California Revocable Trust Agreement (Advanced) Legal Forms and Contracts

The following free trust agreement is a thorough trust written for a married man with two child. This agreement and contract is being provided for sample, example, information and research purposes only, however it is a valid legal contract and agreement. Always consult an Attorney or Lawyer.

This document should be used in conjunction with a Last Will and Testament, Living Will, Durable Power of Attorney and Health Care Power of Attorney to create a full estate plan. All these documents can be found in the Trusts and Estate Section of this website. This is an advanced document. This Agreement can apply in most states including California, New York, Florida, Nevada and others. Help improve this agreement by leaving a comment.

REVOCABLE TRUST DECLARATION

FOR THE
__________________ FAMILY TRUST

REVOCABLE TRUST DECLARATION
FOR THE
__________________ FAMILY TRUST

TABLE OF CONTENTS

ARTICLE ONEINTRODUCTION

1.1 Declaration 1
1.2 Identification of Trust 1
1.3 Identification of Trustor's Family 1

ARTICLE TWO
THE TRUST ESTATE

2.1 Definition of Trust Estate 1
2.2 Initial Trust Corpus 1
2.3 Character of Trust Property 1

ARTICLE THREERIGHTS RESERVED TO TRUSTORS

3.1 Additions to the Trust Estate 2
3.2 Power of Revocation While Trustors Are Living 2
3.3 Power of Amendment While Both Trustors Are Living 2
3.4 Power of Revocation and Power of Amendment After Death of First Trustor to
Die . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3.5 Method of Revocation of Amendment 2
3.6 Exercise of Powers Reserved to Trustor if Trustor is Incompetent 2

ARTICLE FOURDISTRIBUTION DURING TRUSTOR'S JOINT LIVES

4.1 Payment of Income During Trustors’ Life 2
4.2 Discretionary Payment of Principal by Trustee During Trustors’ Life 3
4.3 Trustors’ Right to Withdraw Principal 3

ARTICLE FIVE
DISTRIBUTIONS AFTER DECEASED SPOUSE'S DEATH

5.1 Definitions 3
5.2 Trustee's Power to Defer Division or Distribution. . . . . . . . . . . . . . . . . . . . . . . . . 3

5.3 Reallocation of Trust Share After Death of Deceased Spouse 3

ARTICLE SIXDISPOSITIVE PROVISIONS OF TRUST AFTER DEATH OF
DECEASED SPOUSE

6.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (a) Establishment of Family Bypass Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
(b) Establishment of Marital Trust 6
(c) Distribution from Marital Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
6.2 Disposition of Family Bypass Trust Upon Death of
Surviving Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

ARTICLE SEVENOFFICE OF TRUSTEE

7.1 Successor Trustee 8
7.2 Waiver of Bond of Individual Trustees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.3 Trustee's Right and Method of Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.4 Trustee's Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
7.5 Final Successor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.6 No Compensation for Individual Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
7.7 Compensation of Corporate Trustee and Counsel. . . . . . . . . . . . . . . . . . . . . . . . . . .9
7.8 Out-of-Pocket Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
7.9 Certified Copies of Trust Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

ARTICLE EIGHTPOWERS OF TRUSTEE

8.1 General Powers of Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
8.2 Trustee's Self-Dealing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
8.3 Combining Multi-Trust Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
8.4 Spendthrift Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
8.5 Division or Distribution in Cash or in Kind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
8.6 Payments on Behalf of Minors or Persons Under Disability 12
8.7 Trustee's Duty to Account 12
8.8 Duty to Convert Non-Productive Property Upon Direction 13
8.9 Written Notice to Trustee 13
8.10 Employment of Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
8.11 Authority to Deputize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
8.12 Reasonable Return 14
8.13 Power to Invest and Retain Trust Property 14
8.14 Trustee’s Power to Continue Business 14

ARTICLE NINECONCLUDING PROVISIONS

9.1 Perpetuities Saving Clause 14
9.2 Period of Survivorship 14
9.3 Severability Clause 14
9.4 Captions 15
9.5 Definition of Heirs 15
9.6 Definition of Issue, Child, and Children 15
9.7 Definition of Incompetent 15
9.8 Definition of Education 15
9.9 Definition of Death Taxes, Debts, and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . 15
9.10 California Trust Law to Apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

ARTICLE TENNO-CONTEST PROVISION

10.1 No-Contest Provision 16

ARTICLE ELEVENEXECUTION

11.1 Duplicate Original of Trust 16
11.2 Execution 16
11.3 Executed on August 21, 2003 in the County of Los Angeles, California . . . . . . 17

SCHEDULE “A: 18

REVOCABLE TRUST DECLARATION
FOR THE
__________________ FAMILY TRUST

ARTICLE ONE
INTRODUCTION

1.1 Declaration. This trust declaration is made by __________________, a married man, Social Security Number _____________, and __________________ s, a married woman, Social Security Number _____________, both are residents of Los Angeles County, California, who are herein referred to as the “Trustors” or the “Trustee,” depending on the context. The term “Trustee”, as used herein, also refers to each successor trustee who is serving as a trustee, or a co-trustee, of a trust created under this “Instrument.”

