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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
a blue and orange check mark with the letter w on it as the Wilson Whitaker Rynell Logo

Understanding Texas Spendthrift Trusts: Protect Your Assets

John Wilson • June 7, 2024

How to Setup a Spendthrift Trust in Texas?

As parents, we sometimes face difficult choices regarding the hard-earned money that will become our children's inheritance. Whether we have disabled children or children who, despite our best efforts, are not responsible with money, it is crucial to prevent them from making poor personal and financial decisions with their inheritance. Protecting your children and preventing your hard-earned money from being squandered is sometimes just a fact of life.


One effective way to achieve this is by setting up a spendthrift trust. A spendthrift trust is specifically designed to manage the inheritance for beneficiaries who may not be financially savvy or who may have issues such as addiction or immaturity. This type of trust restricts the beneficiary's access to the principal amount and provides regular distributions to ensure they receive support without the risk of wasting the entire inheritance. A spendthrift trust can provide peace of mind, knowing that your child will have a stable financial future even if they struggle with making sound financial decisions. It allows you to support your loved ones without the worry that their inheritance will be quickly squandered.


To learn more about how a spendthrift trust can benefit your family and secure your child's future, contact the expert spendthrift trust attorneys at Wilson Whitaker Rynell. We are here to guide you through the process and help you make the best decisions for your family's financial well-being.

What is a Spendthrift Trust?


A spendthrift trust is a type of trust designed to protect the assets within it from being squandered by the beneficiary. This type of trust is especially useful when the beneficiary is disabled, has poor financial management skills, is prone to wasteful spending, or is vulnerable to creditors. Here are the key aspects of a spendthrift trust:


Key Features of a Spendthrift Trust


  • Control of Distributions:

The trust specifies how and when the trust assets are distributed to the beneficiary. Typically, a trustee is appointed to manage the trust and make decisions about distributions based on the terms set by the grantor (the person who creates the trust).


  • Protection from Creditors:

The beneficiary’s creditors cannot access the trust assets to satisfy debts, as long as the assets remain within the trust. This provides a layer of protection for the beneficiary against financial mismanagement and legal claims.


  • Beneficiary Limitations:

The beneficiary cannot sell or pledge their interest in the trust as collateral for a loan. This ensures that the trust assets are used according to the grantor’s intentions.


  • Flexible Terms:

The terms of the trust can be customized to fit the specific needs and circumstances of the beneficiary. For example, distributions can be set to occur at certain ages, milestones, or for specific purposes such as education or healthcare.


Benefits of a Spendthrift Trust


A spendthrift trust is a specialized trust designed to protect the beneficiary's interest by prohibiting them from selling, giving away, or transferring their interest in the trust assets. This legal arrangement ensures that the beneficiary's creditors cannot access or seize the trust assets, providing a secure financial foundation and safeguarding the beneficiary's future. At Wilson Whitaker Rynell, we are experts in establishing spendthrift trusts, ensuring your assets are protected and your loved ones are financially secure by providing the following protections through a spendthrift trust:


  • Financial Security:

Provides ongoing financial support for the beneficiary without giving them unrestricted access to a large sum of money, which they might mismanage.


  • Asset Protection:

Shields the trust assets from being seized by creditors, lawsuits, or through poor financial decisions by the beneficiary.


  • Peace of Mind:

Gives the grantor peace of mind knowing that their hard-earned assets are protected and will be used for the intended purposes.

How to Set Up a Spendthrift Trust in Texas

Setting up a spendthrift trust in Texas involves several steps to ensure that the trust is legally sound and meets your specific needs. Fortunately, the Texas Estates Code only requires language showing that the settlor of the trust intends for it to qualify as a spendthrift trust. For example, a will or a formal legal document stating 'this is a spendthrift trust' is most often all you need, and no other special language is required. Below are the steps to follow to help you set up a spendthrift trust in Texas:


Steps to Set Up a Spendthrift Trust in Texas


Before setting up a spendthrift trust, determine your objectives. Consider why you want to create the trust, who the beneficiaries will be, and what assets you want to include. Common reasons for establishing a spendthrift trust include protecting assets from creditors, ensuring financial stability for beneficiaries with poor money management skills, or providing for a disabled loved one.


  • Choose a Trustee to Managed Your Spendthrift Trust

Select a reliable and trustworthy individual or institution to act as the trustee. The trustee will manage the trust assets and distribute them according to the terms of the trust. It's crucial to choose someone who is financially savvy and has the best interests of the beneficiaries at heart.


