HUSBANDAND WIFE LASTNAME REVOCABLE TRUST

MEMORANDUM REGARDING FUNDINGAND ADMINISTRATION OF YOUR REVOCABLETRUST

This memorandum discusses the HUSBAND AND WIFE LASTNAME REVOCABLE TRUST(the "Declaration of Trust") and is intended to assist you in understanding how to transfer assets to the Revocable Trust.

Generally

To obtain the maximum benefit of the Revocable Trust, it is important that it be properly funded during your lifetimes. Funding the Revocable Trust can happen one of two basic ways: (1) by transferring the ownership of assets to the Revocable Trust, or (2) by naming the Revocable Trust as the beneficiary of certain assets. Note, though, you should not transfer ownership of any retirement accounts or annuities to the Revocable Trust, as these types of investments should remain outside the trust, otherwise unintended income tax consequences might result. Even though your retirement accounts and annuities will not be owned by the Revocable Trust, probate can still be avoided as long as the beneficiaries you designate are coordinated with your overall estate plan.

All transfers of ownership must be accomplished by executing appropriate instruments of transfer to be effective for state law purposes. For example, real estate should be transferred to the Revocable Trust by a deed, bank accounts by changing the name on the accounts, and stock certificates not in "street name" by issuing a new certificate in the name of the Revocable Trust. You should not, however, transfer any guns or ammunition to the Revocable Trust, as this trust is not designed to own such assets or to comply with the National Firearms Act. I will be happy to assist you with the transfer of assets (other than guns or ammunition) to the Revocable Trust, but I will not initiate such assistance unless you specifically request me to do so in writing.

This memorandum is intended to assist you in understanding your Declaration of Trust, but it is not all inclusive. I hope it is beneficial in highlighting some of the significant aspects of your Declaration of Trust. If you have any questions regarding your Declaration of Trust, please feel free to contact me.

How to Style Properties Owned by the Trust

Assets which are intended to be owned by the Revocable Trust can be styled a number of ways. Each of the following options will adequately identify the trust. When possible, though, you should opt for a styling which contains as much information as possible.

"HUSBANDFIRST LASTNAME and WIFEFIRST LASTNAME, Co-Trustees of the HUSBAND AND WIFELASTNAME REVOCABLE TRUST"

"HUSBANDFIRST LASTNAME and WIFEFIRST LASTNAME, Co-Trustees of the HUSBAND AND WIFELASTNAME REVOCABLE TRUST, under Declaration of Trust dated_________________________,2025,and as may be amended"

Certification of Trust

When you transfer assets to your Revocable Trust, and when the Trustee buys and sells various assets owned by the Revocable Trust, the people with whom you will be dealing will need verification that your trust actually exists and that the Trustee has the authority to act on behalf of the trust. If you do not want to provide an entire copy of the Declaration of Trust, as you may not want other people to be able to read the provisions of your private trust document, you may instead use a copy of the Certification of Trust. If you are asked to submit a new Certification of Trust form, please let me know, and I will forward an unsigned Certification form for you to sign at such time. The Certification of Trust enables you to avoid disclosing the particulars of your estate plan by disclosing only the information which is necessary. You may find that you will be using your Certification of Trust repeatedly over the years as trust assets are bought and sold in the name of your Revocable Trust. On the other hand, the Certification of Trust may not be accepted at all banks, brokerage houses, and other businesses, so you may be required to provide parts or all of the Revocable Trust when opening a new account or transferring property to the Revocable Trust.

Tax Considerations

While you are both living, your Revocable Trust is designed to be a pass-through entity for income tax purposes. In other words, all income and expenses will be taxed directly to the two of you as if the Revocable Trust did not exist. Therefore, you can use either of your social security numbers as the tax identification number of the Revocable Trust while both of you are alive, and you can report trust income on your individual or joint income tax returns (Form 1040). No trust tax return (Form 1041) will need to be filed for the trust as long as at least one of you is living. Also, while both of you are living, the trust created by this Declaration of Trust is revocable by either of you and may be amended by the two of you acting jointly.

