REVOCABLE LIVING TRUST AGREEMENT

(North Carolina)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Creation, Funding & Revocability
4. Dispositive Provisions
5. Trustees
6. Trustee Powers & Administration
7. Representations & Warranties
8. Covenants & Restrictions
9. Default & Remedies
10. Risk Allocation
11. Dispute Resolution
12. General Provisions
13. Execution Block
14. Schedule A – Initial Trust Estate
15. Schedule B – Successor Trustee Acceptance

[// GUIDANCE: Bracketed items are placeholders for attorney customization. Remove guidance comments prior to final execution.]

1. DOCUMENT HEADER

1.1 Parties.
This Revocable Living Trust Agreement (the “Agreement”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between [SETTLOR LEGAL NAME], residing at [ADDRESS] (“Settlor”), and [INITIAL TRUSTEE NAME], residing at [ADDRESS] (“Trustee”).

1.2 Recitals.
A. Settlor desires to create a revocable trust under North Carolina law to hold, manage, and distribute the Trust Estate (defined below).
B. Trustee is willing to serve subject to the terms herein.
C. This Agreement is intended to comply with the North Carolina Uniform Trust Code, N.C. Gen. Stat. § 36C-1-101 et seq. (the “NCUTC”).

1.3 Consideration.
The mutual promises herein constitute valid consideration.

1.4 Governing Law.
This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed by the laws of the State of North Carolina, including the NCUTC, without regard to conflicts-of-laws principles.

2. DEFINITIONS

Unless the context clearly indicates otherwise, capitalized terms have the meanings assigned below and apply throughout this Agreement (alphabetical order):

“Accounting Period” – Each calendar year or shorter period selected by Trustee for reporting purposes.

“Beneficiary” – Any person or entity entitled to present or future distributions from the Trust Estate.

“Incumbent Trustee” – The individual or corporate trustee then serving.

“NCUTC” – The North Carolina Uniform Trust Code, N.C. Gen. Stat. § 36C-1-101 et seq., as amended.

“Primary Residence” – Settlor’s principal residence situated at [ADDRESS], together with all appurtenances.

“Qualified Disposition” – A transfer of property to Trustee properly retitled in the name of the Trust and compliant with N.C. Gen. Stat. § 36C-4-401.

“Successor Trustee” – Any person or entity appointed under Article 5 to serve upon vacancy, incapacity, resignation, or removal of the Incumbent Trustee.

“Trust” – The revocable trust created by this Agreement, known as the “[NAME] Revocable Living Trust”.

“Trust Estate” – All property listed on Schedule A and any additional property later conveyed to the Trust, plus all reinvestments, substitutions, and accretions.

“Trustee” – The Incumbent Trustee and any Successor Trustee, collectively or individually.

3. CREATION, FUNDING & REVOCABILITY

3.1 Declaration of Trust.
By executing this Agreement and transferring property described on Schedule A, Settlor hereby creates the Trust pursuant to N.C. Gen. Stat. § 36C-4-401(1).

3.2 Additional Funding.
Settlor may at any time make Qualified Dispositions of additional property. Title to real estate shall be conveyed by warranty or quitclaim deed recorded in the county where the property is located.

[// GUIDANCE: Attach form of deed if real property will be transferred contemporaneously.]

3.3 Revocation & Amendment.
(a) Right Reserved. During Settlor’s lifetime, Settlor may revoke or amend this Trust in whole or in part pursuant to N.C. Gen. Stat. § 36C-6-602 by delivering to Trustee a signed, written instrument specifically referring to this Trust.
(b) Effectiveness. Revocation shall be effective upon receipt by Trustee unless a later date is stated. Trustee shall promptly distribute revoked property to Settlor.

3.4 Settlor’s Rights While Living.
Settlor retains:
1. The unrestricted right to direct investments;
2. The right to receive distributions of income and principal; and
3. The power to add or withdraw assets at will.

4. DISPOSITIVE PROVISIONS

4.1 During Settlor’s Lifetime.
Trustee shall distribute to Settlor so much of the net income and principal of the Trust Estate as Settlor requests. Absent request, Trustee may distribute amounts necessary for Settlor’s health, education, maintenance, and support (“HEMS Standard”).

4.2 Upon Settlor’s Incapacity.
If Settlor is determined to be incapacitated by a written opinion of two licensed physicians, Trustee shall apply income and principal for Settlor’s HEMS needs and any legal obligations.

[// GUIDANCE: Consider adding HIPAA release language to facilitate physician communication.]