1.2 Identification of Trust. This trust may be referred to as the __________________ FAMILY TRUST (the “Trust”).

1.3 Identification of Trustors' Family. At the time of the creation of the Trust, the Trustors have the following children:

Name Date of Birth
__________________ __________________
__________________ s __________________

ARTICLE TWO
THE TRUST ESTATE

2.1 Definition of Trust Estate. The property described in any schedule that is part of this Instrument, the property hereafter transferred to any trust created under this Instrument, and the income and proceeds attributable to all such property shall constitute the “Trust Estate,” which shall be held in trust, administered, and distributed according to the terms of this Instrument.

2.2 Initial Trust Corpus. The Trust Estate shall be comprised initially of the property described in the “Schedule of Property Assets,” which is attached hereto and made a part of this Instrument. The property described in that schedule comprises the Trustors' community property and the separate property of each Trustor. The Schedule may be amended from time to time to account for property which is added or deleted to the Trust Estate.

2.3 Character of Trust Property. The intention of each Trustor is that all community property and separate property transferred to this Trust, and the proceeds thereof, shall continue to retain its character as community property or separate property during the joint lifetimes of the Trustors only, subject, however, to all the terms and conditions of this Instrument. As of the date of death of the first Trustor to die, any separate property held in this Trust by either Trustor shall become community property.

ARTICLE THREE
RIGHTS RESERVED TO TRUSTORS

3.1 Additions to the Trust Estate. A Trustor or any other person may make inter vivos or testamentary transfers of property to the Trustee. That additional property shall become part of the Trust Estate upon written acceptance of it by the Trustee.

3.2 Power of Revocation While Trustors Are Living. During the Trustors' joint lifetimes, the Trust may be revoked, in whole or in part, by either Trustor acting alone, or both of the Trustors acting jointly. Upon revocation, the Trustee shall deliver to the Trustor or to both Trustors the portion of the Trust Estate that has been revoked, provided, however, the Trustee shall deliver any separate property to the Trustor who transferred such separate property to the Trust.

3.3 Power of Amendment While Both Trustors Are Living During the Trustors' joint lifetimes, the Trust may be amended, in whole or in part, by the Trustors acting jointly.

3.4 Power of Revocation and Power of Amendment After Death of First Trustor to Die After the death of the first Trustor, the Surviving Trustor may amend or revoke the “Marital Trust” only, however, the Surviving Trustor shall not have the power to revoke or amend the “Family Bypass Trust”, in whole or in part. After the death of the first Trustor, the Family Bypass Trust shall be irrevocable and unamendable.

3.5 Method of Revocation or Amendment The revocation or amendment of a trust created under this Instrument shall be effective only if made in a writing that is signed by the person or persons having the power of revocation or amendment and delivered to the Trustee.

3.6 Exercise of Powers Reserved to Trustor if Trustor is Incompetent. A power reserved to the Trustor under this Article Three may not be exercised by that Trustor if such Trustor is incompetent (as defined in Article Nine) at the pertinent time, and may not be exercised by the conservator of that Trustor's estate, pursuant to specific court authorization; however, a power reserved may be exercised by that Trustor's attorney-in-fact designated in a durable power of attorney under the Uniform Durable Power of Attorney Act, if the instrument creating the durable power of attorney expressly gives the attorney-in-fact such power.

ARTICLE FOUR
DISTRIBUTION DURING TRUSTOR'S LIFE

4.1 Payment of Income During Trustors' Life. So long as both Trustors are living, the Trustee shall pay to either Trustor or apply for the Trustors' benefit the entire net income generated by the Trust Estate, in monthly or convenient installments (but not less often than annually) as either or both of the Trustors and the Trustee may agree upon from time to time.

4.2 Discretionary Payment of Principal by Trustee During Trustors' Life. So long as both Trustors are living, the Trustee shall pay to either Trustor or both Trustors or apply for the
Trustors' benefit so much of the principal of the Trust Estate as the Trustee deems proper for the comfort, welfare, and happiness of either Trustor.

4.3 Trustors’ Right to Withdraw Principal. So long as both the Trustors are living, either Trustor acting alone, if he or she is not incompetent (as defined in Article Nine) at the pertinent time, or both of the Trustors acting jointly, if at least one of them is not incompetent at the pertinent time, shall have the right to withdraw any amount of the principal of the Trust Estate that is the Trustor's property by delivering a signed writing to the Trustee.

ARTICLE FIVE
DISTRIBUTIONS AFTER DECEASED SPOUSE'S DEATH

5.1 Definitions. In this Article and subsequent Articles of this Instrument, the first Trustor to die is referred to as “the Deceased Spouse” and the other Trustor is referred to as “the Surviving Spouse.”

5.2 Trustee's Power to Defer Division or Distribution. Whenever the Trustee is directed to divide any part of the Trust Estate or distribute assets of the Trust Estate upon the death of either Trustor, the Trustee may, in the Trustee's discretion, defer actual division or distribution for a period not exceeding six (6) months after the Trustor's death. The ability of the Trustee to delay division or distribution shall not affect the vesting of interest in the respective shares, which shall be determined as of the date of death. Nothing in this Instrument shall be construed as limiting the discretion of the appropriate person in making an election for federal estate tax purposes between valuation of the estate on the death and valuation of an alternate date.