Real Estate

Deeds are required to convey interests in real estate to your Revocable Trust. In the future, should you acquire any additional real estate, you should title such real estate in the name of your Revocable Trust. You should obtain the assistance of an out-of-state attorney to transfer any non-Texas real estate into the Revocable Trust. All of your non-homestead real estate can be placed in the Revocable Trust. You may conclude that your homestead should not be placed in the Revocable Trust because of the possibility that a bankruptcy court may determine that your homestead is not a protected asset and is therefore not exempt from the claims of creditors. At least one bankruptcy court has come to that conclusion. Accordingly, you should transfer your homestead into your Revocable Trust only if you are certain that you will never be faced with bankruptcy in the future. Importantly, the transfer of your homestead to your Revocable Trust will not result in the loss of your homestead exemption for property tax purposes. If you receive a notice from your county appraiser that your homestead exemption has been denied, you will need to present the appraisal office with a copy of the page from your Declaration of Trust which contains the Section entitled: "Right To Use Principal Residence. "The language contained in this section recites the necessary language needed to secure the homestead exemption. Importantly, if you are transferring a condominium or other multi-unit property to your Revocable Trust, be sure that you are in compliance with any applicable bylaws or other governing documents and that you secure the proper approval prior to transfer. Also, you should not transfer any real property located outside the United States to your Revocable Trust unless you first secure the advice and counsel of an attorney in such foreign country. Unanticipated taxes, fees, and duties might be owed, and the foreign jurisdiction might not recognize the validity of a United States' based trust.

An alternative to transferring real estate to your Revocable Trust at this time, you could instead utilize one or more Revocable Transfer on Death Deeds to transfer any real estate you own to your Revocable Trust or to a beneficiary or to several beneficiaries upon your death. You would continue to own the property described in the Revocable Transfer on Death Deed while you are alive, and you would retain the ability to sell the property or change the beneficiary or beneficiaries prior to your death. A Revocable Transfer on Death Deed works much like a retirement account which belongs to you while you are alive but passes to the beneficiary or beneficiaries you designate upon your death. Under the right circumstances, a Revocable Transfer on Death Deed can be a simple and effective way to transfer real estate upon death.

Casualty and Property Insurance

With regard to casualty and property insurance, you should consult with your insurance agent to make certain that transferring your personal property into your Revocable Trust will not result in a business rating on your insurance policy causing an increase in your insurance premium. Also, you should ask your agent if your policies need to be amended to include and cover your Revocable Trust and all of its property. Sometimes this can be accomplished by adding your Revocable Trust as an additional insured to your policy, and for automobiles owned by the Revocable Trust, listing you as an insured driver.

Mortgaged Property

With regard to any mortgaged property, Federal law generally prohibits your lender or the holder of the mortgage from enforcing a "due on sale" clause with regard to most residential real properties. Only residential properties that contain five or more dwelling units, as well as all commercial properties, are subject to having notes accelerated by the lender. Even though your home and other residences may fall under this exception, you should still inform your lender or lenders that you have transferred your property to your Revocable Trust so that they may change their records accordingly. If you have mortgaged, pledged or allowed a lien to be placed upon any real estate other than your home and any other residences that fall under the foregoing exception, you should first obtain the written permission of your lender or lenders prior to transferring such real property into your Revocable Trust. Permission for this type of transfer is regularly given, so you should have no problems with your lenders.

Vehicles

You should transfer ownership of your automobiles, recreational vehicles, and boats (referred to in this paragraph as "vehicles") to your Revocable Trust. This is the case even though transferring title to vehicles can typically be accomplished after death without the need for probate by completing an affidavit from your heirs, without a probate proceeding. (Relying on the affidavit, though, requires the signature of all of your "heirs." Also, and importantly, your "heirs" under Texas law may not be the same people who are named as beneficiaries under your Revocable Trust.) Another alternative to transferring vehicles to a Revocable Trust is to title the ownership of your vehicles either (1) as joint tenants with right of survivorship using the Texas Department of Motor Vehicles formVTR-122 (Rights of Survivorship Ownership Agreement for a Motor Vehicle), or (2) with a beneficiary designation using the Texas Department of Motor Vehicles form VTR-121 (Beneficiary Designation for a Motor Vehicle). Both forms are available at www.txdmv.gov.Titling your vehicles with rights of survivorship will allow ownership to transfer automatically to the surviving owner or owners upon the death of a co-owner, and titling your vehicles with beneficiaries designated will allow ownership to transfer to the beneficiary after the owner or both co-owners have died. To transfer title to your vehicles to your Revocable Trust, for each vehicle transferred, you will need to complete Form 130-U (Application for Texas Title) and Form 14-317 (Affidavit of Motor Vehicle Gift Transfer), both of which are available at www.txdmv.gov. If you transfer one or more of your vehicles to your Revocable Trust, you should immediately contact your insurance agent so that your insurance carrier can be notified that such vehicle or vehicles have been transferred to your Revocable Trust.

