By Goodman H.B. No. 849
75R2830 CAS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the protection or release of a trustee from liability
1-3 under certain circumstances.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 114.001, Property Code, is amended by
1-6 adding Subsection (e) to read as follows:
1-7 (e) The trustee has the same protection from liability
1-8 provided for a fiduciary under 42 U.S.C. Section 9607(n).
1-9 SECTION 2. Section 114.005, Property Code, is amended to
1-10 read as follows:
1-11 Sec. 114.005. RELEASE OF LIABILITY BY BENEFICIARY. (a) A
1-12 beneficiary who has full legal capacity and is acting on full
1-13 information may relieve a trustee from any duty, responsibility,
1-14 restriction, or liability as to the beneficiary that would
1-15 otherwise be imposed on the trustee by this subtitle, including
1-16 liability for past violations, except as to the duties,
1-17 restrictions, and liabilities imposed on corporate trustees by
1-18 Section 113.052 or 113.053 of this subtitle.
1-19 (b) A beneficiary who has full legal capacity may release a
1-20 trustee from responsibility for an investment made or recommended
1-21 by an agent retained by the trustee for that purpose. The release
1-22 may provide that the beneficiary is acting for that beneficiary and
1-23 as a representative for an unborn or unascertained beneficiary.
1-24 The release is binding on the unborn or unascertained beneficiary
2-1 to the extent that the unborn or unascertained beneficiary's
2-2 interest in the trust is substantially identical to the interest of
2-3 the beneficiary signing the release. The release is effective
2-4 only as to the releasing beneficiary's pro rata share of the trust
2-5 estate.
2-6 (c) A [The] release under this section must be in writing
2-7 and delivered to the trustee.
2-8 SECTION 3. This Act takes effect September 1, 1997.
2-9 SECTION 4. The importance of this legislation and the
2-10 crowded condition of the calendars in both houses create an
2-11 emergency and an imperative public necessity that the
2-12 constitutional rule requiring bills to be read on three several
2-13 days in each house be suspended, and this rule is hereby suspended.