Information On Trusts In Texas
In Texas probate courts, there are several types of trusts. The type of trust you need depends upon what your needs are. Most trusts are created while a person is still living. The different types available are:
- Living Trust
- Bypass Trust
- Crummey Trust
- Asset Protection Trust
- Revocable Trusts
- Irrevocable Trusts
- Charitable Trust
- Constructive Trust
- Special Needs Trust
- Spendthrift Trust
- Tax By-Pass Trust
- Totten Trust
The trustee has the same responsibilities as a guardian does for an estate. The trustee has to give an accounting to the court on anything done pertaining to the trust. Most trustees are honest and give an honest accounting of anything they do. Yet, there are some who will treat the money or property as their own and do not make a proper accounting to the courts. In this case, they have broken fiduciary trust.
Trusts can be modified or terminated, even an irrevocable trust. There are certain findings required before this can be done, including:
- If the purpose of the trust is illegal or it has become impossible to fulfill the need of the trust.
- It is necessary to change the trust to prevent waste
- A change is needed in order to achieve the settlor’s intentions
- It is not necessary to continue the trust in order to achieve any material purpose
An interested person can initiate a lawsuit to modify or terminate the trust. The interested person can change from time to time and has to be determined according to the purpose of the change or termination. If it is a charitable trust, then the attorney general has to be notified of any change. He then has the option to intervene.
Depending upon the trust, there are areas that could be problematic if the trust is modified or terminated. Tax issues are the most common problem that probate attorneys come across.
If you need help in setting up a trust in Texas or if you are the beneficiary of a trust and suspect a breach of fiduciary trust, contact the Ostrom Morris, PLLC, at (888) 869-9015 today to learn more about our estate planning services.