Safe Harbor Trust

Safe Harbor Trust
THE <child’s full name> TRUST
On the <date>, <name of 1^st legal guardian>, as Legal Guardian of <child’s full name>, of <city>, <state> and <name of 2^nd legal guardian>, as Legal Guardian of <child’s full name>, of <city>, <state> (hereinafter collectively the "GRANTOR"), and <name of 1^st trustee>, individually, of <city>, <state> and <name of 2^nd trustee>, individually, of <city>, <state> (hereinafter collectively the "TRUSTEE"), make this trust.
ARTICLE I The Grantors’ Family
<name of 1^st legal guargian> and <name of 2^nd legal guardian> are married to each other and have two (2) children, namely, <1^st child’s name> and <2^nd child’s name>.
ARTICLE II Transfer to the Trust
The Grantors transfer to the Trustee the property listed in the schedule to this trust, and may transfer additional assets, to be held on the terms and conditions set forth in this instrument.
ARTICLE III Revocability
This trust is revocable. Either Grantor can alter, amend, revoke, or terminate this trust. Upon the death of the survivor of the Grantors, the trust will become irrevocable, and cannot be altered, amended, revoked or terminated.
ARTICLE IV Trust During <child’s full name>’s Lifetime
The Trustee shall hold and distribute all of the trust funds in the following manner:
A	Until <child’s full name>’s Death. Until <child’s full name>’s death, the Trustee shall expend for <child’s full name>’s benefit as much of the trust’s net income and principal as the Trustee shall deem appropriate for his comfort and well being, to enhance and improve the quality of his life, to enable him to live in comfort for the rest of his life, to provide him with such amenities as vacations, attendants, recreation, and items of personal use, comfort, and adornment as are consistent with a very high quality of life, and to help <child’s full name> reach his greatest potential. The Trustee shall add annually to the principal any undistributed income.
B.	Limitations on Use.
	1.	The Trustee shall not use the trust funds to pay for <child’s full name>’s basic support, maintenance, and health needs, and the Trustee shall not pay or expend any money in a manner that discharges the Grantors’ legal obligations to support <child’s full name> or any other beneficiary.
	2.	The Trustee shall not distribute or expend the trust income or principal in a manner that is reasonable expected to disqualify <child’s full name> from available federal or state aid or cause the trust funds to bear all or part of the cost of his treatment or assistance, if such costs would otherwise be borne by the state or federal government.
C.	Direct Expenditures. The Trustee shall, to the extent feasible, avoid making any actual distributions to <child’s full name> and shall instead apply the trust funds to his benefit, including directly paying those of his bills that are submitted to the Trustee by <child’s full name>’s legal guardian.
D.	Expenses of Certain Other Persons. The Trustee shall pay the reasonable expenses incurred by <child’s full name>’s friends and relations in accompanying him on trips, whether or not such trips are overnight, to the extent that the Trustee deems such companionship to be in <child’s full name>’s best interests. Such expenses shall include (but not be limited to) travel costs, hotel and restaurant bills, and a reasonable allowance for unspecified and miscellaneous expenses.
ARTICLE V At <child’s full name>’s Death
At <child’s full name>’s death, this trust shall terminate, and the Trustee shall distribute all of the trust funds as follows:
A	The Trustee shall first distribute to each state in which <child’s full name> has resided and that has provided medical assistance on <child’s full name>’s behalf under a State plan (as defined in 42 United States Code, section 1396 et seq.), an amount equal to the total medical assistance under that plan.
B.	The Trustee shall distribute any remaining trust funds to <name of 1^st legal guardian> and <name of 2^nd legal guardian>, in equal shares, or in the event either of them is deceased, the same shall be devised entirely to the survivor of either of them.
ARTICLE VI The Trustee
A	Named Trustees. <name of 1^st trustee>, of <city>, <state> and <name of 2^nd trustee>, of <city>, <state>, are the initial Trustees of this Trust.
	1.	If either <name of 1^st trustee> or <name of 2^nd trustee> are unable or unwilling to serve as Trustee, then the other shall serve as the sole Trustee of this trust.
	2.	No Trustee named in this instrument or by the Trustee shall be required to provide surety or other security on a bond.
