Tex.
Est. Code Section 123.056
Certain Trusts with Divorced Individuals as Joint Settlors
(a)
This section applies only to a trust created under a trust instrument that:(1)
was executed by two married individuals as settlors whose marriage to each other is subsequently dissolved; and(2)
includes a provision described by Section 123.052 (Revocation of Certain Nontestamentary Transfers; Treatment of Former Spouse as Beneficiary Under Certain Policies or Plans)(a).(b)
On the death of one of the divorced individuals who is a settlor of a trust to which this section applies, the trustee shall divide the trust into two trusts, each of which shall be composed of the property attributable to the contributions of only one of the divorced individuals.(c)
An action authorized in a trust instrument described by Subsection (a) that requires the actions of both divorced individuals may be taken with respect to a trust established in accordance with Subsection (b) from the surviving divorced individual’s contributions solely by that divorced individual.(d)
The provisions of this subchapter apply independently to each trust established in accordance with Subsection (b) as if the divorced individual from whose contributions the trust was established had been the only settlor to execute the trust instrument described by Subsection (a).(e)
This section does not apply if one of the following provides otherwise:(1)
a court order;(2)
the express terms of a trust instrument executed by the two divorced individuals before their marriage was dissolved; or(3)
an express provision of a contract relating to the division of the marital estate entered into between the two divorced individuals before, during, or after their marriage.
Source:
Section 123.056 — Certain Trusts with Divorced Individuals as Joint Settlors, https://statutes.capitol.texas.gov/Docs/ES/htm/ES.123.htm#123.056 (accessed Apr. 13, 2024).