4.3 Upon Settlor’s Death.
(a) Payment of Expenses. Trustee shall first pay Settlor’s enforceable debts, funeral expenses, and estate administration costs from the Trust Estate to the extent the probate estate is insufficient.
(b) Specific Bequests. Trustee shall distribute the following:
• [Description of Property] to [Beneficiary].
• [Cash Amount] to [Charity Name].
(c) Residual Trust Shares. The remaining Trust Estate shall be divided into separate shares for the following beneficiaries, per stirpes, unless otherwise stated:
1. [Beneficiary 1] – [Percentage]%
2. [Beneficiary 2] – [Percentage]%
(d) Age-Based Staggered Distribution. For any beneficiary under [Age 35], Trustee shall retain the share in further trust, with one-third distributed at age [25], one-half of the balance at age [30], and the remainder at age [35]. Trustee may make discretionary distributions for HEMS prior to final distribution.
(e) Ultimate Takers. If no individual beneficiary survives Settlor, the residue shall pass to [Charitable Remainder Organization] or, if it is not then in existence, to [Alternate Beneficiary].

5. TRUSTEES

5.1 Acceptance.
Initial Trustee accepts the office and the duties herein.

5.2 Resignation.
Trustee may resign by delivering thirty (30) days’ written notice to Settlor (if living) or to the adult income beneficiaries, per N.C. Gen. Stat. § 36C-7-705.

5.3 Removal.
Settlor (if living) or a majority in interest of the adult income beneficiaries may remove Trustee without cause by written instrument delivered to Trustee and any Successor Trustee.

5.4 Successor Trustees.
(a) Designated Successors. If the office of Trustee becomes vacant, [FIRST SUCCESSOR TRUSTEE] shall serve. If unable or unwilling, [SECOND SUCCESSOR TRUSTEE] shall serve.
(b) Appointment by Beneficiaries. Absent a designated successor, a majority in interest of the adult income beneficiaries may appoint a qualified individual or corporate fiduciary.
(c) Vesting of Title. Title to Trust property vests in the Successor Trustee upon acceptance without need for court order or additional conveyance.
(d) Continuity of Actions. Successor Trustee shall have all rights, powers, and duties of the original Trustee.

5.5 Trustee Compensation & Expenses.
Trustee is entitled to reasonable compensation consistent with N.C. Gen. Stat. § 36C-7-708 and to reimbursement for properly incurred expenses.

5.6 Bond.
No trustee shall be required to furnish bond or other security, unless a court of competent jurisdiction orders otherwise.

6. TRUSTEE POWERS & ADMINISTRATION

Subject to fiduciary duties under the NCUTC, Trustee may exercise, without court order, all powers customary for a prudent trustee, including those under N.C. Gen. Stat. § 36C-8-816, such as:

1. Retain, purchase, sell, or exchange assets, including uninsured instruments;
2. Invest in mutual funds, ETFs, or collective investment funds;
3. Make distributions in cash or in kind;
4. Allocate between income and principal under the Uniform Principal and Income Act (N.C. Gen. Stat. Chapter 37A);
5. Employ professionals (e.g., investment advisers, accountants) and delegate duties per § 36C-9-901;
6. Merge, divide, or decant trusts consistent with § 36C-8-816(25);
7. Prosecute or defend claims;
8. Borrow money and encumber trust property;
9. Execute documents in trust name;
10. Act through nominees and custodians.

7. REPRESENTATIONS & WARRANTIES

7.1 Settlor’s Authority.
Settlor represents that Settlor has full power and authority to transfer the property listed on Schedule A free of lien or encumbrance except as disclosed therein.

7.2 Trustee’s Authority.
Trustee represents that Trustee is legally competent, not disqualified from serving as fiduciary, and will administer the Trust in good faith and in accordance with this Agreement and the NCUTC.

7.3 Survival.
All representations and warranties survive execution and any amendments.

8. COVENANTS & RESTRICTIONS

8.1 Spendthrift Provision.
No interest of any Beneficiary shall be subject to voluntary or involuntary transfer, assignment, or seizure by creditors prior to actual receipt, within the meaning of N.C. Gen. Stat. § 36C-5-502.

8.2 Duty to Update Records.
Trustee shall maintain accurate books and records and provide annual statements within ninety (90) days after each Accounting Period.

8.3 Notice of Address Change.
All parties must notify Trustee of any address changes within thirty (30) days.

9. DEFAULT & REMEDIES

9.1 Events of Default.
(a) Trustee’s material breach of fiduciary duty;
(b) Insolvency or bankruptcy of Trustee;
(c) Trustee’s incapacity or failure to act.

9.2 Notice & Cure.
An Event of Default shall be deemed cured if Trustee remedies the breach or resigns within thirty (30) days after receiving written notice from Settlor (if living) or a majority in interest of the adult income beneficiaries.

