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Document Id : 478
File Type : Microsoft Word
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Collateral Trust Agreement between Partners
Prepare a Collateral Trust Agreement Between Partners with this downloadable template for a two-person partnership.
- One partner appoints a trustee to hold a life insurance policy or policies on the life of the other partner in trust on the partner's behalf.
- Upon the death of the insured partner, the partner agrees to purchase the insured partner's interest, using the proceeds from the insurance policy ⁄ policies.
- The trustee will hold the insurance policy ⁄ policies in trust, but the partner will receive all dividends.
- The partner will pay the trustee a yearly fee for acting as trustee.
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