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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 82(R)

Senate Bill 1197

Senate Author:  Rodriguez

Effective:  9-1-11

House Sponsor:  Hartnett


            Current law authorizes a person who is authorized to disclaim an interest in a trust created in any manner other than a will to  disclaim an interest in whole or in part by delivering a memorandum to a certain person and meeting other conditions.  Senate Bill 1197 amends the Property Code to make such a memorandum effective to disclaim an interest in a trust in a case of an interest created by reason of the death of a decedent who died after December 31, 2009, and before December 17, 2010, and to which provisions of the Probate Code relating to the means of evidencing a disclaimer or renunciation of property or interest from a decedent do not apply.  This provision expires on September 1, 2013.   Current law requires a trustee to provide a notice of division or combination of a trust to beneficiaries.  The bill adds provisions requiring the notice to be given to a guardian of the estate, guardian ad litem, or parent of a minor or incapacitated beneficiary and authorizing beneficiaries to waive the notice requirement.  The bill revises provisions relating to certain trust procedures, including jurisdiction and venue of a relevant proceeding and the parties to a proceeding, and relating to provisions of the Uniform Principal and Income Act regarding a trustee's power to adjust between principal and income  and certain taxes required to be paid by a trustee.