Deed of irrevocable trust for the benefit of the children of the Donor
Date
_____________________________________________________________________________________________(hereinafter referred to as the Donor)
And
_____________________________________________________________________________________________
(hereinafter referred to as the .Trustee.)
WITNESSETH:
That the Donor, in consideration of the agreements and undertakings hereinafter made by the Trustee and other valuable consideration, does hereby irrevocably assign, transfer and set over unto the Trustee and his successors the property set forth in Schedule .A. attached hereto, and the Trustee is hereby authorized to and agrees that he will receive and hold such property and, subject to Article IV hereof, such additional property as may be transferred, assigned or bequeathed to the Trustee by any other person or organization, as donor hereto, to become a part of the trust fund created hereunder, and all investments and re-investments thereof and income therefrom for the following uses and trusts.
Article I
The Trustee shall invest and hold the principal and any undistributed income of the trust and apply or pay to or for the benefit of the children of the Donor (as such term is hereinafter defined, and including children of the Donor now in existence or hereafter born) so much of the principal and income therefrom (in equal or unequal shares or amounts) as shall in the absolute judgment and uncontrolled discretion of the Trustee be deemed wise and expedient and in the best interests of any or all of such children of the Donor.
Article II
(A) The trust will terminate upon the later on the following events:
a. When there shall be no living child or the Donor who has not attained the age of................. years, or
b. When there shall be no living child of the Donor, or
c. Upon termination by the Trustee pursuant to Paragraph (C) below of this Article II.
(B) Upon the termination of this trust, if there are then surviving issue of the Donor. the entire trust fund, including all accrued, accumulated and undistributed income thereof shall be divided into as many shares as there are children of the Donor then surviving and deceased children of the Donor leaving issue then surviving. One such share shall be distributed to each of the children of the Donor then surviving, and one such share shall be distributed, per stirpes to the then surviving issue of each then deceased child of the Donor. If, upon termination of this trust, there are no then living issue of the Donor, the entire trust fund shall be distributed to the estate of the last child of the Donor unless under the laws of the applicable Jurisdiction there are no heirs to such estate, in which case the entire trust fund shall be distributed to.....................
(C) The Trustee or any successor Trustee is hereby empowered and authorized to terminate this trust for any reason deemed sufficient in the sole discretion of the Trustee at any time after the execution of this agreement by instrument in writing duly signed and acknowledged by the Trustee or a successor.
Article III
The Trustee shall have full power to make payments to or for a minor in any one or more on the following ways:
(A) To the name of such minor as by depositing cash or registering securities in his or her name, whether or not said person is then able to exercise control over such property;
(B) To any lawful guardian of the minor appointed by any Court of appropriate jurisdiction, all without bound. The Trustee shall also have full power to make payments for a beneficiary hereof, whether or not a minor, directly to any person or organization, other than the Donor or any other donor or the spouse of either of the foregoing, in payment for the education, medical or other expense of or incurred by such minor. No payment or distribution shall be made by the Trustee which would have the effect of satisfying any legal obligation of the Donor or any other donor or the spouse of either of the foregoing other than the legal obligation of any such person to support or maintain the beneficiary to or on whose behalf such payment or distribution is made.
Article IV
The Donor or any other person or organization, as donor hereto, may, at any time, give, transfer or bequeath to the trust created by this instrument, either by inter vivos transfer or testamentary disposition, additional money or property of any kind acceptable to the Trustee, and in such event, such additional property shall become a part of the trust created by this instrument and shall be divided, allocated, administered and distributed as if it originally had been a part thereof. The Trustee may assume any obligation associated with any such property.
Article V
This instrument constitutes an irrevocable gift in trust of all property at any time held hereunder and any future gift, whether by the Donor or any other person or organization as donor, shall likewise be irrevocable, and any right, title or reversionary interest therein, of any kind or description, which the Donor or any other donor or the spouse of either of the foregoing may have or subsequently acquire, by operation of law or otherwise, is and shall, by the making of such gift to this trust, be renounced, relinquished and divested forever, excepting, however, the possibility that the Donor or any other donor, or the spouse of either of the foregoing might receive back from a beneficiary hereof an interest in the trust by inheritance.
