By Ellis                                              S.B. No. 1554
         76R4137 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to fees and expenses incurred in the administration or
 1-3     settlement of a decedent's estate.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 378B(a), Texas Probate Code, is amended
 1-6     to read as follows:
 1-7           (a)  Except as provided by Subsection (b) of this section and
 1-8     unless the will provides otherwise, all expenses incurred in
 1-9     connection with the settlement of a decedent's estate, other than
1-10     interest due on estate taxes, shall be charged against the
1-11     principal of the estate, including debts, funeral expenses, estate
1-12     taxes, [interest and] penalties relating to estate taxes, and
1-13     family allowances[, shall be charged against the principal of the
1-14     estate].    Interest due on estate taxes and fees [Fees] and
1-15     expenses of an attorney, accountant, or other professional advisor,
1-16     commissions and expenses of a personal representative, court costs,
1-17     and all other similar fees or expenses relating to the
1-18     administration of the estate shall be allocated between the income
1-19     and principal of the estate as the executor determines in its
1-20     discretion to be just and equitable.
1-21           SECTION 2.  The  changes in law made by this Act to Section
1-22     378B(a), Texas Probate Code, apply only to the accrual on or after
1-23     the effective date of this Act of interest due on estate taxes.
1-24     The accrual before the effective date of this Act of interest due
 2-1     on estate taxes is  governed by the law in effect when the interest
 2-2     accrued, and the former law is continued in effect for that
 2-3     purpose.
 2-4           SECTION 3.  This Act takes effect September 1, 1999.
 2-5           SECTION 4.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended.