By Hartnett                                           H.B. No. 3004
       74R6803 CLG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the compensation of certain personal representatives.
    1-4        SECTION 1.  Section 241, Texas Probate Code, is amended to
    1-5  read as follows:
    1-6        Sec. 241.  Compensation of Personal Representatives.  (a)
    1-7  Except as provided by Subsections (b) and (c) of this section,
    1-8  executors <Executors>, administrators, and temporary administrators
    1-9  shall be entitled to receive a commission of five per cent (5%) on
   1-10  all sums they may actually receive in cash, and the same per cent
   1-11  on all sums they may actually pay out in cash, in the
   1-12  administration of the estate on a finding by the court that the
   1-13  executor or administrator has taken care of and managed the estate
   1-14  in compliance with the standards of this code; provided, no
   1-15  commission shall be allowed for receiving funds belonging to the
   1-16  testator or intestate which were on hand or were held for the
   1-17  testator or intestate at the time of his death in a financial
   1-18  institution or a brokerage firm, including cash or a cash
   1-19  equivalent held in a checking account, savings account, certificate
   1-20  of deposit, or money market account; nor for collecting the
   1-21  proceeds of any life insurance policy; nor for paying out cash to
   1-22  the heirs or legatees as such; provided, further, however, that in
   1-23  no event shall the executor or administrator be entitled in the
   1-24  aggregate to more than five per cent (5%) of the gross fair market
    2-1  value of the estate subject to administration.  If the executor or
    2-2  administrator, including a corporate fiduciary serving as an
    2-3  executor or administrator,  manages a farm, ranch, factory, or
    2-4  other business of the estate, or if the compensation as calculated
    2-5  above is unreasonably low, the court may allow him reasonable
    2-6  compensation for his services, including unusual effort to collect
    2-7  funds or life insurance.  For this purpose, the county court shall
    2-8  have jurisdiction to receive, consider, and act on applications
    2-9  from independent executors.  The court may, on application of an
   2-10  interested person or on its own motion, deny a commission allowed
   2-11  by this subsection in whole or in part if:
   2-12              (1)  the court finds that the executor or administrator
   2-13  has not taken care of and managed estate property prudently; or
   2-14              (2)  the executor or administrator has been removed
   2-15  under Section 149C or 222 of this code.
   2-16        (b)  Unless the will or another document signed by the
   2-17  decedent specifically provides otherwise, a corporate fiduciary
   2-18  serving as executor or administrator of a decedent's estate is
   2-19  entitled to receive a fee in an amount that is customarily charged
   2-20  in the locality by another corporate fiduciary performing the same
   2-21  or similar services for an estate that is similar in size to the
   2-22  estate being executed or administered by the corporate fiduciary.
   2-23        (c)  A corporate fiduciary is entitled to receive a
   2-24  commission based on a provision in a will that authorizes the
   2-25  corporate fiduciary to be compensated based on a fee schedule
   2-26  maintained by the corporate fiduciary for duties performed as
   2-27  executor of the decedent's estate only if the fee schedule is
    3-1  reasonable.  A fee schedule is reasonable if it entitles the
    3-2  corporate fiduciary to receive an amount as compensation that:
    3-3              (1)  in the aggregate is not more than five per cent
    3-4  (5%) of the gross fair market value of the decedent's estate
    3-5  subject to probate administration; or
    3-6              (2)  in the aggregate is not more than the amount that
    3-7  is customarily charged in the locality by another corporate
    3-8  fiduciary performing the same or similar services for an estate
    3-9  that is similar in size to the estate being executed or
   3-10  administered by the corporate fiduciary.
   3-11        (d)  A corporate fiduciary may amend a fee schedule described
   3-12  by Subsection (c) of this section without affecting the validity of
   3-13  the testator's authorization under the will.
   3-14        (e)  <Definition.>  In this section, "financial institution"
   3-15  means an organization authorized to do business under state or
   3-16  federal laws relating to financial institutions, including banks
   3-17  and trust companies, savings banks, building and loan associations,
   3-18  savings and loan companies or associations, and credit unions.
   3-19        SECTION 2.  This Act takes effect September 1, 1995, and
   3-20  applies only to the estate of a person who dies on or after that
   3-21  date.  The estate of a person who dies before the effective date of
   3-22  this Act is governed by the law as it existed immediately before
   3-23  the person's death, and that law is continued in effect for that
   3-24  purpose.
   3-25        SECTION 3.  The importance of this legislation and the
   3-26  crowded condition of the calendars in both houses create an
   3-27  emergency and an imperative public necessity that the
    4-1  constitutional rule requiring bills to be read on three several
    4-2  days in each house be suspended, and this rule is hereby suspended.