	3.	No Trustee shall be responsible for or need to inquire about any acts or omissions of a prior Trustee.
B.	Additional Trustee. The Trustee may appoint any person as Co-Trustee or additional Trustee to serve at the pleasure of the appointing Trustee.
C.	Delegation. Any Trustee may appoint any powers and authorities to another Trustee for any period that the delegating Trustee deems appropriate. A person dealing in good faith with any Trustee may rely without inquiry upon that Trustee’s representation that a particular power or authority has been delegated and non rescinded.
D	Resignation. Any Trustee may resign by giving written notice specifying the effective date of the resignation to the designated successor Trustee.
	1.	If no successor Trustee is designated, a resigning Trustee shall give written notice of resignation to the designated successor Trustee.
	2.	A successor Trustee necessary to fill any vacancy shall be named by <child’s full name>’s legal guardian.
E.	Compensation. Each person who serves as a Trustee shall be entitled to receive reasonable compensation for services rendered. In the case of a corporate Trustee, reasonable compensation is based upon its published fee schedule in effect at the time its services are rendered or as otherwise agreed, and its compensation may vary from time to time based on that schedule.
F.	Management Powers. The Grantors grant the Trustee powers described below, to be exercised in a fiduciary capacity.
	1.	The Trustee may hold and retain as part of the trust any assets received from any course, and invest and reinvest them (or leave them temporarily uninvested) in any type of property and every kind of investment, in the same manner as a prudent investor would invest his or her own assets.
	2.	The Trustee may see or exchange any real or personal property contained in the trust, for cash or credit, at public or private sale, and with such warranties or indemnifications as the Trustee may deem advisable.
	3.	The Trustee may borrow money (even from the Trustee and from any beneficiary of the trust) for the benefit of the trust and may secure these debts with assets of the trust.
	4.	The Trustee may grant security interests and execute all instruments creating such interests on such terms as the Trustee may deem appropriate.
	5.	The Trustee may compromise and adjust claims against or on behalf of the trust on such terms as the Trustee may deem appropriate.
	6.	The Trustee may take title to any securities in the name of any custodian or nominee, without disclosing this relationship.
	7.	The Trustee may determine whether receipts are to be allocated to income or principal and whether disbursements are to be charges against income or principal, to the extent not established clearly by state law. Determinations made by the Trustee in good faith shall not require equitable adjustments.
	8.	The Trustee may make all tax elections and allocations the Trustee may consider appropriate; however, this authority is exercisable only in a fiduciary capacity and may not be used to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of fiduciary duties. All tax elections and allocations made by the Trustee in good faith shall not require equitable adjustments.
	9.	The Trustee may distribute any of the trust assets to a minor by distributing them to any appropriate person chosen by the Trustee (who may be a Trustee), as custodian under any appropriate Uniform Transfer (or Gifts) to Minors Act, to be held for the maximum period of time allowed by law. The Trustee may also sell and asset that cannot legally be held under this custodianship and invest the sales proceeds in assets that can be held under this custodianship.
	10.	The Trustee may employ such lawyers, accountants, and other advisers as the Trustee may deem useful and appropriate for the administration of the trust. The Trustee may employ a professional investment adviser in managing the investments of the trust (including any investment in mutual funds, investment trusts, or managed accounts), delegate to this adviser any discretionary investment authorities, and rely on the adviser’s investment recommendations without liability to any beneficiary.
	11.	The Trustee may divide and distribute the trust in kind or in cash, or partly each, without regard to the income tax basis of any asset and without the consent of any beneficiary. The decision of the Trustee in dividing any portion of the trust between or among two or more beneficiaries shall be binding on all persons.
	12.	The Trustee may take title to any capital asset with a value in excess of five thousand dollars ($5,000.00) in the name of the Trustee in his fiduciary capacity, or if he shall deem it advisable, through a nominee or agent for the trust (with no obligation to disclose to anyone the existence of that agency relationship). The Trustee may buy assets and have the legal title taken by <child’s full name> or his guardian if the Trustee shall conclude that it is in the best interests of <child’s full name> and the trust.
