Provisions contained within trust agreements called “Exculpatory Provisions” are those that relieve the trustee from liability for certain acts that could otherwise be considered to be a breach of duty(ies) as a Trustee. Examples: 1.) the settlor (the person who is creating the trust) can specify that the Trustee is relieved from liability for certain obligations for which it would otherwise be liable under either the Texas Trust Code or by common law; or 2.) can direct or permit the Trustee to do certain things that would otherwise violate a Trustee duty.
Archive for the 'Trust Litigation' Category
Any kind of action in which a court is asked to change, modify or otherwise amend the terms of the trust instrument, or to prohibit or permit a trustee to take actions that are not authorized by the terms of the trust, or to terminate a trust either in its entirety or in part, is referred to as a trust modification. Trust modifications are regulated by Section 112.054 of the Texas Trust Code.
Continue reading ‘When can a court make changes to an irrevocable trust?’
What does it mean to be of “sound mind”?
The requirement of “sound mind” is not specified in the Texas Probate Code. Instead, Texas Courts have determined that the “sound mind” requirement with regard to whether a person has “testamentary capacity” is as follows: The Testator (the person making a will) has sufficient mental ability, at the time of the execution of the will if he or she:
Question: My parents will only do basic wills to each other and then to myself and other siblings when my second parent dies. I have heard that there is a much more advantageous way for me to receive my inheritance from my parents. Is there anything I can do to more wisely protect my inheritance?
