Parsonage Trust Form

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We DO NOT provide any legal advice. The forms and legal information are provided for you to bring to an attorney as a basis for discussion and with the possibility of reducing your legal fees. The forms and information are provided AS IS, without warranty.

Suggestion for Your Church

One of the reasons we provide the forms and information in this section is to demonstrate our competence. If you see that we have some competence in this area, perhaps you will recognize that we have it in some others. We recommend that you investigate the free self help tools at ClosenessInLove.com, LoversInTraining.org, and InnerPeace.org and encourage your church members to establish support groups using these tools.


Parsonage Trust Form

This form is designed for a married couple, both of whom are involved in ministry at the same church. Edit as you and your attorney see fit for your situation.


After recording, return to:
[Minister Name]
[Spouse Name]
[Parsonage Street Address]
[Parsonage City, State, & Zip]

[Church Name] Parsonage Trust
of [Trust Date]
Declaration of Trust

WHEREAS, [Minister Name] and [Spouse Name] have been serving and are continuing to serve God and humanity in their ministries; and

WHEREAS, their residence has been an unofficial parsonage; and

WHEREAS, [Church Name] (the “Church”) wishes to establish an official parsonage; and

WHEREAS, the Church prefers that the parsonage property be managed separately from the other property and affairs of the Church;

WHEREFORE, [Minister Name] and [Spouse Name] (the “Grantors”) hereby declare that they establish the [Church Name] Parsonage Trust of [Trust Date] (the “Trust”), as a charitable church trust, under the terms set forth below:

Trust Property

The initial property of the Trust is ten dollars, receipt of which is hereby acknowledged.

The Grantors or any other person shall have the right at any time to add property, as is acceptable to the trustees, to the Trust. Such property, when received and accepted by the trustees, shall become part of the trust property and subject to all the terms and conditions of this Declaration of Trust.

Trustees

The initial trustees of the Trust shall be the Grantors.

The board of the of the Church shall have the power to appoint successor trustees.

In the event that immediate action is needed, the pastor of the Church may appoint one or more interim trustees until the Church board can appoint one or more permanent successor trustees.

Beneficiaries

As a nonprofit church trust, the ultimate beneficiary of the Trust is the general public. The Church and the Grantors are beneficiaries of the Trust only to the extent that the Church will have a parsonage for the Grantors.

Distributions

Trustees shall make distributions of the income and corpus of the trust property, to the Church, at times and places chosen by the trustees.

Limitations

No person shall purchase, exchange, consume, be given title or usage of, or otherwise deal with or dispose of the trust property for less than adequate or full consideration in money or money’s worth, or to enable any person to borrow the trust property, directly or indirectly, without interest or security.

No person shall have special privileges or usages of the trust property.

No person may directly or indirectly borrow any part of the trust property.

All actions of the trustees shall be done, not for their own benefit, but in a fiduciary capacity for the best interests of the Church and purposes of the trust.

All transactions shall be done as if at arm’s length.

Duration

The duration of the Trust shall be perpetual.

Final Distribution on Termination

If the Trust is dissolved, disqualified, or otherwise terminated, the trustees shall, from the assets of the Trust, pay, or otherwise satisfy all the outstanding obligations and liabilities of the Trust, and thereafter shall dispose of all its remaining assets by distributing them, in whatever form they exist, in cash or in kind, Church, or, in the event that the Church no longer exists, to such charities, as the trustees may determine, that most closely carry on the purposes of the Church.

Severability

If any provision of this trust instrument should be found by a tribunal to be void, voidable, invalid, unlawful, or unenforceable, the remaining provisions shall continue to be fully effective.

General Provisions

Unless the context requires otherwise:

All words used in the singular number shall extend to and include the plural.

All words used in the plural shall extend to and include the singular.

All words used in any gender, including the neutral gender, shall extend to and include all genders.

Section headings and groupings are for convenience only and do not limit the scope or application of the terms of any section.

Date: [Trust Date]

_____________________________
[Minister Name]

_____________________________
[Spouse Name]

_____________________________
[Witness 1]

_____________________________
[Witness 2]

STATE OF [State]
COUNTY OF [County]

The foregoing instrument was acknowledged and subscribed before me this _______day of _______________, 20___, by [Minister Name], [Spouse Name], [Witness 1], and [Witness 2].

_____________________________
Notary Public

[Stamp/seal]

Personally Known ______ OR Produced Identification _______

Type of Identification Produced _____________________________