Collateral Trust Agreement between Partners

Use this template to prepare a Collateral Trust Agreement Between Partners for a two-party 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.

This Collateral Trust Agreement Between Partners is available in MS Word format, and is fully editable to meet your needs.