Revocable Living Trust
Revocable living trust — avoids probate, provides for incapacity, and distributes assets according to the grantor's wishes.
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REVOCABLE LIVING TRUST AGREEMENT
THE PATRICIA A. WELLINGTON REVOCABLE LIVING TRUST
This Revocable Living Trust Agreement (this "Trust") is established as of May 7, 2026 by and between Patricia A. Wellington, of 1701 Cedar Hill Road, Asheville, NC 28803 (the "Grantor" and initial "Trustee"), declaring as follows:
ARTICLE I — IDENTIFICATION OF TRUST AND PARTIES
1.1 Name of Trust. The trust created hereunder shall be known as The Patricia A. Wellington Revocable Living Trust, dated May 7, 2026.
1.2 Grantor and Initial Trustee. The Grantor is Patricia A. Wellington and serves as the initial Trustee.
1.3 Successor Trustee. Upon the Grantor's resignation, incapacity, or death, Daniel R. Wellington of 4520 Sycamore Court, Asheville, NC 28804 shall serve as Successor Trustee. If Daniel R. Wellington is unable or unwilling to serve, Eleanor R. Wellington-Park shall serve as Alternate Successor Trustee.
1.4 Marital Status. The Grantor is unmarried at the time of execution.
ARTICLE II — TRUST ESTATE
2.1 Initial Funding. The Grantor transfers to the Trust the property listed on Schedule A attached hereto, and may from time to time transfer additional property to the Trust by deed, assignment, beneficiary designation, or other instrument.
2.2 Trust Property. All property held by the Trustee under this Trust, together with all income and accretions thereon, constitutes the "Trust Property" or "Trust Estate."
2.3 Pour-Over Will. The Grantor intends to execute a "pour-over" will directing that any property not titled to the Trust at the Grantor's death shall be transferred to the Trust through the will.
ARTICLE III — POWERS RESERVED BY GRANTOR DURING LIFETIME
3.1 Reservation of Powers. During the Grantor's lifetime and while the Grantor has capacity, the Grantor reserves the absolute right, exercisable by signed written instrument delivered to the Trustee, to:
(a) Amend, modify, or revoke this Trust in whole or in part;
(b) Add property to the Trust;
(c) Withdraw property from the Trust;
(d) Change the Trustee, Successor Trustee, or beneficiaries;
(e) Direct the Trustee on investment, distribution, or any other matter; and
(f) Receive all income and principal of the Trust.
3.2 Capacity. The Grantor is deemed to have capacity unless and until two licensed physicians, at least one of whom is the Grantor's primary-care physician, certify in writing that the Grantor lacks the capacity to manage personal financial affairs. Upon such certification, the Successor Trustee assumes management of the Trust as set forth in Article V.
ARTICLE IV — DISTRIBUTIONS DURING GRANTOR'S LIFETIME
4.1 Distributions to Grantor. The Trustee shall distribute to the Grantor, or use for the Grantor's benefit, all net income and so much of the principal of the Trust as the Grantor requests in writing.
4.2 During Grantor's Incapacity. While the Grantor lacks capacity (as determined under Section 3.2), the Successor Trustee shall use the Trust income and principal as needed for the Grantor's health, education, maintenance, and support (HEMS standard), in the manner the Grantor would have provided for the Grantor's own support, and may also provide for the Grantor's spouse and dependents to the extent the Grantor would have done so.
ARTICLE V — DISPOSITION ON GRANTOR'S DEATH
5.1 Final Expenses. The Trustee shall pay or provide for the Grantor's last illness, funeral, and burial expenses, and any debts and taxes properly chargeable to the Grantor's estate, including any estate, inheritance, or generation-skipping transfer taxes.
5.2 Specific Gifts.
To my granddaughter Sophia Park: my grandmother's pearl necklace and silver tea service (currently stored at the principal residence).
To Asheville Humane Society: $10,000 cash.
All other specific tangible personal property to be distributed per a separate written list signed by Grantor (per state law allowing reference to a separate writing for tangible personal property).
5.3 Residuary Distribution. After payment of expenses, debts, taxes, and specific gifts, the Trustee shall distribute the residue of the Trust Estate as follows:
Daniel R. Wellington (son): 1/3 of the trust estate.
