Binding Agreement Defining process of the
Distribution of the Marc Arthun Trust
Daniel,
So far we have come to agree to dissolve the trust and distribute all of its holding to Marc Arthun. This
document is a contract binding as an instrument defined by MCA Title 28 Chapter 2, when signed by
both the Trustee and the Beneficiary, is the only contractual contract to enforce execution of the
contract.
28-2-102. Essential elements of a contract. It is essential to the existence of a contract that there
be:
1) ***(1) Identifiable Parties Capable Of Contracting. These Parties and Rolls relative to the
contract:
(1) Daniel Olaf Arthun ( Trustee of Marc Arthun Trust )
(2) Marc Duane Arthun ( Beneficiary of Marc Arthun Trust )
2) ***(2) Consent;
i)
By signing this document both parties accept the contract as ratified and executable.
agree to fallow the direction of this document exactly as written in order of each step by
the agreed upon process and by the completion date. This direction of this document in
numbered steps is the Object and the and the Purpose of this contract. This contract is
defined and created as an “executed contract” is one wherefor the object is to be fully
performed.
3) ***(3) Lawful Object
i)
The dissolving of a trust is a legal process to which a legally defined fiduciary instrument,
lawfully, may be dismantled where is governed by the same title and chapter of MCA
Code by which it was created and administered .:
MCA Title 72 Chapter 38 Part 4. Creation, Validity, Modification, and Termination of
Trust
ii) MCA 72-38-401 -- 417. Creation, Validity, Modification, and Termination of Trust
iii) MCA 72-38-411. Modification Or Termination Of Irrevocable Trust By Consent
iv) MCA 72-38-414 Modification Or Termination Of Uneconomic Trust object;
v) This process defined above legally will transfer ownership of that trusts holdings to the
sole beneficiary. Dissolved the rust will no longer exist or have any remaining
administrative offices, or fiduciary purpose, function, value, or holdings. These process
terminated as in the code sited above.
4) ***(4) The Sufficient Cause for this Contract.
i)
The parties have agreed that due to the financial state of the trust the trust is no longer
feasible to administer and can be legally dissolved and distributed. To insure the process
is executed, fully, in a timeline agreeable to, fairly, legally, and as expected by both
Trustee, Daniel Arthun and sole Beneficiary, Marc Arthun both parties agree this is a
significant cause for contract.
ii) As need for council arose the Trustee contacted a Bozeman Attorney:
“If the testamentary trust reaches a point where it needs to be dissolved, what is the
process under Montana Law? Also based on the trust document, can it be dissolved?”
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In my opinion, the trust may be terminated. It can be terminated via nonjudicial
settlement agreement (without court involvement) so long as there is unanimous
consent among the beneficiaries and trustees. If there is not unanimous
consent, then a court would need to order the termination.
The document itself permits a trust termination in the event the trustee
determines financial or legal circumstances make maintaining the trust financially
burdensome, or in the event the trustee determines, in his or her sole discretion,
that the termination of the trust is in the best interest of Marc Arthun.
In practice, however, I take this to mean that the trustee can terminate in the
following instances:
o 1) If the trust totals less than $100,000, then after notice to Marc and
contingent beneficiaries, the trustee may terminate the trust if the trustee
concludes that the value of the trust property is insufficient to justify the
cost of administration (See Section 72-38-414 Mont. Code Ann.)
o 2) if it is in the best interest of the beneficiaries to terminate the trust, then
it can be terminated so long as the court concludes or could conclude that
continuance of the trust is not necessary to achieve any material purpose
of the trust (See Section 72-38-411, Mont. Code Ann.)
o 3) if it is in the best interest of the beneficiaries to terminate the trust, then
it can be terminated so long as termination will further a purposes of
the trust (see Section 72-38-412, Mont. Code Ann.)
If termination happens while the trust is a Montana trust, I would recommend the
trustee, current beneficiaries, and contingent beneficiaries enter in to a
unanimous nonjudicial settlement agreement (under Section 72-38-111, Mont.
