pjc-family-2024-lib

E XPRESS T RUSTS

PJC 235.2

PJC 235.2

Intention to Create Trust

QUESTION ______ Did SETTLOR show an intent to create a trust when he signed the document dated DATE ? A trust is a special relationship that arises when the settlor shows an intent to create a relationship that requires one person to hold property for the benefit of another. Answer “Yes” or “No.” Answer: _______________ COMMENT Source. The foregoing submission is based on Tex. Prop. Code §§ 111.004(4), 112.002, 112.004(2). When to use. The foregoing submission should be used when there is a question whether the settlor intended to create a trust or a different relationship such as a life estate with remainder, fee simple grant, or partnership. Rewording. In certain circumstances, it may be appropriate to define the term trustee or beneficiary . See Tex. Prop. Code § 111.004(2), (18). Rewording for oral trust. A settlor may create a trust in personal property with out a written document. An oral trust in personal property may be created by transfer ring trust property to a trustee who is neither settlor nor beneficiary if the transferor expresses simultaneously with or before the transfer the intention to create a trust. Tex. Prop. Code § 112.004(1). In an appropriate case, the phrase signed the document dated DATE should be replaced by transferred the property to TRUSTEE . Trustee as beneficiary. If the trustee is also a beneficiary, add the following sen tence at the end of the instruction: A trust may be created even though the trustee is one of the benefi ciaries. Identifying document. Any appropriate wording to identify the document may be used in place of the document dated DATE in the question. For example, the docu ment might be identified by its exhibit number. It would be inappropriate to use the term “trust” in describing the document. Trusts for a particular purpose. Changes to Texas Property Code section 111.004(4) from the 2023 legislative session, and the addition of subchapter F to chap-

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