Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Hartnett                                     H.B. No. 3333

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to 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.

 1-7     (a)  The provisions of a decedent's will governing fiduciary

 1-8     compensation shall control the compensation to be paid to an

 1-9     executor or administrator of a will.

1-10           [(a)] (b)  Unless Subsection (a) applies, executors

1-11     [Executors], administrators, and temporary administrators shall be

1-12     entitled to receive a commission of five per cent (5%) on all sums

1-13     they may actually receive in cash, and the same per cent on all

1-14     sums they may actually pay out in cash, in the administration of

1-15     the estate on a finding by the court that the executor

1-16     administrator has taken care of and managed the estate in

1-17     compliance with the standards of this code; provided no commission

1-18     shall be allowed for receiving funds belonging to the testator or

1-19     intestate which were on hand or were held for the testator or

1-20     intestate at the time of his death in a financial institution or a

1-21     brokerage firm, including cash or a cash equivalent held in a

1-22     checking account, savings account, certificate of deposit, or money

1-23     market account; nor for collecting the proceeds of any life

1-24     insurance policy; nor for paying out cash to the heirs or legatees

 2-1     as such; provided further, however that in no event shall the

 2-2     executor or administrator be entitled in the aggregate to more than

 2-3     five per cent (5%) of the gross fair market value of the estate

 2-4     subject to administration.  If the executor or administrator

 2-5     manages a farm, ranch, factory, or other business of the estate, or

 2-6     if compensation as calculated above is unreasonably low, the court

 2-7     may allow him reasonable compensation for his services, including

 2-8     unusual effort to collect funds or life insurance.  For this

 2-9     purpose, the county court shall have jurisdiction to receive,

2-10     consider, and act on applications from independent executors and

2-11     administrators.

2-12           (c)  The court may, on application of an interested person or

2-13     on its own motion, deny a commission allowed by this section

2-14     [subsection] in whole or in part if:

2-15                 (1)  the court finds that the executor or administrator

2-16     has not taken care of and managed estate property prudently; or

2-17                 (2)  the executor or administrator has been removed

2-18     under Section 149C or 222 of this code.

2-19           (d)  A personal representative may waive his rights to all or

2-20     any part of the compensation.

2-21           (e) [(b)  Definition.]  In this section, "financial

2-22     institution" means an organization authorized to do business under

2-23     state or federal laws relating to financial institutions, including

2-24     banks and trust companies, savings banks, building and loan

2-25     associations, savings and loan companies or associations, and

2-26     credit unions.

2-27           SECTION 2.  This Act takes effect September 1, 1997, and

2-28     applies only to the estate of a person who dies on or after that

2-29     date.  The  estate of a person who dies before the effective date

2-30     of this Act is governed by the law as it existed immediately before

 3-1     the person's death, and that law is continued in effect for that

 3-2     purpose.

 3-3           SECTION 3.  The importance of this legislation and the

 3-4     crowded condition of the calendars in both houses create an

 3-5     emergency and an imperative public necessity that the

 3-6     constitutional rule requiring bills to be read on three several

 3-7     days in each house be suspended, and this rule is hereby suspended.