  • Draft the Trust Agreement

Work with an experienced estate planning attorney to draft the trust agreement. This document should clearly outline the terms and conditions of the trust, including:


  • The names of the grantor (you), trustee, and beneficiaries.
  • The specific assets being transferred into the trust.
  • The rules for how and when distributions will be made to the beneficiaries.
  • The spendthrift provisions that restrict the beneficiaries' ability to transfer or encumber their interest in the trust.
  • Any special instructions or conditions, such as distributions for education, healthcare, or other specific purposes.


  • Fund the Spendthrift Trust

Transfer the chosen assets into the trust. This can include cash, real estate, stocks, bonds, and other valuable property. The process of funding the trust legally transfers ownership of these assets to the trust, under the control of the trustee.


  • Review and Finalize the Spendthrift Trust

Carefully review the trust agreement with your attorney to ensure that all legal requirements are met and that the document accurately reflects your intentions. Once finalized, sign the trust agreement in the presence of a notary public.


  • Notify Interested Parties

Inform the beneficiaries and the trustee about the trust. Provide the trustee with a copy of the trust agreement and any necessary documentation to manage the trust assets.


  • Manage the Trust

The trustee will manage the trust according to the terms set forth in the trust agreement. They will make distributions to the beneficiaries as specified, ensuring that the assets are used appropriately and in line with your wishes.


Why Choose Wilson Whitaker Rynell to Setup Your Spendthrift Trust?


Setting up a spendthrift trust involves navigating complex legal and financial considerations. At Wilson Whitaker Rynell, our experienced estate planning attorneys specialize in creating spendthrift trusts tailored to your specific needs. We guide you through each step of the process, ensuring that your assets are protected and your beneficiaries are provided for in the best possible way. Contact us today to learn more about establishing a spendthrift trust in Texas and securing your family's financial future.

Frequently Asked Questions

  • Can You Create a Spendthrift Trust for a Responsible Beneficiary?

    Absolutely, there is no requirement for the settlor to prove that the beneficiary is incapable of managing their money. You can create a spendthrift trust for anyone, including a responsible adult beneficiary.


    Interestingly, you can even allow a beneficiary to serve as the trustee of their own trust. This can be done immediately if they are already responsible adults or set to occur in the future when they have reached an age or maturity level sufficient to manage their own trust.


    As a result, many trusts include spendthrift provisions as an extra layer of protection for the beneficiaries. This ensures that the trust assets are safeguarded from creditors, poor financial decisions, and other potential risks, regardless of the beneficiary’s current financial acumen.


    Learn more about how setting up a spendthrift trust can benefit your loved ones by consulting with the experienced attorneys at Wilson Whitaker Rynell. We specialize in creating tailored trust solutions to protect your assets and provide peace of mind.

  • Can I Create a Spendthrift Trust for Myself?

    While many of us would like to protect our assets from creditors, Texas considers self-settled spendthrift trusts against public policy. This means that although a spendthrift provision does not invalidate a trust, it also does not protect the trust assets from creditors if the settlor is also a beneficiary.


    However, the Texas legislature has made some changes to the Texas Property Code, which appear to have created a potential workaround for a self-settled asset protection trust. For more information, read our detailed analysis: "Did Texas Create a Back Door for a Self-Settled Asset Protection Trust?"


    Do you have a loved one who makes poor personal and financial decisions? Or would you like to give your adult beneficiaries an extra layer of asset protection? A spendthrift trust can help you provide for them while ensuring that the assets you’ve worked hard to accumulate are not squandered or exposed to the claims of creditors.


    At Wilson Whitaker Rynell, our experienced attorneys can help you set up a spendthrift trust tailored to your specific needs, providing peace of mind and protecting your legacy. Contact us today to learn more about how a spendthrift trust can benefit your family.

  • How Does One Create a Spendthrift Trust?

    Creating a spendthrift trust in Texas is straightforward. The Texas Estates Code requires only that the trust document clearly indicates the settlor's intention for it to qualify as a spendthrift trust. Simply including a statement such as “this is a spendthrift trust” is sufficient; no additional special language is necessary.

  • What is the Benefit of a Spendthrift Trust?

