REVOCABLE LIVING TRUST AGREEMENT

(Virginia – Draft Template)

[// GUIDANCE: This template is drafted to comply with the Virginia Uniform Trust Code (Va. Code Ann. § 64.2-700 et seq.) and current Virginia trust‐law practice. All bracketed items require client‐specific input or attorney modification before execution.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
Schedule A – Assignment of Property to Trust
Schedule B – Successor Trustee Acceptance

I. DOCUMENT HEADER

1. Title; Parties
   This Revocable Living Trust Agreement (“Agreement”) is made and entered into on [EFFECTIVE DATE] (the “Effective Date”) by and between [FULL LEGAL NAME OF SETTLOR], residing at [SETTLOR ADDRESS] (“Settlor”), and [FULL LEGAL NAME OF INITIAL TRUSTEE], residing at [TRUSTEE ADDRESS] (“Trustee”).

2. Recitals
   2.1 Settlor desires to establish a revocable inter vivos trust to hold, manage, and distribute property in accordance with the terms herein.
   2.2 Trustee is willing to hold and administer the Trust Estate (as defined below) for the benefit of the Beneficiaries (as defined below), all pursuant to the Virginia Uniform Trust Code and other applicable law.
   2.3 The parties therefore agree as follows.

3. Jurisdiction & Governing Law
   This Agreement and the Trust created hereby (the “Trust”) shall be governed by, and construed in accordance with, the laws of the Commonwealth of Virginia without regard to conflict-of-laws principles.

II. DEFINITIONS

For ease of reference, capitalized terms used herein shall have the following meanings:

“Accounting Period” – Each calendar year of the Trust, or shorter period ending upon termination of the Trust or Trustee replacement.

“Beneficiaries” – The persons or entities designated by Settlor in Section III to receive distributions of income and/or principal from the Trust.

“Disability” – A determination, evidenced by a written certification of two licensed physicians, that Settlor is unable to manage Settlor’s property or financial affairs.

“Funding Instrument” – Any deed, assignment, beneficiary designation, or other document transferring property to the Trust.

“Incumbent Trustee” – The individual or entity then serving as Trustee.

“Revocation Notice” – A writing signed by Settlor (or Settlor’s court-appointed conservator) expressly revoking or amending this Trust, delivered to the Incumbent Trustee.

“Schedule A Property” – The assets listed on Schedule A, together with any additional assets transferred to the Trust pursuant to a Funding Instrument.

“Successor Trustee” – Any person or institution appointed to serve as Trustee upon the resignation, removal, incapacity, or death of the Incumbent Trustee, pursuant to Section III.H.

“Trust Estate” – All property, tangible or intangible, real or personal, held in trust at any time under this Agreement, together with all additions, accretions, and substitutions.

III. OPERATIVE PROVISIONS

A. ​Creation of Trust
Settlor hereby transfers, assigns, and delivers to Trustee the property described in Schedule A (and any subsequent property conveyed by Funding Instrument), to have and to hold in trust, subject to the terms hereof.

B. ​Revocability & Amendment
1. Settlor reserves the right, during Settlor’s lifetime and capacity, to revoke or amend this Agreement, in whole or in part, by delivering a Revocation Notice to the Incumbent Trustee.
2. Upon Settlor’s death, this Trust shall become irrevocable and shall be administered and distributed as provided herein.

C. ​Dispositive Provisions During Settlor’s Lifetime
1. Income and principal may be distributed to or for the benefit of Settlor in Settlor’s sole discretion exercised through the Incumbent Trustee (if Settlor is sole Trustee) or by the Incumbent Trustee (if different).
2. Upon Settlor’s Disability, the Incumbent Trustee shall apply income and principal as reasonably necessary for Settlor’s health, education, maintenance, and support (“HEMS Standard”).

D. ​Dispositive Provisions at Settlor’s Death
1. [OPTION A – Outright Distribution]: Upon Settlor’s death, after payment of taxes, debts, and administrative expenses, Trustee shall distribute the remaining Trust Estate outright to [PRIMARY BENEFICIARY(IES)].
2. [OPTION B – Continuing Trusts]: Instead of outright distribution, Trustee shall allocate the Trust Estate into separate continuing trusts for the benefit of the Beneficiaries named in [ATTACHMENT/SUBSECTION] under the terms specified therein.
[// GUIDANCE: Choose Option A or B or customize.]