5.3 Reallocation of Trust Share After Death of Deceased Spouse. Upon the death of the Deceased Spouse, and if the total value of the Trust Estate at the time of the death of the Deceased Spouse exceeds the amount of the exemption equivalent then available under federal estate tax law, plus the amount of the federal credit for state death taxes (provided, the use of this credit does not require an increase in the state death taxes paid), after taking into account all other property interests that pass or have passed, and that reduce the amount of the exemption equivalent available for distribution, into the Family Bypass Trust, then the Trustee shall divide the Trust Estate, including any additions made to the Trust by reason of the death of the Deceased Spouse, into two separate trusts, designated the “Marital Trust” and the “Family Bypass Trust.” The division of the Trust Estate into the Marital Trust and the Family Bypass Trust shall be in accordance with Article Six. The Trusts shall be held, administered and distributed according to the terms set forth in Article Six. If the total value of the Trust Estate, at the time of the death of the Deceased Spouse is equal to or less than the amount of the exemption equivalent then available under federal estate tax law, plus the amount of the federal credit for state death taxes (provided, the use of this credit does not require an increase in the state death taxes paid), after taking into account all other property interests that pass or have passed, and that reduce the amount of the exemption equivalent available for distribution, into the Family Bypass Trust, then there shall be no division of the Trust Estate and the entire Trust Estate shall be administered, for the benefit of the Surviving Spouse, in accordance with Section 6.2(c), as though the entire Trust Estate were the Marital Trust.

ARTICLE SIX
DISPOSITIVE PROVISIONS OF TRUST
AFTER DEATH OF DECEASED SPOUSE

6.1 After the death of the Deceased Spouse, the Trust Estate shall be held, administered, and distributed for the benefit of the Surviving Spouse according to the following terms and conditions:

(a) Establishment of Family Bypass Trust.

(i) If the value of the Trust Estate, at the time of the death of the Deceased Spouse, does not exceed the amount that is equal to twice the amount of the exemption equivalent then available to the Deceased Spouse under federal estate tax law plus the amount of the federal credit for state death taxes, then the Family Bypass Trust shall consist of that portion of the Trust Estate, if any, that exceeds the amount that is equal to the exemption equivalent then available to the Deceased Spouse under federal estate tax law, plus the amount of the federal credit for state death taxes (provided, the use of this credit does not require an increase in the state death taxes paid), after taking into account all other property interests that pass or have passed, and that reduce the amount of the exemption equivalent available for distribution, into the Family Bypass Trust.

(ii) If the value of the Trust Estate, at the time of the death of the Deceased Spouse, exceeds the amount that is equal to twice the amount of the exemption equivalent then available to the Deceased Spouse under federal estate tax law, plus the amount of the federal credit for state death taxes, then the Family Bypass Trust shall consist of that portion of the Deceased Spouse's property in the Trust Estate which equals the amount of the exemption equivalent then available to the Deceased Spouse under federal estate tax law, plus the amount of the federal credit for state death taxes (provided, the use of this credit does not require an increase in the state death taxes paid), after taking into account all other property interests that pass or have passed, and that reduce the amount of the exemption equivalent available for distribution, into the Family Bypass Trust. It is the intent of the Deceased Spouse, under this sub-paragraph 6.1(a)(ii), that the Family Bypass Trust shall contain the largest amount of the Deceased Spouse’s property in the Trust Estate that can pass free of federal estate tax by reason of the unified credit and the state death tax credit. If such exemption equivalent is greater than the then value of the Deceased Spouse's property in the Trust Estate, the Family Bypass Trust shall consist of the then value of the Deceased Spouse’s property in the Trust Estate that can pass free of federal estate tax by reason of the unified credit and the state death tax credit, but not by reason of the federal estate tax marital deduction.

(iii) For the purposes of determining the value of assets disposed of by this Section 6.1 (a), the values as finally established for federal estate tax purposes shall be used. The Trustee shall satisfy this gift to the Family Bypass Trust in cash or kind, or partly in each. Assets allocated in kind shall be deemed to satisfy this amount on the basis of their values at the date or dates of distribution to the Family Bypass Trust. The selection of assets in making this gift shall not be subject to question by any beneficiary, and no adjustment shall be made to compensate for any disproportionate allocation of unrealized gain for federal income tax purposes.

(iv) The Family Bypass Trust shall be subject to the payment of the death taxes, debts, and expenses of the Deceased Spouse, and shall be held by the Trustee separately in trust for the following purposes:

(A) During the lifetime of the Surviving Spouse, the Trustee of the Family Bypass Trust shall distribute to the Surviving Spouse such part or all of the net unappointed income and principal of the Family Bypass Trust as the Trustee, in the absolute discretion of the Trustee, determines necessary or appropriate for the support and maintenance of the Surviving Spouse, in the standard of living to which the Surviving Spouse is accustomed, including reasonably adequate health, medical, dental, hospital, nursing, and invalidism expenses. The powers granted herein to the Surviving Spouse, while serving as a Trustee or a co-Trustee of this Instrument, shall be limited as follows: The Surviving Spouse shall have no right to determine the amount of any principal of the Family Bypass Trust to be retained or to be distributed to the Surviving Spouse or to distribute such, but such determination shall be made by the Trustee or Trustees serving with the Surviving Spouse. If the Surviving Spouse is serving as sole Trustee of this Instrument, then said determination and distribution shall be made by the successor Trustee or co-Trustees named in this Instrument.

