Houston, Texas - The Law Office of Whitney L. Thompson ( ) announced new educational resources that clarify how simple trusts operate within Texas estate plans. Led by Houston trust attorney Whitney L. Thompson, the initiative explains the IRS criteria that define a simple trust and highlights practical steps families can take to structure reliable income distributions to beneficiaries while preserving principal.

As outlined by the firm, a simple trust is a non-grantor arrangement that must distribute all income annually, make no distributions of principal, and refrain from charitable gifts. When properly drafted and administered, this framework can suit households that prefer predictable income flows and long-term preservation of corpus. Houston trust attorney Whitney L. Thompson emphasizes the importance of aligning trust terms with tax rules so beneficiaries receive timely income reporting and trustees can apply permissible deductions at the trust level.

Beyond definitional points, the firm's guidance addresses why a simple trust can be advantageous in day-to-day administration. Houston trust attorney Whitney L. Thompson notes that mandatory income distribution often improves tax efficiency by shifting taxable income to beneficiaries, who report it on individual returns. Additional benefits can include probate avoidance for titled assets, predictable annual reporting, and a straightforward governance structure that is easier for lay trustees to follow under Texas law.

Trustee duties receive particular attention. The materials explain that trustees must manage assets prudently, keep accurate books, provide annual statements to beneficiaries, and file Form 1041 for the trust. Where applicable, the trust may take an income distribution deduction, and it remains responsible for capital gains realized within the trust. The classification of a simple trust is tested each tax year. If the trustee distributes principal, retains income, or authorizes a charitable payment in a given year, the trust is treated as a non-simple trust for that year and may revert to simple status once it again satisfies all criteria.

The firm also outlines practical administration steps. Trustees should adopt written investment guidelines consistent with the Texas prudent investor rule, calendar distribution dates to meet the annual payout requirement, and coordinate with tax preparers to issue Schedule K-1 forms to beneficiaries. Clear records of receipts, disbursements, and allocation between income and principal reduce disputes and promote smooth transitions when a successor trustee steps in. For families evaluating whether a simple trust or a more discretionary alternative better fits their objectives, careful comparison of distribution flexibility, tax posture, and governance burdens remains essential.

About The Law Office of Whitney L. Thompson:

The Law Office of Whitney L. Thompson is a Houston-based firm serving individuals and families across Texas. The practice focuses on estate planning, trusts, probate, and family law matters, including divorce and child support. The team provides clear guidance that helps clients protect assets, care for loved ones, and carry out long-term goals across Houston and surrounding counties. For media inquiries or to request a consultation, contact The Law Office of Whitney L. Thompson at (281) 214-0173 or visit the firm's website to learn more.

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