Land Trust Agreement
LAND TRUST AGREEMENT
______________________________________________________“Trustee”, and
______________________________________________________the “Beneficiaries”.
A. Trust Property: The Beneficiaries shall convey or cause to be conveyed to the Trustee certain real property or properties specifically described in Schedule “A” which is attached hereto and incorporated herein by reference.
All such real property and any other real property conveyed to and accepted by the Trustee shall be called the “Trust Property.” The Trustee shall hold title to the Trust Property for the uses and purposes and upon the terms and conditions set forth below.
B. Trust Identification: The trust created by this instrument shall be known for all purposes as the ______
______________________________________________________________________________
C. Trust Purpose: The objects and purposes of this Trust are to hold title to the Trust Property and to protect and conserve the Trust Property until its sale, liquidation, or other disposition.
1. Limitations on Trustee:
a. The Trustee shall not manage or operate the Trust Property nor undertake any other activity not strictly necessary to the attainment of the foregoing objects and purposes.
b. The Trustee shall not transact business of any kind with respect to the Trust Property within the meaning of any law governing Common Law Declarations of Trust.
2. Limitations of Agreement:
a. This Agreement shall not be deemed to be, create, or evidence the existence of a corporation de facto or de jure or a Massachusetts Trustee, or any other type of business trust, or an association in the nature of a corporation, or a general or limited partnership, or a joint venture, by or between the Trustee and the Beneficiaries.
b. This Agreement shall not be placed on record in the county in which the Trust Property is situated, or elsewhere, but if it is so recorded, that recording shall not be considered as notice of the rights of any person derogatory to the title, rights, or powers of the Trustee.
D. Definitions:
1. Trustee: The terms “Trustee” and “Trustees” as used herein shall include all persons, natural and/or artificial, who serve as Trustees pursuant to the provisions of this Agreement at any time.
2. Beneficiaries: The terms “Beneficiary” and “Beneficiaries” as used herein shall refer to the beneficial owner or owners of the Trust Property, and shall include all successors in interest to any Beneficiary or Beneficiaries, whether by assignment of beneficial interests or by operation of law.
E. Address of Trustee: The address of the Trustee is as follows: __________________________ ______________________________________________________________________________
F. Address and Beneficial Interests of Beneficiaries: The name and address of each Beneficiary is set forth below, and the beneficial interest of each beneficiary in the Trust Property is set forth opposite the Beneficiary’s name:
Name and Address Beneficial Interest
G. Beneficial Interests Are Personal Property: The beneficial interests of each Beneficiary are personal property only, and no Beneficiary shall have any legal or equitable right, title or interest, as realty, in or to any of the Trust Property, or the right to require partition of any of the Trust Property. The Beneficiaries shall have only the rights, as personal property, hereinafter set forth, and the death of a Beneficiary shall not terminate this Trust nor in any manner affect the rights or powers of the Trustee.
H. Rights and Duties of Beneficiaries: The Beneficiaries, or their agent or agents designated in a written instrument delivered to the Trustee and acknowledged by the Trustee, shall have the following rights and duties:
The interest of every beneficiary and of every person who may become entitled to any interest under this Trust shall consist only of the (1) power to direct the Trustee to deal with title of the property; (2) power to manage, possess, use and control the property; and (3) the right to receive the earnings, avails and proceeds from leases, other uses and mortgages, sales and other disposition of the property.
The Beneficiaries hereby state that they are not foreign persons as defined under the applicable provisions under the Internal Revenue Code.
I. Rights and Duties of Trustee: The Trustee shall have no obligation to file any income, profit or other tax reports or returns or pay such or any other taxes. The Beneficiaries will make all such returns and reports and pay general real estate and all other taxes or charges payable with respect to the property and to the earnings, avails and proceeds of the property based on their interest under this Agreement. The Trustee shall have no obligation to make any advances or incur any expenses on account of this trust or the property nor any expenses by reason of being made a party to any litigation in connection with this trust or the property but, if the Trustee shall be compelled to pay money on account of this trust for the property whether for breach of contract, breach of personal property, fines or penalties, under any law or otherwise, the Beneficiaries jointly and severally on demand shall pay to the Trustee with interest the amount of all such expenses, advances or payments made by the Trustee plus all of his expenses including attorney’s fees. The
Trustee shall not be obligated to convey, transfer or otherwise deal with the property or any part of it until all of the payments, advances and expenses made or incurred by him shall have been paid.
On the written direction of the Beneficiaries, Trustee will make deeds for or mortgages or trust deeds or execute leases or otherwise deal with the title to the Trust Property including cash or other assets subject to the Trust. The Trustee shall not be required to inquire into the propriety of any direction.