(B) The Surviving Spouse shall have the unrestricted power at any time to invade the principal of the Family Bypass Trust annually to the extent of the greater of the following amounts: (1) the sum of five thousand dollars ($5,000), or (2) five percent of the fair market value of the property of the Family Bypass Trust determined by the Trustee as of the end of the month immediately preceding the request. This power shall be noncumulative and the power, with respect to each year shall if not exercised, shall lapse on the last day of each calendar year the power is held.

(C) It is the Trustors' intention that the Family Bypass Trust shall not be includable in the estate of the Surviving Spouse for tax purposes under Section 2041 of the Internal Revenue Code of 1986 as amended, from time to time, and the regulations pertaining to that section or any corresponding or substitute provisions applicable to the Trust Estate. In no event shall the Trustee take any action or have any power that will include the Family Bypass Trust in the Surviving Spouse's estate for tax purposes, and all provisions regarding the Family Bypass Trust shall be interpreted to conform to this primary objective.

(D) Upon the death of the Surviving Spouse, the Trustee shall dispose of the unappointed remaining principal and income of the Family Bypass Trust as directed in Section 6.2.

(b) Establishment of Marital Trust. The Marital Trust shall consist of the balance of the Trust Estate remaining after setting aside all assets of the Trust Estate that are allocated to the Family Bypass Trust.

(c) Distribution from Marital Trust. The Marital Trust shall be held by the Trustee separately in trust for the following purpose:

(i) The Trustee shall pay all of the income in quarterly or other convenient installments (but at least annually) for and during the term of the Surviving Spouse's life.

(ii) In addition to income, the Trustee shall pay to or apply for the Surviving Spouse as much of the principal of the Marital Trust as the Trustee, in the absolute discretion of the Trustee, deems necessary for the support, care and comfort of the Surviving Spouse, having in mind the standard of living to which the Surviving Spouse has been accustomed.

(iii) Upon the death of the Surviving Spouse, the Trustee shall dispose of the the remaining principal and undisbursed income of this Trust, if any, to such person or persons, including the estate of the Surviving Spouse, as the Surviving Spouse shall appoint. Such appointment shall be made by the Surviving Spouse referring to and by affirmatively exercising this power of appointment in his or her last will and testament.

(v) Any principal and income of the Martial Trust not effectively appointed by the Surviving Spouse shall be added at the death of the Surviving Spouse to the Family Bypass Trust and shall be held and administered as a part thereof; provided, however, that the Trustee shall first pay from the Marital Trust the death taxes, debts, and expenses of the Surviving Spouse.

(vi) If the Surviving Spouse disclaims part or all of the fractional interest of the property of the Deceased Spouse, which otherwise would have been transferred into the Marital Trust as provided for in Article Six, the disclaimed property shall pass to, and become a part of, the Family Bypass Trust and shall be distributed as set forth therein. In addition to any other method of disclaimer recognized by law, the Surviving Spouse may disclaim by a writing signed by him or her stating the intention to disclaim in whole or in part some designated part.

6.2 Disposition of Family Bypass Trust Upon Death of Surviving Spouse. Upon death
of the Surviving Spouse, the Family Bypass Trust shall be disposed of as follows:

(a) The Trustee shall divide the Trust Estate into two separate trusts as follows:

(i) The first trust shall be designated as the “__________________ Trust” and shall consist of fifty percent (50%) of the dollar amount of the Trust Estate and will be held in trust for __________________.

(ii) The second trust shall be designated as the “__________________ Trust” and shall consist of fifty percent (50%) of the dollar amount of the Trust Estate and will be held in trust for __________________ s.

(b) As soon as convenient, Trustee shall distribute and pay to:

(i) __________________ one hundred percent (100%) of the __________________ including principal and accumulated, undistributed income.

(ii) __________________ one hundred percent (100%) of the __________________ Trust including principal and accumulated, undistributed income.

(c) In the event that the children named in Section 6.2(a), should not be living on the date of the death of the Surviving Spouse, or does not survive distribution of the share of the Trust Estate, then the Trustee shall divide the balance of said deceased child's share into equal parts, one such part for each of said deceased child's then living children (“Grandchild or Grandchildren”). Each such share for the Grandchildren shall be distributed or retained in trust as hereafter provided.

(i) The Trustee shall pay to or apply for the benefit of each Grandchild under the age of twenty-one (21) years as much of the net income and principal, in the absolute discretion of the Trustee, that the Trustee deems necessary for the proper support, care, maintenance and education of each said Grandchild, after taking into consideration, to the extent that the Trustee shall deem advisable, any other income or resources known to the Trustee of each such Grandchild.

