What is a trust fund agreement?

A trust fund agreement is a legally binding document that lays out the terms and conditions of an arrangement in which a settlor, the person creating the trust, entrusts his or her property or assets to a trustee, who is responsible for managing and distributing those assets, according to the settlor’s wishes. As spelled out in Texas Trusts and Estates Law, the trust fund agreement must include the amount of money or other assets the settlor has placed in the trust, the trustees’ responsibilities, the terms of trust distribution, the way in which trust assets are to be managed, and any other conditions the settlor wants to be included in the agreement. The trust fund agreement is required to be in writing in order to be valid and should be signed by both the settlor and the trustees. It is important to remember that the trust fund agreement is ultimately a contract among all the parties involved, and all of the parties involved in the agreement must abide by the terms and conditions set out in the agreement. In Texas, if the trust fund agreement does not comply with the state’s regulations, it may be declared void and unenforceable. Additionally, the trust fund agreement must be registered with the Secretary of State.

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What is a trust fund agreement?

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