[// GUIDANCE: This template is drafted to Iowa state law (Iowa Code ch. 633A, the “Iowa Trust Code”).
Practitioners MUST tailor all bracketed placeholders, optional provisions, and distribution schemes to the client’s specific facts, assets, tax posture, and estate-planning goals. Obtain local counsel review before execution. This template is NOT legal advice.]
====================================================================
REVOCABLE LIVING TRUST AGREEMENT
====================================================================
TABLE OF CONTENTS
I. Document Header ..................................................... 1
II. Definitions ......................................................... 2
III. Operative Provisions ................................................ 4
IV. Representations & Warranties ........................................ 8
V. Covenants & Restrictions ............................................ 9
VI. Default & Remedies ..................................................10
VII. Risk Allocation .....................................................11
VIII. Dispute Resolution ..................................................12
IX. General Provisions ..................................................13
X. Execution Block .....................................................15
Schedule A Initial Trust Property .......................................16
Schedule B Successor Trustee Acceptance ..................................17
I. DOCUMENT HEADER
1.1 Title; Formation. This Revocable Living Trust Agreement (this “Agreement” or “Trust”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
(a) [SETTLOR’S FULL LEGAL NAME], residing at [SETTLOR ADDRESS] (“Settlor”); and
(b) [TRUSTEE’S FULL LEGAL NAME], residing at [TRUSTEE ADDRESS] (“Trustee”).
1.2 Recitals.
WHEREAS, Settlor desires to create a revocable inter-vivos trust under the Iowa Trust Code, Iowa Code ch. 633A, to hold, manage, and distribute property for the benefit of Settlor during Settlor’s lifetime and for the benefit of the Beneficiaries thereafter; and
WHEREAS, Trustee is willing to accept the trust and to administer the Trust Property in accordance with the terms hereof;
NOW, THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows.
1.3 Governing Law. This Trust is created and shall be governed by the substantive laws of the State of Iowa (the “Governing Law”), without regard to its conflict-of-law rules, and by applicable federal law.
II. DEFINITIONS
[// GUIDANCE: Add or delete defined terms as needed.]
“Accounting Period” means each calendar year, or such other period selected by Trustee pursuant to Section 5.1.
“Beneficiary” means any person or entity entitled to receive distributions of income or principal, whether current, future, vested, or contingent, including the Settlor during lifetime.
“Code” means the Internal Revenue Code of 1986, as amended.
“Disability” or “Incapacity” means the Settlor’s inability to manage property or financial affairs, as determined under Section 3.6.
“Fiduciary” includes Trustee, Co-Trustee, and any Successor Trustee.
“Income” and “Principal” shall be determined under Iowa Code § 633A.4302 and applicable fiduciary-accounting rules, unless Trustee elects another method permitted by law.
“Property” or “Trust Property” means all assets transferred to, titled in, or otherwise belonging to the Trust, together with any accretions, substitutions, and proceeds, as reflected on Schedule A as amended from time to time.
“Qualified Successor Trustee” has the meaning set forth in Section 3.5.
“Settlor” has the meaning stated in Section 1.1(a) and includes any reference to Grantor where applicable.
III. OPERATIVE PROVISIONS
3.1 Establishment of Trust. By executing this Agreement and concurrently transferring the property described on Schedule A, Settlor hereby establishes the “[SETTLOR NAME] Revocable Living Trust” (the “Trust”), a revocable trust recognized under Iowa Code ch. 633A. Additional property may be added at any time by Settlor or any other person with Trustee’s consent.
3.2 Revocation and Amendment.
(a) Settlor reserves the unrestricted right, during Settlor’s lifetime and capacity, to revoke or amend this Agreement, in whole or in part, by a signed written instrument delivered to Trustee.
(b) Upon receipt of such instrument, Trustee shall implement it promptly. Absent written revocation, this Trust shall become irrevocable upon Settlor’s death.
3.3 Beneficial Interests and Distributions.
(a) During Settlor’s Lifetime. Trustee shall distribute to or for the benefit of Settlor such amounts of income and principal as Settlor may request. If Settlor is under Disability, distributions shall be made as Trustee, in its sole discretion, deems necessary or advisable for Settlor’s health, education, maintenance, or support (“HEMS Standard”).
(b) Upon Settlor’s Death. Upon Settlor’s death, Trustee shall:
(i) pay Settlor’s enforceable debts, final expenses, taxes, and administration costs; and
(ii) distribute the remaining Trust Property pursuant to the dispositive provisions set forth in Schedule C [INSERT SCHEDULE IF DESIRED].
