Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Trusts are legal arrangements that allow a person or entity (the grantor) to transfer assets to a trustee, who manages the property for the benefit of one or more beneficiaries. In Texas, trusts are commonly used for estate planning, asset protection, charitable giving, and managing property for minors or individuals unable to manage assets themselves. There are several types of trusts in Texas, including living trusts, testamentary trusts, revocable trusts, and irrevocable trusts. Trusts can help families avoid probate, protect privacy, minimize estate taxes, and provide for loved ones in a secure and organized way.
While some simple trusts may be established without an attorney, Texas trust law can be complex. You may need a lawyer if you are creating a trust, acting as a trustee, or are a beneficiary involved in a dispute. Common situations where legal help is vital include handling large or complicated estates, ensuring the trust meets Texas legal requirements, updating a trust after major life changes, interpreting complicated trust language, resolving family disputes, removing or replacing a trustee, managing trusts for disabled or minor beneficiaries, or addressing issues like creditor claims and tax implications. A lawyer can help you avoid costly mistakes and give you peace of mind knowing your trust is valid and effective under Texas law.
Texas is governed by its own trust law, found primarily in the Texas Property Code, Title 9, Trusts. Some aspects that differentiate Texas from other states include the statutory requirements for forming a trust, rules regarding trustees’ duties and powers, and unique provisions for modifying or terminating trusts. While Texas recognizes both revocable and irrevocable trusts, each has different standards for creation, modification, and administration. Texas also has its own rules about mandatory disclosure to beneficiaries, trustee accounting, and trustee removal. Assets placed in a properly drafted Texas trust may avoid probate, but all trusts must adhere strictly to state formalities to be valid and enforceable.
The most common types of trusts in Texas are revocable living trusts, irrevocable trusts, testamentary trusts, special needs trusts, and charitable trusts. Each serves different purposes depending on your goals.
No. While trusts are helpful for large estates, anyone can use a trust to manage assets, avoid probate, maintain privacy, or provide for beneficiaries who may need assistance.
Revocable trusts can generally be changed or revoked by the grantor during their lifetime. Irrevocable trusts, on the other hand, are difficult to change except under specific circumstances permitted by Texas law.
Texas does not have a state income tax, so a trust will typically only be subject to federal income taxes. However, the type of trust affects how income is taxed, and some trusts may have federal estate or gift tax consequences.
Assets held in a properly established living trust typically do not go through probate, which can save time, money, and maintain privacy for your heirs.
Trustees in Texas are fiduciaries. They must act in the best interests of the beneficiaries, follow the trust terms, keep accurate records, provide accounting to beneficiaries, and avoid conflicts of interest.
Beneficiaries or co-trustees can ask a court to remove or replace a trustee for failing to perform their duties or for breach of fiduciary duty under Texas law.
This depends on the type of trust. Assets in irrevocable trusts are generally protected from the grantor’s creditors, while assets in revocable trusts are not fully shielded. The specifics depend on how the trust was set up and the circumstances involved.
After the trust is signed, assets must be retitled or transferred into the name of the trust. This may include changing ownership of bank accounts, real estate, and investment accounts to the trust.
Generally, trusts are private documents. Unlike wills, they are not filed with the court or made public unless there is a legal dispute or litigation involving the trust.
- Texas State Law Library: Offers legal information on trusts and estate planning. - Texas Department of Banking: Regulates certain types of trusts and fiduciaries. - State Bar of Texas - Real Estate, Probate and Trust Law Section: Provides educational materials and details for finding an attorney. - County Probate Courts: Can provide information about local procedures if a trust matter goes to court.
If you are considering setting up a trust, acting as a trustee, or facing a dispute involving a trust in Texas, it is wise to consult with a qualified estate planning or trust attorney. Gather your financial information, list your goals and concerns, and bring any trust documents you already have to your first appointment. A Texas attorney can advise you on state-specific trust requirements, help draft or amend trust documents, guide you through administration, or help resolve disputes. To proceed, look for attorneys who specialize in trusts or estate planning in your area and schedule a consultation to discuss your needs.