Given the difficulty associated with transferring vehicle title to a Revocable Trust, you may want to keep the title to your present vehicles as is, and instead wait until you purchase your next car to have title placed in the name of your Revocable Trust from the outset. It is typically much easier to purchase a car in the name of a Revocable Trust rather than change the title to the trust. Of course, if your death occurs in the meantime, before you purchase your next car, then probate might not be avoided or the beneficiaries of your estate might encounter some difficulty with the transfer of vehicle title. If your Will is probated, the executor of your estate will have the power to sell your vehicles. But since one of the purposes of your Revocable Trust is to avoid probate, it may be best to transfer the vehicles you own now, in addition to the vehicles you acquire in the future, to your Revocable Trust.

Stocks and Bonds Not in "Street Name"

Most often, stocks and bonds are held in "Street Name" accounts, meaning the brokerage firm holds the securities in its "street name" so it is easier for you to trade. By changing the name on the account, you automatically change the beneficial ownership of all the securities in that account. However, many people hold the actual stock or bond certificates, and in such a case, it will be necessary to place the securities into a brokerage account in the name of your Revocable Trust or to re-register the securities so that they are in the name of your Revocable Trust.

Savings Bonds

The first step is to complete the U.S. Department of the Treasury Form1851, Request To Reissue United States Savings Bonds To A Personal Trust. This form can be obtained online atwww.treasurydirect.gov/forms/sav1851.pdf. You must then mail the form and the original bond certificates to the address listed on page five of the form. Importantly, you should make a copy of all of the documents before you mail them. As a further precaution, you should send the package via overnight or insured mail. If additional information is needed to complete the transfer, they will notify you directly. If you have not heard back from the Treasury Department within six weeks, you should follow up with another letter.

Closely Held Corporation Stock

If you own an interest in a closely held corporation (generally, a corporation that is not publicly traded), then it will be necessary to sign a Stock Assignment form and issue a new certificate in the name of your Revocable Trust. Often, the assignment language is found on the back side of the stock certificates. Once that step has been completed, the certificate should be canceled and attached to the stub in the corporation's stock record book, and a new certificate should be issued in the name of the trust. If you presently hold multiple stock certificates, all of those certificates can be combined into a single new certificate; however, if you have a different cost basis in the shares represented by multiple certificates, you may prefer to continue to have multiple certificates.

It may be the case that a buy-sell agreement is in place restricting the transfer of shares of stock you own in a closely held corporation. Most of the time, a buy-sell agreement will permit the transfer of closely held stock to a trust established for the benefit of the shareholder making the transfer. Even so, you will want to determine if a transfer to your Revocable Trust is permitted. If the buy-sell agreement does not permit any such transfer, then it will be necessary to amend the agreement or obtain the consent of the other shareholders.

I fa closely held corporation in which you are a shareholder has elected to be treated as an "S Corporation," the transfer of your shares to your Revocable Trust will not affect that election since your Revocable Trust is a "grantor trust" for income tax purposes. You will still be treated as the direct owner of the shares even if ownership is transferred to your Revocable Trust.

Partnership Interests or LLC Interests

Each partnership has its own rules. If you are a partner in a limited partnership, you will need to contact the general partner, and subject to the limited partnership's rules, you should be able to retitle your partnership interest to the name of the Revocable Trust. It may be necessary to obtain the approval of some or all of the partners in the partnership before you are permitted to assign your interest to the Revocable Trust. The limited partnership may be able to provide you with the proper assignment form, but if they are notable to do so, please contact me. If you would like assistance with transferring a general or limited partnership interest in a limited partnership to the Revocable Trust, please let me know. In such case, I will need you to forward to me a copy of the agreement of limited partnership.

If you are a partner in a general partnership or limited liability company, you should contact the partner or member who manages the company and request that your interest be transferred to your Revocable Trust. Just as with an interest in a limited partnership, it may be necessary to obtain the approval of some or all of the other partners or members before you are permitted to assign your interest to the Revocable Trust. The general partnership or LLC maybe able to provide you with the proper assignment form, but if they are not able to do so, please contact me. If you would like assistance with transferring a partnership interest or limited liability company units to the Revocable Trust, please let me know. In such case, I will need you to forward to me a copy of each such entity's operating agreement.

Note, however, if you own a publicly traded partnership interest, you should be sure to determine what the cost will be to transfer your interest to the Revocable Trust. There are sometimes substantial fees that can be charged, and you may decide not to transfer that interest to your trust.

