Newland & Associates, PLC

Sample Revocable Living Trust

JOHN Q. WANNABE

REVOCABLE LIVING TRUST

Table of Contents

ARTICLE I :    SUCCESSOR CO-TRUSTEES                                                            

ARTICLE II:   TRANSFER OF PROPERTY AND BENEFICIARIES                        

ARTICLE IIIRIGHTS RESERVED BY GRANTOR (CREATOR)                            

ARTICLE IV:  INSURANCE PROVISIONS                                                                  

ARTICLE V  DISTRIBUTION OF INCOME AND PRINCIPAL OF TRUST ESTATE DURING GRANTOR'S LIFETIME                           

ARTICLE VI : DISTRIBUTION OF INCOME AND PRINCIPAL OF TRUST ESTATE SUBSEQUENT TO GRANTOR'S DEATH                                                                                                     

A.  MARITAL TRUST

B.  FAMILY TRUST           

C.  DISTRIBUTIONS AT DEATH OF GRANTOR=S SPOUSE AND MOTHER 

ARTICLE VII:    ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

ARTICLE VIII:  TRUSTEE'S POWERS                                                                                      

SIGNATURE PAGE                                                                                

SCHEDULES OF PROPERTY

Schedule A Property

Schedule B Insurance


JOHN Q. WANNABE

REVOCABLE LIVING TRUST AGREEMENT

AGREEMENT made April 10, 2006, between JOHN Q. WANNABE of Manassas, Prince William County, Virginia (the creator of the Trust who is sometimes called the AGrantor,@ hereafter), and JOHN Q. WANNABE of Manassas, Prince William County, Virginia (hereafter sometimes called ATrustee@). 

I.                SUCCESSOR CO-TRUSTEES

The term ATrustee@ as used in this Trust means one or more Trustees as well as any Successor Trustee and Successor Co-Trustees.

A. Successors; Death of Grantor

In the event of the death, resignation, removal, or incapacity of the Grantor, JOHN Q. WANNABE, then his wife, MARY A. WANNABE and his brother, TED WANNABE, shall serve as Successor Co-Trustees. In the event of the death, incapacity, resignation, refusal, removal, or inability of either of the above-named Successor Co-Trustees to serve, then the Grantor=s sister-in-law, JANE SMITH, shall serve as a Successor Co-Trustee. 

In the event of the death, incapacity, resignation, removal, or inability of both the Grantor=s wife and either TED WANNABE or JANE SMITH to serve as Successor Co-Trustees, then the Grantor=s brother or sister-in-law may serve as the Sole Successor Trustee. In the event that both TED WANNABE and JANE SMITH cannot serve as Successor Trustees, then a bank or trust company shall be appointed to act as a Successor Co-Trustee with the Grantor=s wife. In the event that all three of the individuals named above cannot serve as Successor Co-Trustees, then the bank or trust company shall serve as the Sole Successor Trustee.

B. Delegation of Trustee=s Duties

To the extent that the Grantor=s spouse is serving as a Co-Trustee, the Co-Trustees shall not delegate to the Grantor=s spouse sole authority to make any discretionary distributions of income or principal from the Family Trust.

C. Removal of Trustee by Grantor

The Grantor reserves the right to remove any Trustee, Trustees, or Successor Co-Trustees.

D. Responsibility of Trustee

A Successor Trustee shall become responsible for the Trust Estate only when the same has been received by it. No Successor Trustee shall be responsible for any act or omission of any prior Trustee, nor shall any Successor Trustee be under a duty to take any proceedings against any prior Trustee for an act or omission of any prior Trustee. In determining what assets constitute the Trust Estate, the Successor Trustee shall be responsible only for the making of reasonable inquiry from records of the prior Trustee.

E. Annual Statements by Successor Trustee

The Successor Trustee agrees to furnish annual statements to the beneficiaries receiving distributions, showing all receipts and disbursements during the period covered, and to submit annually a statement of the assets of the Trust. Any additional reports or statements to be provided to the beneficiaries shall be in the sole discretion of the Trustee. Grantor intends this provision to control over any provision of law that may require that additional, more frequent, or more detailed reports or statements be provided to any person.

