Dear Mr. Premack: There is a piece of land which has been in my family for almost 100 years. I intend to leave it to my only child when I die, but worry that he might lose it to creditors because of his overindulgent spending habits. To protect it from creditors which he may have, would a spendthrift trust be appropriate? – CFP

Today, you own this parcel of land and your son has no ownership interest in it at all – just an expectation that you will decide to leave it to him when you die. His loose spending habits may cause financial troubles for him now, but while you are alive his financial troubles cannot reach you or the land.

You want the land to stay in the family, and he is your only child. If he inherits the land directly, any creditor with a court judgment against your son can reach the land to satisfy the judgment.

The concept you raise in your question (a spendthrift trust) would keep the land away from his creditors. When your lawyer writes your Will, include a provision leaving the land to a trust managed by someone other than your son. The trust would include a provision authorized by section 112.035 of the Texas Property Code stating that his interest in the trust may not be "voluntarily or involuntarily transferred before payment or delivery of the interest to the beneficiary."

Your son can be granted the right to use and enjoy the property, and can have the right to reside on it. But he would not have the right to sell the property and could not pledge it as collateral to secure a loan. A pre-existing creditor could not claim the land to satisfy a judgment.

Public policy intends that a spendthrift trust protect its beneficiary from his own bad judgment. Public policy also exposes the assets in a spendthrift trust under certain limited circumstances: under Family Code section 154.005 part of the beneficiary's interest in a spendthrift trust might be reached to pay his child support obligations.

If you feel that your son might mature into a more responsible financial manager as he grows older, you can limit the trust’s duration. However, the spendthrift trust could require that hold the land for your son’s entire lifetime. If so, you would state in the trust who will receive the property after your son dies.

Dear Mr. Premack: I moved to Texas from Florida with my senior mom who has end stage dementia and needs 24/7 medical care. Her bank account is still in Florida, but I can move it anytime to Texas and wonder if I should do so? Also, mom has an out of hospital DNR and a Directive to Physicians she signed after moving to Texas. Should she have any other legal documents for her care? – DJ

Since your mother’s legal residence is now in Texas, moving her account to a local bank makes sense if you have legal authority to do so. If you are simply a co-signer on the Florida account you may not have authority to close it and you may not have authority to open a new account for her in Texas. To have that authority, you need to be agent under her Durable Power of Attorney (one of the legal documents she should have for her ongoing care).

Your mother’s DNR and Directive to Physicians both deal only with end-of-life issues. If she has legal capacity, she should consider signing a Medical Power of Attorney that includes authorization under HIPAA for disclosure to you of her private medical information. She should also have a Last Will and Testament, but if her bank account is set up with a pay-on-death designation then it is unlikely that you would have to probate her Will upon her death.