Eleanor R. Wellington-Park (daughter): 1/3 of the trust estate.
Matthew J. Wellington (son): 1/3 of the trust estate.
If any beneficiary predeceases the Grantor, that beneficiary's share passes to that beneficiary's descendants per stirpes.
If no descendants, that share passes equally to the surviving named beneficiaries.
5.4 Provisions for Minor or Young Adult Beneficiaries.
Any share passing to a beneficiary under age 25 shall be held in continuing trust for that beneficiary, with income and principal distributable for health, education, maintenance, and support, and outright distribution at age 25.
The trustee may make distributions directly to a custodian under the state Uniform Transfers to Minors Act (UTMA) for beneficiaries under age 18.
5.5 Spendthrift Provision. To the maximum extent permitted by law, no beneficiary may anticipate, alienate, encumber, or transfer any interest in the Trust, and no beneficiary's interest is subject to the claims of creditors, the beneficiary's spouse in divorce, or any other person.
ARTICLE VI — TRUSTEE POWERS
6.1 General Powers. The Trustee has all powers granted to trustees under the laws of the State of North Carolina, including without limitation the powers to:
(a) Buy, sell, lease, mortgage, and pledge real and personal property;
(b) Invest and reinvest in any property the Trustee deems prudent (modern portfolio theory standard);
(c) Borrow and lend money on commercially reasonable terms;
(d) Execute deeds, contracts, and other instruments;
(e) Distribute property in kind or in cash;
(f) Hire attorneys, accountants, investment advisers, and agents;
(g) Settle, compromise, and abandon claims;
(h) Maintain bank, brokerage, and custody accounts;
(i) Vote securities and exercise other ownership rights; and
(j) Make tax elections (election to step up basis, allocation of GST exemption, etc.).
6.2 Standard of Care. The Trustee shall act as a prudent person would act in the management of the Trustee's own affairs, with reasonable care, skill, and caution. The Trustee may rely on professionals and is not liable for actions taken in good faith on professional advice.
6.3 Trustee Compensation.
Family-member trustees serve without compensation but are reimbursed for reasonable expenses.
Professional or corporate trustees are entitled to reasonable compensation per the trustee's standard fee schedule, not to exceed 1% of trust assets per year.
6.4 No Bond. No Trustee shall be required to give bond.
6.5 Resignation and Successor. A Trustee may resign by 30 days written notice to the Grantor (during lifetime) or to the beneficiaries (after Grantor's death). Upon resignation, the next-named Successor Trustee assumes office.
ARTICLE VII — TAX PROVISIONS
7.1 Grantor Trust Status. The Grantor intends that during the Grantor's lifetime, this Trust be treated as a grantor trust under IRC §§671-679. All Trust income, deductions, and credits shall be reported on the Grantor's individual income tax return; the Trust does not file a separate return during the Grantor's lifetime.
7.2 Estate Tax. The Trust is not intended to remove assets from the Grantor's gross estate. The Trust assets are includible in the Grantor's estate under IRC §2038 by reason of the Grantor's retained powers.
7.3 Step-Up in Basis. Trust assets receive a step-up in basis at the Grantor's death under IRC §1014.
ARTICLE VIII — MISCELLANEOUS
8.1 Governing Law. This Trust is governed by the laws of the State of North Carolina.
8.2 Severability. If any provision of this Trust is held invalid, the remaining provisions remain in full force and effect.
8.3 Headings. Article and section headings are for convenience only and are not to be used in interpreting this Trust.
8.4 Construction. This Trust is to be liberally construed to carry out the Grantor's intent.
IN WITNESS WHEREOF, the Grantor has executed this Trust as of the date first written above.
_______________________________
Patricia A. Wellington
Grantor and Initial Trustee
WITNESSES (two required in most states):
_______________________________ _______________________________
Witness 1 — Print Name Witness 2 — Print Name
_______________________________ _______________________________
Witness 1 — Signature Witness 2 — Signature
NOTARY ACKNOWLEDGMENT
STATE OF NORTH CAROLINA )
) ss.
COUNTY OF ____________________ )
On this ____ day of _____________________, 20___, before me personally appeared Patricia A. Wellington, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged execution of the same as a free and voluntary act for the uses and purposes herein set forth.