9.3 Remedies.
In addition to removal, beneficiaries may petition the [COUNTY] Probate Court for:
1. Accounting or surcharge;
2. Temporary injunction;
3. Appointment of a special fiduciary;
4. Any other relief under N.C. Gen. Stat. § 36C-10-1001.

9.4 Attorney Fees.
The prevailing party in any action to enforce this Agreement shall be entitled to reasonable attorney fees and costs recoverable from the Trust Estate, except upon a finding of bad faith.

10. RISK ALLOCATION

10.1 Trustee Indemnification.
Trustee and its agents shall be indemnified from the Trust Estate against all claims, liabilities, and expenses, except those arising from Trustee’s gross negligence, intentional misconduct, or breach of fiduciary duty.

10.2 Limitation of Liability.
Trustee’s liability shall be limited solely to the Trust Estate; no trustee shall be personally liable for obligations of the Trust except as provided under N.C. Gen. Stat. § 36C-10-1002.

10.3 Insurance.
Trustee may purchase fiduciary liability insurance payable from the Trust Estate.

10.4 Force Majeure.
Trustee is excused from performance for delays caused by events beyond reasonable control, including acts of God, governmental action, or market disruptions.

11. DISPUTE RESOLUTION

11.1 Forum Selection.
Any judicial proceeding shall be brought exclusively in the General Court of Justice, Superior Court Division, [COUNTY] County, sitting in probate jurisdiction (the “Probate Court”).

11.2 Non-Jury Determination.
Matters within the exclusive jurisdiction of the Probate Court shall be heard without a jury. To the extent a jury trial might otherwise be available, all parties knowingly waive such right.

11.3 Optional Arbitration.
At any time, the parties may mutually agree in writing to submit disputes to binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association, with venue in [CITY, NC]. Judgment on the award may be entered in the Probate Court.

[// GUIDANCE: Remove this section if arbitration is not desired.]

11.4 Injunctive Relief.
Notwithstanding Section 11.3, Trustee or any beneficiary may seek temporary, preliminary, or permanent injunctive relief from the Probate Court to preserve the Trust Estate pending resolution of any dispute.

12. GENERAL PROVISIONS

12.1 Amendments & Waivers.
Only Settlor may amend this Agreement during Settlor’s lifetime. After Settlor’s death, amendments require unanimous written consent of all adult, competent beneficiaries and Trustee, and court approval if required by law. No waiver of any provision shall be effective unless in writing.

12.2 Assignment.
No party may assign rights or obligations hereunder except as expressly permitted.

12.3 Successors & Assigns.
This Agreement binds and benefits the parties and their respective heirs, executors, administrators, successors, and permitted assigns.

12.4 Severability.
If any provision is held unenforceable, the remaining provisions shall be reformed to approximate the parties’ intent to the maximum extent permitted.

12.5 Integration.
This Agreement, including attached schedules, constitutes the entire agreement and supersedes all prior written or oral trust instruments.

12.6 Counterparts; Electronic Signatures.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. Signatures delivered by facsimile, PDF, or secure electronic signature platform (e.g., DocuSign) shall be enforceable.

13. EXECUTION BLOCK

IN WITNESS WHEREOF, Settlor and Trustee have executed this Revocable Living Trust Agreement as of the Effective Date first above written.

NOTARY ACKNOWLEDGMENT

State of North Carolina
County of [__]

I, a Notary Public, certify that [NAME], personally appeared before me this day and acknowledged the due execution of the foregoing instrument.

Date: ___ Notary Public: ___
My Commission Expires: __

[// GUIDANCE: Duplicate acknowledgment block for each signatory if required.]

14. SCHEDULE A – INITIAL TRUST ESTATE

1. Primary Residence located at [ADDRESS], NC, Tax Parcel # [_]
2. Checking Account – [BANK NAME], Account No. [XXXX]
3. Brokerage Account – [BROKERAGE], Account No. [XXXX]
4. Life Insurance Policy – [INSURER], Policy No. [XXXX] (Trust named as owner and beneficiary)
5. Any tangible personal property itemized on an attached Personal Property Memorandum dated [DATE].

[// GUIDANCE: Attach deeds or assignment forms as applicable.]

15. SCHEDULE B – SUCCESSOR TRUSTEE ACCEPTANCE

I, [SUCCESSOR TRUSTEE NAME], hereby accept the office of Successor Trustee of the [NAME] Revocable Living Trust, agree to be bound by the terms of the Trust Agreement dated [EFFECTIVE DATE], and certify that I am not disqualified from serving.

[SIGNATURE]
Date: __