Definition of a Joinder Agreement

Parties use joinder agreements when forming a trust.

A joinder agreement is a type of legal contract that is used when parties create a trust fund. Both individual donors and corporations use joinder agreements in conjunction with other contracts and trust agreements to ensure that the account's funds are invested and dispersed properly.

Function

A joinder agreement expresses a donor's consent to disperse the funds of a trust account and make investments on behalf of the trust as outlined in the master trust agreement.

Parties

The trust's donor and the manager of the trust execute the joinder agreement for it to be valid and legal.

Features

Joinder agreements designate a trust manager and list parties who may disperse the trust's funds to the beneficiary.

Effect

Joinder agreements are legally binding once they are executed by each party to the agreement.

Warning

The legal definition of a joinder agreement varies by state. Consult an attorney for your state's statues and procedures regarding trust funds.

References

• Washington State Legislature:Definitions of Terms
• Washington State Life Opportunities Trust: Term Definitions