(ii) Upon such time as each Grandchild shall have attained the age of twenty-one (21) years, the Trustee shall distribute and deliver to such Grandchild one-hundred percent (100%) of such Grandchild's respective share, including principal and accumulated and undistributed income.

(iii) In the event that any Grandchild, as the case may be, does not survive the distribution of his or her respective share, and if said Grandchild leaves issue surviving, the Trustee shall continue the administration of that respective share as if the deceased Grandchild were alive, distributing income to or for the benefit of the children of the deceased Grandchild. On the 21st anniversary of the deceased Grandchild's child's or children's birthday, the Trustee shall distribute to or for the benefit of the deceased Grandchild's child or children one hundred percent of the deceased Grandchild's respective share of the trust, including principal and accumulated and undistributed income.
(iv) In the event that any child of a Grandchild does not survive the distribution of his or her respective share, and if said child leaves no issue surviving, then said deceased child's respective share shall be divided equally between the remaining surviving Grandchildren. If there are no remaining surviving Grandchildren, then the child of a Grandchild’s trust shall be distributed to the Trustor’s surviving child or children.

(d) If the deceased child has no living children or grandchildren, then the Trust Estate shall be distributed in accordance with the laws of the State of California governing the distribution of assets by intestate succession.

ARTICLE SEVEN
OFFICE OF TRUSTEE

7.1 Successor Trustee. Upon the death of the remaining Trustor-Trustee, or if the remaining Trustor-Trustee resigns as Trustee, is removed pursuant to judicial procedure, becomes incompetent, or for any reason fails or ceases to act as Trustee, then __________________ Trustees with full authority and power as Trustees. If __________________ becomes incompetent, or for any reason fails or ceases to act as Trustee, then __________________ will serve as individual trustee. If __________________ becomes incompetent, or for any reason fails or ceases to act as Trustee, then __________________ will serve as individual trustee. Upon the death, resignation, refusal, or inability of both __________________ and __________________ to act as the successor Trustee, then a successor Trustee shall be appointed in accordance with Section 7.5 of this Instrument, or, if a successor Trustee cannot be appointed pursuant to Section 7.5 of this Instrument, then a successor Trustee shall be appointed in accordance with the provisions of the California Probate Code.

7.2 Waiver of Bond of Individual Trustee. No bond shall be required of __________________ should he / she serve as Trustee(s) under this Instrument. In the event that any person, other than __________________ is appointed as the Successor Trustee, pursuant to the California Probate Code, such person shall be required to post a bond, in such amount, and in such form, as may be required by the provisions of the California Probate Code.

7.3 Trustee's Right and Method of Resignation. Any Trustee may resign at any time, without giving a reason for the resignation, by executing a signed written instrument and delivering it to any other Trustee then acting or if there is none, then to the successor Trustee. A resignation shall be effective upon written acceptance of the Trust by the successor Trustee.

7.4 Trustee's Liability. The Trustee shall not be liable to any person with an interest in the Trust for acts or omissions of the Trustee, except for those resulting from willful misconduct or gross negligence. This standard shall also apply regarding the Trustee's liability for acts or omissions of any co-Trustee, predecessor Trustee, or agent employed by the trustee.

7.5 Final Successor. If at any time there is no Trustee acting, and there is no person or institution designated as provided in this Article who qualifies as a successor Trustee, the majority of the adult beneficiaries of the Trust who are then entitled to receive a distribution of principal if the Trust were terminated at the time of death of the Surviving Spouse, acting together, shall appoint the successor Trustee.

7.6 No Compensation for Individual Trustees Each individual who is a Trustee under this Instrument shall not be entitled to any compensation for the fiduciary services rendered.

7.7 Compensation of Corporate Trustee and Counsel. Each corporate Trustee shall be entitled, quarterly, to reasonable compensation for services rendered in accordance with its fee schedule in effect from time to time for inter vivos trusts, and for counsel reasonably engaged by the corporate Trustee.

7.8 Out-of-Pocket Costs. All Trustees shall be entitled to reimbursement for reasonable out-of-pocket costs in connection with the administration of the Trust.

7.9 Certified Copies of Trust Instrument . Any person may rely on a copy of this Instrument certified by a notary public to be a true copy of this Instrument. Anyone may rely on any statement of fact certified by anyone who appears from the original copy of the Instrument or a certified copy thereof to be a Trustee hereunder.

