Texas Finance Code 125.301 – Form of Account
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(a) A credit union may issue shares or receive a deposit:
(1) in a revocable trust, if:
(A) a settlor is a member of the credit union; or
(B) a trustee or a beneficiary is a member of the credit union and the settlor is a member of the trustee’s or beneficiary’s family as that term is defined by the board in a written policy; or
(2) in an irrevocable trust, if a settlor, trustee, or beneficiary is a member of the credit union.
(b) A credit union may rely on any information provided by the trustee to determine whether a trust is revocable or irrevocable.
Terms Used In Texas Finance Code 125.301
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Trustee: A person or institution holding and administering property in trust.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005