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.