A trust is a legal document that allows you to manage your assets and distribute them to your beneficiaries when you die. While most people involve experts in the trust creation process, it is not uncommon for some folks to undertake this exercise on their own, and this can lead to problems.
Trust invalidation can shatter your legacy and leave your loved ones vulnerable. This explains why you need to ensure that your trust is valid per Texas trust laws.
The basic requirements for drafting a trust
Texas statutes outline a set of criteria for creating a valid trust. Thus, breaching any of these can lead to the invalidation of your trust. Basically, your Texas trust will be invalidated under the following circumstances:
Questionable mental capacity
Just like a will, you need to be of sound mind at the time of drafting and signing your trust instruments. Your trust will be deemed invalid when your capacity to make sound decisions was impaired or greatly diminished at the time of creating the document. An example of this would be an instance where you had advanced stages of dementia or Alzheimer’s disease.
Lack of personal intent
As far as trusts are concerned, the law protects your rights, and this includes voiding your trust if it is modified or created with a lack of personal intent.
If there is proof of external intent to modify the trust (through coercion or undue influence), then your trust will be invalidated.
Safeguarding your interests
A trust, just as your will is an important estate planning document. Learning more about Texas trust laws can help you protect your trust from costly missteps that might lead to invalidation.