Revocable Living Trust Drafting Workflow

You are tasked with drafting a comprehensive Revocable Living Trust, a foundational estate planning document that allows a grantor to maintain control over assets during their lifetime while providing for seamless transfer upon death. This document must be precise, legally sound, and tailored to the client's specific circumstances and applicable state law.

Declaration of Trust

Begin by drafting the declaration section that formally establishes the trust relationship. This opening must clearly articulate the grantor's intent to create a revocable living trust, identify the grantor by full legal name and address, and establish the trust's effective date. Name the initial trustee (typically the grantor themselves) and identify all initial beneficiaries with specificity. The declaration should include:

• The formal trust name, typically incorporating the grantor's name and the year of creation
• An unambiguous statement of the grantor's capacity and voluntary intent to create the trust
• The trust's primary purposes, including asset management during the grantor's lifetime and distribution upon death
• Clear identification of whether this is an individual or joint trust (if married)
• Any specific statement regarding the grantor's state of residence for jurisdictional purposes

Ensure the language reflects that this is a revocable trust, explicitly preserving the grantor's right to modify or terminate the trust at any time during their lifetime while they retain capacity.

Trust Property and Funding

Draft a comprehensive section describing the property being transferred into the trust. This is critical because an unfunded trust provides no estate planning benefits. Detail the initial assets being transferred, using specific legal descriptions for real property and precise account information for financial assets. The property schedule should encompass:

• Real property with complete legal descriptions, assessor's parcel numbers, and addresses
• Financial accounts including bank accounts, brokerage accounts, and retirement accounts (noting any special considerations for qualified plans)
• Personal property of significant value, including vehicles, jewelry, art, and collectibles
• Business interests, including ownership percentages in partnerships, LLCs, or corporations
• Any other assets the grantor intends to transfer now or in the future

Include language acknowledging that the trust may be funded over time and that the schedule of assets may be amended without formal trust amendment. Address the mechanism for transferring additional property into the trust and specify whether the grantor retains the right to add or remove assets freely.

Trustee Provisions and Succession

Establish the trustee structure with careful attention to succession planning and trustee authority. Designate the initial trustee (usually the grantor for individual trusts, or both spouses for joint trusts) and create a clear succession plan for disability or death. This section must address:

• The appointment and acceptance of the initial trustee with full legal name and address
• Detailed succession provisions naming first, second, and potentially third successor trustees
• Conditions triggering successor trustee appointment, including death, resignation, incapacity (with definition), or removal
• The process for determining incapacity, whether through physician certification or other means
• Provisions for co-trustees if multiple individuals will serve simultaneously, including decision-making protocols
• Trustee resignation procedures and the mechanism for appointing replacement trustees

Specify whether successor trustees must accept the appointment in writing and outline any bond requirements (typically waived for family members). Address whether corporate trustees (banks or trust companies) may serve and any special provisions applicable to professional fiduciaries.

Beneficiary Designations and Distribution Scheme

Articulate a clear and comprehensive distribution plan that addresses both lifetime and post-death distributions. This section forms the heart of the trust's estate planning function and must reflect the grantor's specific wishes while providing flexibility for changed circumstances. The distribution provisions should specify:

• During the grantor's lifetime: Confirm that all income and principal may be distributed to the grantor without limitation, and address distributions to other beneficiaries if this is a special needs or supplemental trust
• Upon the grantor's death: Identify primary beneficiaries by full legal name and relationship, specify whether distributions are per stirpes or per capita, and detail the timing and conditions of distributions
• Contingent beneficiaries in case primary beneficiaries predecease the grantor
• Any specific bequests of particular property to named individuals
• Provisions for minor beneficiaries, including age-based distribution schedules or continued trust management until specified ages

Include protective provisions such as spendthrift clauses to shield beneficiary interests from creditors, and consider whether any beneficiaries should receive their inheritance in continued trust rather than outright. Address what happens if all named beneficiaries predecease the grantor.

Revocation and Amendment Procedures

Draft clear procedures for the grantor to exercise their right to revoke or amend the trust, as this revocability is the defining characteristic distinguishing this trust from irrevocable alternatives. Specify that the grantor retains absolute authority to amend or revoke the trust during their lifetime while they possess legal capacity. The revocation and amendment provisions must include:

• The requirement that any amendment or revocation be in writing and signed by the grantor
• Whether amendments require notarization or witness signatures
• The method of providing notice to the trustee of any amendments or revocation
• Specification that amendments may be partial (modifying specific provisions) or complete (restating the entire trust)
• Confirmation that upon revocation, all trust property reverts to the grantor absolutely

For joint trusts created by married couples, address whether both grantors must consent to amendments during their joint lifetimes, and specify what happens upon the first death (whether the trust becomes irrevocable or remains amendable by the surviving spouse). Clarify that after the grantor's death or incapacity, the trust becomes irrevocable and cannot be modified except as specifically permitted within the trust terms.

Trustee Powers and Administrative Provisions

Enumerate comprehensive powers granted to the trustee to effectively administer the trust. These powers must be sufficiently broad to allow flexible management while complying with fiduciary duties. Detail the trustee's authority in narrative form, incorporating:

• Investment powers, including the authority to invest in any property or asset class, retain original trust assets, and exercise all rights of ownership including voting shares and managing business interests
• Management powers, such as the authority to sell, exchange, lease, mortgage, or otherwise deal with trust property on terms the trustee deems appropriate
• Distribution authority, including discretion to make distributions for health, education, maintenance, and support (HEMS standard) or broader discretionary standards
• Administrative powers, including the ability to hire professionals (attorneys, accountants, investment advisors), delegate certain functions, maintain insurance, handle tax matters, and maintain accurate records
• Special powers relevant to specific assets, such as authority to continue operating a business, manage rental properties, or handle intellectual property

Specify the standard of care applicable to the trustee (prudent investor rule or other state-specific standard) and address trustee compensation, typically allowing reasonable fees for professional trustees while permitting family trustees to serve without compensation or to receive specified fees. Include provisions regarding trustee liability, indemnification, and the circumstances under which a trustee may be removed.

Governing Law and General Provisions

Conclude with essential administrative and legal provisions that ensure the trust's validity and enforceability. Designate the governing law by specifying which state's laws will control the trust's interpretation and administration, typically the grantor's state of residence. This final section should incorporate:

• A severability clause providing that if any provision is found invalid, the remaining provisions continue in full effect
• A no-contest or in terrorem clause discouraging beneficiaries from challenging the trust by forfeiting their inheritance if they do so unsuccessfully
• Spendthrift provisions protecting beneficiary interests from creditor claims
• Tax provision addressing allocation of tax burdens and directing how estate taxes should be paid
• Definitions of key terms used throughout the trust, including "issue," "descendants," "incapacity," and any other terms requiring clarification

Address administrative matters such as the trustee's duty to provide accountings to beneficiaries, the frequency of such accountings, and any waiver provisions. Include merger provisions preventing the trust from terminating if the grantor is the sole trustee and sole beneficiary. Specify the trust's situs (physical location for legal purposes) and identify which courts have jurisdiction over trust matters.

Execution Requirements and Finalization

Ensure the completed trust document complies with all state-specific execution requirements. While trusts generally do not require the same formalities as wills, proper execution is essential for validity. The document should include signature blocks for the grantor(s) and trustee(s), with appropriate notarization. Include a schedule of assets as an exhibit, even if initially unfunded, to be completed as property is transferred into the trust. Verify that the trust name is used consistently throughout and that all cross-references are accurate. The final document should be professionally formatted, paginated, and organized for easy reference by the trustee and beneficiaries.