USA – TEXAS Trends and Developments Contributed by: Perrin Clark, Ytterberg Deery Knull LLP
Asset protection trusts In Texas this past year there was a significant legisla - tive push to authorise the creation of self-settled asset protection trusts, excepting them from the general rule under Texas law that prohibits self-settled trusts from enjoying spendthrift protections. Texas House Bill 4058 was introduced, authorising such trusts as a carve-out to this general prohibition, but it did not become law. Among other challenges, it faced oppo - sition from those worried about its impact on future child support obligations. Nevertheless, a similar bill is expected to be introduced in the next legislative session. This legislative effort appears intended to continue the modernisation of Texas trust law and advance Texas as a jurisdiction of choice for trust law purposes.
calf) proposes a constitutional amendment prohibiting the imposition of capital gains tax. SJR 18 passed both chambers during the 89th Legislative Session and was filed with the Secretary of State on 7 May 2025. It will be voted on in an election for constitution - al amendment on 4 November 2025. HJR 2 (Geren, et al | Perry) proposes a constitutional amendment pro - hibiting the imposition of estate, gift, and generation- skipping transfer tax. HJR 2 passed both chambers during the 89th Legislative Session and was filed with the Secretary of State on 14 May 2025. It will be voted on in an election for constitutional amendment on 4 November 2025.
705 CHAMBERS.COM
Powered by FlippingBook