speculative or inappropriate investment. This authority shall not supersede any right otherwise granted to the Surviving Spouse under this Trust Agreement to compel that certain trust assets be made productive;
  • Qualification for Government Benefits. The Trustee is authorized to take any actions that the Trustee determines to be appropriate or necessary in connection with the qualification for or receipt of government benefits for either of us, including benefits (whether income, medical, disability, or otherwise) from any agency (whether state, federal, or otherwise), such as Social Security, Medicaid, Medicare, or supplemental security income/state supplemental programs. If one of us is incompetent, the Trustee have the authority to divide our residence and our other assets between us in whatever manner is required to maximize any such government benefits;
  •   Closely-Held Business.
  • Authority to Operate. The Trustee may operate “the Business” (as defined below) and retain any equity interests in the Business, even if these interests would otherwise be a speculative or inappropriate investment for a Trust. This authority shall not supersede any right otherwise granted to the Surviving Spouse under this Trust Agreement to compel that certain trust assets be made productive. The Trustee may do all things related to the operation of the Business that may be appropriate, all in a fiduciary capacity:
  • The Trustee may carry out the terms of any option or buy-sell agreements into which either of the Trustors may have entered.
  • The Trustee may sell or liquidate any of the Business interests at such price and on such terms as the Trustee may deem advisable.
  • The Trustee may arrange for and supervise the continued operations of the Business.
  • The Trustee may vote (in person or by proxy) as stockholder or otherwise and in any matter involving the Business on behalf of the Trust.
  • The Trustee may grant, exercise, sell or otherwise deal in any rights to subscribe to additional interests in the Business.
  • The Trustee may take any actions appropriate to cause the capital stock or securities in the Business to be registered for public sale under any state or Federal securities act; may enter into any underwriting agreements or other agreements necessary or advisable for this registration and sale; and may grant indemnities to underwriters and others in connection with such registration.
  • The Trustee may participate in any incorporation, dissolution, merger, reorganization or other change in the form of the Business and, where appropriate, deposit securities with any protective committees and participate in any voting trusts.
  • The Trustee may delegate to others discretionary power to take any action with respect to the management and affairs of the Business that either of the Trustors could have taken as the owner of the Business.
  • The Trustee may invest additional capital in, subscribe to additional stock or securities of and lend money or credit to the Business from the Trust.
  • The Trustee may accept as correct financial or other statements rendered by the Business as to its conditions and operations except when having actual notice to the contrary.
  • Liabilities. Any contractual and tort liabilities arising from the Business shall be satisfied first from its assets, and only secondarily from other assets of the Trust. The Trustee shall have no liability to anyone for any loss arising from the operations, retention or sale of the Business.
  • Compensation. The Trustee shall be entitled to additional reasonable compensation for the performance of services with respect to the Business, which may be paid to the Trustee from the Business, the trust assets, or both, as the Trustee may deem advisable.
  • Conflict of Interest Waived. The Trustee may exercise the authorities granted hereunder even if the Trustee personally shall own an interest in the Business.
  • “The Business” Defined. “The Business” means any interest owned by either or both of the Trustors, the Trust, or some combination of them, representing in the aggregate at least Five Percent (5%) of the total equity interests in any actively-conducted trade or business, whether incorporated or unincorporated. Trustors declare that the term “the Business” shall also include, but not be limited to, any five percent or greater equity interests in any general and/or limited partnerships, as well as membership interests in any limited liability company formed, operated, beneficially owned by or participated in (to the extent of five percent or more) by either Trustor prior to such Trustor’s death. The term “the Business” does not include any interests that are regularly traded on an established exchange or over-the-counter.
  • Subchapter S Stock. Before the date on which any “S Corporation Shares” (defined below) would otherwise pass to or be treated as held by an “Ineligible Trust” (defined below), the Trustee may elect to hold these S Corporation Shares in one or more separate trusts or trust shares on the terms set forth in this Paragraph. The Trustee may elect to hold such S Corporation Shares under the section entitled “Qualified Subchapter S Trusts” or the section entitled “Electing Small Business Trusts”, as the Trustee shall deem appropriate, considering the changes that such provisions would require from the terms and conditions under which such shares would otherwise be held under this Agreeme
  • Qualified Subchapter S Trusts. Any S Corporation Shares held under this section shall be held on the following terms:
  • Each trust held under this section shall be a separate trust or substantially separate and independent share, as defined in 1361(d)(3) of the Code, held for the benefit of one beneficiary. Any reference in this section to a beneficiary’s separate trust shall refer equally to any substantially separate and independent trust share.
