The following is part of a series of posts on 2013 Texas probate, guardianship and trust law legislation. The changes became effective September 1, 2013. For information on other changes, go to the 2013 Legislation page.
The big change affecting trust law in 2013 was decanting, which is discussed in a prior post. Here are other miscellaneous trust law changes which became effective September 1, 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.