Living trusts, also known as revocable living trusts or revocable trusts, are legal entities established to hold assets during their lifetime. Living trusts offer a number of obvious advantages, but they also have some caveats. Whether this estate planning tool is right for you depends on your goals and the details of your assets and holdings. Section 112.007. CAPACITY OF THE GRANTOR. A person has the same ability to create a trust by declaration, transfer or appointment between the living or testamentary that the person has to transfer, want or appoint in trust. Contact Curley Law Firm today to learn more about how you can protect yourself, your family and your future with comprehensive estate planning. Contact us online or call us today to schedule a consultation to discuss setting up a revocable Living Trust in Texas. Section 112.054. JUDICIAL MODIFICATION OR TERMINATION OF TRUSTS.
The court considers unnecessary provisions to be a factor in its decision to amend or terminate it, but the court is not precluded from exercising its discretion to amend or terminate only because the trust is a wasteful trust. (c) The court may order that an order referred to in paragraph (a)(4) have retroactive effect. (d) The court may take the measures permitted under paragraph (a)(5) only if all the beneficiaries of the trust have consented to the order or are deemed to have consented to it. A minor, unfit, unborn or indeterminate beneficiary is deemed to have consented if a person representing the interests of the beneficiary in accordance with article 115.013(c) has consented or if a guardian appointed to represent the interests of the beneficiary in accordance with article 115.014 agrees on behalf of the beneficiary. The trust must have a legal purpose. The settlor is required to identify the assets in the trust and place them in the trust for the benefit of the beneficiary. There must be a trustee who holds the title deed for the benefit of the beneficiaries. The trust must have certain beneficiaries who can be found – if not, the trust will not work. The trust must comply with the perpetuity rule. This means that within 21 years, it must be devolved to the person appointed to the trust with a period of pregnancy if he has not yet been born.
Article 112 008. PROPERTY OF THE TRUSTEE. a) The trustee has the legal capacity to take over, hold and transfer the assets of the trust. If the trustee is a corporation, he must have the power to act as a trustee in that state. (b) Except in the cases provided for in section 112.034, the fact that the person designated as trustee is also a beneficiary does not preclude the person from acting as trustee if he or she is otherwise qualified. (c) The trustee of a trust may be the trustee of the trust. If you want to establish a revocable trust, Texas has certain policies that you must follow. Section 112.052. TERMINATION. A trust terminates when, under its terms, the trust is to exist only until the end of a certain period of time or until a certain event occurs, and the period has expired or the event has occurred.
In the event of termination, the trustee may exercise the trustee`s powers for the reasonable period necessary to terminate the affairs of the trust and distribute its assets to the appropriate beneficiaries. The continued exercise of the trustee`s powers following a termination event does not affect the acquired rights of the beneficiaries of the trust. Section 112.033. RESERVATION OF INTERESTS AND POWERS BY THE GRANTOR. You also have the freedom and flexibility to make changes to the trust throughout your life, an option you don`t have with an irrevocable trust. You can also benefit from the assets during your lifetime. Should you consider using a revocable living trust as part of your comprehensive estate plan? When looking at a trust, the basics are often overlooked. Knowing the requirements for formulating a legal trust is essential to ensure that it is conducted as the person wishes. It is advisable to discuss and plan the trust with a lawyer who is familiar with the types of trusts available and their organization. Before you consider a revocable trust, consider the following seven things you need to know about these versatile asset protection vehicles. Section 112.002.
INTENTION TO BUILD TRUST. A trust relationship is created only when the grantor expresses its intention to create an approval relationship. You need to identify the assets you want to transfer and name the trustee and beneficiaries. You need to determine the most appropriate way to structure the legal entity and prepare a trusted document based on this choice. Section 112.037. ANIMAL CARE TRUST. (a) A trust may be established to provide care for a living animal during the life of the settlor. The trust ends with the death of the animal or, if the trust was created to care for more than one living animal during the life of the settlor, with the death of the last surviving animal.
(b) A trust authorized under this section may be enforced by a person appointed under the terms of the trust or, if a person is not appointed under the terms of the trust, by a person appointed by the Court .. . .