Texas Property Code - Section 142.005. Trust For Property
Legal Research Home >
Texas Laws > Property Code > Texas Property Code - Section 142.005. Trust For Property
§ 142.005. TRUST FOR PROPERTY.
Text of subsec. (a) effective until January 1, 2006
(a) In a suit in which a minor who has no legal guardian or
an incapacitated person is represented by a next friend or an
appointed guardian ad litem, the court may, on application by the
next friend or the guardian ad litem and on a finding that the
creation of a trust would be in the best interests of the minor or
incapacitated person, enter a decree in the record directing the
clerk to deliver any funds accruing to the minor or incapacitated
person under the judgment to a trust company or a state or national
bank having trust powers in this state.
Text of subsec. (a) effective January 1, 2006
(a) In a suit in which a minor who has no legal guardian or
an incapacitated person is represented by a next friend or an
appointed guardian ad litem, any court of record with jurisdiction
to hear the suit may, on application by the next friend or the
guardian ad litem and on a finding that the creation of a trust
would be in the best interests of the minor or incapacitated person,
enter a decree in the record directing the clerk to deliver any
funds accruing to the minor or incapacitated person under the
judgment to a trust company or a state or national bank having trust
powers in this state.
(b) The decree shall provide for the creation of a trust for
the management of the funds for the benefit of the minor or
incapacitated person and for terms, conditions, and limitations of
the trust, as determined by the court, that are not in conflict with
the following mandatory provisions:
(1) the minor or incapacitated person is the sole
beneficiary of the trust;
(2) the trustee may disburse amounts of the trust's
principal, income, or both as the trustee in his sole discretion
determines to be reasonably necessary for the health, education,
support, or maintenance of the beneficiary;
(3) the income of the trust not disbursed under
Subdivision (2) is added to the principal of the trust;
(4) if the beneficiary is a minor, the trust
terminates on the death of the beneficiary, on the beneficiary's
attaining an age stated in the trust, or on the 25th birthday of the
beneficiary, whichever occurs first, or if the beneficiary is an
incapacitated person, the trust terminates on the death of the
beneficiary or when the beneficiary regains capacity;
(5) the trustee serves without bond; and
(6) the trustee receives reasonable compensation paid
from trust's income, principal, or both on application to and
approval of the court.
(c) A trust established under this section may provide that:
(1) distributions of the trust principal before the
termination of the trust may be made from time to time as the
beneficiary attains designated ages and at designated percentages
of the principal; and
(2) distributions, payments, uses, and applications
of all trust funds may be made to the legal or natural guardian of
the beneficiary or to the person having custody of the beneficiary
or may be made directly to or expended for the benefit, support, or
maintenance of the beneficiary without the intervention of any
legal guardian or other legal representative of the beneficiary.
Text of subsec. (d) effective until January 1, 2006
(d) A trust created under this section may be amended,
modified, or revoked by the court at any time before its
termination, but is not subject to revocation by the beneficiary or
a guardian of the beneficiary's estate. If the trust is revoked by
the court before the beneficiary is 18 years old, the court may
provide for the management of the trust principal and any
undistributed income as authorized by this chapter. If the trust is
revoked by the court after the beneficiary is 18 years old, the
trust principal and any undistributed income shall be delivered to
the beneficiary after the payment of all proper and necessary
expenses.
Text of subsec. (d) effective January 1, 2006
(d) A court that creates a trust under this section has
continuing jurisdiction and supervisory power over the trust,
including the power to construe, amend, revoke, modify, or
terminate the trust. A trust created under this section is not
subject to revocation by the beneficiary or a guardian of the
beneficiary's estate. If the trust is revoked by the court before
the beneficiary is 18 years old, the court may provide for the
management of the trust principal and any undistributed income as
authorized by this chapter. If the trust is revoked by the court
after the beneficiary is 18 years old, the trust principal and any
undistributed income shall be delivered to the beneficiary after
the payment of all proper and necessary expenses.
(e) On the termination of the trust under its terms or on the
death of the beneficiary, the trust principal and any undistributed
income shall be paid to the beneficiary or to the representative of
the estate of the deceased beneficiary.
(f) A trust established under this section prevails over any
other law concerning minors, incapacitated persons, or their
property, and the trust continues in force and effect until
terminated or revoked, notwithstanding the appointment of a
guardian of the estate of the minor or incapacitated person, or the
attainment of the age of majority by the minor.
(g) Notwithstanding any other provision of this chapter, if
the court finds that it would be in the best interests of the minor
or incapacitated person for whom a trust is created under this
section, the trust may contain provisions determined by the court
to be necessary to establish a special needs trust as specified
under 42 U.S.C. Section 1396p(d)(4)(A).
(h) A trust created under this section is subject to
Subtitle B, Title 9.
(i) Notwithstanding Subsection (h), this section prevails
over a provision in Subtitle B, Title 9, that is in conflict or
inconsistent with this section.
(j) A provision in a trust created under this section that
relieves a trustee from a duty, responsibility, or liability
imposed by this section or Subtitle B, Title 9, is enforceable only
if:
(1) the provision is limited to specific facts and
circumstances unique to the property of that trust and is not
applicable generally to the trust; and
(2) the court creating or modifying the trust makes a
specific finding that there is clear and convincing evidence that
the inclusion of the provision is in the best interests of the
beneficiary of the trust.
Acts 1983, 68th Leg., p. 3712, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 14(e), (f),
eff. Oct. 2, 1984; Acts 1997, 75th Leg., ch. 128, § 1, eff. Sept.
1, 1997; Acts 2003, 78th Leg., ch. 1154, § 3, eff. Sept. 1, 2003;
Acts 2005, 79th Leg., ch. 148, § 28, eff. Jan. 1, 2006.
Section: 141.023 141.024 141.025 142.001 142.002 142.003 142.004 142.005 142.006 142.007 142.008 142.009 161.001 161.002 161.021
Last modified: August 11, 2007
|
