A Message to Texas Attorneys
You may be aware that during the 89th Texas Regular Legislative Session, House Bill 4058 was proposed, which would have allowed for the creation of a self-settled asset protection trust under Texas law. HB 4058 did not pass into law; however, some speculate that it is only a matter of time before Texas adopts similar legislation, joining states like Nevada, Alaska, Oklahoma, and South Dakota, whose laws already allow for the creation of some form of a domestic asset protection trust (“DAPT”).
The Trust Committee of the Texas Real Estate & Probate Institute (“T-REP”) has analyzed previously proposed DAPT legislation as well as DAPT laws of other states and has concluded that if Texas does ever adopt legislation allowing for the creation of a DAPT, the legislation should be thoughtfully drafted with input of attorneys who practice in areas of law relevant to DAPTs, as such practitioners will ultimately be tasked with advising clients regarding the creation and administration of DAPTs. For this reason, T-REP’s Trust Committee is considering whether to propose legislation addressing DAPTs during the upcoming legislative session; however, before they do, they want to hear from Texas attorneys to understand how they feel about the prospect of Texas allowing for the creation of DAPTs.
Your insight on this matter is greatly appreciated. Please take a moment to complete this survey and share it with your colleagues so they can do the same: