Texas Property Code Title 9, Chapter 112 - Creation, Validity, Modification, And Termination Of Trusts

SUBCHAPTER A CREATION

• Texas Section 112.001 - Methods Of Creating Trust
  A trust may be created by: (1) a property owner's declaration that the owner holds the property as trustee for another person; (2) a property...
• Texas Section 112.002 - Intention To Create Trust
  A trust is created only if the settlor manifests an intention to create a trust. Amended by Acts 1983, 68th Leg., p. 3332, ch. 567,...
• Texas Section 112.003 - Consideration
  Consideration is not required for the creation of a trust. A promise to create a trust in the future is enforceable only if the requirements...
• Texas Section 112.004 - Statute Of Frauds
  A trust in either real or personal property is enforceable only if there is written evidence of the trust's terms bearing the signature of the...
• Texas Section 112.005 - Trust Property
  A trust cannot be created unless there is trust property. Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff....
• Texas Section 112.006 - Additions To Trust Property
  Property may be added to an existing trust from any source in any manner unless the addition is prohibited by the terms of the trust...
• Texas Section 112.007 - Capacity Of Settlor
  A person has the same capacity to create a trust by declaration, inter vivos or testamentary transfer, or appointment that the person has to transfer,...
• Texas Section 112.008 - Capacity Of Trustee
  (a) The trustee must have the legal capacity to take, hold, and transfer the trust property. If the trustee is a corporation, it must have...
• Texas Section 112.009 - Acceptance By Trustee
  (a) The signature of the person named as trustee on the writing evidencing the trust or on a separate written acceptance is conclusive evidence that...

SUBCHAPTER B VALIDITY

• Texas Section 112.010 - Presumed Acceptance By Beneficiary; Disclaimer
  (a) Acceptance by a beneficiary of an interest in a trust is presumed. (b) A disclaimer of an interest in or power over trust property...
• Texas Section 112.031 - Trust Purposes
  A trust may be created for any purpose that is not illegal. The terms of the trust may not require the trustee to commit a...
• Texas Section 112.032 - Active And Passive Trusts; Statute Of Uses
  (a) Except as provided by Subsection (b), title to real property held in trust vests directly in the beneficiary if the trustee has neither a...
• Texas Section 112.033 - Reservation Of Interests And Powers By Settlor
  If during the life of the settlor an interest in a trust or the trust property is created in a beneficiary other than the settlor,...
• Texas Section 112.034 - Merger
  (a) If a settlor transfers both the legal title and all equitable interests in property to the same person or retains both the legal title...
• Texas Section 112.035 - Spendthrift Trusts
  (a) A settlor may provide in the terms of the trust that the interest of a beneficiary in the income or in the principal or...
• Texas Section 112.036 - Rule Against Perpetuities
  The rule against perpetuities applies to trusts other than charitable trusts. Accordingly, an interest is not good unless it must vest, if at all, not...
• Texas Section 112.037 - Trust For Care Of Animal
  (a) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates on the death...

SUBCHAPTER C REVOCATION, MODIFICATION, AND TERMINATION OF TRUSTS

• Texas Section 112.038 - Forfeiture Clause
  A provision in a trust that would cause a forfeiture of or void an interest for bringing any court action, including contesting a trust, is...
• Texas Section 112.051 - Revocation, Modification, Or Amendment By Settlor
  (a) A settlor may revoke the trust unless it is irrevocable by the express terms of the instrument creating it or of an instrument modifying...
• Texas Section 112.052 - Termination
  A trust terminates if by its terms the trust is to continue only until the expiration of a certain period or until the happening of...
• Texas Section 112.053 - Disposition Of Trust Property On Failure Of Trust
  The settlor may provide in the trust instrument how property may or may not be disposed of in the event of failure, termination, or revocation...
• Texas Section 112.054 - Judicial Modification Or Termination Of Trusts
  (a) On the petition of a trustee or a beneficiary, a court may order that the trustee be changed, that the terms of the trust...
• Texas Section 112.055 - Amendment Of Charitable Trusts By Operation Of Law
  (a) Except as provided by Section 112.056 and Subsection (b) of this section, the governing instrument of a trust that is a private foundation under...
• Texas Section 112.056 - Permissive Amendment By Trustee Of Charitable Trust
  (a) If the settlor of a trust that is described under Subsection (a) of Section 112.055 of this Act is living and competent and consents,...
• Texas Section 112.057 - Division And Combination Of Trusts
  (a) The trustee may, unless expressly prohibited by the terms of the instrument establishing the trust, divide a trust into two or more separate trusts...
• Texas Section 112.058 - Conversion Of Community Trust To Nonprofit Corporation
  (a) In this section: (1) "Assets" means the assets of the component trust funds of a community trust. (2) "Community trust" means a community trust...

