What is a trust account and how does it work?

A trust account is a type of estate planning law tool in Texas used to manage and protect assets. It is a legal arrangement that allows a person, known as the grantor or settlor, to transfer their assets to a trustee who then manages the assets according to the terms of the trust agreement. The grantor is the person who creates the trust and can name themselves as the trustee if they choose. The grantor will also name a beneficiary, or beneficiaries, who will receive the benefits of the trust. The trust document will outline the grantor’s wishes for how the assets are to be managed and distributed. The trustee is the person responsible for managing the trust. They must follow the instructions in the trust document and make sure that the assets are managed according to the grantor’s wishes. The trustee also has a fiduciary duty to act in the best interests of the trust and its beneficiaries. This means that the trustee must act ethically and responsibly while managing the trust. A trust account can be helpful in many ways. It can protect the assets from creditors, allow for greater control over how the assets are used, provide for the transfer of assets to beneficiaries, and reduce or eliminate estate taxes. Trust accounts can also be used to provide for the care and protection of minor children or disabled adults.

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What is a trust account and how does it work?

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