Safeguard Your Assets With Our Trust Services
The Trust Works provides a comprehensive range of Trust Services. Through these, we offer powerful protection, privacy and secure safeguarding for your assets. Be it Business Trusts or Real Estate Trusts, we provide expert guidance and support.
Irrevocable Provision
The Irrevocable Provision, a vital aspect of trust establishment, ensures no alterations, making it an effective pre- and post-nuptial property directive. It secures favorable tax treatment and limits legal liability. Over 663 professional articles and 1,000+ court cases have referenced Irrevocable Trusts, with none challenging this Provision's validity.
Tex. Prop. Code § 112.051
As of January 30, 2019, this legal provision allows settlors to revoke, modify, or amend Trusts, subject to specific terms and written instruments.
Black Letter Law
Referencing cases such as Platt v. Wells Fargo Bank and Wilburn v. Wilburn, Irrevocable Trusts often safeguard assets from becoming marital property, ensuring spouse protection and trust integrity.
Complex Provision
The Trust is Complex when paired with a Simple Provision, which distinguishes between Complex and Simple Trusts. A Simple Trust must pay its income to Beneficiaries. On the other hand, a complex Trust can accumulate and distribute income from the Corpus, offering a valuable tax advantage.
Moreover, Complex Trusts like The Chen Trust 1 typically receive preferential tax treatment, reinforcing their significance in estate planning.
Black Letter Law
Cases like Hay v. United States affirm that trust income must be irrevocably and unconditionally placed at the beneficiary's disposal to comply with Complex Trust statutes.
Spendthrift Provision
Creating a Spendthrift Provision is straightforward under the Texas Trust Code, as stated in Tex. Prop. Code § 112.035. This Provision serves the goal of preserving a donor's control over their bounty, ensuring its application according to their wishes, rather than solely benefiting the beneficiary.
The Spendthrift Provision shields Trust assets, upholding the longstanding Texas law principle that a settlor can establish a Spendthrift Trust to protect Trust assets from beneficiary creditors. Even in bankruptcy cases, courts respect the settlor's intentions and refrain from interfering with discretionary distribution powers.
Black Letter Law
The Spendthrift Provision is a powerful tool for safeguarding a settlor's intentions and protecting trust assets from creditor claims.
Consult With Us
Get in touch with The Trust Works today to learn more about our Financial Trusts. Our experts are always ready to assist and answer your questions.