REVOCABLE LIVING TRUST AGREEMENT
(Maine Uniform Trust Code – Title 18-B M.R.S.)
DOCUMENT HEADER
Parties
1. Settlor: [SETTLOR LEGAL NAME], of [SETTLOR ADDRESS] (“Settlor”).
2. Initial Trustee: [INITIAL TRUSTEE LEGAL NAME], of [TRUSTEE ADDRESS] (“Trustee”).
Trust Name
The “[SETTLOR SURNAME] Revocable Living Trust” (the “Trust”).
Effective Date
This Agreement is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”).
Governing Law & Forum
This Trust is governed by the laws of the State of Maine, including the Maine Uniform Trust Code, and any disputes shall be heard exclusively in the Maine Probate Court for [COUNTY] County unless otherwise resolved under Section 8.
TABLE OF CONTENTS
- Definitions
- Creation & Purpose of Trust
- Funding & Asset Transfer Procedures
- Revocation, Amendment & Termination
- Administration During Settlor’s Lifetime
- Administration Upon Settlor’s Incapacity
- Administration Upon Settlor’s Death
- Dispute Resolution
- Representations & Warranties
- Covenants & Restrictions
- Events of Default & Remedies
- Risk Allocation
- General Provisions
- Execution Block
- Schedule A – Initial Trust Property
1. DEFINITIONS
For ease of reference, capitalized terms have the meanings set forth below.
1.1 “Accounting Period” – Each calendar year ending December 31 or such other period as the Trustee may reasonably select.
1.2 “Beneficiary” – Any person or entity then entitled to receive distributions of income or principal, whether mandatory or discretionary, including contingent beneficiaries.
1.3 “Code” – The Internal Revenue Code of 1986, as amended.
1.4 “Incapacity” – A determination that the Settlor is unable to manage property or financial affairs, as established under Section 6.1.
1.5 “Qualified Beneficiary” – As defined under the Maine Uniform Trust Code.
1.6 “Trust Assets” – All property, real or personal, tangible or intangible, held from time to time by the Trustee under this Agreement.
[// GUIDANCE: Insert additional defined terms unique to the Settlor’s estate plan.]
2. CREATION & PURPOSE OF TRUST
2.1 Creation. The Settlor hereby transfers, assigns, and delivers to the Trustee the property described in Schedule A, together with any additional property subsequently conveyed to the Trustee (collectively, the “Trust Assets”), to hold in trust, IN TRUST NEVERTHELESS, subject to the terms of this Agreement.
2.2 Revocable Trust. This Trust is revocable during the Settlor’s lifetime as provided in Section 4.
2.3 Purpose. The primary purposes of the Trust are:
(a) to provide for the Settlor during life,
(b) to manage assets efficiently in the event of the Settlor’s incapacity, and
(c) to pass Trust Assets to the Beneficiaries outside of probate upon the Settlor’s death.
2.4 Separate Property. All Trust Assets shall be administered separately from any assets held by the Trustee in any other capacity.
3. FUNDING & ASSET TRANSFER PROCEDURES
3.1 Initial Funding. Concurrently with execution, the Settlor delivers to the Trustee the assets listed on Schedule A.
3.2 Subsequent Transfers. The Settlor or any other person may add assets to the Trust by assignment, deed, beneficiary designation, or other instrument acceptable to the Trustee.
3.3 Title & Registration. The Trustee shall take all steps necessary to ensure that legal title to Trust Assets is vested in the Trustee as such.
[// GUIDANCE: Practitioners should prepare deeds, stock powers, vehicle title transfers, and beneficiary change forms contemporaneously.]
3.4 Tangible Personal Property. Unless specifically assigned, tangible personal property not listed on Schedule A shall be governed by any separate written memorandum executed by the Settlor; otherwise, it shall pour over to the Trust under the Settlor’s will.
4. REVOCATION, AMENDMENT & TERMINATION
4.1 Revocation or Amendment. During the Settlor’s lifetime and while competent, the Settlor may revoke or amend this Trust in whole or in part by a written instrument delivered to the Trustee.
4.2 Automatic Termination. The Trust shall terminate when all Trust Assets have been distributed in accordance with this Agreement.
4.3 Distribution on Termination. Upon termination, the Trustee shall distribute remaining Trust Assets to the persons then entitled, free of trust, after payment of all expenses, taxes, and liabilities.