F.  Resignation of Trustee(s)

Any Trustee shall have the right to resign, and if a Successor is not named in this Trust, the Grantor shall appoint a Successor Trustee.  In the event of the death of the Grantor, or failure or inability of the Grantor to name a Successor, then the Trustee shall deliver notice by certified mail, at least thirty (30) days prior to the effective date of such resignation, to each of the known then-living beneficiaries of the Trust to, or for, whom income or principal may currently be paid or used, or their guardians, addressed to the last known address of such persons as disclosed by the Trustee's records.  Within twenty (20) days after the delivery or mailing of such notice of resignation, a majority of the adult beneficiaries and guardians shall select a Successor Trustee and shall in writing, signed by a majority of the adult beneficiaries or guardians, inform the Trus­tee of the identity of the selected Successor Trustee.  If a majority of the adult beneficiaries and guardians fails to select a Successor Trustee within the twenty (20)-day period, the resigning Trustee shall select a Successor Trustee. The Trustee shall, upon the effective date of the resignation, deliver to the Successor Trustee and each beneficiary of the Trust a statement of the last two years' receipts and disbursements, together with an inventory of the assets belonging to the Trust.

II.                TRANSFER OF PROPERTY AND BENEFICIARIES

A. Assets Transferred

The Grantor has transferred to the Trus­t the property described on Schedule AA@ attached hereto and made a part of this Trust.  Later, other property, real or personal, may be transferred, during life or by Will, to the Trust by the Grantor or by someone acting on his behalf.  If additional property is transferred to the Trust, it should be listed on the attached Schedule which is for reference only.  All property transferred to this Trust formally or informally, whether or not listed on the attached Schedules, shall also be part of the Trust.

All property transferred to the Trust formally or informally, together with the investments and reinvestments, con­stituting additions to the principal of the Trust, and the income therefrom, is sometimes hereafter collectively designated the ATrust Estate.@ All property transferred to or deposited with the Trustee shall be held by it in trust for the uses and purposes stated here­after.

B.  Beneficiaries

In addition to the Grantor, the primary beneficiaries of this Trust, their birth dates and relationships to the Grantor, are as follows:

         NAME                                        RELATIONSHIP                      DATE OF BIRTH 

MARY A. WANNABE                                      Wife                            November 14, 1968

JUSTIN T. WANNABE                                       Son                            July 8, 1995

ASHLEY Z. WANNABE                                    Daughter                      May 5, 1998

III.                RIGHTS RESERVED BY GRANTOR (CREATOR)

The Grantor reserves the following rights during his lifetime:

A.  Right to Change Trust

The right to change, amend or alter any of the terms or provisions of this Trust Agreement at any time.  All changes, amendments or alterations must be written and will not become effective until signed by the Trus­tee.

B.  Right to Terminate

The right to terminate this Trust Agreement, in whole or in part, at any time.  Any complete or partial termination shall become effective upon de­liv­er­y of no­tice in writing to the Trustee.

C.  Right to Withdraw Assets

The right to withdraw and return to the Grantor, all or any, part of the assets transferred to the Trust formally or infor­mally, whether or not listed on the Schedules attached.  The exercise of this right of withdrawal, in whole or in part, will become effective upon delivery of notice in writing to the Trustee.

IV.                INSURANCE PROVISIONS

A.  Policy Beneficiaries

The Grantor may make insurance policies payable to the Trust or the Trustee as primary or contingent beneficiary. Such beneficiary designations may also be amended or terminated by the Grantor.  A reference to a policy transferred or made payable to the Trust or the Trustee may be shown on Schedule AB@ attached.

B.  Payment of Premiums

The owner of the policies shall pay all premiums or assessments on them, and the Trustee shall be under no obligation to see that the premiums or assessments are paid.  The Trustee shall be under no obligation with respect to the policies, other than for their safekeeping, unless agreed otherwise.  Nothing contained in this Trust shall be interpreted as an obligation on the part of the owner or the Trustee to keep the policies in force.

C.  Ownership of Policies

The owner of the policies reserves all incidents of ownership in the insurance policies.  It is the intent of the Grantor that the Trust be operative with respect to the proceeds of the policies which are payable to the Trustee at the time of the death of the insured.

D.  Pledging and Assigning Policies

If the policy owner requests, the Trustee will join with the policy owner in executing instruments assigning or pledging any insurance policies subject hereto.  Upon the execution of such instruments by the Trustee, all of the rights and interest of such Trustee, and this Trust, will be and remain subject to the rights and in­ter­est of such assignee or pledgee.

