Bill > HB4376

This bill aims to establish a new legal framework for self-settled asset protection trusts in Texas. The key provisions include: 1. Allowing the settlor (creator) of a spendthrift trust to be a beneficiary, provided the trust meets certain requirements, such as being irrevocable, not requiring distributions to the settlor, and having a Texas-based trustee. 2. Defining the types of powers and rights the settlor can retain in the trust, including the ability to prevent distributions, hold a limited power of appointment, and receive a percentage of the trust's value annually. 3. Specifying the rights and limitations of beneficiaries, including that a spouse, former spouse, child, or dependent of the settlor must be explicitly named as a beneficiary. 4. Granting the trustee broad discretion in administering the trust and distributing funds to beneficiaries. 5. Establishing protections against the voluntary or involuntary transfer of a beneficiary's interest in the trust, with exceptions for child support payments. 6. Outlining the statute of limitations and evidentiary requirements for creditors to challenge transfers to the trust as fraudulent. 7. Providing guidelines for trusts that change their domicile to Texas or are administered under the laws of another state or foreign jurisdiction. The bill aims to create a more robust legal framework for self-settled asset protection trusts in Texas, with the goal of protecting the settlor's assets from creditors while maintaining certain powers and benefits for the settlor.