  • Until the “QSST Termination Date” (defined below), the Trustee shall annually distribute all of the trust’s “Net Income” (defined below) to the sole beneficiary of each trust held under this section, together with as much of that trust’s principal as is appropriate under the standard contained in the trust to which such S Corporation Shares would otherwise have been held. The Trustee shall not distribute income or principal to anyone other than the beneficiary to whom Net Income is distributable until the QSST Termination Date.
  • Upon the QSST Termination Date, the Trustee shall distribute the remaining trust assets to the beneficiary to whom Net Income was then distributable, if then living, or otherwise to such beneficiary’s estate.
  • The Trustee shall elect under 1361(d)(2) of the Code to cause each trust held under this section to be treated as a Qualified Subchapter S Trust for Federal income tax purposes.
  • The Trustee shall administer any trust under this section as a Qualified Subchapter S Trust, as defined in 1361(d)(3) of the Code.
  • The Trustee shall allocate any S Corporation Shares that will be held under this section to the one trust under this section that is not the Ineligible Trust or, if there is more than one trust under this section that is not the Ineligible Trust, between or among those separate trusts, based on each beneficiary’s interest i the income of the Ineligible Trust that would otherwise have held those shares. If no beneficiary was entitled to income of such Ineligible Trust at that time, the Trustee may allocate any S Corporation Shares to the one trust under this section that is not the Ineligible Trust or, if there is more than one trust under this section that is not the Ineligible Trust, between or among those separate trusts for the beneficiaries of such Ineligible Trust, in such manner as the Trustee shall deem appropriate.
  • Electing Small Business Trusts. Any S Corporation Shares held under this section shall be held on the following terms:
  • The Trustee shall apportion to the trusts under this section a reasonable share of the unallocated expenses of all trusts under this Agreement, in a manner consistent with the applicable Code and Regulations.
  • The Trustee shall make the election required by 1361(e)(3) of the Code to qualify the trust under this section as an Electing Small Business Trust, under §1361(e) of the Code.
  • The Trustee shall administer each trust under this section as an Electing Small Business Trust, under 1361(e) of the Code.
  • Implementation. The Trustee shall manifest the Trustee’s selection of the form in which they shall hold any S Corporation Shares by written notice to all persons who would be eligible or entitled at the time of such writing to receive income from the Ineligible Trust that would otherwise hold such S Corporation Shares.
  • Definitions. The following definitions apply for purposes of this Paragraph:
  • “Ineligible Trust” means a trust whose ownership of any S Corporation Shares would cause the termination of that corporation’s election to be taxed under subchapter S of the Code.
  • “Net Income” means income, as defined in 643(b) of the Code.
  • “S Corporation Shares” means shares of any stock of a corporation that then operates, or that the Trustee shall deem likely to operate in the future, under an election to have its earnings taxed directly to its stockholders under subchapter S of the Code.
  • “QSST Termination Date” means the earlier of the date on which the beneficiary of a trust under this Paragraph dies and the date on which such trust no longer holds any S Corporation Shares.
  • Application. None of the foregoing provisions of this Paragraph shall apply with respect to any S Corporation Shares that would, but for the provisions of this Paragraph, be held in any trust any portion of the disposition to which would qualify for the Federal estate and/or gift tax marital deduction.
  • Tax Consequences. To prepare and file returns and arrange for payment with respect to all local, state, federal and foreign taxes incident to this Trust Agreement; to take any action and to make any election, in the Trustee’s discretion, to minimize the tax liabilities of this Trust Agreement and its beneficiaries; and,
  • General Powers. To do any and all other acts necessary, proper or desirable for the benefit of the trust fund and its beneficiaries, and to effectuate the powers conferred upon the Trustee hereunder.

Instructions for the Distribution of Our Personal Property

Pursuant to the terms of THE ________ LIVING TRUST, dated __________________, we are making the following instructions for the distribution of our tangible personal property and personal effects at the death of the survivor of us:

Beneficiary                                                              Item

Dated: ________________________           __________________________________________

________________                                                                          __________________________________________

________________

Prepared By:

Brecksville, Ohio Trust Lawyer and Estate Planning Attorney

Eric D. Valente

Valente Law, LLC

7650 Chippewa Road, Suite 214

Brecksville, Ohio 44141

(440) 792-6777

brecksville@valente-law.com

Call Now to Speak with Brecksville, Ohio Trust Lawyer, Eric Valente

Call us now at (440) 792-6777 to speak with our Brecksville, Ohio trust lawyer, Eric Valente. Valente Law’ Brecksville, Ohio law office is located at 7650 Chippewa road, Suite 214, Brecksville, Ohio 44141. We are accepting new clients now, and offer free consultations to all of our new estate planning and trust clients.


separator