(a) If a patient or client is the beneficiary of a trust that has an aggregate principal of $250,000 or less, the corpus or income of the trust is not considered to be the property of the patient or client or the patient’s or client’s estate and is not liable for the patient’s or client’s support. If the aggregate principal of the trust exceeds $250,000, only the portion of the corpus of the trust that exceeds that amount and the income attributable to that portion are considered to be the property of the patient or client or the patient’s or client’s estate and are liable for the patient’s or client’s support.
(b) To qualify for the exemption provided by Subsection (a), the trust and the trustee must comply with the requirements prescribed by Sections 552.018 and 593.081.

Terms Used In Texas Health and Safety Code 534.0175

  • 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
  • Property: means real and personal property. See Texas Government Code 311.005
  • Trustee: A person or institution holding and administering property in trust.