E. ​Trust Administration Standards
1. The Trustee shall administer the Trust with the reasonable care, skill, and caution of a prudent person (§ 64.2-770, Va. Uniform Trust Code).
2. Investments shall comply with the Virginia “prudent investor” rule (§ 64.2-782).
3. Trustee may retain assets received from Settlor without diversification unless imprudent to do so.

F. ​Powers of Trustee
The Trustee shall have all powers granted under §§ 64.2-777 through 64.2-781, including but not limited to: buy/sell assets, borrow, encumber, lease, vote securities, employ agents, compromise claims, and make tax elections.

G. ​Settlor as Initial Trustee (Optional)
Settlor may serve as sole initial Trustee. If Settlor resigns, becomes Disabled, or dies, the Successor Trustee provisions below apply.

H. ​Successor Trustee Rules (Virginia-Specific)
1. Order of Succession:
a. [NAME 1]
b. [NAME 2]
c. A trust company or bank authorized to serve as fiduciary in Virginia, selected by a majority of adult Beneficiaries.
2. Acceptance: Any Successor Trustee shall execute Schedule B (“Successor Trustee Acceptance”) before assuming duties.
3. Resignation: Thirty (30) days’ written notice to Settlor (if living) and all qualified Beneficiaries.
4. Removal: Settlor (if living) or a court of competent jurisdiction may remove a Trustee for cause pursuant to § 64.2-759.
5. Transfer of Property: Legal title to Trust assets shall vest automatically in the Successor Trustee upon qualification without need of further act (§ 64.2-760).

I. ​Asset Transfer Procedures
1. Real Property: Conveyed by deed recorded in the land records of the circuit court where the property is located.
2. Tangible Personal Property: Assigned by written Bill of Sale referencing this Trust.
3. Financial Accounts & Securities: Ownership changed to “[TRUST NAME], [TRUSTEE NAME], Trustee” pursuant to custodian requirements.
4. Beneficiary-Designated Assets: Designation forms must name the Trust or sub-trust as beneficiary.

J. ​Termination
The Trust shall terminate and the remaining Trust Estate be distributed pursuant to Section III.D., or earlier if revoked by Settlor.

IV. REPRESENTATIONS & WARRANTIES

A. Settlor represents and warrants that:
1. Settlor has full legal capacity to create this Trust and to transfer property thereto;
2. All Schedule A Property is free of undisclosed liens or claims; and
3. Execution of this Agreement does not violate any prior agreement or court order.

B. Trustee represents and warrants that:
1. Trustee is legally qualified and, if an institution, duly authorized to serve as fiduciary in Virginia;
2. Trustee will administer the Trust in good faith and in accordance with this Agreement and applicable law.

Survival: These representations and warranties shall survive acceptance of the Trust and continue during the Trustee’s tenure.

V. COVENANTS & RESTRICTIONS

A. Settlor Covenants:
1. To execute all Funding Instruments reasonably requested by Trustee to effectuate transfers to the Trust.
2. Not to encumber or dispose of Trust assets inconsistent with this Agreement.

B. Trustee Covenants:
1. To provide an annual written accounting to the Beneficiaries within 90 days after each Accounting Period;
2. To keep Trust assets segregated from non-Trust assets;
3. To obtain and maintain fidelity bond or insurance if required under § 64.2-752(B) or ordered by a court.

C. Restrictions:
Beneficiaries may not assign, anticipate, pledge, or otherwise transfer any interest in the Trust Estate, and such interests shall be protected by a spendthrift provision under § 64.2-743.

VI. DEFAULT & REMEDIES

A. Events of Default
1. Trustee’s willful misconduct, gross negligence, or material breach of fiduciary duty;
2. Failure to provide required accountings within 30 days after written demand;
3. Failure to administer the Trust in accordance with applicable law.

B. Notice & Cure
A Beneficiary may provide written notice specifying the default. Trustee shall have 30 days to cure, unless the default is not curable.