E.  Collecting Policy Proceeds

Upon the death of the Grantor, the Trustee shall collect the proceeds of the policies payable to this Trust or the Trustee.  If necessary, the Trustee may institute legal proceed­ings to enforce the payment of the policies or do any other acts necessary to collect under the policies.  However, the Trustee shall not be required to maintain any litigation to enforce the payment of the policies until reasonably assured of reimbursement from the Trust against expenses and liabilities which may be associated with such litigation.  The Trustee is authorized to compromise and adjust claims arising out of the insurance policies and the decision of the Trustee shall be binding and conclusive upon all in­ter­est­ed persons and corporations.

V.                DISTRIBUTION OF INCOME AND PRINCIPAL OF 
TRUST ESTATE
DURING GRANTOR'S LIFETIME

 During the lifetime of the Grantor, the Trustee shall hold, administer and distribute the Trust income and principal as follows:

A.  Distribution of Income

The Trustee may accumulate all of the income from the assets transferred to the Trust or distribute all or any portion of the income from the Trust to the Grantor.  The Trustee may distribute income to third parties as determined by the Trustee or as directed by the Grantor.

B.  Distribution of Principal

Unless incapacitated, the Grantor may direct the Trus­tee to distribute any amount of prin­ci­pal to the Grantor or a third party.  This power can be exercised in such a manner that all of the assets may be taken from this Trust.

C.  Incapacity of Grantor

If the Grantor becomes incapacitated, the Successor Trustees described in this Trust shall become active in the order and capacity designated. The Successor Trustee may withdraw principal or income from the Trust for the Grantor's benefit or for the benefit of those individuals dependent upon the Grantor. Such withdrawals should be consistent with the value of the Trust and the mode of living to which the Grantor and the Grantor's dependents have been accustomed.

D.  Life Support Systems

In the event the Grantor is incapacitated or irreversibly comatose and is receiving life-prolonging medical treatment, the Successor Trustee shall consult with the health-care provider (physician or hospital staff members) as well as with any health care surrogate appointed by the Grantor under a health care power of attorney to determine if such measures should be continued. ALife-prolonging treatment@ as used herein means Amedication and artificially or technologically supplied respiration, nutrition, or hydration@ that prolongs the life of the Grantor. The Successor Trustee shall consult with the health-care provider and any health care surrogate appointed by the Grantor under a health care power of attorney to determine whether the benefits of continued treatment outweigh the burdens of such treatment and are consistent with any Medical Directive given by the Grantor.

It is the desire of the Grantor that life-prolonging treatment not be continued for an unreasonable period when it is clear that the condition of the Grantor will not improve and the treatment merely prolongs the Grantor's life without dignity. The Grantor may execute a separate Health Care Power of Attorney or a Medical Directive or Living Will, or other similar document regarding the Grantor=s wishes concerning medical treatment under such circumstances. If the choices made in such document(s) or by a health care surrogate acting under a Health Care Power of Attorney are inconsistent with this provision of this Trust, then the directions made in those other document(s) or by such persons shall prevail.

VI. DISTRIBUTION OF INCOME AND PRINCIPAL OF
TRUST ESTATE SUBSEQUENT TO GRANTOR'S DEATH

Upon the death of the Grantor, if the Grantor's spouse is surviving and if there is a possibility that the Grantor's estate will incur Federal estate taxes, the Trustee will divide the assets of this Trust into two parts, sometimes called the AMarital Trust@ and the AFamily Trust.@ The amounts of assets allocated to the two Trust portions will be made using a formula in the Marital Trust provisions referred to as a Areduce to zero formula.@ AReduce to zero@ means to fund the Marital Trust with the smallest amount of property necessary to claim a marital deduction in an amount that, when subtracted from the decedent's taxable estate, will leave a remainder which is subject to no or Azero@ Federal estate tax.

