Trust Deed A Trust Deed is a legal document that creates a trust and defines its terms, including the trust's purpose, trustee's duties, and distribution of trust assets to beneficiaries.
This trust deed ("Trust Deed") is made this ____ day of ____, 20__, by and between John and Sarah Johnson (the "Settlors") and (the "Trustee").
The trust established by this Trust Deed shall be known as the "Johnson Family Trust" (the "Trust").
The purpose of the Trust is to provide for the financial well-being and security of the beneficiaries who are the family members of the Settlors. The Trust shall manage and distribute assets for the benefit of the beneficiaries, including financial support for education, healthcare, and general living expenses. The Trust aims to safeguard and prudently grow the family's wealth, ensuring its availability for future generations, and to fulfill the objectives and provisions outlined in this Trust Deed.
The Settlors hereby transfer, assign, and deliver to the Trustee certain assets, which shall be held, managed, and distributed by the Trustee in accordance with the terms and conditions of this Trust Deed (the "Trust Assets"). The Trust Assets may be added to or reduced from time to time at the discretion of the Settlors or the Trustee, subject to the terms of this Trust Deed.
The beneficiaries of the Trust shall be the family members of the Settlors, as specified in Schedule A attached hereto, and any other individuals who the Settlors or the Trustee may designate in writing from time to time in accordance with the terms and conditions of this Trust Deed (the "Beneficiaries").
5.1. General Powers and Duties
The Trustee shall have all powers necessary to accomplish the objectives and purposes for which the Trust is established, as set forth in this Trust Deed, including, but not limited to, the following:
5.1.1. To invest the Trust Assets in a manner consistent with the purposes of the Trust, the preservation of capital, and the objective of producing income for the Beneficiaries;
5.1.2. To sell, transfer, exchange, or otherwise dispose of the Trust Assets in accordance with the provisions of this Trust Deed;
5.1.3. To distribute Trust Assets or income therefrom to the Beneficiaries, in accordance with the terms of this Trust Deed;
5.1.4. To perform all other acts necessary or appropriate to carry out the objectives and purposes of the Trust, including the engagement of professional advisors and the maintenance of books and records;
5.2. Standard of Care
In exercising the powers conferred by this Trust Deed, the Trustee shall act with the care, skill, prudence, and diligence that a prudent person acting in a similar capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.
6.1. Investment Policy
Subject to the provisions of this Trust Deed, the Trustee shall develop, implement, and maintain an investment policy that is designed to achieve the investment objectives of the Trust while adhering to the principles of diversification, risk management, and preservation of capital.
6.2. Reporting and Review
The Trustee shall at least annually (or more frequently as required by applicable law) provide the Beneficiaries with a written report on the status and performance of the Trust Assets, including a detailed account of all investment transactions, income earned, and distributions made.
The Trustee shall, in its discretion and subject to the provisions of this Trust Deed, distribute income and/or principal of the Trust Assets to the Beneficiaries for their education, healthcare, and general living expenses, and shall consider the individual needs, circumstances, and best interests of each Beneficiary.
This Trust Deed shall be governed by and construed in accordance with the laws of the United States and the state in which the Trust is administered, without regard to its conflicts of law provisions.
This Trust Deed may be amended by a written instrument executed by the Settlors and the Trustee, provided such amendment is consistent with the purposes of the Trust and does not impair the rights of any Beneficiary.
This Trust may be terminated by the written agreement of the Settlors and the Trustee, provided that all Trust Assets have been distributed to the Beneficiaries or otherwise disposed of in accordance with the provisions of this Trust Deed.
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In this Trust Deed, you will see the following sections:
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