C. Remedies
1. Removal of Trustee pursuant to Section III.H.4;
2. Surcharge against Trustee personally, limited as provided in Article VII;
3. Injunctive relief compelling compliance (see Article VIII);
4. Recovery of reasonable attorney fees and costs from the Trust Estate or personally against the Trustee if misconduct is established.

VII. RISK ALLOCATION

A. Indemnification (Trustee)
The Trustee, and each Successor Trustee, shall be indemnified from the Trust Estate against any and all claims, liabilities, and expenses (including reasonable attorney fees) incurred by reason of acting as Trustee, except to the extent arising from Trustee’s willful misconduct or recklessness.

B. Liability Cap
Except for willful misconduct or recklessness, Trustee’s liability to the Trust or any Beneficiary shall not exceed the value of the Trust Estate at the time of the breach (“trust_assets” cap).

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

D. Force Majeure
Trustee shall not be liable for delay or failure to act due to events beyond Trustee’s reasonable control, including acts of God, war, terrorism, or changes in applicable law (“Force Majeure Event”), provided Trustee acts diligently to resume performance.

VIII. DISPUTE RESOLUTION

A. Governing Law
Commonwealth of Virginia trust law (“state_trust_law”).

B. Forum Selection
Exclusive jurisdiction shall lie in the [NAME OF VIRGINIA CIRCUIT COURT] sitting as a probate court.

C. Arbitration (Optional)
[OPTIONAL] Any non-probate dispute arising out of this Agreement may, upon mutual written consent, be submitted to binding arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules.

D. Jury Waiver
All parties acknowledge that probate matters are generally tried without a jury; any jury trial right is knowingly and voluntarily waived to the fullest extent permitted by law (“no_jury_probate”).

E. Injunctive Relief
Notwithstanding any other provision, a court of competent jurisdiction may issue temporary, preliminary, or permanent injunctive relief to enforce the terms of this Trust (“trust_enforcement”).

IX. GENERAL PROVISIONS

1. Amendment & Waiver
   Except as otherwise provided, this Agreement may be amended only by a writing executed by Settlor (if living and competent) and delivered to the Incumbent Trustee. No waiver of any provision shall be effective unless in writing.

2. Assignment & Delegation
   Trustee may not delegate fiduciary duties except as permitted under § 64.2-776 and must exercise reasonable care in selecting and monitoring any agent.

3. Successors & Assigns
   This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, personal representatives, successors, and assigns.

4. Severability
   If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to achieve the original intent.

5. Integration / Merger
   This Agreement constitutes the entire understanding regarding the subject matter and supersedes all prior agreements, whether written or oral.

6. Counterparts; Electronic Signatures
   This Agreement may be executed in counterparts, each of which shall be deemed an original. Electronic signatures complying with the Uniform Electronic Transactions Act (Va. Code Ann. § 59.1-479 et seq.) shall be deemed originals.

X. EXECUTION BLOCK

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

Settlor / Initial Trustee (if applicable)

[FULL LEGAL NAME OF SETTLOR]
Date: ________

Trustee (if other than Settlor)

[FULL LEGAL NAME OF TRUSTEE]
Date: ________

Witnesses

1. _____ Date: ____
2. _____ Date: ____

Notary Public

Commonwealth of Virginia, City/County of ____
Subscribed and sworn before me this day of _, 20____.

Notary Public
My commission expires: ___
Notary Registration No.: __

Schedule A – Assignment of Property to Trust

[// GUIDANCE: Populate with a detailed list and/or attach separate deeds, bills of sale, or account change forms.]

1. Real Property located at [ADDRESS/LEGAL DESCRIPTION].
2. Account No. [XXXX], [BANK/FINANCIAL INSTITUTION].
3. [ADD ADDITIONAL ITEMS].

Schedule B – Successor Trustee Acceptance

The undersigned hereby accepts appointment as Successor Trustee under the Revocable Living Trust Agreement dated [EFFECTIVE DATE] and agrees to administer the Trust according to its terms and Virginia law.

[NAME OF SUCCESSOR TRUSTEE]
Date: ________

[// GUIDANCE: After customization, attach any required certifications or ancillary documents (e.g., Certificate of Trust, IRS Form SS-4 for EIN issuance) to facilitate funding and administration.]