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.