ARTICLE EIGHT
POWERS OF TRUSTEE

8.1 General Powers of Trustee. In order to carry out the purpose of this Trust, the Trustee, acting alone or both Trustors, acting in the capacity as the Trustee, shall have all of the powers enumerated herein and, except as limited by any provision of this Instrument, all powers now or hereafter granted to a Trustee by law. Except as limited by a more specific provision of this Instrument, the Trustee shall have the power to:

(a) Invest and reinvest the Trust Estate in every kind of property, real, personal, or mixed, and every kind of investment, specifically including, but not limited to, corporate obligations of every kind, preferred or common stocks, including short sells, shares of investment trusts, investment companies and mutual funds, mortgage participations, and in common trust funds;

(b) Sell, exchange, transfer, convey, lease without limitation as to term, borrow upon, and hypothecate all or any part of the trust property;

(c) Invest trust funds in certificates of deposit, money market accounts, brokerage accounts, treasury securities, other government obligations, and other deposit accounts on which interest is paid;

(d) Retain, maintain, repair divide, partition, improve, and otherwise manage any trust property;

(e) Insure trust property against damage or loss, and against liability with respect to third persons at the expense of the Trust, with the carriers and coverages that the Trustee deems advisable;

(f) Enforce the rights of the Trust with respect to any mortgage, deed of trust, pledge, or similar security device held in trust; enforce, at a foreclosure sale (whether judicial or nonjudicial) or other sale, the rights of the trust in secured property; make bids upon and purchase, at trust expense, any property that is subject to security device; and accept a deed in lieu of foreclosure as full or complete satisfaction of the secured debt;

(g) Commence or defend, at the expense of the Trust, legal actions relating to the Trust or any trust property as the Trustee deems advisable.

(h) Compromise, submit to arbitration, settle, or release (with or without consideration) or otherwise adjust any claims in favor of or against the Trust;

(i) Hold trust property in the name of a nominee or nominees, with or without disclosing the trust character of such property (including securities in such condition that ownership may pass upon delivery), or in the name of the Trustee;

(j) Exercise any and all rights and powers of an owner of stocks or securities; vote and give proxies; pay assessments or other charges; exercise or not exercise as the Trustee deems advisable, subscriptions, conversion rights, or other rights or options that may devolve upon holders or stocks or securities; and enter into shareholder agreements;

(k) Participate in any plans or proceedings for foreclosure or consolidations, merger, liquidation, or other reorganization of any corporation or organization having securities that are held as trust property and, in connection therewith, deposit securities with and transfer title or securities upon the terms that the Trustee deems advisable to any protective or other committee established in connection with any such plan or proceeding;

(l) Subdivide and re-subdivide trust real property and sign applications, maps, and other documents incidental thereto; to dedicate trust real property for public purposes, with or without consideration; grant and impose upon trust real property, conditions, covenants, easements, restrictions, rights of way, and other servitudes; borrow against trust real property; and do other acts as may appear to the Trustee advisable in connection with the exercise of any of the powers described in this section.

(m) Receive additions to the Trust from any source at any time.

(n) Borrow money for any trust purpose on such terms and conditions as the Trustee deems advisable and obligate the Trust to repay the borrowing.

(o) Employ attorneys, investment counsel, accountants, bookkeepers, investment advisors, or other persons to render services regarding all matters pertaining to the Trust, and pay from trust property the reasonable compensation of such persons for their services. The Trustee shall have the authority to appoint an investment manager or managers to manage all or any part of the assets of the Trust, and to delegate to said manager investment discretion. Such appointment shall include the power to acquire and dispose of such assets. The Trustee may charge the compensation of such attorneys, investment counsel, accountants, bookkeepers, investment advisors, investment managers, specialists, and other agents and any other expenses against the Trust.

(p) Take whatever other actions may be necessary to carry out the intent of the Trustor.

8.2 Trustee's Self-Dealing. The Trustee may, as an individual or as Trustee of another trust and not in the capacity of Trustee of a trust under this Instrument, including any Trustee or successor Trustee (including himself or herself in that capacity) under this Instrument, buy or lease property from the Trust at not less than the fair market value of the property; exchange property for trust property of equal value; sell or lease property to the Trust at not more than its fair market value; lend funds to or borrow funds from the Trust at the then-current rate of interest; and receive from any corporation or business in which the Trust has an interest a salary and reimbursement of all expenses as an officer or director.

8.3 Combining Multi-Trust Property. Each trust created under this Instrument shall constitute a separate trust and be administered accordingly; however, the assets of all of the trusts may be combined for bookkeeping purposes and held for the trust beneficiaries without physical division into separate trusts until time of distribution.

8.4 Spendthrift Clause. To the maximum extent permitted by law, after the death of both Trustors, the interests of each trust beneficiary under this Instrument are not transferable by voluntary or involuntary assignment or by operation of law and shall be free from the claims of creditors and from attachment, execution, bankruptcy, and other legal process. Upon the occurrence of any such attempted transfer by or against a trust beneficiary, all further trust payments of income or principal or both to that beneficiary (and any right of that beneficiary to such payments) shall be suspended for a period of time or indefinitely (but in no case for longer than the term of the Trust) and the Trustee may apply so much of the trust income or principal or both to which the beneficiary would otherwise be entitled as the Trustee deems necessary for the beneficiary's support, care, maintenance, and education. All trust income (to which the beneficiary would otherwise be entitled) not so applied shall in the discretion of the Trustee be accumulated and added to trust principal at such time or times as the Trustee deems proper.

8.5 Division or Distribution in Cash or in Kind. The Trustee, in order to satisfy a pecuniary gift or to distribute or divide trust assets in kind, may distribute or divide undivided interests in such assets, or sell all or any part of such assets and distribute or divide the property in cash, in kind, or partly in cash and partly in kind. Property distributed to satisfy a pecuniary gift under this Instrument shall be valued at its fair market value at this time of distribution.

