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.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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.