By: Lindsay S.B. No. 1417
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the compensation and expenses of guardians and
1-3 temporary guardians of the estate.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 665, Texas Probate Code, is amended to
1-6 read as follows:
1-7 Sec. 665. COMPENSATION OF GUARDIANS AND TEMPORARY GUARDIANS.
1-8 (a) The court may authorize compensation for a guardian or a
1-9 temporary guardian serving as a guardian of the person alone from
1-10 available funds of the ward's estate. The court shall set the
1-11 compensation in an amount not exceeding five percent of the ward's
1-12 gross income. In determining whether to authorize compensation for
1-13 a guardian under this section, the court shall consider the ward's
1-14 monthly income from all sources and whether the ward receives
1-15 medical assistance under the state Medicaid program.
1-16 (b) The guardian or temporary guardian of an estate is
1-17 entitled to reasonable compensation on application to the court at
1-18 the time the court approves any annual accounting or final
1-19 accounting filed by the guardian or temporary guardian under this
1-20 chapter. A [a] fee of five percent of the gross income of the
1-21 ward's estate and five percent of all money paid out of the estate
1-22 is considered reasonable under this subsection if the [on a] court
1-23 finds [finding] that the guardian or temporary guardian has taken
1-24 care of and managed the estate in compliance with the standards of
1-25 this chapter.
2-1 (c) On application of an interested person or on its own
2-2 motion, the court may review and modify the amount of compensation
2-3 authorized under Subsection (b) of this section if the court finds
2-4 that the amount is unreasonably low when considering the services
2-5 rendered as guardian or temporary guardian.
2-6 (d) A finding of unreasonably low compensation may not be
2-7 established under Subsection (c) of this section solely because the
2-8 amount of compensation is less than the usual and customary charges
2-9 of the person or entity serving as guardian or temporary guardian
2-10 [In this section, the term "money paid out" does not include any
2-11 money loaned, invested, or paid over on the settlement of the
2-12 guardianship or a tax-motivated gift made by the ward. If the fee
2-13 is an unreasonably low amount, the court may authorize reasonable
2-14 compensation to a guardian or temporary guardian for services as
2-15 guardian or temporary guardian of the estate].
2-16 (e) The court, on application of an interested person or on
2-17 its own motion, may deny a fee authorized under this section in
2-18 whole, or in part, if:
2-19 (1) the court finds that the guardian or temporary
2-20 guardian has not adequately performed the duties required of a
2-21 guardian or temporary guardian under this chapter; or
2-22 (2) the guardian or temporary guardian has been
2-23 removed for cause.
2-24 (f) [(c)] Except as provided by Subsection (c) [(b)] of this
2-25 section for a fee that is determined by the court to be
2-26 unreasonably low, the aggregate fee of the guardian of the person
3-1 and guardian of the estate may not exceed an amount equal to five
3-2 percent of the gross income of the ward's estate plus five percent
3-3 of all money paid out of the estate.
3-4 (g) [(d)] If the estate of a ward is insufficient to pay for
3-5 the services of a private professional guardian or a licensed
3-6 attorney serving as guardian of the ward's person, the court may
3-7 authorize compensation for that guardian if funds in the county
3-8 treasury are budgeted for that purpose.
3-9 (h) [(e)] In this section:
3-10 (1) "Gross [gross] income" does not include Department
3-11 of Veterans Affairs or Social Security benefits received by a ward.
3-12 (2) "Money paid out" does not include any money
3-13 loaned, invested, or paid over on the settlement of the
3-14 guardianship or a tax-motivated gift made by the ward.
3-15 SECTION 2. Section 666, Texas Probate Code, is amended to
3-16 read as follows:
3-17 Sec. 666. EXPENSES ALLOWED. A guardian is entitled to be
3-18 reimbursed from the guardianship estate for all necessary and
3-19 reasonable expenses incurred in performing any duty as a guardian,
3-20 including reimbursement for the payment of reasonable attorney's
3-21 fees necessarily incurred by the guardian in connection with the
3-22 management of the estate or any other guardianship matter.
3-23 SECTION 3. Section 667, Texas Probate Code, is amended to
3-24 read as follows:
3-25 Sec. 667. EXPENSE ACCOUNT. All expense charges shall be:
3-26 (1) in writing, showing specifically each item of
4-1 expense and the date of the expense;
4-2 (2) verified by affidavit of the guardian;
4-3 (3) filed with the clerk [and entered on the claim
4-4 docket]; and
4-5 (4) paid only if the payment is authorized by court
4-6 order [acted on by the court in the same manner as other claims
4-7 against the guardianship estate].
4-8 SECTION 4. (a) The change in law made by this Act to
4-9 Section 665, Texas Probate Code, applies only to compensation for a
4-10 guardian or temporary guardian of the estate that is authorized by
4-11 a court on or after the effective date of this Act.
4-12 (b) Compensation for a guardian or temporary guardian of the
4-13 estate that is authorized by a court before the effective date of
4-14 this Act is governed by the law in effect on the date the
4-15 compensation was authorized, and the former law is continued in
4-16 effect for that purpose.
4-17 SECTION 5. (a) The changes in law made by this Act to
4-18 Sections 666 and 667, Texas Probate Code, apply only to expenses
4-19 incurred by a guardian on or after the effective date of this Act.
4-20 (b) Expenses incurred by a guardian before the effective
4-21 date of this Act are governed by the law in effect on the date the
4-22 expenses were incurred, and the former law is continued in effect
4-23 for that purpose.
4-24 SECTION 6. This Act takes effect September 1, 2001.