What is a trust indenture?

A trust indenture is a legal document, usually in the form of a contract, that lays out the structure, administration, and management of a trust. In Texas, a trust indenture is usually created by a trustor, or the person who funds the trust, and a trustee, or the person who is responsible for managing the trust. The trust indenture defines the trustor’s rights and responsibilities, as well as the rights and responsibilities of the trustee. It also outlines the rules and procedures for distributing the trust assets to the beneficiaries. The trust indenture outlines the trustor’s wishes regarding the use of the trust assets. For example, it might specify that the assets can only be used for educational expenses or for medical bills. It might also specify that the beneficiaries can only access the trust assets after a certain age or at other predetermined times. Additionally, the trust indenture often includes rules of conduct for the trustee, such as how they must invest the trust assets. Trusts can be a complicated and confusing process, but the trust indenture binds all parties involved to the conditions of the trust. Without it, the trust cannot be properly administered or managed. Therefore, it is important that all parties understand the trust indenture before creating or entering into a trust.

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What is a trust indenture?

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