Article VI
In allotting or making any division of or payment or distribution from the trust fund or any portion thereof for any purpose hereunder, the Trustee shall not be required to convert any property, real or personal, tangible or intangible, into money or to divide or apportion each or any item of property, but may, in the sole discretion of the Trustee, allot all or any part (including an undivided interest) of any item of property, real or personal, tangible or intangible, to any fund or to any beneficiary provided for by this instrument; or the Trustee may convert any property into any other form, it being the Donor.s intent and purpose to leave all such divisions and apportionments entirely to the discretion of the Trustee with the direction merely that each fund, share, portion or part at any time created or provided for herein shall be constituted so that the same shall have the value, relative or absolute, designated by this instrument.
Article VII
(A) Subject only to the provisions and limitations expressly set forth in this Article VI and elsewhere in this instrument and especially Article VII, the Trustees, in extension and not in limitation of the powers given them by law or other provisions of this instrument shall have the following powers with respect to the trust created herein and its property, in each case to be exercised from time to time in their discretion and without order or license of any court:
a. To invest any money held hereunder and available for investment in and to retain stocks, bonds, securities and other property, real and personal, without liability for any decrease in the value thereof;
b. To invest and re-invest and retain the investment of the whole or any part of the trust or any and all of the proceeds from the disposition of any assets of the trust fund in any single security or other asset, or any limited number of securities or other assets, or any exchanged or merged or substituted or successor security or securities, or any single type or limited number of types of securities or other assets, without liability for any loss resulting from any lack of diversification, it being the intention to free and absolve the Trustees from any and all obligation or liability for any lack of diversification of investments and assets held in the trust fund, or any loss resulting therefrom, regardless of whether they are exchanged or merged or successor or substitute investments;
c. To sell, at public or private sale, exchange for like or unlike property, convey, lease for longer or shorter terms than the trust herein provided, and otherwise dispose of, any and all property, real or personal, held hereunder for such price and upon such terms and credit as it may deem proper;
d. To change the site of the trust to any other location within the country.
e. To vote directly or by proxy at any election or stockholders. meeting any shares of stock held hereunder;
f. To exercise or dispose of or reject any purchase rights arising from or issued in connection with any stock, securities or other property held hereunder;
g. To form or join in forming any company or corporation and to subscribe for or acquire stock it any company or corporation in exchange for money or other property; to participate in any plan or proceeding for protecting or enforcing any right, obligation or interest arising from any stock, bond, note, securities or other property held hereunder or for reorganizing, consolidating, merging or adjusting the finances of any corporation issuing the same; to accept in lieu thereof any new property; to pay any assessment or expense incident thereto; to join in any voting trust agreement; and to do any other act or thing which it may deem necessary or advisable in connection therewith;
h. To employ servants, agents. custodians of securities or other property and attorneys-at-law or in-fact, and to obtain the advice of any bank, trust company, investment counsel or any other institution or individual and permit books of account to be kept by any of the foregoing and pay for such services, out of the property held hereunder, charging the same to the trust fund;
i. To collect, pay, abandon, contest, compromise or submit to arbitration any claim in favour of or against the trust fund or the Trustees in their fiduciary capacity;
j. To lend or borrow money for such periods of time and upon such terms and conditions as the Trustees may deem advisable for any purpose whatsoever; and the Trustees may mortgage and pledge such part or the whole of the trust fund as may be required to secure any loan or loans undertaken by the Trustee pursuant hereto;
k. To hold stocks and other assets and to open bank accounts for deposits of money comprising a part of the trust fund in the name of the Trustees or of their nominee with or without mention of the trust or disclosure of any fiduciary relationship, and to employ custodians of securities or other property and to permit any such custodian to hold securities or other property in its own name or in the name of its nominee, with or without mention of the trust or disclosure of any fiduciary relationship;
l. To make distributions in cash or in kind, or partly in cash and partly in kind.