    A spendthrift trust is a powerful tool for protecting assets and ensuring they are used responsibly for the benefit of the intended beneficiary. By preventing the beneficiary from transferring their interest in the trust assets, it shields the assets from creditors and provides a structured approach to financial support. To learn more about setting up a spendthrift trust and how it can benefit your family, contact the experienced attorneys at Wilson Whitaker Rynell. Our team can guide you through the process and help you create a trust that meets your specific needs and goals.

  • Who Are Good Beneficiaries of Spendthrift Trusts?

    While anyone can benefit from a spendthrift trust, it is particularly well-suited for individuals who need protection and structured financial support. Ideal beneficiaries of a spendthrift trust include those who:


    Cannot Manage Money Well: Individuals who lack financial literacy or have a history of poor money management can benefit from the structured distributions provided by a spendthrift trust.


    Cannot Be Trusted with a Large Sum of Money: Beneficiaries who are likely to squander a large inheritance due to impulsive spending or poor financial decisions are prime candidates for a spendthrift trust.


    Spend Excessively: Those who habitually spend more money than they should, putting themselves at financial risk, can benefit from the controlled distribution of funds.


    Have a Disability: Adults with disabilities that interfere with their ability to manage finances on their own can rely on a spendthrift trust for long-term financial support and stability.


    Have a Mental Illness: Individuals with mental health issues that impact their financial judgment or ability to manage money can be protected by a spendthrift trust, ensuring their inheritance is used wisely.


    Have an Addiction: Those struggling with addictions, such as gambling, drugs, or alcohol, often face financial instability. A spendthrift trust can prevent them from accessing large sums of money that could fuel their addiction.


    The purpose of a spendthrift trust is to provide financial support to someone who cannot responsibly manage finances on their own. By setting up such a trust, you can ensure that your loved one’s inheritance is protected and used for their benefit, even if they face challenges that make financial independence difficult.


    At Wilson Whitaker Rynell, our experienced attorneys can help you establish a spendthrift trust tailored to the specific needs of your beneficiary. Contact us today to learn more about how a spendthrift trust can safeguard your loved one’s financial future and provide peace of mind.

  • Choosing a Trustee for a Spendthrift Trust

    Choosing the right trustee for a spendthrift trust is crucial, as the trustee manages and disburses the trust funds according to the trust's terms. It's important to select someone reliable, trustworthy, and impartial, with the necessary financial acumen to manage the assets effectively. The trustee should also have the availability to dedicate time to their duties and a basic understanding of legal obligations. You can choose an individual trustee, a professional trustee, or a combination of both as co-trustees. Each option has its benefits, from personal insight to professional management. At Wilson Whitaker Rynell, we can help you select the ideal trustee and set up a spendthrift trust tailored to your family's needs.


Wilson Whitaker Rynell, Estate Planning Lawyers Serving Dallas, Houston and Austin


At Wilson Whitaker Rynell, we specialize in Estate Planning, Family Law, Business Law, Real Estate, Probate, Civil Litigation, and IP. Our team is dedicated to listening to your needs and helping you navigate the legal system with confidence. Let us provide you with the expert guidance and support you deserve. We have successfully helped clients in Dallas, Houston, Austin, Plano, Frisco, Addison, Richardson, Fort Worth, Irving, Carrollton, Taylor, Dallas County, Denton County, Collin County.



Contact Us or Call 972-248-8080 for a Free Consultation!