A.  Marital Trust

(1)       Reduce to Zero Formula

If the Grantor's wife, MARY A. WANNABE, survives the Grantor, the Trustee will set aside in the AMarital Trust@ the following:

(a)       The amount of Marital Deduction property needed to reduce the U.S. Federal estate tax on the Grantor's estate to zero, after taking into account all credits and deductions allowable against such tax; less

(b)       The aggregate value of all interests in property, if any, which pass to the Grantor's wife, or which have already passed to or for her benefit, other than through the provisions of this Marital Trust, but only to the extent that such interests are included in determining the Grantor's gross taxable estate and qualify for a Marital Deduction for Federal estate tax purposes.

(2)       Selection of Assets for Marital Trust

The Trustee will have the power and the sole discretion to fund this Trust wholly or partly in cash or in kind and to select the assets which shall constitute this Trust. The assets selected shall be valued as of the date they are assigned to the Marital Trust. The Trustee will not include in this Marital Trust any assets or the proceeds of any assets which do not qualify for the Marital Deduction for Federal estate tax purposes, and the Marital Trust shall be reduced to the extent it cannot be funded with such qualifying assets.  If the Trustee decides that it would be advantageous to do so and the Grantor=s spouse agrees, all, or part, of the Grantor=s personal residence, including all, or part, of the interest owned by the deceased Grantor may be allocated to the Marital Trust.

In addition, the Trustee shall not in­clude in the Marital Trust any assets or the proceeds of any assets (i) with respect to which any estate or death taxes are paid to any foreign country or any of its possessions or subdivisions, or (ii) with respect to which any tax credit or deduction is available because such assets or the proceeds thereof are subject to both Federal estate and income taxes (provided, however, that such assets or the proceeds thereof shall be allocated to this Trust to the extent that there are no other assets which may be al­lo­cated in sat­is­faction of the Areduce to zero formula@ stated above).  The exercise of the foregoing powers and discretion by the Trustee will not be subject to question by or on behalf of any beneficiary under this Trust, regardless of its effect upon the interest of such beneficiary.

(3)       Income from the Marital Trust

Commencing with the Grantor's death, the Trustee shall pay all the income from the Marital Trust in convenient installments, but not less frequently than quarter-annually, to the Grantor's wife, MARY A. WANNABE.

(4)       Principal of the Marital Trust

The Trustee is hereby authorized to advance to the Grantor's wife or expend for her benefit or for the benefit of any other person designated by her such portions of the principal of the Marital Trust as the Grantor's wife directs.  This power includes a partial or total withdrawal of principal. If the Grantor's wife is unable to ex­ercise this right by reason of physical or mental disabilities, the Trustee (other than the Grantor's wife) is hereby authorized to give to the Grantor's wife or to expend for her benefit, such portion of the principal of the Marital Trust (including the balance of the Marital Trust) as the Trustee, in its sole discretion, deems appropriate to suitably support and maintain the Grantor's wife. The intent is that she may continue to have the ad­vantages of the standard of living to which she was accustomed during the lifetime of the Grantor.

(5)       Marital Trust Disposed of by Wife's Will

The Grantor's wife shall have the right and authority to direct the disposition of the principal of this Marital Trust by her Will, regardless of the date the Will is executed.  She may give the Marital Trust to her estate or to such persons and in such manner as she selects; provided, however, that this power of appointment shall be exercisable only by specific reference to the power in her Will.

(6)       Failure to Dispose of Marital Trust Assets

If the Grantor's wife fails to exercise the testamentary power of disposition given her above, or only partially exercises such power of disposition, then after her death, the Trustee shall transfer to her Personal Representative (who may be a Successor Trustee) an amount equal to any additional estate, succession and other similar taxes imposed on her estate because of the existence of this power of disposition. The remaining balance of the Marital Trust will be added to the principal of the Family Trust.  If the Trustee receives no notice of the existence of a Will for the Grantor's wife within six months (6 months) after her death, the Trustee may proceed without liability as if there was no Will.

(7)       Simultaneous Death Provisions

If the Grantor's wife and the Grantor die under such cir­cumstances that the order of death cannot be determined, then for the purposes of this Trust Agreement, the Grantor's wife shall be presumed to have survived him.

