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Abstract

This Note proceeds in three parts. Part Two provides insight on the history and development of trust law as well as the interest in arbitration to settle trust disputes. Part Three explains the factual background, holding, and rationale of the Supreme Court of Texas in Rachal v. Reitz. Part Four analyzes the Court’s decision and its implications. This part also asserts that the Court ruled correctly by giving effect to the intent of the settlor, including the arbitration agreement in the Texas Arbitration Act, and laying the groundwork for arbitration agreements to be enforced against trustees and beneficiaries on the basis of a direct benefits estoppel theory.

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