Contribution Deed
(Settlor to Living Trust) (TX)

Summary

This template is for a settlor of a newly formed living trust to contribute titled real property from themselves, as an individual, to the trustee of the living trust to retitle the property. This template contains practical guidance and drafting notes. Failure to retitle property, leaving a partially or fully unfunded living trust, will frustrate the planning intent of executing a revocable trust. It will require probate court involvement to settle the estate in one vehicle or another, whether as muniment of title of the companion pour over Will, a small estate affidavit when there was no companion pour over Will, or a full administration of the estate if needed. If drafting a companion statutory durable power of attorney, be sure to discuss whether or not the named agent(s) should have powers over trust matters pursuant to Tex. Est. Code § 751.031(b). Failure to grant the agent powers over trust matters may result in the trust being only partially or fully unfunded at the time of the Settlor's death. If the subject property is indebted, you should contact the mortgagee to ensure (1) the account is current with regular payments being made, and (2) the deed will not trigger an advancement "due on sale" clause in the note as an unintended consequence of the planning intention. This is not a concern when the settlor is actually living in the property. However, if the settlor is not living there, this is an immediate concern to address prior to executing and recording the deed. Be aware that individual counties may have further requirements in addition to what is included in this template. Always consult the county clerk's real property office in the county where you are filing to inquire whether there are any additional items that should be included. Whether you, a staff member, or your client is recording the deed after execution, a photo ID may be required to file a document in person in the real property department of the county clerk's office. Tex. Lo. Gov't Code § 191.010. For a full listing of key content related to estate plans for married or partnered people in Texas, see Estate Plan for Individual with Spouse or Partner Resource Kit (TX). For an in-depth discussion of trusts, see Characteristics and Uses of Trusts (TX), Requirements and Restrictions on Trust Purposes and Administration (TX), and Revocation, Amendment, and Termination of Trusts (TX).