[// GUIDANCE: Practitioners commonly attach a dispositive article or schedule with beneficiary classes, subtrusts for minors, GST tax provisions, etc.]
3.4 Trustee Powers. In addition to all powers granted under Iowa Code § 633A.4502 and federal law, Trustee shall have, without court order, the powers set forth in Exhibit 1 [OPTIONAL], including but not limited to: manage investments; hold, buy, sell, or encumber property; employ professionals; settle claims; and exercise all rights incident to ownership.
3.5 Successor Trustee.
(a) Designation. If the acting Trustee resigns, is removed, becomes incapacitated, or dies, the following shall serve, in the listed order, as “Successor Trustee”:
1. [NAME]
2. [NAME]
3. A corporate fiduciary having trust powers under Iowa law acceptable to a majority of the adult Beneficiaries (a “Qualified Successor Trustee”).
(b) Acceptance. A Successor Trustee shall accept its appointment by executing the Acceptance attached hereto as Schedule B.
(c) Transition. Title to Trust Property shall vest automatically in the Successor Trustee without the need for further conveyance. The predecessor Trustee shall, within thirty (30) days, deliver all Trust records and Property to the Successor Trustee.
(d) Resignation. A Trustee may resign upon thirty (30) days’ written notice to Settlor (if living) and all adult Beneficiaries.
3.6 Determination of Settlor’s Disability. Disability shall be established by:
(a) written certification of incapacity by two (2) licensed physicians; or
(b) a court order of incompetency.
Upon such determination, the Successor Trustee shall automatically act as sole Trustee until Settlor’s capacity is restored.
3.7 Spendthrift; Creditor Protection. To the maximum extent permitted by Iowa Code § 633A.2301 et seq., no Beneficiary shall voluntarily or involuntarily transfer, anticipate, or encumber any interest in the Trust, and such interests shall be free from creditor claims until distributed.
3.8 Asset-Transfer Procedures.
(a) Current Transfers. Title to each asset listed on Schedule A has, or concurrently with execution of this Agreement will be, transferred to Trustee by appropriate deed, assignment, or account retitling using the following vesting language: “[TRUSTEE NAME], Trustee of the [SETTLOR NAME] Revocable Living Trust dated [EFFECTIVE DATE].”
(b) Future Transfers. Settlor (or Settlor’s attorney-in-fact) shall execute additional conveyances as required to transfer assets acquired after the Effective Date. Trustee is authorized to sign any certificates of trust or affidavits necessary to facilitate such transfers.
(c) Pour-Over. Settlor’s Last Will and Testament may contain a pour-over clause funding this Trust with any probate residue.
3.9 Termination. Unless sooner terminated by law or the full distribution of Trust Property, this Trust shall terminate twenty-one (21) years after the death of the last survivor of the Settlor’s descendants living on the Effective Date, or such earlier date as all Trust Property is distributed.
IV. REPRESENTATIONS & WARRANTIES
4.1 Settlor’s Representations.
(a) Capacity. Settlor is of legal age, of sound mind, and under no constraint or undue influence to execute this Agreement.
(b) Title. Settlor has, or will have, good and marketable title to the property transferred to the Trust.
4.2 Trustee’s Representations.
(a) Qualification. Trustee is legally competent and not under any legal incapacity that would preclude serving as fiduciary.
(b) Acceptance. Trustee accepts the trust and agrees to administer it in good faith and in accordance with this Agreement and the Iowa Trust Code.
4.3 Survival. The representations and warranties in this Article IV shall survive execution and remain in effect during the Trust term.
V. COVENANTS & RESTRICTIONS
5.1 Books and Records; Accounting. Trustee shall maintain accurate books and records. Within ninety (90) days after the end of each Accounting Period, Trustee shall furnish a written report to each current Beneficiary and to any requesting remainder Beneficiary, itemizing receipts, disbursements, assets, and liabilities.
5.2 Compliance. Trustee shall comply with all applicable federal, state, and local laws, including tax reporting, unclaimed property, and securities regulations.
5.3 Notice of Material Events. Trustee shall notify the adult Beneficiaries within thirty (30) days of: (a) Trustee resignation; (b) appointment of a Successor Trustee; (c) a material change in Trust situs; or (d) commencement of litigation involving the Trust.
VI. DEFAULT & REMEDIES
6.1 Events of Default. The following constitute “Events of Default”:
(a) Trustee’s willful misconduct, gross negligence, or material breach of fiduciary duties;
(b) Failure to render accounts as required by Section 5.1 after written demand and a thirty (30)-day cure period;
(c) Conversion or misapplication of Trust Property.
