By Ellis S.B. No. 1550
76R4133 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to authorizing the filing of a final account for a
1-3 decedent's estate under independent administration.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Part 4, Chapter VI, Texas Probate Code, is
1-6 amended by adding Sections 149D, 149E, 149F, and 149G to read as
1-7 follows:
1-8 Sec. 149D. DISTRIBUTION OF REMAINING ESTATE PENDING FINAL
1-9 ACCOUNT. (a) On or before filing a verified final account under
1-10 Section 149E of this code, the independent executor must distribute
1-11 to the beneficiaries of the estate any of the assets or property of
1-12 the estate that remains in the hands of the independent executor
1-13 after all of the estate's debts have been paid, except for a
1-14 reasonable reserve of assets that the independent administrator may
1-15 retain in a fiduciary capacity pending court approval of the final
1-16 account.
1-17 (b) The court may review the amount of assets on reserve and
1-18 may order the independent executor to make further distributions
1-19 under this section.
1-20 Sec. 149E. CLOSING INDEPENDENT ADMINISTRATION ON FINAL
1-21 ACCOUNTING. (a) When an estate under independent administration
1-22 is to be settled and closed, the independent executor of the estate
1-23 may file with the court a verified final account of the estate and
1-24 request a discharge from any liability that may be imposed for acts
2-1 performed as an independent executor. A verified final account
2-2 filed under this section must include:
2-3 (1) the property of the estate that came into the
2-4 hands of the independent executor, which may be described by
2-5 reference to the inventory of the property of the estate required
2-6 to be returned by the independent executor under this code rather
2-7 than by particular item;
2-8 (2) the debts of the estate that have been paid;
2-9 (3) any outstanding debts of the estate;
2-10 (4) a complete account of receipts regarding the
2-11 property of the estate;
2-12 (5) a complete account of disbursements regarding the
2-13 property of the estate;
2-14 (6) any property of the estate remaining in the hands
2-15 of the independent executor after all of the estate's debts have
2-16 been paid;
2-17 (7) the names and residences of each person to whom
2-18 any property described by Subdivision (6) of this subsection has
2-19 been or should be distributed and the amount of property
2-20 distributed or to be distributed to each person;
2-21 (8) if the property of the estate described by
2-22 Subdivision (6) of this subsection is to be distributed in a manner
2-23 that is not pro rata, a description of the assets distributed or to
2-24 be distributed to each person described by Subdivision (7) of this
2-25 subsection; and
2-26 (9) other facts as necessary to have a complete
2-27 understanding of the exact condition of the estate.
3-1 (b) On filing a final account under this section, the
3-2 independent executor shall send notice of the filing to each
3-3 person interested in the estate known to the independent executor.
3-4 Notice of the filing must:
3-5 (1) be sent by certified or registered mail, return
3-6 receipt requested;
3-7 (2) be accompanied by a copy of the final account; and
3-8 (3) state that unless the person makes an objection to
3-9 the final account not later than the 90th day after the date on
3-10 which the person receives the notice, the independent executor will
3-11 be discharged from further liability as prescribed by this section.
3-12 (c) Notice required by Subsection (b) of this section may be
3-13 waived by a person entitled to receive the notice. The independent
3-14 executor shall file with the court a copy of the notice and proof
3-15 of delivery made to each person or of a waiver of notice received
3-16 under this section.
3-17 (d) If an objection to the final account is not made by an
3-18 interested party within the time prescribed by Subsection (b) of
3-19 this section, the court, without further examination of the final
3-20 account, shall enter an order approving the final account and
3-21 discharging the independent executor from any liability relating to
3-22 a completely disclosed transaction in the final account.
3-23 (e) If an objection to the final account or to the discharge
3-24 of the independent executor is made by an interested party within
3-25 the prescribed time, the court shall conduct a hearing to examine
3-26 the final account. After the hearing, the court shall enter an
3-27 order that:
4-1 (1) audits and settles the final account;
4-2 (2) audits and settles the final account after the
4-3 court restates the final account; or
4-4 (3) after the court audits the final account, requires
4-5 the independent executor to restate the final account before the
4-6 court settles the final account.
4-7 (f) If the independent executor retains any of the estate's
4-8 assets under Section 149D(a) of this code, the court, on settlement
4-9 of the final account, shall order a partition and distribution of
4-10 the assets to be made to the beneficiaries of the estate.
4-11 Sec. 149F. COURT COSTS AND OTHER EXPENSES RELATED TO FINAL
4-12 ACCOUNT. (a) In a proceeding under Section 149E of this code, the
4-13 court may award, as the court considers equitable, fees and costs
4-14 incurred by the independent executor or a beneficiary with respect
4-15 to the final account.
4-16 (b) If the court approves the final account without
4-17 objection, the independent executor's legal fees, expenses, and
4-18 other costs of the proceeding specified in the final account shall
4-19 be charged to the estate as an administrative expense.
4-20 (c) If the court upholds an objection made to the final
4-21 account or to the discharge of the independent executor's liability
4-22 or if the court finds that the independent executor should not be
4-23 discharged from liability under this section, the court may
4-24 determine what portion, if any, of the legal fees, expenses, and
4-25 other costs of the proceeding shall be charged to the estate.
4-26 (d) Except as ordered by the court, the independent executor
4-27 is entitled to pay from the estate legal fees, expenses, or other
5-1 costs of a proceeding incurred in relation to the final account.
5-2 (e) The independent executor shall be personally liable to
5-3 refund any amount not approved by the court as a proper charge
5-4 against the estate.
5-5 Sec. 149G. RIGHTS AND REMEDIES CUMULATIVE. The rights and
5-6 remedies conferred by Sections 149D, 149E, and 149F of this code
5-7 are cumulative of other rights and remedies to which a person
5-8 interested in the estate may be entitled under law.
5-9 SECTION 2. The changes in law made by this Act apply only to
5-10 the estate of a person who dies on or after the effective date of
5-11 this Act. An estate of a person who dies before the effective date
5-12 of this Act is governed by the law in effect on the date of the
5-13 person's death, and the former law is continued in effect for that
5-14 purpose.
5-15 SECTION 3. This Act takes effect September 1, 1999.
5-16 SECTION 4. The importance of this legislation and the
5-17 crowded condition of the calendars in both houses create an
5-18 emergency and an imperative public necessity that the
5-19 constitutional rule requiring bills to be read on three several
5-20 days in each house be suspended, and this rule is hereby suspended.