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House Bill 2368 |
House Author: Hartnett |
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Effective: 9-1-09 |
Senate Sponsor: Watson |
House Bill 2368 amends the Texas Trust Code, in the Property Code, to authorize the independent administrator of a deceased beneficiary, without court approval, to disclaim an interest in a trust created in any manner other than by will and to prohibit a person from disclaiming an interest in a trust if the person in the person's capacity as independent administrator has either exercised dominion and control over the interest or has accepted any benefits from the trust. The bill sets forth provisions relating to the discretionary power of a trustee and limitations on that power. House Bill 2368 authorizes a court, at any point in a proceeding by or against a trustee or concerning a trust, to appoint an attorney ad litem to represent any interest that the court considers necessary and entitles an attorney ad litem or a guardian ad litem to reasonable compensation. The bill sets out provisions relating to the determination, allocation, and distribution of the internal income of a separate fund, as defined by the bill, and makes these provisions applicable in determining the allocation of a payment made from a separate fund to a trust to which an election to qualify for a marital deduction under federal law has been made or to a trust that qualifies for the marital deduction under federal law. Provisions relating to payments characterized or not characterized as interest or a dividend or made in lieu of interest or a dividend are not applicable in determining the allocation of a payment made from a separate fund to those trusts. House Bill 2368 amends the Insurance Code to clarify that the validity of a trust agreement or declaration of trust that is designated as a beneficiary of a life insurance policy is not affected by whether any corpus of the trust exists in addition to the right of the trustee to receive life insurance proceeds.