Section 142 Trust: Why Work With a Bank to Manage Funds
March 25, 2025
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Texas families who need extra care for minor children or incapacitated individuals often require additional financial resources to ensure each individual is supported throughout their lifetime. Many legal guardians and loved ones opt to have a trust created specifically for managing funds to ensure all future needs are met.
A Section 142 Trust is a vital legal tool designed to protect and manage funds for minors or an incapacitated person. For families or probate and personal injury attorneys working with the court, partnering with a reliable financial institution like Texas Gulf Bank can help with professional asset management to create long-term stability for beneficiaries.
Learn how a Section 142 trust may benefit the financial future of a child or incapacitated person, the benefits of this type of trust, and how Texas Gulf Bank may be able to help you successfully manage the security and growth of assets.
What Are 142 Trusts in Texas?
A Section 142 Trust is a court-established trust specifically designed to hold and manage assets for a minor or incapacitated person. These trusts safeguard financial resources, which are typically funded from lawsuit settlements, to ensure they are utilized in the best interest of the beneficiary.
In Texas, the trust is established by the Texas District courts, usually when there is a lawsuit settlement. Essentially, it’s a special type of legal arrangement created to benefit a minor or an individual who cannot manage their financial affairs. Instead of payments going directly to the individual, the funds are placed into a trust, which is then managed by a trustee.
This trust can be a Special Needs Trust, helping maintain eligibility for government services while preserving financial security for the trust property. However, it requires a corporate trustee to manage asset funds, and Texas Gulf Bank has the eligibility and expertise to serve in this role.
Working with a trustee ensures that funds are used appropriately, such as to cover critical expenses that include health services, living expenses, and other needs. A trustee also helps protect the assets from being misused by another party. The idea is to create additional oversight to support the beneficiary’s best interests.
Why Choose Our Bank for Section 142 Trust Management?
With a Section 142 trust, the guardian of the estate ad litem is appointed to manage the care and decision-making for a child or incapacitated person. However, protecting and managing trust finances may be a time-consuming, complex process for the appointed guardian to handle on their own.
Selecting the right financial institution to manage a Section 142 Trust is crucial. Texas Gulf Bank offers the following support to represent the interests of your family.
- Professional Trustee Services: As a corporate trustee, we uphold fiduciary responsibilities and make financial decisions with the beneficiary’s best interest in mind.
- Expert Asset Management: Our Wealth Management team has extensive experience handling all types of assets, helping to ensure financial security and stability.
- Personalized Service: Instead of interacting with a call center, clients enjoy direct relationships with our local, dedicated team members.
As a trustee, Texas Gulf Bank strives to protect and position the financial assets for a minor child or incapacitated person for long-term growth.
Getting Started with a Section 142 Trust
A Section 142 trust may be ideal for guardians and families who desire financial security for their loved one’s future needs. Our local Texas bank has extensive experience supporting families as a corporate trustee through our reliable and strategic Wealth Management Services.
For more information on how Texas Gulf Bank can help manage a Section 142 Trust for your family, contact our Wealth Management Advisors today. Our experts are ready to provide guidance and financial solutions tailored to your needs.