Thursday, August 29, 2013
- 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).
- 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.
Glenn Karisch | Comments Off |