_______________________________
Notary Public
My commission expires: ____________________
SCHEDULE A — INITIAL TRUST PROPERTY
[List and describe each item of property transferred to the Trust on the Effective Date. For real estate, attach legal description and recorded deed; for accounts, list institution, account number, and balance; for vehicles, list VIN; for tangible personal property, describe with sufficient specificity.]
1. ____________________________________________________________
2. ____________________________________________________________
3. ____________________________________________________________
4. ____________________________________________________________
5. ____________________________________________________________
About this template
A revocable living trust is the cornerstone of probate-avoidance estate planning. The trust is created during the grantor's lifetime, with the grantor typically serving as both initial trustee and primary beneficiary — meaning the grantor retains complete control over assets transferred to the trust. On the grantor's death, the named successor trustee distributes assets to the beneficiaries according to the trust's terms — without probate court involvement. The probate-avoidance benefit is substantial: probate typically takes 6-18 months, costs 3-7% of the gross estate (in attorney fees, court costs, and executor commissions), and creates a public record of the decedent's assets, debts, and beneficiaries. A properly funded living trust avoids all of this — distribution can happen within weeks, costs a fraction of probate, and remains private. Equally important: the trust provides a mechanism for managing assets if the grantor becomes incapacitated. Without a trust, families typically need a court-appointed guardianship or conservatorship — a public, expensive, and humiliating process. With a trust, the successor trustee simply steps in upon a defined incapacity trigger (typically two physicians' written certification) and continues managing assets seamlessly. The most-misunderstood aspect: a trust only avoids probate for assets actually titled to the trust. Funding the trust — re-titling real estate, bank accounts, brokerage accounts, vehicles, and other property to the name of the trust — is the most-skipped step and the most-common reason living trusts fail to deliver their probate-avoidance promise. The grantor must execute deeds for real estate, change beneficiary forms for retirement accounts (which generally should NOT be made payable to the trust — they have their own probate-avoidance via beneficiary designation), update brokerage account titles, and re-title personal property. A "pour-over will" catches anything missed, but only by sending it through probate — defeating the purpose. State considerations: California, Florida, New York, and other high-value-probate states see the strongest case for living trusts because their probate processes are particularly slow and expensive. Texas has a streamlined "independent administration" probate that reduces the trust advantage but doesn't eliminate it. Tax considerations: a revocable living trust is a "grantor trust" under IRC §§671-679 — meaning during the grantor's lifetime, all income is taxed to the grantor and reported on the grantor's individual return. The trust does NOT file a separate income tax return during the grantor's lifetime. Trust assets remain in the grantor's gross estate for estate-tax purposes (IRC §2038) — meaning the trust does not save federal estate tax. For 2024, the federal estate tax exemption is $13.61 million per person ($27.22 million per couple); only estates above this owe estate tax, and most living-trust planning is for probate avoidance, not estate-tax reduction. State estate or inheritance taxes affect more people: 17 states have a state estate or inheritance tax with much lower exemptions (Massachusetts and Oregon at $1 million; Washington at $2.193 million; New York at ~$6.94 million indexed; New Jersey eliminated its estate tax but retains inheritance tax). For larger estates or asset-protection planning, an irrevocable trust may be appropriate, but it sacrifices the grantor's control. The revocable living trust is the right starting tool for the vast majority of households with assets above $250K, real estate in any state with slow probate, blended families, beneficiaries with special needs, or any desire for privacy.
When to use it
- Estate planning for any household with assets above $250K, especially with real estate.
- Avoiding probate in slow-probate states (CA, FL, NY, MA, MI).
- Planning for incapacity without court-appointed conservatorship.
- Blended families: ensuring children from prior marriage receive intended share.
- Privacy: keeping the size and distribution of the estate out of public probate records.
What to include
- Identification of grantor, initial trustee, and successor trustee(s).
- Provisions for grantor's lifetime use, distribution, and incapacity.
- Specific gifts and residuary distribution to beneficiaries.
- Trustee powers and standard of care.
- Spendthrift provision protecting beneficiary distributions.
- Pour-over will reference and tax provisions (grantor trust status).
- Schedule A listing initial trust property.