Article VIII
Notwithstanding any powers conferred upon the Trustee elsewhere in this Agreement, no Trustee or successor Trustee hereunder or any other person shall have at any time, or in any manner or capacity, either directly or indirectly,
(A) the power to exercise any power of administration over the trust other than in a fiduciary capacity for the benefit of the beneficiaries hereunder or
(B) the power to do any of the following in respect to the trust and trust fund created hereunder:
a. To revest title to any part of the trust fund in the Donor or any other donor or the spouse of either of the foregoing; to hold or accumulate any part of the income of the trust or trust fund for future distribution to the Donor or any other donor or the spouse of either of the foregoing; to distribute any part of the income of the trust to the Donor or any other donor or the spouse of either of the foregoing; or to apply any part of the income or principal to the payment of premiums upon policies of insurance on the life of the Donor or any other donor or the spouse of either of the foregoing.
b. To enable any person to purchase, exchange or otherwise deal with or dispose of any part or all of the principal or income of the trust for less than adequate and full consideration in money or money.s worth.
c. To enable the Donor or any other donor or the spouse of either of the foregoing directly or indirectly to borrow any part or all of the principal or income of the trust except with adequate interest and adequate security. To exercise any power of administration over the trust other than in a fiduciary capacity for the benefit of the beneficiaries hereunder.
Article IX
This agreement and trust are specifically created as a..................... agreement and trust and the construction, validity and effect of this agreement and the rights and duties of the beneficiaries and Trustee hereof shall at all times
be governed exclusively by the laws of India.
Article X
This Agreement may be executed in any number of counterparts, any one of which shall constitute the Agreement between the parties.
Article XI
(A) Unless the context requires otherwise, all words used in this instrument in the singular number shall extend to and include the plural, all words used in the plural number shall extend to and include the singular, and all words used in any gender shall extend to and include all genders.
(B) For all purposes under this instrument, adoption of a minor who is not an issue of the Donor by a person or persons shall have the same effect except for determining his age as if such minor were born to such person or persons on the date of his adoption.
(C) As used in this instrument, the term ..children. means first generation offspring of the designated ancestor, the term .issue. means both children of the designated ancestor and lineal descendants indefinitely.
(D) As used in this instrument, the term .Trustee. shall include all those holding such office hereunder from time to time without regard to whether they were initially appointed, successor or additional Trustees.
Article XII
(A) ........., of......., ...... is hereby appointed initial Trustee hereunder. In the event that such initially appointed Trustee, for any reason, ceases to be Trustee hereunder, such person shall have the power, by written instrument executed at or prior to the date such person ceases to be a Trustee hereunder, to appoint his successor as Trustee. In the event a successor Trustee is not so appointed, the partners of the law firm of........ of....., ......., or any legal successor thereto, shall appoint such successor Trustee.
(B) Any individual or corporation at any time serving as Trustee hereunder may resign as Trustee by delivering a written instrument to his or its successor Trustee or, if no successor Trustee has or is to be appointed, to the law firm of..................... or any legal successor thereto. Any such resignation shall be effective as of the date of completion of delivery of such instrument to such persons or as of such later date as shall be specified in such instrument.
(C) No Trustee to or from whom or to or from whose spouse or issue a payment or distribution of property, income or principal may be made or withheld under any of the provisions of this instrument shall be permitted or required by the provisions hereof to vote upon or participate in any action taken thereon. There shall be all times, as to each of the trusts created by this instrument, at least one independent Trustee. As used in this instrument, the term .Independent Trustee. shall mean, collectively, all persons, corporations, partnerships or associations who have no beneficial interest vested or contingent in the property of the trust of which they are trustees, who are not .related or subordinate parties.. In addition, each must be one who can possess the powers vested in him without causing income or principal to be attributable to the Donor or any other donor or any beneficiary of the Trust for federal income, gift or estate tax purposes prior to the actual distribution of such income or principal to such beneficiary. The initial Independent Trustee is...........................
(D) All discretionary powers and duties vested in any Trustee hereunder which is not a natural person may be exercised on its behalf, from time to time by its governing board, or by an appropriate committee, or by its principal officers or trust officers.
(E) No bond or other security shall ever be required to be given or be filed by any Trustee hereunder for the faithful execution of his duty hereunder. If, notwithstanding the foregoing provision, a bond shall nevertheless be required, no securities shall be required thereon.
(F) No Trustee hereunder shall be liable except for wilful malfeasance or bad faith.
IN WITNESS WHEREOF,......., as Donor, and......., as Trustee, have hereunto set their hands and seals the day and year first above written.
WITNESSES :
1. DONOR
2. TRUSTEE