6.2 Remedies. Upon an Event of Default, any Beneficiary or co-fiduciary may petition the [COUNTY] Iowa District Court, Probate Division (the “Probate Court”) for:
(a) removal or suspension of Trustee;
(b) surcharge, disgorgement, or restitution;
(c) injunctive relief to protect Trust assets; and
(d) attorneys’ fees and costs, which shall be chargeable against the Trustee personally in the court’s discretion.
VII. RISK ALLOCATION
7.1 Indemnification of Trustee. Except for willful misconduct or gross negligence, Trustee (and agents) shall be indemnified, defended, and held harmless out of the Trust Property against all claims, liabilities, and expenses arising from administration of the Trust (“Trustee Indemnity”).
7.2 Limitation of Liability. Trustee’s liability shall be limited in all events to the value of the Trust Property; no personal assets of Trustee shall be subject to execution for Trust obligations, absent willful misconduct or gross negligence (“Liability Cap: Trust Assets”).
7.3 Insurance. Trustee may, at Trust expense, procure fiduciary liability insurance with coverage amounts deemed reasonable in Trustee’s discretion.
7.4 Force Majeure. Trustee shall not be liable for delay or failure to perform caused by acts of God, war, terrorism, cyber-attacks, pandemic, or governmental action, provided Trustee makes commercially reasonable efforts to resume performance.
VIII. DISPUTE RESOLUTION
8.1 Governing Law; Forum. All matters shall be governed by Iowa law. Exclusive venue lies in the Probate Court of [COUNTY], Iowa, unless the Trustee, acting in good faith, changes the Trust’s situs pursuant to Iowa Code § 633A.6202.
8.2 Optional Arbitration. [OPTIONAL—SELECT IF DESIRED] Any dispute that the parties mutually agree to submit to binding arbitration shall be administered under the Iowa Uniform Arbitration Act, with judgment on the award entered in the Probate Court. Injunctive relief to protect Trust assets may be sought in court notwithstanding this clause.
8.3 Waiver of Jury Trial. The parties acknowledge that probate and trust matters in Iowa are tried to the court; accordingly, to the extent a jury trial might otherwise be available, the parties knowingly waive it.
8.4 Injunctive Relief. Nothing herein shall limit the Probate Court’s equitable power to issue temporary restraining orders, preliminary injunctions, or other relief necessary for Trust enforcement.
IX. GENERAL PROVISIONS
9.1 Amendment and Waiver. Only Settlor may amend this Agreement during Settlor’s lifetime and capacity. No waiver of any provision is effective unless in writing and signed by the party charged.
9.2 Assignment. No interest herein may be assigned by a Beneficiary before actual distribution. Trustee may delegate ministerial duties to professionals but remains responsible for overall administration.
9.3 Successors and Assigns. This Agreement binds and benefits the parties and their permitted successors and assigns.
9.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall be reformed to effectuate the Settlor’s intent as nearly as possible and shall remain in full force.
9.5 Entire Agreement. This Agreement constitutes the entire agreement among the parties regarding the subject matter and supersedes all prior agreements.
9.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is an original, and all of which together constitute one instrument. Signatures in electronic or PDF format shall be deemed originals.
X. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
SETTLOR:
[SETTLOR NAME]
TRUSTEE:
[TRUSTEE NAME]
STATE OF IOWA )
) ss.
COUNTY OF ______)
On this _ day of _, 20__, before me, the undersigned Notary Public in and for said State, personally appeared [SETTLOR NAME] and [TRUSTEE NAME], to me known to be the identical persons named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed.
Notary Public in and for the State of Iowa
My Commission Expires: _______
SCHEDULE A – INITIAL TRUST PROPERTY
[// GUIDANCE: Attach deeds, assignments, account statements, business interests, etc.]
- Cash – $___ transferred via check #____.
- 100 shares of [COMPANY] common stock, Cert. #____.
- Warranty Deed for real property located at [LEGAL DESCRIPTION] recorded in [COUNTY] Recorder’s Office.
- [ADDITIONAL ASSETS]
SCHEDULE B – SUCCESSOR TRUSTEE ACCEPTANCE
The undersigned hereby accepts appointment as Successor Trustee of the “[SETTLOR NAME] Revocable Living Trust” dated [EFFECTIVE DATE] and agrees to administer the Trust according to its terms and applicable law.
[SUCCESSOR TRUSTEE NAME]
Date: ________
====================================================================
END OF DOCUMENT
====================================================================