Trusts Laws in Texas

[zyf0grzmaiud]

Jurisdiction

Texas

Where can I find laws regarding Trusts? I am trying to find some guidance on my state laws when it comes to creating a trust for estate planning purposes.

I read this somewhere in an old book:

"Under Florida's Land Trust even the mortgage can be transferred into the land trust of the property."

Trying to find if that's the case with Texas as well?

 

[adjusterjack]

You can study the Texas trust statutes at:

2017 Texas Statutes :: PROPERTY CODE :: TITLE 9 - TRUSTS

I am trying to find some guidance on my state laws when it comes to creating a trust for estate planning purposes.

Why?

I'm not being snide. Discussing your reasons for creating a trust for estate planning gets you well on your way to understanding trusts.

 

[zyf0grzmaiud]

Why?

For Estate Planning purposes, avoiding probet, etc.

 

[army judge]

Why?

For Estate Planning purposes, avoiding probet, etc.

Most GOOD trust and estate lawyers will meet with prospective clients for free.

 

[zddoodah]

Where can I find laws regarding Trusts?

Here. Or at a law library.

If you are looking to create a trust for the purposes stated, you would be a fool not to hire an attorney to make sure you do things correctly.

You can study the Texas trust statutes at:

2017 Texas Statutes :: PROPERTY CODE :: TITLE 9 - TRUSTS

Just FYI, there are "laws regarding trusts" in lots of places other than the Property Code (e.g., in the Estates Code).

 

[Tax Counsel]

Where can I find laws regarding Trusts?

I am trying to find some guidance on my state laws when it comes to creating a trust for estate planning purposes.

I read this somewhere in an old book:

"Under Florida's Land Trust even the mortgage can be transferred into the land trust of the property."

Trying to find if that's the case with Texas as well?[/QUOTE]

Texas has statutes that govern trusts that AdjusterJack linked for you. But that's not all there is. In order to truly understand trusts, you need to know the case law (court decisions) in which the Texas courts have made rulings on matters relating to trusts, as well as understanding other areas of law that impact trusts, like real estate law, social security law, and tax law. In short, there is a lot more to a thorough understanding of trusts and estate planning than I think a lot of nonlawyers realize.

The term "land trust" refers to a particular kinds of arrangement in which a trustee holds both legal and equitable title to real property and the beneficiary has the right to direct how the property is managed and to derive income from the trust. It is not a type of arrangement that is used all that often.

The most popular trust arrangement for estate planning is a revocable living trust that in many respects is much like a will. The person making the trust (grantor) retains the right to revoke the trust and is often the trustee of the trust during his lifetime as well. The beneficiaries of the trust don't get anything from the trust until the grantor dies. Once the grantor dies, the trust becomes irrevocable and if the grantor was the trustee then another trustee takes over. The trustee then distributes the property in the trust to the beneficiaries as directed by the trust document, much like an executor distributes property to beneficiaries as directed by the will. Because the trust owns the property of the grantor that property is not part of the grantor's estate when he/she dies and thus the trust property does not go through probate. In states with long and/or expensive probate procedures that can save the beneficiaries a lot of money and hassle. That is one the main reasons people like to use these trusts over a will. If a property owned by the grantor is encumbered by a mortgage, that won't prevent the property from being transferred to the trust. But that transfer will not relieve the grantor of his personal liability for the loan.

But there are other ways to avoid probate, too, and exactly what is the best plan for any particular person will depend on his/her specific circumstances and the goals that the person has.