Free Nursing Home Trust Agreement Template
Nursing Home Trust Agreement
THIS NURSING HOME TRUST AGREEMENT (hereinafter referred to as the “Agreement”) is made and entered into this [Insert Date], by and between [Your Company Name], residing at [Your Company Address] (hereinafter referred to as the “Grantor”), and [Trustee Name], with an office located at [Trustee Address] (hereinafter referred to as the “Trustee”), for the benefit of [Beneficiary Name], a nursing home facility located at [Beneficiary Address] (hereinafter referred to as the “Beneficiary”).
WHEREAS, the Grantor desires to create a trust for the purpose of providing financial support for the operations, improvements, and resident care at the Beneficiary facility, ensuring the highest standards of service and care are maintained;
WHEREAS, the Grantor has elected to transfer certain assets, more fully described in the body of this Agreement, into a trust (the “Trust”), to be held, administered, and distributed by the Trustee in accordance with the terms and conditions set forth herein for the benefit of the Beneficiary;
WHEREAS, the Trustee agrees to accept the trusteeship of the Trust and to administer the Trust in accordance with this Agreement, the Trust Instrument, and all applicable laws and regulations;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:
I. Trust Assets
A. Description and Transfer of Assets: The Grantor hereby transfers to the Trust the sum of Three Million Dollars ($3,000,000.00) in cash and the following specified assets: 100 shares of XYZ Corporation, property located at 123 Main Street. These assets shall be transferred to the Trustee within thirty (30) days from the date of this Agreement.
B. Additional Contributions: The Grantor reserves the right to make additional contributions to the Trust at any time. Such additional contributions shall be accompanied by an amended schedule of assets and shall become part of the Trust Assets upon acceptance by the Trustee.
C. Preservation and Maintenance of Trust Assets: The Trustee shall take all necessary steps to preserve the value of the Trust Assets, including maintaining adequate insurance where applicable and performing or arranging for the necessary maintenance and repairs of any physical properties included in the Trust Assets.
II. Trustee Appointment and Powers
A. Appointment: [Trustee Name] is hereby appointed as the Trustee of this Trust, and they accept this appointment and agrees to administer the Trust Assets solely for the benefit of the Beneficiary in accordance with the terms of this Agreement.
B. General Powers: The Trustee shall have all powers as provided by law, and as necessary or appropriate to carry out the purposes of this Trust, including but not limited to:
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Investment: To invest and reinvest Trust Assets in a manner consistent with the principles of prudent investment.
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Distribution: To make distributions to or for the benefit of the Beneficiary as specified in this Agreement.
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Asset Management: To sell, lease, exchange, or otherwise dispose of Trust Assets, subject to the terms of this Agreement.
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Expenses: To pay all reasonable expenses incurred in the administration of the Trust, including but not limited to taxes, legal fees, and accounting fees.
C. Specific Powers Related to Nursing Home Operations:
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Capital Improvements: To authorize and fund capital improvements to the Beneficiary facility as necessary to maintain or enhance the quality of care.
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Equipment Purchase: To authorize the purchase of medical and other equipment necessary for the operation of the Beneficiary facility.
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Program Funding: To provide funds for resident care programs, staff training, and other operational needs of the Beneficiary.
D. Duty to Act Prudently: The Trustee is required to act prudently and in the best interest of the Beneficiary at all times, exercising the care, skill, and caution that a prudent person would make under similar circumstances.
III. Duties of the Trustee
A. Act in Best Interest of Beneficiary: The Trustee shall at all times act in the best interest of the Beneficiary, ensuring that all decisions and actions taken with respect to the Trust Assets and distributions are made with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use.
B. Maintain Accurate Records: The Trustee is responsible for maintaining accurate and detailed records of all transactions related to the Trust, including but not limited to acquisitions, disbursements, investments, and earnings. These records shall be made available to the Grantor or their legal representative upon request.
