ARTICLE 1 - XYZ PET TRUST

 

       The XYZ Pet Trust shall be held and administered as follows:

 

1.1     PAYMENT OF MORTGAGES ON RESIDENCE:  My trustee shall first apply trust assets to pay off all mortgages on my residence, which at this time is at xxxx   (hereafter, "my residence"). 

 

1.2     ESTABLISHMENT OF ENDOWMENT FUND: My trustee shall next set aside as an endowment fund an amount of property sufficient to generate income for the purposes set forth in paragraph 1.4 below, for the lifetime of all animals I owned or cared for at the time of my death, plus the life of any offspring of such animals in gestation at the time of my death (hereafter, "my animals").
 My trustee may add to the fund such amount as the trustee determines to be a reasonable cushion against unforeseeable circumstances incident to carrying out the purposes of the trust, such amount not to exceed twenty five percent (25%) of the amount my trustee determines to be necessary to carry out the purposes of the trust.
 

         My trustee shall set the amount of this fund no later than two (2) years after my death based upon the trustee's experience carrying out the purposes of this trust during those two years; provided, however, that if my caretaker or trustee incurs legal expenses to enforce the XYZ Pet Trust, my trustee shall set the amount of the fund after such expenses are finalized and reimbursed  from the trust estate.
 

         This endowment fund shall be designated and hereafter referred to as "The XYZ Pet Trust."
 
1.3     DISTRIBUTION OF EXCESS TRUST FUNDS:  My trustee shall distribute any trust funds in excess of that amount necessary to establish the XYZ Pet Trust to the following beneficiaries; however, before making such distributions my trustee shall obtain from each donee a written release of any claims or challenges to the validity of the XYZ Pet Trust.  With regard to the XYZ Educational Fund, my trustee shall obtain such release from each adult beneficiary of such trust, and from the guardian of each minor beneficiary of such trust.

 

(A)     Fifteen percent (15%) to my spouse's brother xxx;  if xxx does not survive me, this gift shall pass to his issue by representation.  If xxx survives me and disclaims this gift in the time and manner provided by law, this gift shall pass to the XYZ Educational Trust established under this will.

 

(B)     Fifteen percent (15%) to remain in trust as the XYZ Educational Trust, to be administered in accordance with the provisions of Article 6.  Any portion of the XYZ Educational Trust which, by reason of a person’s attained age, death or otherwise, would have become distributable before the establishment of a separate fund, may be distributed directly by trustee without requiring that such a separate fund be established or that distribution be made by trustee of such separate fund.
 

(C)     Five percent (5%) to XXX ; if XXX  does not survive me, this gift shall be distributed in proportional shares to the remaining beneficiaries listed in this paragraph 1.3.

 

(additional contingent specific and charitable gifts go here)

 

1.4 ADMINISTRATION OF XYZ PET TRUST:

 

(A)     Appointment of Caretaker:  I appoint John Doe of Lakewood, Colorado as the caretaker of my residence and animals.  I designate my caretaker as the person entitled to enforce the intended use of the principal or income of  the XYZ Pet Trust pursuant to Colorado Revised Statutes §15-11-901(3)(d), as amended.  If John Doe fails or ceases to act as caretaker for any reason, I appoint Jane Smith of Longmont, Colorado as successor caretaker.

 

(B)     Rights of Caretaker:  My caretaker shall own my animals, which I leave to his (or her, in the case of my successor) kind care and judgment, and he or she shall live in my residence rent-free, both for as long as he or she serves as caretaker of my animals.  My caretaker shall pay all his or her own personal living expenses, including but not limited to all utilities, propane, phone, and other services not exclusively required by my animals.    My caretaker also shall be responsible for repairs to my residence caused by any use which exceeds the bounds of ordinary wear and tear on the property.   My trustee's determination as to whether an expense is personal to the caretaker or a trust expense shall be conclusive on all persons. My caretaker shall maintain reasonable communications with my trustee so my trustee is informed in a timely manner of necessary maintenance and other  property expenses. 
 
(C)     Distributions of Income And Principal:  My trustee shall distribute to my caretaker, or directly apply for the benefit of my animals, such amounts of the net income or principal, or both, as my trustee determines, in its discretion, to be necessary or advisable for care of my animals.   Such care shall take into account the animals' living standard at my death, and includes but is not limited to costs for food, medical care, and burial of such animals' remains, which shall be adjacent to the other XYZ pet burial plots, [e.g., under the large tree in the front yard of my residence, near the satellite dish].

         My trustee also shall apply trust income and principal as my trustee, in my trustee's discretion, shall determine to be necessary or advisable for maintenance of my residence in good saleable condition. Such maintenance shall include taxes, insurance, upkeep, and any other expense for the reasonable care of the residence necessary to provide housing for my animals and their caretaker and to carry out the other purposes of this trust. 
 

         My trustee also shall apply trust income and principal for any legal expenses incurred by my trustee or my caretaker which are necessary to enforce the purposes of the XYZ Pet Trust.   
 

        Any income not distributed may be added periodically to principal Although the Fund is intended as an endowment, I authorize my trustee to distribute principal where necessary to achieve the purposes of the trust, keeping in mind the probable future expenses of the trust and the size of the cushion established at the outset of the fund. I do not intend that my trustee borrow money or mortgage my residence to provide income for the purposes of the trust.
 

(D)     Termination of XYZ Pet Trust:  The XYZ Pet Trust shall terminate upon any of the following termination events:

 

(1) My last appointed successor caretaker resigns or fails to serve as caretaker for any reason.
(2)  All my animals have deceased.
(3) My last appointed successor caretaker gives my trustee written notice of such caretaker's intention to vacate my residence.

         Upon any of these termination events, my trustee shall, within 60 days, notify my then-serving caretaker in writing that the trust has been terminated.  If such caretaker has served as caretaker until all my animals are deceased (regardless of when such caretaker began serving), my trustee shall also notify such caretaker that such caretaker may purchase my residence at seventy-five percent (75%) of its fair market value.  This option price shall be determined by a qualified appraiser selected by my trustee and shall be included in the notice of termination.  Within sixty (60) days of the date such notice of termination was mailed by my trustee, such caretaker shall exercise the option to purchase granted herein by notifying my trustee, in a writing delivered to the trustee, of his or her intent to  purchase my residence.  Such writing shall include evidence of such caretaker's ability to finance such purchase.   If my caretaker has terminated the trust before all my animals have deceased, or if my caretaker fails to exercise this option in the time and manner specified, my trustee shall sell my residence on the open market, giving preference in the order received to offers made by any relative or friend of mine or my spouse mentioned in my will.    My trustee shall add the proceeds of sale of my residence to any assets or funds remaining in the XYZ Pet Trust, and shall distribute the balance as follows:

 

(In this example, these remaindermen were the same as the contingent specific and charitable donees in para.1.3)

 

         If any of my animals are living at the time of termination, I give them to my last serving caretaker.