5. ADMINISTRATION DURING SETTLOR’S LIFETIME
5.1 Income & Principal. During the Settlor’s lifetime, the Trustee shall distribute to or for the benefit of the Settlor so much of the income and principal as the Settlor may request; absent request, the Trustee may distribute funds for the Settlor’s health, education, maintenance, and support (“HEMS”).
5.2 Investment Standard. The Trustee shall invest and manage Trust Assets as a prudent investor consistent with the Maine Prudent Investor Rule.
5.3 Tax Reporting. While the Settlor is living, this Trust is intended to be a grantor trust under §§ 671-678 of the Code; all income, deductions, and credits shall be reported under the Settlor’s Social Security Number.
6. ADMINISTRATION UPON SETTLOR’S INCAPACITY
6.1 Determination of Incapacity. Incapacity shall be conclusively established by:
(a) a written determination by two licensed physicians, or
(b) an order of a court of competent jurisdiction.
6.2 Distributions. During Incapacity, the Trustee shall apply income and principal for the Settlor’s HEMS, taking into account any other resources known to the Trustee.
6.3 Accounting. The Trustee shall provide an annual accounting to the Settlor’s court-appointed guardian or agent under power of attorney (if any) and to the Successor Trustee named in Section 10.3.
7. ADMINISTRATION UPON SETTLOR’S DEATH
7.1 Settlor’s Debts & Taxes. Upon the Settlor’s death, the Trustee shall:
(a) pay enforceable debts, expenses of last illness and burial, funeral costs, and administration expenses;
(b) pay all federal and state estate, inheritance, and other death taxes attributable to Trust Assets.
7.2 Division of Trust. After satisfying Section 7.1, the Trustee shall distribute or continue to hold Trust Assets for Beneficiaries in accordance with [ATTACH BENEFICIARY DISTRIBUTION PLAN – e.g., outright, staggered ages, lifetime “spendthrift” trusts, charitable sub-trusts, etc.]
[// GUIDANCE: Insert tailored dispositive provisions; include special-needs, education, or dynasty-trust language if required.]
8. DISPUTE RESOLUTION
8.1 Governing Law. This Agreement and all Trust matters are governed by Maine law, without regard to conflicts-of-law rules.
8.2 Forum Selection. The Maine Probate Court for [COUNTY] County shall have exclusive jurisdiction over all proceedings concerning this Trust, subject to Section 8.3.
8.3 Arbitration (Optional). If the Settlor elects by initialing below, any dispute other than (i) a request for instructions under 18-B M.R.S., (ii) accounting approval, or (iii) injunctive relief under Section 8.4, shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules sitting in [CITY, MAINE].
Settlor Initials ___ (leave blank if arbitration not elected).
8.4 Injunctive Relief. Nothing herein shall impair the right of the Trustee or any Beneficiary to seek temporary, preliminary, or permanent injunctive relief from the Maine Probate Court to protect Trust Assets or enforce fiduciary duties.
8.5 Jury Waiver. Consistent with Maine probate practice, jury trial is waived for all Trust matters.
9. REPRESENTATIONS & WARRANTIES
9.1 Settlor. The Settlor represents and warrants that:
(a) Settlor has the legal capacity to create this Trust;
(b) all property transferred is free of undisclosed liens;
(c) no conflicting estate planning instruments supersede this Agreement.
9.2 Trustee. The Trustee represents and warrants that:
(a) Trustee is legally qualified to act in Maine;
(b) Trustee will administer the Trust in good faith, in accordance with its terms and Maine law;
(c) Trustee is not presently a party to any proceeding that would impair performance hereunder.
10. COVENANTS & RESTRICTIONS
10.1 Trustee’s Affirmative Covenants. The Trustee shall:
(a) exercise the reasonable care, skill, and caution of a prudent investor;
(b) maintain accurate books and records;
(c) furnish annual accountings to each Qualified Beneficiary;
(d) file all required tax returns.
10.2 Trustee’s Negative Covenants. The Trustee shall not:
(a) engage in self-dealing or transactions prohibited by 18-B M.R.S.;
(b) commingle Trust Assets with non-trust property;
(c) delegate discretionary duties except as expressly permitted by law.
10.3 Successor Trustee Rules.
(a) Designated Successor Trustees:
1. [FIRST SUCCESSOR TRUSTEE]
2. [SECOND SUCCESSOR TRUSTEE]
(b) Vacancy. If no designated Successor Trustee is able or willing to serve, a majority of the Qualified Beneficiaries may appoint a professional fiduciary.
