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Bill

HB 4058

Relating to self-settled asset protection trusts.

89th Legislature (2025) Introduced by Gary VanDeaver

Bill expands Texas self-settled asset protection trusts, allowing individuals to shield personal assets from creditors while maintaining control or benefit from those assets.

Referred to s/c on Family & Fiduciary Relationships by Speaker
#propertyinterests--trusts(i0008) #trusts(s1018)
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Bill Summary · HB 4058

Legislative bill overview

HB 4058 would modify Texas law regarding self-settled asset protection trusts (SPATs)—trusts that allow individuals to shield their own assets from creditors while retaining some control or benefit from those assets. The bill appears to expand or clarify provisions allowing Texans to establish these trusts with greater flexibility than currently permitted under state law.

Why is this important

Asset protection trusts have significant real-world implications for wealth preservation, creditor protection, and estate planning. Changes to SPAT laws affect individuals facing potential liability (business owners, professionals in high-risk fields), their families' financial security, and creditors' ability to recover debts. Texas's approach influences whether the state remains competitive for trust formation and wealth management services.

Potential points of contention

  • Creditor protection vs. creditor rights: Expanded SPATs could allow debtors to shield assets from legitimate creditors, raising fairness concerns for those owed money
  • Bankruptcy implications: Broader asset protection trusts may create conflicts with federal bankruptcy law, potentially allowing debtors to circumvent bankruptcy protections
  • Wealthy individual advantage: SPATs primarily benefit those with substantial assets to protect, raising equity concerns about differential access to legal asset-shielding strategies

Compiled from official sources — confirm details with the bill’s official record.

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