Amend CSHB 1851 as follows:
      (1)  Strike SECTION 9 of the bill (senate committee report,
page 4, line 54, through page 5, line 2) and substitute the
following:
      SECTION 9.  Section 867, Texas Probate Code, is amended to
read as follows:
      Sec. 867.  CREATION OF MANAGEMENT TRUST. (a)  On application
by the guardian of a ward or by a ward's attorney ad litem or an
incapacitated person's guardian ad litem at any time after the date
of the ad litem's <attorney's> appointment under Section 646 or
another provision of this code, the court in which the guardianship
proceeding is pending may enter an order that creates for the
ward's or incapacitated person's benefit a trust for the management
of guardianship funds or funds of the incapacitated person's estate
if the court finds that the creation of the trust is in the ward's
or incapacitated person's best interests. Except as provided by
Subsection (b) of this section, the court shall appoint a trust
company or a state or national bank that has trust powers in this
state to serve as trustee of the trust.
      (b)  The court may appoint a person other than a trust
company or bank described by Subsection (a)  of this section to
serve as trustee of the trust only if:
            (1)  no trust company or bank described by Subsection
(a)  of this section is willing to serve as trustee;
            (2)  the value of the trust's principal is $50,000 or
less; and
            (3)  the court determines the appointment to be in the
ward's best interests.
      (c)  The order shall direct the guardian or another person to
deliver all or part of the assets of the guardianship to a person
or corporate fiduciary appointed by the court as trustee of the
trust <company or a state or national bank that has trust powers in
this state>.  The order shall include terms, conditions, and
limitations placed on the trust.  The court shall maintain the
trust under the same cause number as the guardianship proceeding.
      (2)  Add the following appropriately numbered sections and
renumber the existing sections of the bill accordingly:
      SECTION ____. Section 868(a), Texas Probate Code, is amended
to read as follows:
      (a)  Except as provided by Subsection (d) of this section, a
trust created under Section 867 of this code must provide that:
            (1)  the ward is the sole beneficiary of the trust;
            (2)  the trustee may disburse an amount of the trust's
principal or income as the trustee determines is necessary to
expend for the health, education, support, or maintenance of the
ward;
            (3)  the income of the trust that the trustee does not
disburse under Subdivision (2) of this subsection must be added to
the principal of the trust;
            (4)  if<> the trustee is a corporate fiduciary, the
trustee serves without giving a bond; and
            (5)  the trustee, on annual application to the court
and subject to the court's approval, is entitled to receive
reasonable compensation for services that the trustee provided to
the ward as the ward's trustee that is:
                  (A)  to be paid from the trust's income,
principal, or both; and
                  (B)  determined in the same manner as
compensation of a guardian of an estate under Section 665 of this
code.
      SECTION ____. Subpart N, Part 4, Chapter XIII, Texas Probate
Code, is amended by adding Section 868B to read as follows:
      Sec. 868B.  BOND REQUIREMENT FOR CERTAIN TRUSTEES. The court
shall require a person, other than a corporate fiduciary, serving
as trustee to file with the county clerk a bond in an amount equal
to the value of the trust's principal and projected annual income
and with the conditions the court determines are necessary.
      SECTION ____. Section 869A, Texas Probate Code, is amended to
read as follows:
      Sec. 869A.  SUCCESSOR TRUSTEE. The court may appoint a
<corporate fiduciary as> successor trustee if the trustee resigns,
becomes ineligible, or is removed.
      SECTION ____. The changes in law made by this Act to Sections
867, 868(a), and 869A, Texas Probate Code, and Section 868B, Texas
Probate Code, as added by this Act, apply only to an application
for the creation of a trust filed on or after that date.  An
application for the creation of a trust filed before the effective
date of this Act is governed by the law in effect when the
application was filed, and the former law is continued in effect
for that purpose.