Bank, Savings and Other Accounts

You may wish to transfer the ownership of your bank, brokerage, money market, credit union, or mutual fund accounts (referred to in this Section as an "account" or as "accounts") to the Revocable Trust. To do so, you may be permitted to restyle an existing account, or you may be required to open a new account foreach existing account which is transferred to the Revocable Trust. With regard to accounts which have checking privileges, it may be possible to retain your existing checks which list your name on the face of the check, provided the ownership of the account is properly changed. I recommend that you check your account statements from the various institutions to verify that they reflect your Revocable Trust as the proper owner.

If you decide to keep any accounts owned personally outside the Revocable Trust, you should consider naming the Revocable Trust as the payable on death ("POD") beneficiary or transfer on death ("TOD") beneficiary, if permitted by the financial institution where each such account is held.

The following is a summary of the steps you must take to transfer ownership of accounts to your Revocable Trust:

Local Institutions:

1. Talk to a person at the New Accounts desk (or your private banker).

2. Ask to have the title on your account(s) changed to the name of your Revocable Trust. If the bank permits it, ask to keep the same account numbers on your account(s). Also, request that your checks remain printed as they are and not in the name of your Revocable Trust. Having the name of your Revocable Trust on your checks will not cause you any difficulties, but it will mean that persons or businesses to whom you write checks will know you have a Revocable Trust.

3. The bank may want a copy of your Declaration of Trust. If so, tell them you would prefer instead to give them a copy of your Certification of Trust which shows the proper name for the account and that the Trustees have authority to open this type of account in the name of your Revocable Trust. The bank may not accept the Certification of Trust, but may instead require a copy of the entire Declaration of Trust. You should then ask them to accept only the first page and the last two pages, as the other pages are of a personal nature. If they insist on having a copy of the entire Declaration of Trust, you can either provide it to them or find a different bank which does not have a similar requirement.

4. Sign the new signature cards. (You should not have to use the word "Trustee" as part of your signature.)

Out-of-Town Institutions:

1. If you have a bank account at a financial institution out of town, send them a Memorandum Requesting Transfer of Account to Your Revocable Trust. They may also want a copy of your Declaration of Trust. If so, tell them you would prefer instead to give them a copy of your Certification of Trust which shows the proper name for the account and that the Trustees have authority to open this type of account in the name of your Revocable Trust. The bank may not accept the Certification of Trust, but may instead require a copy of the entire Declaration of Trust. You should then ask them to accept only the first page and the last two pages, as the other pages are of a personal nature. If they insist on having a copy of the entire Declaration of Trust, you can either provide it to them or find a different bank which does not have a similar requirement.

2. When you receive the new signature card in the mail, make sure the Revocable Trust is properly listed as the owner, and sign it and send it back to the institution. (You should not have to use the word "Trustee" as part of your signature.)

3. If you have a brokerage account which is held by a firm whose offices are out of town, you should call your broker's toll free number to find out exactly what steps you must take. It will likely be necessary to have your signature guaranteed and that can be accomplished at the offices of most major brokerage firms or at certain commercial banks or trust companies. Call your local bank or brokerage firm to see if they provide this service. It is best to have a "Medallion" guarantee instead of a regular guaranteed signature. The brokerage firm will tell you what other forms will be needed in addition to the signature guarantee.

What if the Bank or Credit Union Will Not Allow Revocable Trust Accounts?

Some banks and credit unions do not allow their customers to open Revocable Trust accounts. Often the problem is that the person you are talking to does not realize the bank really does allow you to have a trust account, so the solution may be as simple as talking to another more senior person at the bank. If it turns out that you are definitely not able to have a trust account, you can either open your account at a bank which does offer trust accounts, or you can set the account up as a Joint Tenants With Rights of Survivorship account or as a Payable on Death account so that the account will pass directly to the surviving joint tenant or to the named beneficiary without having to go through probate. Of course, if an account does pass directly to a person, it is possible that the planning contained within your Revocable Trust may be nullified or disrupted.

Certificates of Deposit:

Most, but not all, financial institutions will change the certificate owner to a Revocable Trust without a penalty. If your financial institution will impose a penalty, you may want to wait until the certificate of deposit matures before changing it to your Revocable Trust. In addition, you should check with each of your financial institutions to make certain that all of your certificates of deposits have been properly styled in the name of your trust in a manner that will qualify for FDIC or FSLIC insurance coverage.

