Bill > SB2317

This bill amends the Texas Property Code to create a new Subchapter F related to "self-settled asset protection trusts." The key provisions of this bill are: 1. It allows settlors (the person who creates the trust) to be beneficiaries of a spendthrift trust, known as a "self-settled asset protection trust," as long as certain requirements are met, such as the trust being irrevocable and not intending to hinder, delay, or defraud creditors. 2. It specifies the powers and rights the settlor may retain in the trust, such as the ability to prevent distributions or hold a power of appointment, as well as the discretion the trustee has in making distributions. 3. It provides protections for these self-settled asset protection trusts, including prohibiting the voluntary or involuntary transfer or seizure of the beneficiary's interest, and limiting the time frame and burden of proof for creditors to challenge a transfer to the trust. 4. It addresses the treatment of these trusts when the domicile is changed to Texas or the trust administration is performed in Texas. The bill applies to transfers of property to these types of trusts on or after the effective date of September 1, 2023, and also addresses how it applies to trusts that change their domicile to Texas on or after that date.