Glossary Archive

A Trust Fiduciary Indemnification refers to the legal protection provided to a fiduciary acting on behalf of a trust against liabilities and expenses incurred while performing their duties. This indemnification serves to shield the fiduciary from personal financial loss that may arise from claims made against them in the course of executing their responsibilities. Trust...

A Trust Fund is a legal arrangement in which assets are held and managed by a trustee on behalf of one or more beneficiaries. It is created through a trust document that outlines the terms and conditions under which the assets will be distributed and managed. Trust funds can be established for various purposes, including...

Trust Fund for Property Improvements A Trust Fund for Property Improvements is a specific type of trust established to allocate funds for the enhancement, repair, or renovation of real property. This financial arrangement is commonly used in estate planning, real estate development, and property management to ensure that designated funds are available for specific purposes...

A Trust Instrument is a legal document that establishes a trust, outlining the terms and conditions under which the trust operates. It serves as the foundational framework that details the roles and responsibilities of the parties involved, including the settlor (the person who creates the trust), the trustee (the person or entity responsible for managing...

Trust maintenance costs refer to the ongoing expenses associated with managing and administering a trust. These costs are essential to ensure that the trust operates effectively and that the trust assets are properly managed according to the terms set forth in the trust document. Overview of Trust Maintenance Costs Trust maintenance costs can vary significantly...

A Trust Modification Agreement is a legal document used to alter the terms or provisions of an existing trust. It allows trustees, beneficiaries, or settlors (the individuals who created the trust) to make changes while retaining the trust's core structure. Overview Trusts are often established to manage an individual’s assets, provide for beneficiaries, or achieve...

The Trust Principal and Income Act is a set of statutes in several jurisdictions, including Texas, that provide guidelines on how to allocate income and principal among beneficiaries of a trust. This act is essential for trustees to determine what constitutes income (such as interest, dividends, and rental income) and what constitutes principal (such as...

A Trust Protector is an independent third party appointed to oversee and safeguard the interests of a trust's beneficiaries, ensuring that the trust operates in accordance with its intended purpose. The role of a trust protector can be particularly significant in complex trusts, where ongoing oversight may be necessary. The Trust Protector's responsibilities may include...

A Trust Reformation Agreement is a legal document that modifies an existing trust to reflect the true intentions of the trust creator (grantor) or to correct errors. This agreement is typically used when the original terms of the trust do not align with the grantor’s original wishes due to mistakes in drafting, changes in circumstances,...

A trustee is an individual or entity appointed to manage a trust on behalf of the beneficiaries. The trustee holds the legal title to the trust property and is responsible for administering the trust according to the terms outlined in the trust document, as well as adhering to relevant laws. The role of a trustee...