Free Trust Termination Agreement Creator - Create Online



Trust Termination Agreement template
Trust Termination Agreement sample


What is Trust Termination Agreement?

Trust Termination Agreement A Trust Termination Agreement formalizes the termination of a trust, specifying the trust's assets' distribution, trustee's responsibilities, and termination conditions.



Sample template:



Trust Termination Agreement


This Trust Termination Agreement (the "Agreement") is entered into and effective as of [date] (the "Effective Date") by and between the parties:

1) [Trustee's Full Name], residing at [Address] (the "Trustee");

and

2) [Beneficiary's Full Name], residing at [Address] (the "Beneficiary");

(collectively, the "Parties")

1. Background

1.1. Existing Trust


WHEREAS, the Liberty Legacy Trust, a revocable living trust, was created and established under the laws of [state], on [Trust Creation Date] (the "Trust"), with the purpose of managing and distributing certain assets (the "Trust Assets") for the benefit of the Beneficiary;



1.2. Termination


WHEREAS, the Parties desire to terminate the Trust and distribute the Trust Assets, in accordance with the terms and conditions outlined in this Agreement;



NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:



2. Termination of the Trust

2.1. Termination of Trust


Subject to the terms and conditions of this Agreement, the Trust shall be terminated, and the Trustee shall be released from any further duties, liabilities, or obligations associated with the Trust, as of the Effective Date.



3. Distribution of Trust Assets

3.1. Distribution of Assets


Within thirty (30) days following the Effective Date, the Trustee shall distribute all Trust Assets directly to the Beneficiary or as otherwise directed by the Beneficiary, in writing.



3.2. Acceptance and Receipt of Assets


Upon receipt of the Trust Assets, the Beneficiary shall fully and unconditionally accept and assume all rights, title, and interest in and to the Trust Assets, free and clear of any and all restrictions, obligations, or liabilities arising from or relating to the Trust Assets prior to the Effective Date.



3.3. Satisfaction of Liabilities and Taxes


The Beneficiary acknowledges and agrees to satisfy any and all liabilities, including but not limited to taxes, arising from or relating to the receipt of the Trust Assets. The Beneficiary agrees to indemnify, defend, and hold the Trustee harmless from and against any claims, losses, or expenses, including reasonable attorney fees, arising from or relating to any such liabilities.



4. Trustee's Duties, Resignation, and Discharge

4.1. Trustee's Duties


Until the distribution of Trust Assets to the Beneficiary, the Trustee shall continue performing the duties required by the Trust.



4.2. Resignation and Discharge


Upon the distribution of the Trust Assets to the Beneficiary, the Trustee shall be deemed to have resigned and been fully discharged from all duties, liabilities, and obligations arising from or relating to the Trust, including, but not limited to, any accounting, reporting, or informational requirements.



5. Representations and Warranties

5.1. Trustee Representations


The Trustee represents and warrants that he/she has the full right, power, and authority to enter into this Agreement and perform his/her obligations hereunder, and that the execution and delivery of this Agreement will not violate the terms of any other agreement to which the Trustee is a party.



5.2. Beneficiary Representations


The Beneficiary represents and warrants that he/she has the full right, power, and authority to enter into this Agreement and perform his/her obligations hereunder, and that the execution and delivery of this Agreement will not violate the terms of any other agreement to which the Beneficiary is a party.



6. Governing Law and Dispute Resolution

6.1. Governing Law


This Agreement shall be governed by and construed in accordance with the laws of the United States and the [state] state, without giving effect to any conflict of laws principles.



6.2. Dispute Resolution


Any dispute, claim, or controversy arising out of or relating to this Agreement, or the breach, termination, enforcement, interpretation, or validity thereof, shall be determined by arbitration in the [state] state, before a single arbitrator. The arbitration shall be administered by the American Arbitration Association ("AAA") in accordance with its Commercial Arbitration Rules. Judgment on the arbitral award may be entered in any court having jurisdiction thereof.



7. Miscellaneous

7.1. Entire Agreement


This Agreement constitutes the entire understanding and agreement of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements or understandings between the Parties, whether written or oral, with respect thereto.



7.2. Amendments


This Agreement may only be amended, modified, or supplemented by written agreement signed by all Parties.



7.3. Binding Effect


This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.



7.4. Counterparts


This Agreement may be executed in counterparts and by facsimile or electronic signature, with the same force and effect as if the Parties had executed the same instrument.



IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

____________________________ ____________________________
[Trustee's Full Name] [Beneficiary's Full Name]
Trustee Beneficiary

Ready to proceed?


Create your Trust Termination Agreement




Sections of a Trust Termination Agreement


In this Trust Termination Agreement, you will see the following sections:

  1. Background
  2. Termination of the Trust
  3. Distribution of Trust Assets
  4. Trustee's Duties, Resignation, and Discharge
  5. Representations and Warranties
  6. Governing Law and Dispute Resolution
  7. Miscellaneous


Going indepth - Analysis of each section:

  1. Background : This section provides an introduction to the agreement, stating the purpose of the trust and the parties involved. It also explains that the parties wish to terminate the trust and distribute its assets according to the terms of the agreement.

  2. Termination of the Trust : This section states that the trust will be terminated, and the trustee will be released from any further duties, liabilities, or obligations associated with the trust as of the effective date of the agreement.

  3. Distribution of Trust Assets : This section outlines the process for distributing the trust assets to the beneficiary, including the timeline and the beneficiary's acceptance of the assets. It also addresses the beneficiary's responsibility for any liabilities or taxes related to the trust assets.

  4. Trustee's Duties, Resignation, and Discharge : This section explains that the trustee will continue performing their duties until the trust assets are distributed to the beneficiary. Once the assets are distributed, the trustee is considered to have resigned and is discharged from all duties, liabilities, and obligations related to the trust.

  5. Representations and Warranties : This section contains statements made by both the trustee and the beneficiary, asserting that they have the authority to enter into the agreement and that doing so will not violate any other agreements they are a part of.

  6. Governing Law and Dispute Resolution : This section specifies that the agreement will be governed by the laws of a particular state and that any disputes arising from the agreement will be resolved through arbitration in that state.

  7. Miscellaneous : This section includes various standard clauses, such as the entire agreement clause, which states that the agreement represents the entire understanding between the parties, and the binding effect clause, which states that the agreement is binding on the parties and their successors and assigns. It also covers amendments, counterparts, and execution of the agreement.

Ready to get started?

Create your Trust Termination Agreement now