(c) Acceptance. A Successor Trustee accepts office by written instrument delivered to the current or prior Trustee and the Qualified Beneficiaries.
(d) Resignation. Thirty (30) days’ written notice to the Settlor (if living) or to the Qualified Beneficiaries (if not).
[// GUIDANCE: Maine’s default succession order (court appointment) applies if the instrument fails; this clause supersedes statutory defaults under 18-B M.R.S. §704.]
11. EVENTS OF DEFAULT & REMEDIES
11.1 Events of Default. The following constitute a default by the Trustee:
(a) material breach of fiduciary duty;
(b) misappropriation or reckless mismanagement of Trust Assets;
(c) failure to provide required accountings after written demand and thirty-day cure period.
11.2 Remedies. Upon default, any Qualified Beneficiary may petition the Maine Probate Court for:
(a) removal of the Trustee;
(b) surcharge and restitution;
(c) appointment of a Successor Trustee;
(d) specific performance or injunctive relief;
(e) reasonable attorneys’ fees and costs borne by the Trustee personally to the extent of fault, otherwise from Trust Assets.
12. RISK ALLOCATION
12.1 Indemnification of Trustee. Except for willful misconduct or gross negligence, the Trustee and agents are indemnified from the Trust Assets against all claims, liabilities, and expenses, including reasonable attorneys’ fees, arising from administration of the Trust.
12.2 Limitation of Liability. The Trustee’s liability shall be limited to the value of the Trust Assets under the Trustee’s control, and the Trustee shall have no personal liability beyond such assets unless arising from willful misconduct or gross negligence.
12.3 Insurance. The Trustee may secure fiduciary liability insurance payable from Trust Assets.
12.4 Force Majeure. The Trustee shall not be liable for delays or failures caused by acts of God, war, terrorism, pandemic, or other events beyond reasonable control, provided the Trustee acts diligently to mitigate effects.
13. GENERAL PROVISIONS
13.1 Amendment & Waiver. Only the Settlor (while living and competent) may amend or waive any provision of this Agreement; no oral waiver shall be effective.
13.2 Assignment. Beneficial interests are non-assignable and subject to a spendthrift provision to the maximum extent permitted by Maine law.
13.3 Successors & Assigns. This Agreement binds and benefits all Successor Trustees and Beneficiaries.
13.4 Severability. If any provision is held invalid, the remaining provisions shall continue in full force and effect, and the court is requested to reform the Agreement to effectuate the Settlor’s intent.
13.5 Integration. This Agreement constitutes the entire understanding regarding the Trust and supersedes all prior agreements, whether written or oral.
13.6 Counterparts. This Agreement may be executed in one or more counterparts, each deemed an original and all together constituting one instrument.
13.7 Electronic Signatures. Facsimile, PDF, and electronic signatures are intended to be binding and shall be given the same legal effect as originals under the Maine Uniform Electronic Transactions Act.
14. EXECUTION BLOCK
IN WITNESS WHEREOF, the Settlor and the Trustee have executed this Revocable Living Trust Agreement as of the Effective Date.
| Settlor | Date |
|---|---|
| _______ | _____ |
| [SETTLOR LEGAL NAME] |
| Trustee | Date |
|---|---|
| _______ | _____ |
| [TRUSTEE LEGAL NAME], Trustee |
NOTARIZATION (recommended)
State of Maine )
County of ______) ss.
On __, before me, ______, Notary Public, personally appeared ______, proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to this instrument, and acknowledged that he/she/they executed the same in the capacity indicated.
Witness my hand and official seal.
Notary Public
My Commission Expires: ______
[// GUIDANCE: Although Maine does not statutorily require notarization for trust validity, recording offices and financial institutions frequently request it. Obtain witnesses if real property will be conveyed.]
15. SCHEDULE A – INITIAL TRUST PROPERTY
- Cash: $__ deposited to account titled “[TRUST NAME]”.
- Brokerage Account #: __ at ____.
- Real Property: __, located at _, more particularly described in the deed to be recorded in the _ County Registry of Deeds.
- Life Insurance Policies: Policy #__ on Settlor’s life, with ownership and primary beneficiary changed to the Trustee.
- Tangible Personal Property: See separate memorandum dated ______.
[// GUIDANCE: Attach supporting deeds, assignments, beneficiary change forms, and appraisals as exhibits.]
End of Document