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.