Settlor Intent Provision

The Settlor Intent Provision is a clause commonly included in a trust document that clarifies the intentions and desires of the settlor, the individual who creates the trust. This provision plays a crucial role in guiding the trustee in administering the trust according to the settlor’s wishes.

Settlor intent is critical in the context of trust law, as it helps prevent disputes among beneficiaries and ensures that the trust is managed and distributed in a manner that aligns with the settlor’s vision. The provision typically articulates specific goals, purposes, or principles that the settlor wishes the trustee to consider when making decisions about the trust assets.

For example, a settlor might specify that the trust is intended to provide for the education of their grandchildren, or that the assets should be distributed in a way that maintains family harmony. If a conflict arises regarding the interpretation of the trust, courts may refer to the settlor intent provision as a guiding factor in resolving the dispute. This ensures that the settlor’s wishes are honored even if the language of the trust is ambiguous or if unforeseen circumstances arise.

In Texas, particularly in Houston and surrounding areas, including a well-drafted settlor intent provision can be particularly important given the state’s emphasis on the intent of the settlor in trust litigation. Courts may seek to uphold the settlor’s original intent, making it essential for the provision to be clear and reflective of the settlor’s true objectives.