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House Bill 2245 |
House Author: Wray et al. |
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Effective: 9-1-19 |
Senate Sponsor: Rodríguez |
House Bill 2245 amends the Property Code to revise and update provisions relating to trusts. The bill prohibits the terms of a trust from limiting a court's power to order disgorgement of a trustee's compensation if the trustee commits a breach of trust or to make an award of costs and attorney's fees. The bill establishes that Estates Code provisions governing abatement of bequests apply to the abatement of at‑death transfers and that, for a trust that is created and amendable or revocable by the settlor or by the settlor and the settlor's spouse, Estates Code provisions governing the construction and interpretation of wills apply at the settlor's death to the construction and interpretation of at-death transfers as if the settlor of the trust is the testator, the beneficiaries of the at-death transfer are devisees, and the at-death transfers are devises.
House Bill 2245 sets out provisions relating to the effect of the dissolution of a marriage on certain transfers in trust and relating to the transfer of trust property to a pooled trust subaccount. The bill also provides for the creation of a second trust from distributed principal of a first trust and establishes that a court‑ordered reformation of a trust is effective as of the creation of the trust and that a trust created for the benefit of a disabled minor terminates on the death of the beneficiary.