Texas Spendthrift Trust

Texas Spendthrift Trust

What is a Texas spendthrift trust?

A Texas spendthrift trust is authorized by the Texas Property Code. It is set up by the “grantor.” The trust will name one or more “beneficiaries” of the trust property. The beneficiaries will receive the trust property at a given time, i.e. reaching the age of 35. Sometimes, a trust will exist for a beneficiary’s life with the property going to his children when he dies. A trust is administered by a trustee who may also be one of the beneficiaries. However, if at any time the trustee and the beneficiary are they same person, the trust ends.

Such trust usually make a payment for the “health, support, maintenance and education” of the beneficiary to take care of the beneficiary’s needs during the existence of the trust.

Protection from creditors

A Texas spendthrift trust  is a trust set up to protect the beneficiary from his creditors. For instance, there is a child that does not manage his property correctly, so he is always being sought by his creditors to pay his bills. His parents want to leave him property but are afraid that his creditors will get the property because of the mismanagement of the child.

A Texas spendthrift trust is the answer. In its most basic form, a Texas spendthrift trust provides for the child but is not available to the child’s creditors. A creditor can sue the child but cannot get to the assets of the trust.

A person cannot set up a Texas spendthrift for themselves. However, some states do allow a person to create a spendthrift trust for themselves.

Learn how to Make a Trustee Reveal the Trust Assets and his Actions.

Can you have a secret common-law marriage in Texas

Can you have a secret common-law marriage in Texas

Texas Law

Texas recognizes common-law marriages or what Texas refers to as” informal” marriages. An informal marriage may be proved in one of two ways. The first way is to introduce a declaration of informal marriage that has been filed with the County clerk. If there is no declaration of marriage, a common-law marriage may be proved by showing: (1) agreement to be married; (2) after the agreement, living together in Texas as husband and wife; and (3) representing to others in Texas that they were married. FC §2.401. The statutory requirement of “represented to others” is synonymous with the judicial requirement of “holding out to the public.” Both of these methods of proving an informal marriage depend upon the marriage being open and obvious to anyone who bothers to look.

Can you have a secret common-law marriage in Texas

What happens in those circumstances when the informal marriage is kept secret from a few are many people? The courts have held that a marriage that was secret from only a few members of the couple’s family was a common-law marriage because the marriage was widely known in the community. 734 S.W.2d 27. On the other hand, courts have denied a common law marriage when the marriage was known to only a few. 333 S.W.2d 361. In other words, the cohabitation must be professed as husband and wife, and public, so that by their conduct towards each other they may be known as husband and wife.

Update: In a 2019 case, a Declaration of Marriage was filed in 2015 saying that the parties had been married since 2010. If they were married in 2010, it would be too late to contest the marriage. If they were married in 2015, the man’s children could contest the marriage. The court ruled that there was no evidence that the parties held themselves out as husband and wife (representing to others that you are married) before 2015, so there was no marriage before 2015. The children contested the marriage of 2015 saying that he was not mentally competent to marry. The jury agreed with the children that he was not mentally competent. 13-17-00431-CV.

Pin It on Pinterest