B. Family Trust

Subject to the foregoing, all of the remainder of the Trust property will be allocated by the Trustee to the Family Trust for the following uses and purposes:

(1)       Income from Family Trust -- Sprinkle

During the lifetime of the Grantor's wife, MARY A. WANNABE, the Trustee may distribute to, or for the benefit of, the Grantor's wife and children so much of the net income from the Family Trust as the Trustee (other than the Grantor=s wife), in its sole discretion, deems necessary for the following purposes. To the extent that the funds in the Trust Estate are considered by the Trustee to be sufficient for such purposes, the Trustee may distribute funds to allow MARY A. WANNABE or a child of the Grantor to:

Provided, however, that any such payments, other than pay­ments for the education of any beneficiary, shall be deducted from such beneficiary's proportionate share, if any, of the Trust Estate. 

If the Trustee is serving as a sole Trustee and is also a beneficiary or potential beneficiary of the Trust, the Trustee may distribute to, or for the benefit of, the Grantor=s wife and children, only so much of the net income from the Family Trust as the Trustee deems necessary for the health, support, maintenance, and education of the Grantor=s wife and children.

Trust income shall be distributed quarter-annually or more frequently. Any net income not distributed at the Trust=s year end shall be added to the principal of the Trust.

(2)       Principal of Family Trust - Sprinkle

During the lifetime of the Grantor's wife, MARY A. WANNABE, if the income from the Family Trust, together with the receipts from other sources known to the Trustee, shall be insufficient for the health, support, maintenance, and education of the Grantor's wife and children, then the Trustee (other than the Grantor's wife) is authorized to pay to the Grantor's wife, or for her benefit, and for the benefit of the Grantor=s children, so much of the principal of the Family Trust as may be deemed necessary for such purposes.

C. Distributions at Spouse=s Death

Upon the death of the Grantor's wife, MARY A. WANNABE, or upon the Grantor's death if she does not survive the Grantor, the assets of this Trust shall be held, administered and distributed as follows.  

(1)       Division Into Shares

At the time the Grantor=s youngest surviving child becomes twenty-five (25) years of age, the Trustee shall divide the balance of the Family Trust into as many equal shares as there are children of the Grantor then living, and one share for the then-living issue (grandchildren of the Grantor) by right of representation of each deceased child of the Grantor. 

Each share shall be held, administered, and distributed according to the following guidance. In making the division of this Trust into separate shares for accounting purposes, the Trustee, in its sole discretion, is authorized to keep the Trust assets in one or more accounts without titling or retitling the Trust assets in separate accounts and to treat each share as having an undivided interest in the entire Trust.

(2)  Distribution Ages and Percentages

The following percentages of principal and accumulated interest of each share will then be distributed when the ages listed below are attained:

(a)       Fifty percent (50%) of any share held for a child of the Grantor shall be distributed on the date the Trust is divided into shares.

(b)       One hundred percent (100%) of the balance and accumulated income of any share held for a child of the Grantor shall be distributed when the child of the Grantor who is the beneficiary of that share becomes age thirty (30). 

Example:  If ASHLEY WANNABE is the youngest child of the Grantor when she attains age 25, each surviving child of the Grantor will receive at least fifty percent (50%) of his or her share in the Trust in the year 2023. JUSTIN WANNABE will receive the balance of his share in 2020 and ASHLEY WANNABE will receive the balance of her share in 2028.

(c)        Any share held for the children of a deceased child of the Grantor shall be distributed in accordance with the provisions set forth below.

(3)       Death of Child Before Receiving Full Share B No Issue

If any of the Grantor's children dies before receiving all of the share of the Trust he or she would have otherwise received, leaving no issue surviving, then, under such circumstances, all the remainder of that share shall be added to the Trust and distributed according to its provisions. If any of the shares of this Trust have expired through the passage of time, then the amount which would have been added to such expired share will go to the beneficiary thereof.  The portion added to any existing shares shall constitute principal, and the Trust conditions applicable shall govern the disposition of the principal and income.

(4)       Death of Child Before Receiving Full Share B With Issue

If any of the Grantor's children dies before he or she has received all of the Trust assets designated for such deceased child, leaving surviving issue (grandchildren of the Grantor), the remainder of that share shall be distributed to the issue of the deceased child by right of representation in accordance with the following provisions:

(a)       Share for Issue of Deceased Child (Grandchildren)

If any portion of the Trust becomes payable to any issue of a deceased child of the Grantor (grandchild) who has not yet become twenty-five (25) years of age, then the entire portion allocable to the deceased child shall be held as a sep­a­rate share until the youngest beneficiary (grandchild) of that share reaches age twenty-five (25). 

