Sample Business Trust Agreement – A Sample, not to be used to create a business trust.
This Business Trust Agreement (“Agreement”) is entered into on this ___ day of _______, 20, by and between:
- Trustor/Grantor: _________________________ (the “Trustor”)
- Trustee(s): _____________________________ (the “Trustee(s)”)
Collectively, the parties agree to establish a business trust (the “Trust”) for the purposes and under the terms set forth below.
Article I – Name and Purpose
1.1 Name of Trust
The Trust shall be known as the __________________ Business Trust.
1.2 Purpose
The purpose of the Trust is to own, manage, and operate the business and assets contributed to it for the benefit of its beneficiaries, including but not limited to:
- Conducting lawful business activities.
- Managing investments, real estate, or other assets.
- Distributing profits to beneficiaries as outlined herein.
Article II – Trust Property
2.1 Initial Contribution
The Trustor hereby transfers, assigns, and delivers the following property and/or business interests into the Trust:
2.2 Additional Contributions
The Trustor or other parties may make additional contributions of property or capital to the Trust with the consent of the Trustee(s).
Article III – Trustee(s)
3.1 Appointment
The Trustor appoints the Trustee(s) to manage and administer the Trust in accordance with this Agreement.
3.2 Powers of Trustee(s)
The Trustee(s) shall have full power and authority to:
- Manage, invest, reinvest, and dispose of Trust property.
- Enter into contracts, leases, and business arrangements.
- Borrow money and pledge Trust assets as collateral.
- Hire employees, agents, or advisors.
- Distribute income and principal as provided herein.
3.3 Fiduciary Duty
The Trustee(s) shall act in good faith and in the best interest of the beneficiaries.
Article IV – Beneficiaries
4.1 Designation of Beneficiaries
The Beneficiaries of this Trust shall be:
4.2 Rights of Beneficiaries
Beneficiaries shall be entitled to:
- Receive distributions of income and/or principal as determined by the Trustee(s).
- An accounting of the Trust upon reasonable request.
- Transfer of beneficial interests subject to Trustee approval.
4.3 No Direct Control
Beneficiaries shall not have authority to manage or control Trust operations unless specifically appointed as a Trustee.
Article V – Distributions
5.1 Income Distributions
The Trustee(s) shall distribute net profits of the business to the Beneficiaries at least annually, unless otherwise determined.
5.2 Discretionary Distributions
The Trustee(s) may make discretionary distributions of principal for the benefit of the Beneficiaries, considering business needs and financial conditions.
Article VI – Duration and Termination
6.1 Term
The Trust shall continue until dissolved by:
- Agreement of all Trustees and Beneficiaries,
- Expiration of ____ years from the date of this Agreement, or
- Operation of law.
6.2 Termination
Upon termination, all remaining Trust assets shall be distributed to the Beneficiaries in proportion to their beneficial interests.
Article VII – Miscellaneous
7.1 Governing Law
This Agreement shall be governed by the laws of the State of __________________.
7.2 Amendments
This Agreement may be amended only with the written consent of the Trustee(s) and a majority of the Beneficiaries.
7.3 Severability
If any provision of this Agreement is found unenforceable, the remainder shall remain in full force and effect.
Signatures
Trustor/Grantor:
___________________________ Date: __________
Trustee(s):
___________________________ Date: __________
___________________________ Date: __________
Beneficiaries (Acknowledgment):
___________________________ Date: __________
___________________________ Date: __________
Note: This is a generic template. Specific provisions (such as tax elections, liability shields, and state compliance requirements) must be tailored by an attorney depending on your jurisdiction and business purpose.
Disclaimer: We are not attorneys, nor can we or will we provide legal advice. ChatGPT prepared this draft to give an example. Never form a business without the legal assistance of an attorney. This is not legal advice, but general public information available online.
This draft was created to supplement the article “Business Trust Offer Unique Advantages,” that was published on September 21, 2025 on STL.News Business Category.
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