A person is holding a cell phone in front of a book titled artificial intelligence
By John Wilson February 19, 2025
Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. 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While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. 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Help you create the future you want by offering trusted legal advice. Use efficient methods to minimize unnecessary costs and keep the process manageable. Navigating family law disputes requires a thorough understanding of Texas family law and strong advocacy. Women facing divorce or other family law issues are encouraged to seek an experienced family law attorney who can provide personalized guidance. A skilled lawyer can help craft a strategy that protects their rights and ensures a fair resolution. This includes representing their interests in court, negotiating settlements, and helping enforce orders such as child support or spousal maintenance.
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By John Wilson January 23, 2025
Understanding Writs of Execution in Texas: A Layperson’s Guide If a court determines that someone owes money to another party, the debtor—referred to as the "judgment debtor"—typically has 30 days to pay off the debt. If the debt remains unpaid after this time, the creditor, or "judgment creditor," can take legal action to enforce the payment through a Writ of Execution . This legal process, governed by Texas law, enables creditors to collect what they are owed by seizing and selling the debtor’s non-exempt assets. What Is a Writ of Execution? Under Texas Rules of Civil Procedure 629 , a Writ of Execution is a court order that authorizes a sheriff or constable to seize the debtor’s property to satisfy the debt. This writ is an essential tool for creditors when voluntary repayment has not occurred. Once the writ is issued, it is handed over to a county constable or sheriff, who is required to act “without delay” in collecting the debtor’s real and personal property. The seized property is then sold, and the proceeds are used to pay off the debt. If multiple writs are filed against the same debtor, the assets are distributed in the order the writs were received. What Property Can Be Seized Under a Writ of Execution? Texas law is very specific about which types of property can and cannot be seized to satisfy a judgment. Exempt Property Certain assets are protected from seizure under Texas Property Code § 41.001. These include: The debtor’s homestead (primary residence) Wages earned from employment Professionally prescribed health aids Workers’ compensation benefits College savings plans Some insurance benefits Personal property valued up to $50,000 for individuals and $100,000 for families Unique to Texas, the law also protects items like family Bibles, two firearms, pets, and for rural residents, livestock (e.g., 12 head of cattle and 120 fowl). This extensive list reflects Texas's cultural heritage and values. Non-Exempt Property Assets that are generally not exempt include: Vacation homes Timeshares Pleasure boats Airplanes Jewelry exceeding certain value thresholds The specific procedures for seizing different types of property are detailed in Texas Rules of Civil Procedure 639 . Can a Writ of Execution Be Avoided? Judgment debtors have a few options to avoid the execution of a writ: Filing a Supersedeas Bond A supersedeas bond can temporarily halt enforcement of the writ. This bond, filed with the county clerk or justice of the peace, preserves the status quo while the debtor seeks further legal remedies. This option is governed by Texas Rules of Civil Procedure 634 . Challenging the Execution Debtors can file a claim for wrongful execution in situations such as: The debt has already been paid Exempt property is being seized The levy is excessive Additionally, courts take extra care to protect property classified as a homestead under Texas Property Code § 41.002(c) . When only one spouse is responsible for the debt, Texas Family Code § 3.202(a) and related provisions provide guidance on levying against community or separate property. The Role of County Officials in Executing the Writ Once the writ is issued, its enforcement falls on county officials, typically a sheriff or constable. These officials must act in accordance with Civ. Prac. & Rem. Code § 34.072 , which requires them to execute the writ and report back to the court. They must: Give proper notice of the sale of seized property Ensure the proceeds are appropriately delivered to the creditor Avoid overstepping legal boundaries, such as seizing exempt property Failing to execute the writ properly can result in serious consequences, where a sheriff’s refusal to levy on a property initially listed as exempt (but later deemed abandoned) led to court action and damages awarded to the creditor. Preventing Fraudulent Transfers One challenge creditors face is when debtors attempt to hide or transfer assets to avoid collection. To address this, Texas follows the Uniform Fraudulent Transfer Act under Tex. Bus. & Comm. Code § 24.001 et seq .. This act provides legal remedies to creditors when a debtor’s transfer of assets is deemed fraudulent. Effect of a Defendant's Death on Writs of Execution Under Civ. Prac. & Rem. Code § 34.072 , the death of a defendant after a writ of execution is issued halts execution proceedings. However, any lien acquired from the writ's levy is still enforceable by the county court when paying off the deceased's debts. Why Proper Execution Of The Writ Is Crucial The rules for filing and serving a Writ of Execution are strict and detailed. Missteps, such as filing the writ in the wrong county, failing to serve the proper parties, or missing key deadlines, can lead to delays or even render the writ ineffective. Both creditors and debtors must ensure compliance with these rules to avoid unnecessary complications. For creditors, failure to properly enforce the writ could mean losing the opportunity to collect on a judgment. For debtors, not responding appropriately to a writ could result in the loss of valuable assets, even those that might have been exempt.
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The Wilson Legal Group are Dallas attorneys that specializes in Patents, Trademarks, Copyrights, Trade Secrets, Complex Litigation, Business/Corporate Law, Family Law and Real Estate Law. At the Wilson Legal Group, our clients are our focus. Our philosophy is simple and straight-forward: Understand our clients' needs, hopes, and interests in order to help them flourish. Our staff strives to build strong relationships with our clients in order to appreciate their best interests and help them achieve their goals.

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