The Trustee shall retain such share for the benefit of such beneficiaries (grandchildren of the Grantor ) with all of the investment and administrative powers herein conferred upon the Trustee. The Trustee will pay to such beneficiaries, or on their behalf, so much of the net income and principal as the Trustee deems necessary for their health, support, maintenance and education, and will accumulate the remainder of the income, if any, and add it to the principal of such portion.

(b)  Distribution Ages and Percentages

At the time the youngest then-living beneficiary (grandchild) of a share attains age twenty-five (25), the Trustee shall divide the balance of that share into as many equal portions as there are issue of the deceased child then living.

The following percentages of principal and accumulated interest of each portion of a share will then be distributed when the ages listed below are attained:

(a)       Fifty percent (50%) of any portion of a share held for a grandchild of the Grantor shall be distributed on the date the deceased child=s share is divided into portions.

(b)       One hundred percent (100%) of the balance and accumulated income of any portion of a share held for a grandchild of the Grantor shall be distributed when the grandchild of the Grantor who is the beneficiary of that portion of a share becomes age 30. 

(c)       Death of all Beneficiaries (Grandchildren) of a Parti­cular Share

If all of the beneficiaries of a share die prior to the youngest beneficiary becoming age twenty-five (25), leaving no surviving issue, then the share for their benefit shall terminate, and all of the then remaining principal and undistributed income of such share shall be equally divided among and distributed to the Grantor's then surviving grandchild(ren). Provided, however, that if there then is in existence hereunder a sub-trust for any beneficiary, the sub-trust(s) being transferred shall be transferred and added to such sub-trust(s), and shall be held, managed and disposed of in the same manner as the share to which it is added.

(5)       Disaster Provisions B All Beneficiaries Dead

In the event that all the beneficiaries identified herein die prior to the distribution of all the assets, then the Trust shall terminate and all of the remainder of the Trust Estate shall be distributed as follows:

(a)       25% to The American Cancer Society; and

(b)       75% equally among the following persons (nieces and nephews of the Grantor and the Grantor=s husband) who are then surviving:

Helen Wannabe

Ellen Wannabe

Charlotte Smith

Larry Brown

Harry Brown

 Nieces and nephews of the Grantor and the Grantor=s husband born after the date of this Trust shall also be beneficiaries of this Trust.

VII.  ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

A. Minors

In the event that any of the beneficiaries herein are minors at the time of any distribution by the Trustee, the Trustee is hereby authorized to pay or deliver the same, either directly to the minor or to either parent of the minor, as natural guardian, without the necessity of any judicial appointment.  A receipt, in writing, by any such distributee, either guardian or minor, shall constitute a full and binding release of the Trustee.

B.  Rule Against Perpetuities (Trusts which exist too long)

In the event that any of the terms or provisions of this Trust continue beyond the period permitted by any applicable laws regulating restraints on alienation or prohibitions against perpetuities (or any other similar laws), such offending provi­sions or terms to the extent of their continuance beyond the lawful period, shall be null and void, but the remainder of the terms and provisions of the Trust shall remain valid and binding.  The undistributed portion of the Trust Estate held in violation of applicable laws shall immediately be distributed to the beneficiary of such portion.

C. Spend-Thrift Provisions (Prohibition against Sale of Inheritance)

Excluding the power of appointment under the marital trust provisions, nei­ther the principal of any Trust or sub-trust created hereby nor the income resulting therefrom, while in the hands of the Trustee, shall be subject to any voluntary or involuntary conveyance, transfer, or assignment, or be pledged as security for any debt of any beneficiary or other person, and shall not be subject to any claim of creditors of any such beneficiary or other person, through legal process or otherwise.  Any such attempted sale, anticipation, assignment or pledge of any of the funds or property held in any such Trust, or the income therefrom, by a beneficiary shall be null and void and shall not be recognized by the Trustee. It is the intention of the Grantor to place the rights of any beneficiary under this Trust in a spendthrift trust and to place absolute title to the property held in trust and the income therefrom in the Trustee, with power and authority to pay out the same only as authorized hereby.

D. Adopted Child

The terms "child," "grandchild," "issue," "heir," "descendant," "beneficiary," or other equivalent terms shall be construed to include adopted persons and their descendants.

