Living Trust Security Agreement

• Grantor (Trustor):
  [Grantor’s Name], residing at [Grantor’s Address], who is the creator of the [Name of Living Trust].

• Trustee:
  [Trustee’s Name], residing at [Trustee’s Address], who holds and manages trust assets on behalf of the [Name of Living Trust].

• Secured Party (Lender/Beneficiary):
  [Secured Party’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of business located at [Secured Party’s Address].

Each party, having the legal capacity to enter into this Agreement, agrees as follows:

1. Purpose and Scope

1.1. This Agreement establishes a security interest in certain assets held within the Living Trust to secure the obligations of the Grantor or Trustee to the Secured Party under [loan agreement, promissory note, financial obligation, or contractual obligation].

1.2. The Trustee agrees to pledge specified trust assets as security to protect the Secured Party against default on the obligation.

1.3. The security interest granted under this Agreement does not interfere with the administration of the Living Trust except as necessary to enforce the rights of the Secured Party.

2. Grant of Security Interest

2.1. Collateral – The Trustee, acting on behalf of the Living Trust, grants the Secured Party a first-priority security interest in the following trust assets (“Collateral”) to secure the obligations of the Grantor or Trust:

• [List of Collateral, including cash deposits, investment accounts, real estate, intellectual property, securities, or any other pledged trust assets]

2.2. Secured Obligations – The security interest is granted to secure the following obligations:

• [Describe the financial obligation, such as a loan, promissory note, contractual liability, or outstanding debt]
• [Repayment terms and schedule, if applicable]

2.3. Perfection of Security Interest – The Secured Party is authorized to file a UCC-1 Financing Statement and take other necessary actions to perfect the security interest in the Collateral.

2.4. Control of Collateral – The Secured Party shall have the right to control, access, and apply the Collateral in the event of default.

3. Representations and Warranties

3.1. The Trustee represents and warrants that:

• The Living Trust is validly established and remains in good standing.
• The Trustee has full legal authority to grant a security interest in the trust assets listed as Collateral.
• The Collateral is free and clear of any prior liens, claims, or encumbrances, except as disclosed to the Secured Party.
• The execution of this Agreement does not violate any trust agreement, will, or fiduciary duty governing the Living Trust.

3.2. The Grantor represents and warrants that:

• The Living Trust has sufficient assets to secure the obligations covered under this Agreement.
• It will not take any actions that interfere with the security interest of the Secured Party.

4. Covenants of the Trustee

4.1. The Trustee agrees to:

• Maintain and preserve the value of the Collateral at all times.
• Not transfer, sell, or otherwise encumber the Collateral without the Secured Party’s consent.
• Notify the Secured Party of any legal disputes, claims, or actions affecting the Collateral.
• Provide the Secured Party with periodic updates on the trust assets and financial status of the Living Trust.

5. Default and Remedies

5.1. Events of Default – The Living Trust shall be in default if:

• The Grantor or Trustee fails to fulfill the secured obligations.
• The Trustee takes unauthorized actions affecting the pledged Collateral.
• The Trustee dissolves or amends the trust in a way that negatively impacts the Secured Party’s interest.
• The Grantor or Trustee files for bankruptcy or becomes insolvent.

5.2. Remedies Upon Default – If default occurs, the Secured Party may:

• Take possession of and liquidate the Collateral to satisfy the Living Trust’s obligations.
• Apply proceeds from the Collateral toward the secured obligations, returning any surplus to the Living Trust.
• Seek legal or equitable relief to enforce the security interest, including court orders for trust administration oversight.

6. Indemnification & Liability

6.1. Indemnification:

• The Trustee agrees to indemnify, defend, and hold harmless the Secured Party from any losses, damages, or claims arising from misrepresentation or failure to protect the Collateral.
• The Grantor agrees to indemnify and hold harmless the Trustee for any liabilities resulting from mismanagement or negligence in fulfilling obligations.

6.2. Limitation of Liability:

• The Trustee’s liability shall be limited to the pledged Collateral, unless otherwise specified by law.
• The Secured Party shall not be liable for any indirect, incidental, or consequential damages arising from enforcement of this Agreement.

7. Governing Law and Dispute Resolution

7.1. Governing Law – This Agreement shall be governed by and construed in accordance with the laws of the state of [State].

7.2. Dispute Resolution – Any disputes shall be resolved through:

• Negotiation between the parties.
• Binding arbitration in [City, State], under the rules of the American Arbitration Association (AAA).
• Litigation in the courts of [State], if arbitration is unsuccessful.

8. Miscellaneous Provisions

8.1. Amendments – Any modifications to this Agreement must be in writing and signed by all parties.

8.2. Severability – If any provision of this Agreement is deemed invalid, the remaining provisions shall remain in full force and effect.

8.3. Waiver – Failure to enforce any provision shall not constitute a waiver of future enforcement rights.

8.4. Entire Agreement – This Agreement constitutes the complete understanding between the parties and supersedes all prior agreements regarding the security interest.

9. Notices

All notices under this Agreement shall be in writing and sent to the following addresses via certified mail, email, or in person:

• Secured Party:
  [Secured Party’s Name]
  [Secured Party’s Address]
  [Email Address]

• Trustee:
  [Trustee’s Name]
  [Trustee’s Address]
  [Email Address]

• Grantor:
  [Grantor’s Name]
  [Grantor’s Address]
  [Email Address]

10. Signatures

IN WITNESS WHEREOF, the parties have executed this Living Trust Security Agreement as of the date first written above.

Secured Party:
By: ___________________________
Title: __________________________
Date: __________________________

Trustee:
By: ___________________________
Title: __________________________
Date: __________________________

Grantor:
By: ___________________________
Title: __________________________
Date: __________________________