Problems with Honorary Trusts

When individuals decide that they want to leave a certain amount of money behind to a cause that does not have a legal beneficiary, they may set up a trust to protect those funds into the future. The thought behind this sort of action is that the funds are used according to the wishes of the testator, or trust creator. However, the lack of an actual beneficiary makes these trusts invalid in the state of Texas.

To discuss your estate plan today, contact the Houston wills and trusts attorneys of Garg & Associates, P.C., at 281-362-2865.

Alternatives to Honorary Trusts

Without a beneficiary for a trust, the trustee, being the person who actually handles the money of the trust according to the testator’s wishes, is bound only by honor to complete the trust. Known as honorary trusts, these documents do not hold up according to Texas law. Instead of using an honorary trust, a testator might consider some of the other options:

  • giving the money to a beneficiary with additional directions attached
  • creating a pet trust
  • creating a trust specifically benefiting a related cause or group

In many cases, honorary trusts work to preserve a beloved pet’s lifestyle or keep up a grave or memorial. However, there are reasonable legal alternatives to creating an honorary trust that are acceptable measures according to Texas probate law. For instance, making a pet’s future owner a beneficiary often works particularly well in lieu of an honorary trust.

Contact Us

Many times, the law requires prospective testators to work within the well-defined legal framework, even if it makes their wishes take a less-than-direct route. To learn more about your options when crafting a trust, contact the Houston wills and trusts lawyers of Garg & Associates, P.C., by calling 281-362-2865 today.

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Garg & Associates, PC | 21 Waterway Avenue, Suite 300 | The Woodlands, Texas 77380 Please call 281-362-2865 | Fax: 866-743-4506
Serving The Woodlands, Spring, Houston, Conroe, Kingwood, Tomball, Cypress, Huntsville, Cleveland, Stafford, Montgomery County, Harris County, West Oaks, Memorial, Sugar
Land, River Oaks, Alief, Stafford, Missouri City, and Southwest Houston Texas.