E. Small Trust Termination

If the value of any Trust or any share of this Trust falls below the sum of Thirty Thousand Dollars ($30,000), and if the beneficiary or beneficiaries entitled to receive the income therefrom have attained their majority, the Trustee may terminate the Trust or share of this Trust. It is the intention of the Grantor that the Trustee not have the power to terminate the Trust or any share of this Trust, without court approval, on grounds of its value if the value of the Trust or share  to be terminated is greater than Thirty Thousand Dollars ($30,000). In the event of termination under this provision, the Trustee will pay the beneficiary or beneficiaries the entire corpus of the Trust or share.  In this event, any remainderman will not be considered as having a vested interest in the Trust Estate conveyed to the beneficiary or beneficiaries.

F. Taxes

Upon the death of the Grantor, if the Grantor is the second to die, and if the Grantor's estate shall be subject to Federal estate tax, the Trustee hereunder shall pay to the Personal Representative(s) of the Grantor's estate, from the Trust, an amount equal to the additional estate, inheritance, succession and other similar taxes, imposed by inclusion of the property in the Trust in the Grantor's gross estate for tax purposes.  Provided, however, that no such tax shall be paid from assets not subject to the Federal estate tax.

G.  Miscellaneous

Words used in the singular or neuter form are to be construed in the plural, masculine or feminine where applicable.  Section headings are for reference only.

H.  Applicable Law

The validity of this Trust and the meaning and effect of its dispositive provisions are to be governed by the laws of the State of Virginia. The administration of this Trust shall be governed by the law of the place of administration. Initially, the place of administration of this Trust is Virginia. The place of administration of this Trust may be changed as follows:

(a)       During the lifetime of the Grantor, so long as the Grantor is the Trustee, the place of administration shall be the state in which the Grantor maintains his or her primary residence unless the Grantor designates another location as the place of administration;

(b)       A Trustee other than the Grantor may change the place of administration as the Trustee deems appropriate.

VIII.  TRUSTEE'S POWERS

The Trustee has the following powers, in addition to and not in limitation of its common law and statutory powers, all of which may be exercised without application to any court (for prior or subsequent approval).

A. Maintaining and Selling Property

To retain all property in the form in which it was received by the Trustee without liability for any loss that may be incurred thereby.  To sell, at public or private sale, for cash or on credit, and upon such terms as it may deem proper, any property at any time held by it.  

B. Borrowing

To borrow money upon such terms and conditions as it may determine, from any person, firm or corporation, for the purpose of protecting, preserving or improving this Trust Estate; to execute promissory notes or other obligations for amounts so borrowed and to secure the payment of such amounts by mortgage or pledge of property in this Trust Estate.

C. Lending

    To make secured loans in such amounts, upon such terms, at such rates of interest, and to such persons, firms or corporations it deems advisable.

D. Real Property

To manage any real property held by it, in such manner as it determines.  This power includes the authority to repair and improve such property; to mortgage or re-mortgage such property in such amount, on such conditions, and at such rates of interest as it deems advisable; to make, renew or modify leases on such property for such rentals, and on such terms and for such periods without reference to the term of any Trust created hereunder, to abandon such property; to adjust boundaries, to erect or demolish buildings thereon; to convert for a different use; to dedicate for public use without compensation; to grant easements; to waive payment for property taken by right of eminent domain; to insure for any and all risks; to grant options; to partition; to enter into party wall contracts; and to insure or perfect title.

E. Investments

To invest and reinvest all funds available for investment and reinvestment in any kind of property, real or personal, including by way of illustration: bonds, interest in common trust funds established by the Trustee or any successor, stocks of any class, mortgages, agreements of sale and other investments in property as the Trustee shall deem proper and for the best interest of the Trust Estate.

F. Investment in Brokerage/Commodities

To buy, sell and trade in securities, commodities, futures, mutual funds, options and short sales on margin (hereafter "securities"), and for such purposes may maintain and operate a margin account with any broker and may pledge any securities held or purchased by it with such broker as security for loans or advances made to the Trustee.  In connection with the foregoing, the Trustee is authorized to hold any securities in the name of a nominee or in other forms without disclosure of the Trust so that title to the property may pass by delivery.

