Third-Party Special Needs Trust Contract (Texas)

The Third-Party Special Needs Trust Contract (Texas) is a legal template that outlines the terms and conditions for establishing a trust fund designated to cater for the unique financial needs of an individual with special needs in the state of Texas. This contract serves as a legally binding agreement between the grantor (also referred to as the settlor) and the trustee, who will be responsible for managing the trust fund and ensuring its proper allocation for the beneficiary's benefit.

The contract includes detailed provisions regarding the assets or funds to be transferred to the trust, as well as specific instructions on how they should be managed and distributed. It addresses important considerations such as the beneficiary's eligibility for government assistance programs, potential risks of inadvertently disqualifying them from these benefits, and the need to maintain a certain standard of living and care for the beneficiary.

The template further outlines the duties and responsibilities of the trustee, including managing investments, paying bills, filing tax returns, and reporting to the grantor or any other relevant parties. It may also include provisions for a successor trustee in case the original trustee is unable or unwilling to fulfill their duties.

Additionally, the contract may address the distribution of any remaining trust assets after the beneficiary's death, such as the allocation of funds to other family members or charitable organizations designated by the grantor.

Overall, the Third-Party Special Needs Trust Contract aims to provide a comprehensive legal framework to ensure the financial security and proper care of individuals with special needs in Texas, enabling their families to establish long-term plans for their future well-being.