Frequently Asked Questions

A 1301 Management Trust refers to the Texas Estates Code provision that allows specific people to apply to a court for the creation of a trust for the benefit of a minor or otherwise incapacitated person. A minor (person under the age of 18) is not allowed to own property in Texas. Therefore, when a minor inherits money or property, a guardianship or trust must be created. A 1301 Management Trust is monitored by the court in which it was created, and the trustee is required to provide annual reports to the court. There are other legal requirements regarding certain provisions of the trust. For example, the funds can be held in trust until the minor reaches age 18 or possibly up to age 25. A 1301 Management Trust is also sometimes an alternative to guardianship for a minor’s estate.

A financial institution is often appointed as trustee of 1301 Management Trusts. If the assets of the trust are less than $150,000.00, a court can appoint an individual or an entity to serve as a trustee, based on specific factors and circumstances.