C. Annual Accounting: The Trustee shall provide an annual accounting of the Trust's assets, liabilities, receipts, and disbursements to the Beneficiary within sixty (60) days following the end of the fiscal year.
D. Avoid Conflicts of Interest: The Trustee must avoid any conflicts of interest and shall not engage in any transaction that could be deemed a conflict between the Trustee’s personal interests and the interests of the Trust or the Beneficiary.
IV. Beneficiaries
A. Designation of Beneficiary: The sole Beneficiary of this Trust shall be [Beneficiary Name], a nursing home facility located at [Beneficiary Address]. The Trust is established for the purpose of providing financial support for the Beneficiary's operations, improvements, and resident care.
B. Distributions: Distributions from the Trust shall be made quarterly, on the first day of January, April, July, and October of each year, or as otherwise determined necessary by the Trustee to meet the specific needs of the Beneficiary. The amount of each distribution shall be determined based on the Beneficiary's submitted plans and proposals for the upcoming quarter, not to exceed Twenty-Five Percent (25%) of the Trust's total value per fiscal year.
C. Use of Distributions: All distributions made to the Beneficiary shall be used exclusively for the purposes outlined in the Preamble and in accordance with the Grantor’s intentions, including but not limited to facility improvements, purchase of medical equipment, and funding resident care programs.
V. Trust Administration
A. Trustee Compensation: The Trustee shall be entitled to reasonable compensation for their services as Trustee, not to exceed [Specify Amount or Percentage] of the Trust's annual income.
B. Trust Expenses: All expenses incurred in the administration of the Trust, including but not limited to legal, accounting, and management fees, shall be paid from the Trust assets.
C. Amendment of Trust Agreement: This Trust Agreement may be amended only with the written consent of both the Grantor and the Trustee. Any amendments must be in accordance with the laws governing trusts in the jurisdiction in which the Trust is established and must not alter the fundamental purpose of the Trust as specified in this Agreement.
D. Termination: The Trust shall terminate upon the earlier of (i) the date specified by the Grantor in a written notice to the Trustee, (ii) the depletion of all Trust Assets, or (iii) [Specify Date/Event], at which time the remaining Trust Assets, if any, shall be distributed in accordance with the Grantor's written instructions or, in the absence of such instructions, in a manner consistent with the purposes of the Trust as determined by the Trustee.
VI. Amendment and Termination
A. Amendment: This Trust Agreement may be amended only by a written instrument signed by both the Grantor and the Trustee. Such amendments shall not alter the fundamental charitable purpose of the Trust as specified herein.
B. Termination: The Trust may be terminated by the Grantor with ninety (90) days written notice to the Trustee if the purpose of the Trust is deemed to be fulfilled or impossible to achieve. Upon termination, any remaining Trust assets shall be distributed for the benefit of the Beneficiary in a manner that most closely aligns with the Grantor's original intent.
VII. Dispute Resolution
A. Mediation: In the event of any dispute arising out of or related to this Agreement, the parties agree to attempt to resolve the dispute through mediation with a mutually agreed-upon mediator.
B. Arbitration: If mediation does not resolve the dispute within thirty (30) days, the dispute shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. The arbitration shall take place in [Specify Location], and the decision of the arbitrator(s) shall be final and binding upon the parties.
VIII. Miscellaneous Provisions
A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [Specify State], without giving effect to any choice or conflict of law provision or rule.
B. Severability: If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal, or unenforceable, such invalidity shall not affect the other terms or provisions of this Agreement, which shall remain in full force and effect.
C. Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.
D. Notice: Any notices required or permitted to be given hereunder shall be in writing and shall be deemed to have been sufficiently given if sent by certified mail, return receipt requested, or by overnight courier to the address of the respective party as specified in this Agreement.
E. Binding Effect: This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.
Signatures
IN WITNESS WHEREOF, the parties have executed this Nursing Home Trust Agreement as of the date first above written.
Grantor
[Name]
[Date]
Trustee
[Name]
[Date]
