Office Information

Miscellaneous Trust Law Changes

  1. Creditor Protection for Trusts Appointed Back to Settlor.  Trust Code Section 112.035 was amended to grant spendthrift trust protection in cases where a beneficiary uses a power of appointment to appoint property in trust for the settlor.  In those cases, the trust assets enjoy spendthrift protection from the original settlor’s creditors.  Section 112.035(d)(2), (g) and (H). 
  2. Corporate Trustees May Purchase Insurance from Affiliates.  Trust Code Section 113.053(f) was amended to permit a corporate trustee to purchase insurance from an affiliate so long as the insurance product and premium are the same or similar to a product or premium offered by nonaffiliates.  The corporate trustee taking this action is expressly subject to fiduciary duties.