Houston Trust Law Attorney
When most people hear about trusts or trust funds, they think of Paris Hilton or the Rockefellers. However, most trusts are created by average individuals to ensure their hard-earned money is spent responsibly. Trusts can be created to put money away for minors, children, or incapacitated adults with special needs. Trusts are set up to ensure assets in the trust pass to children in instances involving blended families, divorce, or remarried widows. Trusts are also used to protect assets in the event of litigation.
Trusts are beneficial because they protect assets and ensure those assets go to the intended beneficiary. A Settlor (the person establishing the trust) directs how the assets should be managed, who will manage the assets, and how and when the assets should be given to the chosen beneficiaries.
In Texas, there are several types of trusts. The type of trust you need depends upon your needs, and a skilled Houston trust attorney can help you narrow down your needs. The different trusts available are:
- Living Trusts
- Bypass Trusts
- Crummey Trusts
- Asset Protection Trusts
- Revocable Trusts
- Irrevocable Trusts
- Charitable Trusts
- Constructive Trusts
- Special Needs Trusts
- Spendthrift Trusts
- Tax By-Pass Trusts
- Totten Trusts
Creating a trust in Texas
There are legal requirements when constructing a trust, just as there are requirements of anyone serving as a trustee. Some of the requirements for a valid trust include:
- The Settlor must intend to create a trust.
- The Settlor must be of sound mind and over the age of 18, married, or serving in the armed forces.
- The trust must comply with the Statute of Frauds. It is best to have the trust in writing.
- The Settlor must identify the property to be placed in trust and name a trustee to administer the trust.
- The trust must clearly identify the beneficiaries.
Modifying a trust in Texas
Trusts can be modified or terminated in certain situations, such as when the purpose of the trust is impossible to satisfy or termination/modification is necessary to prevent wasting the trust. In fact, ANY interested person can initiate a lawsuit to modify or terminate the trust. Given the proof necessary to modify or terminate a trust, it is advisable to hire a Houston trust attorney to assist with the process.
If you are interested in forming a trust to protect the interests of your child or to ensure your assets properly used for years to come, contact The Martin Law Firm for a free consultation today. Clark Martin knows Texas trust law.