Distribution Agreement regarding the continuous offering of the Trust's transferable shares of beneficial interest
The Distribution Agreement regarding the continuous offering of the Trust's transferable shares of beneficial interest is a legal document that outlines the terms between Active Assets Premier Money Trust and its distributor, Morgan Stanley Dean Witter Advisors, Inc. This agreement facilitates the ongoing sale of shares in the Trust to participants in the Active Assets Account program. It ensures regulatory compliance while promoting the Trust's growth by clearly defining the responsibilities of both parties involved in the transaction of shares. Unlike standard contracts, this document specifically addresses investment share sales and distribution obligations under securities regulation.
- Appointment of the Distributor: Outlines the designation of the distributor and their responsibilities for selling shares.
- Purchase of Shares: Details the procedures for the distributor to buy shares from the Trust.
- Redemption Policy: Specifies the process for redeeming shares by participants and conditions for repurchase.
- Duties of the Trust and Distributor: Lists obligations for both the Trust and the distributor to maintain effective communication and compliance.
- Indemnification Clauses: Covers liability protections for both parties against legal claims.
This form should be used when a business entity, such as a trust, is looking to establish a formal agreement for the continuous sale of its shares to investors. It is particularly relevant for investment products like mutual funds where compliance with regulations is crucial, and for organizations wanting to promote their share offerings or clarify the roles of involved parties. This agreement helps to mitigate risks associated with share distribution and compliance with federal laws.
This agreement is intended for:
- Investment company managers or trustees looking to formally initiate share distributions.
- Financial institutions or distributors seeking to sell investment shares.
- Legal representatives working on behalf of trusts or financial entities involved in share offerings.
- Investors participating in programs like the Active Assets Account who may need clarification on share purchase transactions.
To complete this form, follow these steps:
- Identify the parties involved, ensuring accurate representation of the Trust and the Distributor.
- Enter the effective date of the agreement at the beginning of the document.
- Specify terms such as share pricing and conditions for purchase and redemption within designated sections.
- Review the duties and obligations assigned to both the Trust and the Distributor for clarity.
- Ensure completion with appropriate signatures from both parties to validate the agreement.
Notarization guidance
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
- Failing to accurately identify the parties involved, which could lead to legal complications.
- Not including an effective date, which is essential for the validity of the contract.
- Leaving out key terms regarding the pricing of shares or conditions for redemption, leading to future disputes.
- Not obtaining the necessary signatures from authorized representatives of both parties.
- Convenience of downloading the form directly for immediate use.
- Ability to edit the digital form to tailor it to specific needs or circumstances.
- Access to reliable legal content created by licensed attorneys, enhancing its enforceability.
- The Distribution Agreement must comply with regulatory requirements established under the Investment Company Act.
- Improper completion can lead to unenforceable agreements, making it vital to follow the outlined steps carefully.
- Both parties should ensure they understand their responsibilities to avoid liabilities stemming from misstatements or omissions.
- The form provides a structured agreement for the ongoing distribution of Trust shares.
- It outlines clear terms that protect both parties' interests and ensure compliance with federal regulations.
- Using this form correctly can minimize legal risks associated with investment share offerings.
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FAQ
Depending on how the trust is set up, beneficiaries often end up inheriting the trust's assets, according to some trigger like agefor instance, inheriting money when the person turns 21. The person or entity you want to oversee the money and fulfill the various responsibilities is the trustee.
Trustees are responsible for managing assets involved with the estate of another individual according to a trust agreement. One of the most important functions of the trustee is distributing the trust assets according to the wishes of the creator of the trust (trustor) as set forth in the trust agreement.
Distribute trust assets outright The grantor can opt to have the beneficiaries receive trust property directly without any restrictions. The trustee can write the beneficiary a check, give them cash, and transfer real estate by drawing up a new deed or selling the house and giving them the proceeds.
When a trust makes a distribution, it deducts the income distributed on its own tax return and issues the beneficiary a tax form called a K-1.
Most Trusts take 12 months to 18 months to settle and distribute assets to the beneficiaries and heirs.
Most Trusts take 12 months to 18 months to settle and distribute assets to the beneficiaries and heirs. What determines how long a Trustee takes will depend on the complexity of the estate where properties and other assets may have to be bought or sold before distribution to the Beneficiaries.
Distribute trust assets outright The grantor can opt to have the beneficiaries receive trust property directly without any restrictions. The trustee can write the beneficiary a check, give them cash, and transfer real estate by drawing up a new deed or selling the house and giving them the proceeds.
Administering a living trust after your death is not cost-free. Even if probate is avoided, the successor trustee should usually seek help from a lawyer in making sure that your debts are paid, all of the necessary tax forms filed and the assets in your trust legally distributed to your beneficiaries.
