Sample Living Trust Application And Agreement Form

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2225 E. Garvey Ave. North • West Covina, CA 91791

(626) 974-4447 • (626) 974-4473 Fax

Explanation and Guide

FOR COMPLETING THE LIVING TRUST APPLICATION AND AGREEMENT

Section 1.

The Trustor enters the name of the Trust and the date it was executed. The name of the Trust should read exactly as in the Trust Certification. This form is not to be used for “Totten Trusts”

or accounts opened under the “Uniform Transfers to Minors Act.” The language of this section sets out an application for joint membership in the Credit Union between the trust and the

Trustor(s) (who must presently be members of the Credit Union).

Section 2.

This section requires the Trustor(s) to be member(s) of the Credit Union. In this manner, the Trust itself is entitled to become a member. All accounts opened under this Application and

Agreement belong solely to the Trust. The Trustor’s only interest in the joint membership are membership rights, such as the right to vote at a member’s meeting.

Section 3.

The Credit Union should not review the Trust Instruments or keep copies of the instruments on file.

Section 4-7.

Fill in the names, address, social security numbers and additional information as requested of all Trustors, Trustees, Successor Trustees, and Beneficiaries.

Section 8.

This section clarifies that the Credit Union is merely a depository for the funds held in Trust. Only, the Trustees who have signed the Living Trust Application and Agreement can

transact business on the account.

Section 9.

This section clarifies the point that your dealings with the Trust, Trustors, Trustees, and Beneficiaries are to be governed by this agreement only. The Trust Instrument, therefore, will

govern only the Trustee(s) and not the Credit Union.

Section 10.

This section puts the onus on the Trustor(s) and Trustee(s) to notify the Credit Union if there is any change in the trust instrument which would affect this Application and Agreement. In

the event of a superseding change in the Trust Instrument, the Credit Union must insist that a new Application and Agreement be completed with all pertinent information properly filled

in.

Section 11,12.

The language of the Application and Agreement allows any individual Trustee named in the Application and Agreement to transact on the account(s) of the Trust subject to Section 14. If

the Trust Instrument requires Trustees to act in concert, it is up to the Trustees to enforce the trust provisions and not the Credit Union. The section also allows for the provisions of the

Credit Union’s Account Agreement and Truth-in-Savings Disclosure to apply in the event a Checking Account is opened by the Trust.

Section 13.

In this section, the Trustee(s) should specify if they do not have the power to borrow on trust funds. Otherwise the Application and Agreement assumes that they have the power and the

Credit Union may enter into loan transactions with the Trustee(s) on that basis. The provisions on the Application and Agreement form will control the nature of the business relationship

between the Credit Union and the Trust. Therefore, if the Trustee(s) certify on the Application and Agreement that they do not have the power to borrow on Trust funds and try to pledge

or otherwise use Trust funds as security at a later date, the Credit Union should refuse to do so (unless the trustee(s) file a superseding Application and Agreement for Trustee(s) in which

they certify that they are authorized to borrow on assets of the Trust).

Section 14.

This section protects the Credit Union from encroaching on the duties of the Trustee(s) or otherwise acting as a Trustee (something which Credit Unions may not presently do). The

section also sets out the procedure in the event the trust enters into a secured loan transaction with the Credit Union and a copy of the Trust is required by a third party such as a title

company. It is important to emphasize that the Credit Union should not review the Trust documents or keep them in its files.

Therefore, the Trustee(s) must present the Trust documents to the Credit Union only in a sealed envelope. At that point, the trustee(s) must sign the “Receipt for Trust Instrument” form.

The Credit Union should not accept Trust Instruments under any other conditions. (Alternatively, the Trustee(s) can send the Trust Instruments directly to the third party.) The signed

receipt should be kept in the loan file to document that the Credit Union has had no exposure to the Trust Instrument.

The position of the Credit Union is that it is a mere depository of Trust funds and that any business transacted with the Trust is in accordance with the instructions of the trustee(s) as

documented by the Application and Agreement. The Trustee(s) in turn is governed by the trust provisions. It is the duty of the Trustee(s) and not the Credit Union to enforce the

provisions of the Trust.

Section 15.

This section provides that when the Trust borrows from the Credit Union (where permitted under Section 13 above) either a member/Trustor or a member/Trustee must sign the loan

documentation as an individual maker together with the Trustee(s) on behalf of the Trust. In this manner, the Credit Union may lend to the Trust an amount which exceeds the amount of

shares the Trust has on account at the Credit Union since a “natural” person has signed as a maker.

Section 16-19.

In the event of death, incompetence or resignation of a Trustor or Trustee, Section 16 allows the Credit Union to proceed under the terms of this Application and Agreement until the Credit

Union receives written notice thereof. Section 17 is self-explanatory, Section 18 is an indemnity and hold harmless agreement. Sections 19, 20 and 21 are self-explanatory.

Request for Taxpayer Identification Number (TIN).

This section is a Request for Tax Payer Identification Number and corresponds to IRA Form W-9. For an Irrevocable Trust, you are required to obtain an employer identification number

(EIN) of the Trust itself. Usually this number will start with the numerals “95-__________”. Generally in the case of a Revocable Trust, the TIN is the Social Security Number of the

Trustor. Recall, again, that this form is not to be used for “Totten Trust” accounts. For information on TINs, we suggest the Trustor/Trustee consult the “Instructions to Payers Request

for Taxpayer Identification Number and Certification (IRS Form W-9.)”

Signatures of Parties.

All Trustor(s) and Trustee(s) must sign the Application and Agreement. You will note that the Trustor(s) and Trustee(s) are required to sign under penalties of perjury that they have the

authority and are empowered to transact for the Trust. This certification should protect the Credit Union in the event the Trustee violates his or her fiduciary duties to the Trust.

FORM 216 B REV. 2/09

00522190