The Trustee shall have the authority to borrow all funds necessary to make repairs to the Trust Property, pay any mortgage payments, taxes and all other expenses directly related to the maintenance, repair, development or the payments of mortgages or liens on Trust Property.
J. Protection of Third Parties Dealing With Trustees:
1. No party dealing with the Trustees in relation to the Trust Property in any manner whatsoever, and (without limiting the foregoing) no party to whom the Trust Property or any part of it or any interest in it shall be conveyed, contracted or sold, leased or mortgaged by the Trustee, shall be obliged:
a. To see to the application of any purchase money, rent or money borrowed or otherwise advanced on the Trust Property.
b. To see that the terms of this Trust Agreement have been complied with.
c. To inquire into the authority, necessity or expediency or any act of the Trustee.
d. Or be privileged to inquire into any of the terms of this Trust Agreement.
2. Every deed, mortgage, lease or other instrument executed by the Trustees in relation to the Trust Property shall be conclusive evidence in favor of every person claiming any right, title or interest under this Trust that:
a. At the time of its delivery the Trust created under this Agreement was in full force and effect.
b. Such instrument was executed in accordance with the terms and conditions of this Agreement and all its
amendments, if any, and is binding upon all Beneficiaries under it.
c. The Trustee was duly authorized and empowered to execute and deliver each such instrument.
d. If a conveyance has been made to a successor or successors in trust, the successor or successors have been appointed properly and are vested fully with all the title, estate, rights, powers, duties and obligations of the predecessor in Trust.
K. Trustee Not Individually Liable: The Trustee shall not be required, in dealing with the Trust Property or in other- wise acting under this Agreement:
1. To enter into any individual contract or other individual obligation whatsoever.
2. To make themselves individually liable to pay or incur the payment of any damages, attorneys’ fees, fines, penalties, forfeitures, costs, charges or other sums of money whatsoever. The Trustee shall have no individual liability or obligation whatsoever arising from his ownership, as Trustee, of the legal title to the Trust Property, or with respect to any act done or contract entered into or indebtedness incurred by him in dealing with the Trust Property or in otherwise acting under this Agreement, except only as far as the Trust Property and any trust funds in the actual possession of the Trustee shall be applicable to the payment and discharge of that liability or obligation.
L. Resignation of Trustee: Any Trustee may resign at any time by sending a notice of intention to do so by Certified Mail, Return Receipt Requested, to each of the Beneficiaries under this Agreement at his or her address last known to the Trustee. The resignation shall become effective ten (10) days after the mailing of those notices. In the event of the death or resignation of a Trustee, a successor or successors may be appointed by the person or persons with the Power of Direction under this Agreement, and the Trustee shall convey the Trust Property to that successor or successors in trust. If no successor in trust is so named within ten (10) days after the mailing of the notices, the Trustee may convey the Trust Property to the Beneficiaries in accordance with their respective interests, or the Trustee, may file an action
for appropriate relief in any court of competent jurisdiction. The Trustee, notwithstanding the resignation, shall continue to have a lien on the Trust Property for the Trustee’s costs, expenses and attorneys’ fees and reasonable compensation.
M. Governing Law: This Agreement shall be construed in accordance with the Laws of the State of ____
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N. Certified Copies Satisfactory Evidence: Copies of this Agreement or any amendment to it, certified by the Trustee to be true and correct, shall be satisfactory evidence of such Agreement for all purposes.
O. Binding Effect: The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the Trustee and upon the Personal Representatives, heirs, assigns and all other successors in interest of the Beneficiaries.
IN WITNESS WHEREOF, the Trustee and the Beneficiaries have executed this Agreement, the day and year first above written.
Witnesses as to Trustee: TRUSTEE:
Witnesses as to Beneficiaries: BENEFICIARIES:
STATE OF__________________ COUNTY OF__________________
BEFORE ME, personally appeared the Trustee named in the foregoing
instrument, personally known to me or who presented ____________________________________
as identification, who executed the foregoing instrument as such Trustee, and acknowledged to and before me that he executed said instrument for the purposes therein expressed.
WITNESS my hand and official seal on
Notary Public
STATE OF__________________ COUNTY OF__________________
BEFORE ME, personally appeared a Beneficiary named in
the foregoing instrument, personally known to me or who presented
as identification, who executed the foregoing instrument as such Beneficiary, and acknowledged to and before me that he executed said instrument for the purposes therein expressed.
WITNESS my hand and official seal on
Notary Public
STATE OF__________________ COUNTY OF__________________
BEFORE ME, personally appeared a Beneficiary named in
the foregoing instrument, personally known to me or who presented
as identification, who executed the foregoing instrument as such Beneficiary, and acknowledged to and before me that he executed said instrument for the purposes therein expressed.
WITNESS my hand and official seal on
Notary Public
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