8.6 Payments on Behalf of Minors or Persons Under Disability. If at any time any beneficiary is a minor or it appears to the Trustee that any beneficiary is disabled, incompetent, or for any other reason not able to receive payments or make intelligent or responsible use of the payments, then the Trustee, in lieu of making direct payments to the beneficiary, may make payments to the beneficiary's conservator or guardian; to the beneficiary's custodian under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act of any state; to one or more suitable persons as the Trustee deems proper, such as a relative of the beneficiary or a person residing with the beneficiary, to be used for the beneficiary's benefit; to any other person, firm or agency for services rendered or to be rendered for the beneficiary's assistance or benefit; or to accounts in the beneficiary's name with financial institutions. The receipt of payments by any of the foregoing shall constitute a sufficient acquittance of the Trustee for all purposes.

8.7 Trustee's Duty to Account. While both Trustors are living, the Trustors-Trustee shall not be required to account to any person. However, a successor Trustee shall be required to render periodic accounts to the Trustor upon demand, and if the Trustor is deceased or incapacitated, to the remaindermen of the Trust not less than biannually after any prior accounting, or upon termination of the Trust or upon a change of Trustee(s), in the manner required by law.

Accountings shall be made by delivering a written account to each beneficiary entitled to current income distribution, or if there are no current income beneficiaries, to each beneficiary entitled to current distribution from income or principal in the Trustee's discretion. If any person entitled to receive an accounting is a minor or is under a disability, the accounting shall be delivered to the parents or guardians of that person if he or she is a minor or to any conservator of that person if he or she is under a disability. Unless any beneficiary, including parents, guardians and conservators of beneficiaries shall deliver a written objection to the Trustee within ninety (90) days after receipt of the Trustee's accounting, the accounting shall be final and conclusive in respect to the transactions disclosed in the account as to all beneficiaries of the Trust, including unborn and unascertained beneficiaries. After settlement of the account by agreement of the parties objecting to it, or by expiration of the ninety (90) day period, the Trustee shall no longer be liable to any beneficiary of the Trust, including unborn and unascertained beneficiaries, in respect to transactions disclosed in the account, except for the Trustee's intentional wrongdoing or fraud.

8.8 Duty to Convert Non-Productive Property Upon Direction. Except as otherwise provided in this Section 8.8, in addition to the powers granted under this Instrument, (1) the Trustee may retain, purchase, or otherwise acquire unproductive or underproductive property; and (2) California Probate §16311 shall not apply to any trust under this Instrument. However, if, after the death of the Trustors-Trustee, the Trustee in the Trustee's reasonable discretion may convert unproductive property into income-producing property.

8.9 Written Notice to Trustee. Until the Trustee receives written notice of any death or other event upon which the right to payments from any trust hereunder may depend, the Trustee shall incur no liability for disbursements made in good faith to persons whose interests may have been affected by that event. Any notices or other communication required or permitted by this Instrument to be delivered to or served on the Trustee shall be deemed received by the Trustee when personally delivered to the Trustee, or, in lieu of such personal delivery, when deposited in the United States mail, certified mail with postage prepaid, addressed to the Trustee at the Trustee's residence or place of business.

8.10 Employment of Agents. The Trustee is empowered to employ attorneys, investment counsel, accountants, bookkeepers, or other persons to render services for the Trustee or in the Trustee's behalf with respect to all matters pertaining to any trust provided for in this Instrument and to pay from the Trust Estate the reasonable fees and compensation of such persons for their services, these fees and compensation to be paid in addition to any fees paid to the Trustee.

8.11 Authority to Deputize. The Trustor may deputize any successor Trustee as an additional signature, to act alone, on any checking account or savings account transferred to the Trust.

8.12 Reasonable Return. The Trustee's power to retain and invest trust property is subject to the condition that the return from all investments in the aggregate is reasonable in light of the circumstances existing at the pertinent time.

8.13 Power to Invest and Retain Trust Property. In investing, reinvesting, purchasing, acquiring, exchanging, and selling trust property the Trustee shall act with the care, skill, prudence, and diligence, under the circumstances then prevailing, including but not limited to the general economic conditions and the anticipated needs of the Trust and its beneficiaries, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims, to accomplish the purpose of the Trust as determined from this Instrument.

8.14 Trustee's Power to Continue Business. The Trustee may retain, manage, and operate any property, business, or enterprise (including a sole proprietorship or interest in a general or limited partnership or corporation) received, acquired, or held as trust property, and pursuant to this, Trustee may incorporate, dissolve, or otherwise change the organization of the business or enterprise, or sell or liquidate any business at any time and subject to the terms and conditions that the Trustee deems advisable.

ARTICLE NINE
CONCLUDING PROVISIONS

9.1 Perpetuities Saving Clause. Unless sooner terminated, each trust created by this Instrument shall terminate twenty-one (21) years after the death of the last to die of the Trustors' issue who are living at the death of the Trustor. If the Trust is terminated because of the preceding sentence, all remaining principal shall vest in the persons who are then entitled or eligible to receive trust income in the same proportions as they are then entitled to receive trust income (or if there are no such persons, outright in a manner that the Trustee believes will give effect to the Trustor's intent in creating the Trust). The Trustee may, in the Trustee's sole discretion, defer distribution to said persons until he or she attains or would have attained the age of twenty-one (21) years.