Code Ann.) to make the termination binding. If a unanimous agreement cannot
be reached, then court approval would be required under Section 72-38-410. If a
Wisconsin trustee takes over, then I would run this question by an attorney
licensed in Wisconsin.”
iii) Daniel and Marc agree that the trust totals less than $100,000 and that the trust can
terminate the trust dissolving it. The property and cash will be transferred to Marc Arthun.
iv) Daniel and Marc agree to the councils advice that in reference to the testamentary Will of
Nancy Arthun “The document itself permits a trust termination in the event the trustee
determines financial or legal circumstances make maintaining the trust financially
burdensome, or in the event the trustee determines, in his or her sole discretion, that the
termination of the trust is in the best interest of Marc Arthun. “ This provision is the
grounds by which this contract will proceed.
v) Daniel and Marc agree the Marc Arthun Trust will be terminated via nonjudicial
settlement agreement (without court involvement) so long as there is unanimous consent
among the current beneficiary(s) and trustee(s). This does not include the agreement of
any contingent beneficiaries as they are not current beneficiaries of the trust. The will
states:
“If the Trust remains in existence at the time of Marc Arthun’s Death, Marc Arthun’s
Children shall become beneficiaries of the Marc Arthun Trust on a per stirpes basis.”
Marc Arthun’s “time of death” has not yet occurred therefor the Children of Marc Arthun
have not yet become Beneficiaries of the Marc Arthun Trust.
vi) Therefor this document serves as that agreement for the purpose of the Trustee’s and
Beneficiary’s agreement to dissolve and distribute the trust.
vii) Marc Arthun agrees that Daniel Arthun Trustee is to proceed to transfer deed of all real
estate and cash to Marc Arthun and designated accounts
viii) The Contingent Beneficiaries will be notified by mail on the day the trust is terminated.
ix) The transfer of the property and cash will occur at least 3 days prior to the trust
termination notification is mailed to the Probate court and to all the beneficiaries
1. Define expectations of this agreement.
a. Each step to be completed by date
b. The document will be reviewed for legal soundness by :
c. All property and Cash will be distributed.
d. All communication, All information and dates will be held in “air tight” confidentiality.
e. In the event that the contract cannot be executed due to disagreement of a external
prevailing instrument or law the parties are to move to arbitration via a third party both
parties of this contract agree upon. The arbitrator does not have to be a professional
firm, however both parties agree to the arbitrators final decision.
f. Arbortrator proposed by Marc :
g.
2. Distribute 10,000 to Marc
a. Completion Date: 8/15/2021.
3. Agree to this document in signature
4. Pay Fed, State, trust Income Taxes.
a. Completion Date:
5. Send Marc all bank account records.
6.
7.
8.
9.
a. Completion Date:
Distribute 40 acre parcel at 56130 Ondrik Rd, Mason, Wisconsin 54856 to Marc
a. Transfer Title using Title Co Attorney for the language of the Deed of Conveyance.
b. Tax payment history to be copied to Marc
c. Completion Date:
Agree on those that will be notified and at what date relative to the transfer of all funds Bank
account of Marc Arthun’s provisions the day of the transfer.
All banking information, numbers location and name of bank, fund transfer data, procedures,
methods, and amounts of transfers, balances. Any secondary information such as fees delay
times and or business rules and policies that affect the transfer or security of is absolutely
confidential and will remain so.
Daniel will transfer the remaining balance in cash of the Trust less 5000 held in reserve in order
to cover cost of dissolving the trust and transferring property and cash as well as attorney, or
arbitration fees and filing of any NESSISAY Documents with the Stillwater County District
Probate Court.
The signatures here indicate agreements specified within and acceptance to execute this contract.
Daniel Olaf Arthun
Date
Marc Duane Arthun
Date
9/10/2021
X
Marc D Arthun
Signed by: c5c8cf7a-f601-43a0-aa8a-5ba70b7d6337
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For the purpose of definition in the execution of this contract:
Settlor is the entity that establishes a trust. The settlor goes by several other names: donor, grantor,
trustor, and trustmaker. Regardless of what this entity is called, its role is to legally transfer control of an
asset to a trustee, who manages it for one or more beneficiaries. In the case of the Marc Arthun Trust
the Settlor is Nancy L Arthun by instrument of her Last Will and Testament