College Education Trust Agreement

This College Education Trust Agreement (“Agreement” or “Trust”) is effective as of ______________, between __________________, residing at ________________ (“Grantor”) and __________________ (“Trustee”). This Trust shall be known as the ________________ College Education Trust, dated ______________. In consideration of the mutual covenants and promises outlined in this Agreement, the Grantor and Trustee agree as follows.

1. Purpose / Irrevocable Trust

The primary purpose of this Trust is to receive and manage assets for the health, education, and support of the Beneficiary. THIS TRUST IS IRREVOCABLE. The Grantor acknowledges that the right to revoke or amend this Trust may be reserved but expressly waives such right. This Trust cannot be altered, amended, revoked, or terminated by the Grantor or any other person. The Grantor renounces all benefits from this Trust.

2. Funding of Trust

The Trust is initially funded with $________, receipt of which is acknowledged by the Trustee. Additional funding may include:

• Lifetime gifts from the Grantor,

• Testamentary transfers by the Grantor, or

• Other property transfers made to the Trust by the Grantor or third parties.
  The Trustee shall manage and distribute Trust assets for the Beneficiary’s benefit per this Agreement.

3. Distributions to the Beneficiary

Until the Beneficiary turns 25, the Trustee may distribute income and/or principal as deemed necessary for the Beneficiary’s health, education, and support. Undistributed amounts shall accumulate and become part of the Trust principal. No distributions shall fulfill the Grantor’s legal support obligations, if any.

4. Definition of Education

For distribution purposes, “education” includes reasonable costs for college, trade schools, job training, or other expenses that develop income-earning capabilities.

5. Termination of the Trust at Age 25

When the Beneficiary reaches 25, the remaining Trust assets shall be distributed to the Beneficiary, and the Trust shall terminate.

6. Continuation of Trust

The Beneficiary may request, in writing within 60 days of turning 25, to extend the Trust until age 30.

a. Distributions After Age 25

During the extension, net income shall be paid annually. The Trustee may also distribute principal for the Beneficiary’s health, education, or support, considering other available resources.

b. Termination if Continued Past Age 25

At age 30, all remaining assets shall be distributed to the Beneficiary, and the Trust shall terminate.

7. Death of the Beneficiary

If the Beneficiary dies before Trust termination:

a. General Testamentary Power of Appointment

The Beneficiary may designate remaining Trust assets via a will or notarized document. The document must explicitly reference this power.

b. Alternate Distribution

If the power is unexercised, assets shall pass to the Beneficiary’s descendants per stirpes or, if none, to heirs-at-law under New Hampshire intestacy laws.

c. Trustee’s Notice Requirement

If the Trustee receives no notice of a will or appointment document within 90 days of the Beneficiary’s death, assets shall be distributed as if no power was exercised.

d. Distribution Methods

Payments may be made outright, to a trust for the Beneficiary, or to a custodial account under the Uniform Transfers to Minors Act.

8. Limitations on Powers

a. No Self-Dealing

No Trustee, Grantor, or third party may purchase, exchange, or borrow Trust assets without adequate consideration or security.

b. Investment Control

Only the Trustee, acting in a fiduciary capacity, may direct investments or vote Trust securities.

9. Protection of Beneficiary

The Beneficiary may not sell, assign, or encumber their Trust interest. Creditors or legal processes may not seize Trust assets. If diversion is threatened, the Trustee may withhold distributions and apply funds for the Beneficiary’s benefit until the threat ceases.

10. Trustee Powers

The Trustee may:

• Receive, invest, and manage Trust assets,

• Accept additional funding,

• Retain or dispose of assets,

• Settle claims,

• Allocate principal/income,

• Employ professionals,

• Distribute in cash or kind,

• Exercise stock rights, and

• Make loans for housing, education, or business opportunities.

11. Trustee Provisions

a. Successor Trustee

If the Trustee cannot serve, ______________ shall succeed. If unavailable, ______________ shall act.

b. Financial Reports

Annual reports shall be provided to the Grantor (if living) or the Beneficiary (or guardian, if applicable).

c. No Bond Required

Unless mandated by law, no bond shall be required.

d. Institutional Trustee Requirements

An institutional Trustee must hold ≥$15M in capital, have a Trust Department, and be legally qualified.

e. Trustee Liability

The Trustee is liable only for bad-faith acts. Successors are not liable for prior Trustees’ actions.

12. Non-Court Trust

The Trustee shall administer the Trust without court oversight unless required by law.

13. Governing Law

This Agreement shall be governed by the laws of the State of ________________.

Grantor

Trustee

STATE OF ____________________
COUNTY OF ___________________

This Trust was acknowledged before me on ______ 2025, 20__.

Notary Public
My Commission expires: __________

How to Use This Sample Format

This guide explains the document and assists in its preparation. It is a standard educational trust template—modify as needed. Note: The Trust terminates at 25, not 21. Assess whether this suits your needs.

1. Make copies for all relevant parties and retain one in your records.