1-1 By: Ellis S.B. No. 1554
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Jurisprudence;
1-4 March 23, 1999, reported favorably by the following vote: Yeas 4,
1-5 Nays 0; March 23, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to fees and expenses incurred in the administration or
1-9 settlement of a decedent's estate.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (a), Section 378B, Texas Probate Code,
1-12 is amended to read as follows:
1-13 (a) Except as provided by Subsection (b) of this section and
1-14 unless the will provides otherwise, all expenses incurred in
1-15 connection with the settlement of a decedent's estate, other than
1-16 interest due on estate taxes, shall be charged against the
1-17 principal of the estate, including debts, funeral expenses, estate
1-18 taxes, [interest and] penalties relating to estate taxes, and
1-19 family allowances[, shall be charged against the principal of the
1-20 estate]. Interest due on estate taxes and fees [Fees] and expenses
1-21 of an attorney, accountant, or other professional advisor,
1-22 commissions and expenses of a personal representative, court costs,
1-23 and all other similar fees or expenses relating to the
1-24 administration of the estate shall be allocated between the income
1-25 and principal of the estate as the executor determines in its
1-26 discretion to be just and equitable.
1-27 SECTION 2. The changes in law made by this Act to Subsection
1-28 (a), Section 378B, Texas Probate Code, apply only to the accrual on
1-29 or after the effective date of this Act of interest due on estate
1-30 taxes. The accrual before the effective date of this Act of
1-31 interest due on estate taxes is governed by the law in effect when
1-32 the interest accrued, and the former law is continued in effect for
1-33 that purpose.
1-34 SECTION 3. This Act takes effect September 1, 1999.
1-35 SECTION 4. The importance of this legislation and the
1-36 crowded condition of the calendars in both houses create an
1-37 emergency and an imperative public necessity that the
1-38 constitutional rule requiring bills to be read on three several
1-39 days in each house be suspended, and this rule is hereby suspended.
1-40 * * * * *