TX HB4058

Creates a new legal framework for "self-settled asset protection trusts" in Texas, allowing individuals to establish irrevocable trusts where they are also beneficiaries while protecting trust assets from their creditors

Requires at least one trustee to be a Texas resident individual, or a trust company/financial institution organized under federal or state law that maintains an office in Texas

Sets strict limitations periods for creditor claims: existing creditors must file within 2 years of the transfer or 180 days after discovering it; future creditors have 2 years from the transfer date

Requires creditors to prove by clear and convincing evidence that a transfer was fraudulent under Texas Business & Commerce Code Chapter 24, or violated a legal obligation under contract or court order

Provides exception for court-ordered child support obligations, allowing enforcement against transferred assets if the beneficiary was more than 30 days in arrears at the time of transfer

Prohibits the settlor from holding the power to make distributions to themselves without consent of another person, and voids any side agreements granting the settlor greater rights than stated in the trust instrument