ARTICLE VII Overriding Purposes
This article states some of the Grantors’ purposes in creating this trust, and all provisions of this trust shall be construed so as best to effect these purposes. No Trustee shall exercise any discretion under this instrument in a manner that might reasonably be expected to frustrate the accomplishment of any of these purposes.
A.	Benefit of <child’s full name>. The primary purpose of this trust is to provide <child’s full name> with such care and assistance as shall enable him to live in comfort for the rest of his life, to provide him with such amenities as vacations, attendants, recreation, and items of personal use, comfort, and adornment as are consistent with a very high quality of life, and to help <child’s full name> reach his greatest potential. No assets of this trust shall be considered available to <child’s full name> for determining his income or assets under the rules by which any government agency determines eligibility for need-based services or financial assistance.
B.	Limited Power to Amend. The Trustee may, by an instrument in writing, amend this agreement in any manner required to meet any of the objectives set forth in this article. No amendment under this paragraph may increase the class of beneficiaries.
ARTICLE VIII Trust Administration
A.	Spendthrift Limits. No interest in the trust shall be subject to the beneficiary’s liabilities or creditor claims, assignment or anticipation.
B.	Protection From Creditors. If the Trustee shall determine that a beneficiary will not benefit as greatly from an outright distribution of trust income or principal, because of access to the distribution by the beneficiary’s creditors, the Trustee shall instead expend those amounts for the benefit of the beneficiary. This direction is intended to enable the Trustee to give the beneficiary the maximum possible benefit and enjoyment of all the trust income and principal to which the beneficiary is entitled.
C.	Multiple Trusts and Shares. The Trustee may invest the assets of multiple trusts in a single fund if the interests of the trusts are accounted for separately.
	1.	The Trustee may merge or consolidate any trust into any other trust that has the same trustee and substantially the same dispositive provisions.
	2.	The Trustee may divide any trust into multiple separate trusts.
D.	Accountings. The Trustee shall not be required to file annual accounts with any court or court official in any jurisdiction.
E.	Disabled Recipient. The Trustee may distribute payments that would be made to the Recipient at a time when the Recipient is a minor or disabled to the Recipient’s parent, guardian, or personal representatives, or the person with whom the Recipient resides, without looking to the proper application of those payments.
F.	Change of Situs. The Trustee may change the situs of this trust (and to the extent necessary or appropriate, move the trust assets) to a state or county other than the one in which the trust is then administered, if the Trustee believes it to be in the best interest of the trust or the beneficiaries. The Trustee may elect that the law of such other jurisdiction shall govern the trust to the extent necessary or appropriate under the circumstances.
G.	Additional Transfers. Any person may transfer property to the Trustee. The Trustee may refuse to accept a transfer if the Trustee deems acceptance is not in the trust’s best interests. The Trustee may accept a gift subject to one or more conditions imposed by the donor or the Trustee if it is in the best interests of the trust and the beneficiaries and if the condition does not change the rights of a beneficiary with respect to any prior gift.
ARTICLE IX Definitions and Miscellaneous
A.	Trustee. "Trustee" shall include each Trustee individually, multiple Trustees, and any successor.
B.	Tax-Related Terms. All tax-related terms shall have the same meaning that they have in the Internal Revenue Code of 1986, as amended.
C.	Copies. There is only one signed original of this trust instrument. Anyone may rely on a copy of this trust instrument certified by a notary public or similar official to be a true copy of the signed original (and of any amendments) as if that copy were the signed original. Anyone may rely on any statement of fact certified by the person who appears from the original document or a certified copy to be a Trustee.
D.	Per Stirpes. Property that is to be divided among an individual’s surviving or then living descendants, "per stirpes", shall be divided into as many equal shares as there are children of the individual who are then living or who have died leaving surviving or then living descendants. A share allocated to a deceased child’s surviving or then living descendants in the same matter.
E.	Number. Whenever the context requires, the singular number includes the plural and the plural singular.
F.	Applicable Law. This trust shall be governed by and construed according to the laws of the State of <state>.
DECLARED AND AGREED on the date indicated above.
______________________________________
<name of 1^st legal guardian>, Grantor
______________________________________
<name of 2^nd legal guardian>, Grantor
______________________________________
<name of 1^st trustee>, Trustee
______________________________________
<name of 2^nd trustee>, Trustee