9.2 Period of Survivorship. For the purpose of this Instrument, a beneficiary shall not be deemed to have survived the Trustor if that Beneficiary dies within thirty (30) days after the Trustor's death.

9.3 Severability Clause. If any provision of this Instrument is invalid, that provision shall be disregarded and shall not affect any of the other provisions.

9.4 Captions. The captions appearing in this Instrument are for convenience of reference only and shall have no significance in the construction or interpretation of this Instrument.

9.5 Definition of Heirs. Any reference to “heirs” in the dispositive provisions of this instrument, shall be construed as referring to those persons who are entitled to the decedent's property under the law of intestate succession in effect at the time of execution of this Instrument.

9.6 Definitions of Issue, Child, and Children. The terms “issue,” “child,” and “children,” when used in the dispositive provisions of this Instrument, shall be given the meanings accorded those terms in Part 2 of Division 1 of the California Probate Code in effect at the time of the execution of this Instrument.

9.7 Definition of Incompetent. For the purposes under this Instrument, a person shall be deemed “incompetent” if and so long as a conservator of his or her person or estate duly appointed by a court of competent jurisdiction is serving, or upon certification by two physicians (licensed to practice under the laws of the state where the person is domiciled) that the person is unable properly to care for himself or herself, for his or her person, or for his or her property.

9.8 Definition of Education. As used in this Instrument, the term “education” refers to the following:

(a) Education at public or private elementary, junior high, middle, or high schools, including boarding schools;

(b) Undergraduate, graduate, and postgraduate study in any field, whether or not of a professional character, in colleges, universities, or other institutions of higher learning.

(c) Specialized, formal, or informal training in music, the stage, the handicrafts, or the arts, whether by private instruction or otherwise; and

(d) Formal or informal vocational, technical or remedial training, whether through programs or institutions devoted solely to vocational or technical training, or otherwise.

9.9 Definition of Death Taxes, Debts, and Expenses. As used in this Instrument, the term “death taxes, debts, and expenses” shall include the following:

(a) All estate, inheritance, succession, and similar taxes (including any interest and penalties) that become payable by reason of the Trustor's death or by any person on account of that person's interest in the Trustor's estate, but excluding federal or state tax imposed on any “generation-skipping transfer;”

(b) All costs, expenses of litigation, counsel fees, or other charges that the Trustee incurs in connection with the determination of the amount of the taxes, interest, or penalties referred to in subparagraph (a) of this paragraph; and

9.10 California Trust Law to Apply. California law shall govern the validity, interpretation, and administration of any trust created under this Instrument, regardless of the domicile of any Trustee or beneficiary.

ARTICLE TEN
NO-CONTEST PROVISION

10.1 No-Contest Provision. If any beneficiary or beneficiaries of this Trust Instrument, or any heir of either Trustor or anyone claiming thereunder, shall contest this Trust Instrument or in any manner attempt to have this Trust Instrument or any of the trusts or beneficial interests, or any part created by it declared invalid, such person or persons shall receive no benefits from, or interests under, this Trust Instrument, and the trusts herein established shall be administered and distributed as if such person or persons had died before the Trustors; provided, however, that nothing in this Section shall apply to the Trustors. The Trustee is hereby authorized to defend, at the expense of the trusts, any contest or other attacks of any nature on these trusts or any of their provisions.

ARTICLE ELEVEN
EXECUTION

11.1 Duplicate Original of Trust. This trust Instrument has been prepared in duplicate. Each copy of the Trust Instrument is an ORIGINAL TRUST INSTRUMENT. One Trust Instrument has been bound in a blue backing and is called the “Blue Back Original.” The duplicate original is loose-leaf. Either duplicate Trust Instrument may be admitted to court, or used for any other trust purpose without the production of the other. The production of one Trust Instrument without the other shall be prima facie evidence that the Trust is in full force and effect, unless the Trust Instrument is specifically revoked by the Trustors in a written instrument which expressly indicates an intent to revoke the Trust Instrument. In the event the loose-leaf original Trust Instrument is damaged, worn, has any page(s) missing or is questioned, then the Blue Bound Original shall prevail in any dispute as to the content of the trust provisions.

11.2 Execution. I hereby certify that I have read the foregoing trust declaration and that it correctly states the terms and conditions under which the Trust Estate is to be held, managed, and disposed of by the Trustee. I approve of the trust declaration in all particulars, and as the Trustee named in the trust declaration, accept the trusts provided for in the declaration.

11.3 Executed on this ____ day of __________________ in the County of Los Angeles, California.

______________________________________________
__________________ Trustor/Trustee

SCHEDULE “A”
Schedule of Property Assets

Description Location of
of Asset Asset
CP of SP Dated
Added/Deleted

1. Single Family
Residence
Community March 2, 2004
Property

10.

11.

12.

13.

14.

15.

16.