SUBCHAPTER D DISTRIBUTION OF TRUST PRINCIPAL IN FURTHER TRUST

• Texas Section 112.059 - Termination Of Uneconomic Trust
  (a) After notice to beneficiaries who are distributees or permissible distributees of trust income or principal or who would be distributees or permissible distributees if...
• Texas Section 112.071 - Definitions
  In this subchapter: (1) "Authorized trustee" means a person, other than the settlor, who has authority under the terms of a first trust to distribute...
• Texas Section 112.072 - Distribution To Second Trust: Trustee With Full Discretion
  (a) An authorized trustee who has the full discretion to distribute the principal of a trust may distribute all or part of the principal of...
• Texas Section 112.073 - Distribution To Second Trust: Trustee With Limited Discretion
  (a) An authorized trustee who has limited discretion to distribute the principal of a trust may distribute all or part of the principal of that...
• Texas Section 112.074 - Notice Required
  (a) An authorized trustee may exercise a power of distribution under Section 112.072 or 112.073 without the consent of the settlor or beneficiaries of the...
• Texas Section 112.075 - Written Instrument Required
  A distribution under Section 112.072 or 112.073 must be made by a written instrument that is signed and acknowledged by the authorized trustee and filed...
• Texas Section 112.076 - Reference To Trust Terms
  A reference to the governing instrument or terms of the governing instrument of a trust includes the terms of a second trust to which that...
• Texas Section 112.077 - Settlor Of Second Trust
  (a) Except as provided by Subsection (b), the settlor of a first trust is considered to be the settlor of a second trust established under...
• Texas Section 112.078 - Court-ordered Distribution
  (a) An authorized trustee may petition a court to order a distribution under this subchapter. (b) If the authorized trustee receives a written objection to...
• Texas Section 112.079 - Divided Discretion
  If an authorized trustee has full discretion to distribute the principal of a trust and another trustee has limited discretion to distribute principal under the...
• Texas Section 112.080 - Later Discovered Assets
  To the extent the authorized trustee does not provide otherwise: (1) the distribution of all of the principal of a first trust to a second...
• Texas Section 112.081 - Other Authority To Distribute In Further Trust Not Limited
  This subchapter may not be construed to limit the power of an authorized trustee to distribute property in further trust under the terms of the...
• Texas Section 112.082 - Need For Distribution Not Required
  An authorized trustee may exercise the power to distribute principal to a second trust under Section 112.072 or 112.073 regardless of whether there is a...
• Texas Section 112.083 - Duties Not Created
  (a) This subchapter does not create or imply a duty for an authorized trustee to exercise a power to distribute principal, and impropriety may not...
• Texas Section 112.084 - Certain Distributions Prohibited
  (a) Except as provided by Subsection (b), an authorized trustee may not exercise a power to distribute principal of a trust otherwise provided by Section...
• Texas Section 112.085 - Exceptions To Power Of Distribution
  An authorized trustee may not exercise a power to distribute principal of a trust under Section 112.072 or 112.073 to: (1) reduce, limit, or modify...
• Texas Section 112.086 - Tax-related Limitations
  (a) The authorized trustee may not distribute the principal of a trust under Section 112.072 or 112.073 in a manner that would prevent a contribution...
• Texas Section 112.087 - Compensation Of Trustee
  (a) Except as provided by Subsection (b) and unless a court, on application of the authorized trustee, directs otherwise, the trustee may not exercise a...

Last modified: September 28, 2016