G. Manner of Holding Assets

To register any security or property in the name of a nominee, or in its own name, or to hold it unregistered, or in such form that title shall pass by delivery, but without thereby increasing or decreasing its liability as Trustee.

H. Voting

To vote, in person or by proxy, any equity interest held by this Trust; to participate in or con­sent to any voting trust, reorganization, dissolution, liquidation, merger or other action affecting any interest held by this Trust and to take any other action which it may deem advisable.

I. Claim Handling

To pay, extend, renew, modify or compromise upon such terms as it may determine, and upon such evidence as it may deem sufficient, any obligation or claim, including taxes, either in favor of or against this Trust Estate.

J. Bank Accounts

To establish such bank accounts, checking or savings, as the Trustee may deem proper, and to designate any person or persons to sign checks or make withdrawals from savings accounts.

K. Dealing with Grantor's Estate

To purchase for the Trust Estate any securities or other property belonging to the estate of the Grantor, and to loan to the personal representative of the Grantor's estate (whether or not the Trustee hereunder is at the same time a personal representative of the Grantor's estate) out of either the principal or the accumulated income of the said Trust Estate, such amounts as the Trustee may deem necessary or advisable to protect and conserve the assets of the Grantor's estate.  The Trustee shall not be liable for the losses suffered by the Trust Estate as a result of its exercise of these powers.

L. Payment of Trustee

To incur and pay from the Trust Estate and to charge against either income or principal thereof, all reasonable expenses in connection with the management of this Trust.  A Corporate Trustee, if there is one, may be paid the fees normally charged by it whether or not there are individual Co-Trustees. 

M. Continuance of Business

To carry on, as long as, and in such manner as, it sees fit, any business enterprise in which the Grantor owned any interest during his lifetime. This power includes the right to name or change officers, directors or employees; to expand, limit, alter, incorporate, merge, or reconstitute such business in any way it deems advisable; and to accept, in the absence of actual notice to the contrary, financial or other statements rendered by the managers of the business from time to time as to its conditions and operations. The Trustee shall in no way be liable for any loss resulting from such retention or continuance or from the operation of such business or the acts of its officers and directors, except where such loss is the result of the Trustee's misconduct or gross negligence.

N. General Power

To do all other acts which, in its sole judgment, may be necessary or appropriate for the proper or advantageous manage­ment, investment or disposition of any property included in this Trust Estate.

          IN WITNESS WHEREOF, JOHN Q. WANNABE, as Grantor and Trustee, has executed this instrument as of the day and year first above written.

WITNESSES:                                                SIGNATURE OF GRANTOR & TRUSTEE

 

_____________________________      _____________________________                                   

                                                                JOHN Q. WANNABE, Grantor

 

_____________________________      _____________________________

                                                                JOHN Q. WANNABE, Trustee


 STATE OF VIRGINIA                       )
                                                            )   SS:
PRINCE WILLIAM COUNTY            )

          On April 10, 2006 , before me, a Notary Public, personally appeared JOHN Q. WANNABE, to me known to be the person described in and who executed the fore­going instrument and acknowledged that he created the same as of April 10, 2006 , and executed the same as his free act and deed.

         Subscribed and sworn to before me on the above date. 

_____________________________________

Notary Public, State of Virginia

 My commission expires: 

                                    


JOHN Q. WANNABE  REVOCABLE LIVING TRUST

SCHEDULE OF PROPERTY and DESCRIPTION

SCHEDULE AA@

Part I B Real Estate

An undivided one-half interest in the real estate described as follows:

 (a)       A house at 12345 Somewhere Drive, Manassas, Virginia 20109         

Part II B Savings and Bank Accounts

(b)       An undivided one-half interest in various checking and savings accounts

Part III B Securities

 (c)        401(k) Plan

 (d)       Account at Mutual Funds R Us

 (e)       Various stocks


JOHN Q. WANNABE  REVOCABLE LIVING TRUST

SCHEDULE OF INSURANCE

 

SCHEDULE B

 

Insured and Owner, JOHN Q. WANNABE

COMPANY NAME                                POLICY NUMBER              AMOUNT

            Your Bet Your Life                                       00000001                                 $250,000

            ABC Life Insurance Company                         999999                                   $100,000




Copyright 1999-2006
By the law firm of Newland & Associates, PLC
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Manassas, VA 20110
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