Leases

You may own rental properties which you will transfer to your Revocable Trust. In such a case, you should explain to your tenant that you have assigned the property to a trust and that all future payments should be made to the trust. You may even want to amend your lease agreement with the tenant. (Of course, all future leases should reflect the Revocable Trust as the landlord.) There is no need to send any portion of your trust document to the lessee. If the next rent payment you receive is made out to your Revocable Trust, you will know your tenant has received your letter and understands what needed to be done. If the next rent payment is made out to you personally, you should contact the tenant one more time and ask that future payments be made out to the trust. Note, there is no rea lproblem if the tenant continues to make payments to you personally. Rent checks received by you personally can be deposited into a Revocable Trust checking account.

Mineral Interests

If you own any mineral interests, the record titleholder of such interests (e.g., royalty interests, working interests) needs to be changed to your Revocable Trust. I recommend that you assign your mineral interests into your Revocable Trust and obtain transfer orders and/or division orders from the purchasers of the production. The assignments should be filed in the counties where the properties are located and the division orders should be signed and sent to the oil companies. However, this task exceeds the scope of our initial engagement. I recommend that you consult with an oil and gas attorney to ensure that such assignments are properly made. Depending upon the location of the mineral interests, I may be able to recommend an attorney to you.

Promissory Notes

If you already have existing promissory notes which are payable to you personally, they should be endorsed or assigned to your Revocable Trust, and the party making the payments should be notified of the assignment with the request that future payments be made to the Revocable Trust. If there are any real property liens securing the payments of these notes, the liens should also be assigned to your Revocable Trust, and evidence of such assignment should be filed of record in the county in which the property is located. In the future, if you should loan money to anyone, or if you sell property and the borrower or buyer gives you a promissory note for the purchase price, have that person make your Revocable Trust the "payee."

There is no need to send any portion of your trust document to the payee. If the next payment you receive is made out to your Revocable Trust, you will know the payee has received your letter and understands what needed to be done. If the next payment is made out to you personally, you should contact the payee one more time and ask that future payments be made out to the trust. Note, there is no real problem if the payee continues to make payments to you personally. Checks received by you personally can be deposited into one of your Revocable Trust accounts.

Safe Deposit Box

If you maintain a safe deposit box, you may want to change the registration to your Revocable Trust. Doing so may avoid a probateproceeding following death which would otherwise be required to open the box if no alternate person is named.

Club Memberships

Each private club will have its own rules regarding the transfer of a membership to a Revocable Trust. Some clubs have their own forms to accomplish the transfer, while other clubs do not allow a Revocable Trust to own a membership interest (although they may have a transfer on death agreement which accomplishes the transfer of any value to your Revocable Trust upon death). You should contact your club's membership director to find out what steps must be taken to transfer your membership to your Revocable Trust.

Guns

Guns should generally not be transferred to your Revocable Trust. There are two reasons why. First, certain types of guns known as "NFA guns" are highly regulated. These types of guns include, but are not limited to, machine guns, suppressors and silencers, short barrel rifles and shot guns, and destructive devices. Second, certain beneficiaries of the trust who are to receive property when you pass away might be "prohibited persons" as far as the ownership of any type of gun is concerned. Under Federal law, a prohibited person includes, but is not limited to, someone who: (1) is under indictment for, or has been convicted of, a crime punishable by imprisonment exceeding one year; (2) is a fugitive from justice; (3)is an unlawful user of or addicted to any controlled substance; (4)has been adjudicated as a mental defective or has been committed to any mental institution; (5) has been dishonorably discharged from the Armed Forces; (6) has renounced citizenship of the United States; (7)is subject to a court order restraining the person from harassing, stalking, or threatening another person; or (8) has been convicted of a misdemeanor crime of domestic violence. States have other laws which restrict certain persons from owning guns.

NFA guns should never be transferred to your Revocable Trust. It is possible to write a special purpose "gun trust" to own these types of weapons, but your Revocable Trust is not this type of trust. NFA guns are governed by complex laws which can result in fines and imprisonment if violated. As to all other guns, it is not illegal for your Revocable Trust to own these types of weapons, but the risk is that the trustee of the trust will be required by the terms of the trust to transfer a weapon to a person who is a prohibited person. You might not have any beneficiaries who are prohibited persons today, but you never know what the future will hold. Essentially, the terms of your Revocable Trust would be directing your trustee to break the law by requiring the transfer of a weapon to a prohibited person. And there is also the risk that the trustee will be required to transfer a weapon to a beneficiary who lives in a different state. In such a case, there are potentially complex laws which must be satisfied to avoid harsh penalties.