By: Turner S.B. No. 1571
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the compensation of a fiduciary serving as independent
1-2 executor or independent administrator of an estate.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 241, Probate Code, is amended to read as
1-5 follows:
1-6 Sec. 241. Compensation of Personal Representatives.
1-7 (a) Executors, administrators, and temporary administrators shall
1-8 be entitled to receive a commission of five per cent (5%) on all
1-9 sums they may actually receive in cash, and the same per cent on
1-10 all sums they may actually pay out in cash, in the administration
1-11 of the estate on a finding by the court that the executor or
1-12 administrator has taken care of and managed the estate in
1-13 compliance with the standards of this code; provided, no commission
1-14 shall be allowed for receiving funds belonging to the testator or
1-15 intestate which were on hand or were held for the testator or
1-16 intestate at the time of his death in a financial institution or a
1-17 brokerage firm, including cash or a cash equivalent held in a
1-18 checking account, savings account, certificate of deposit, or money
1-19 market account; nor for collecting the proceeds of any life
1-20 insurance policy; nor for paying out cash to the heirs or legatees
1-21 as such; provided, further, however, that in no event shall the
1-22 executor or administrator be entitled in the aggregate to more than
1-23 five per cent (5%) of the gross fair market value of the estate
2-1 subject to administration. If the executor or administrator,
2-2 including a corporate executor or corporate administrator, manages
2-3 a farm, ranch, factory, or other business of the estate, or if the
2-4 compensation as calculated above is unreasonably low, the court may
2-5 allow him reasonable compensation for his services, including
2-6 unusual effort to collect funds or life insurance. For this
2-7 purpose, the county court shall have jurisdiction to receive,
2-8 consider, and act on applications from independent executors. The
2-9 court may, on application of an interested person or on its own
2-10 motion, deny a commission allowed by this subsection in whole or in
2-11 part if:
2-12 (1) the court finds that the executor or administrator has
2-13 not taken care of and managed estate property prudently; or
2-14 (2) the executor or administrator has been removed under
2-15 Section 149C or 222 of this code.
2-16 (b) Unless the governing instrument specifically provides
2-17 otherwise, the fees of a corporate fiduciary serving as independent
2-18 executor or independent administrator of an estate will be governed
2-19 by the fees typically charged by corporate fiduciaries for estates
2-20 of similar size and nature in the county in which the
2-21 administration is pending.
2-22 (c) A testator's authorization for a fiduciary's
2-23 compensation as independent executor of the testator's estate that
2-24 is to be based on a corporate fiduciary's fee schedule shall be
2-25 valid even though such fee schedule may be or has been amended
3-1 since the date of the testator's will.
3-2 (d) Definition. In this section, "financial institution"
3-3 means an organization authorized to do business under state or
3-4 federal laws relating to financial institutions, including banks
3-5 and trust companies, savings banks, building and loan associations,
3-6 savings and loan companies or associations, and credit unions.
3-7 SECTION 2. The importance of this legislation and the
3-8 crowded condition of the calendars in both houses create an
3-9 emergency and an imperative public necessity that the
3-10 constitutional rule requiring bills to be read on three several
3-11 days in each house be suspended, and this rule is hereby suspended.