1-1 By: Lindsay S.B. No. 1417
1-2 (In the Senate - Filed March 8, 2001; March 13, 2001, read
1-3 first time and referred to Committee on Jurisprudence; May 1, 2001,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 6, Nays 0; May 1, 2001, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1417 By: Jackson
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the compensation and expenses of guardians and
1-10 temporary guardians of the estate.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 665, Texas Probate Code, is amended to
1-13 read as follows:
1-14 Sec. 665. COMPENSATION OF GUARDIANS AND TEMPORARY GUARDIANS.
1-15 (a) The court may authorize compensation for a guardian or a
1-16 temporary guardian serving as a guardian of the person alone from
1-17 available funds of the ward's estate. The court shall set the
1-18 compensation in an amount not exceeding five percent of the ward's
1-19 gross income. In determining whether to authorize compensation for
1-20 a guardian under this section, the court shall consider the ward's
1-21 monthly income from all sources and whether the ward receives
1-22 medical assistance under the state Medicaid program.
1-23 (b) The guardian or temporary guardian of an estate is
1-24 entitled to reasonable compensation on application to the court at
1-25 the time the court approves any annual accounting or final
1-26 accounting filed by the guardian or temporary guardian under this
1-27 chapter. A [a] fee of five percent of the gross income of the
1-28 ward's estate and five percent of all money paid out of the estate
1-29 is considered reasonable under this subsection if the [on a] court
1-30 finds [finding] that the guardian or temporary guardian has taken
1-31 care of and managed the estate in compliance with the standards of
1-32 this chapter.
1-33 (c) On application of an interested person or on its own
1-34 motion, the court may review and modify the amount of compensation
1-35 authorized under Subsection (b) of this section if the court finds
1-36 that the amount is unreasonably low when considering the services
1-37 rendered as guardian or temporary guardian.
1-38 (d) A finding of unreasonably low compensation may not be
1-39 established under Subsection (c) of this section solely because the
1-40 amount of compensation is less than the usual and customary charges
1-41 of the person or entity serving as guardian or temporary guardian
1-42 [In this section, the term "money paid out" does not include any
1-43 money loaned, invested, or paid over on the settlement of the
1-44 guardianship or a tax-motivated gift made by the ward. If the fee
1-45 is an unreasonably low amount, the court may authorize reasonable
1-46 compensation to a guardian or temporary guardian for services as
1-47 guardian or temporary guardian of the estate].
1-48 (e) The court, on application of an interested person or on
1-49 its own motion, may deny a fee authorized under this section in
1-50 whole, or in part, if:
1-51 (1) the court finds that the guardian or temporary
1-52 guardian has not adequately performed the duties required of a
1-53 guardian or temporary guardian under this chapter; or
1-54 (2) the guardian or temporary guardian has been
1-55 removed for cause.
1-56 (f) [(c)] Except as provided by Subsection (c) [(b)] of this
1-57 section for a fee that is determined by the court to be
1-58 unreasonably low, the aggregate fee of the guardian of the person
1-59 and guardian of the estate may not exceed an amount equal to five
1-60 percent of the gross income of the ward's estate plus five percent
1-61 of all money paid out of the estate.
1-62 (g) [(d)] If the estate of a ward is insufficient to pay for
1-63 the services of a private professional guardian or a licensed
1-64 attorney serving as guardian of the ward's person, the court may
2-1 authorize compensation for that guardian if funds in the county
2-2 treasury are budgeted for that purpose.
2-3 (h) [(e)] In this section:
2-4 (1) "Gross [gross] income" does not include Department
2-5 of Veterans Affairs or Social Security benefits received by a ward.
2-6 (2) "Money paid out" does not include any money
2-7 loaned, invested, or paid over on the settlement of the
2-8 guardianship or a tax-motivated gift made by the ward.
2-9 SECTION 2. Section 666, Texas Probate Code, is amended to
2-10 read as follows:
2-11 Sec. 666. EXPENSES ALLOWED. A guardian is entitled to be
2-12 reimbursed from the guardianship estate for all necessary and
2-13 reasonable expenses incurred in performing any duty as a guardian,
2-14 including reimbursement for the payment of reasonable attorney's
2-15 fees necessarily incurred by the guardian in connection with the
2-16 management of the estate or any other guardianship matter.
2-17 SECTION 3. Section 667, Texas Probate Code, is amended to
2-18 read as follows:
2-19 Sec. 667. EXPENSE ACCOUNT. All expense charges shall be:
2-20 (1) in writing, showing specifically each item of
2-21 expense and the date of the expense;
2-22 (2) verified by affidavit of the guardian;
2-23 (3) filed with the clerk [and entered on the claim
2-24 docket]; and
2-25 (4) paid only if the payment is authorized by court
2-26 order [acted on by the court in the same manner as other claims
2-27 against the guardianship estate].
2-28 SECTION 4. (a) The change in law made by this Act to
2-29 Section 665, Texas Probate Code, applies only to compensation for a
2-30 guardian or temporary guardian of the estate that is authorized by
2-31 a court on or after the effective date of this Act.
2-32 (b) Compensation for a guardian or temporary guardian of the
2-33 estate that is authorized by a court before the effective date of
2-34 this Act is governed by the law in effect on the date the
2-35 compensation was authorized, and the former law is continued in
2-36 effect for that purpose.
2-37 SECTION 5. (a) The changes in law made by this Act to
2-38 Sections 666 and 667, Texas Probate Code, apply only to expenses
2-39 incurred by a guardian on or after the effective date of this Act.
2-40 (b) Expenses incurred by a guardian before the effective
2-41 date of this Act are governed by the law in effect on the date the
2-42 expenses were incurred, and the former law is continued in effect
2-43 for that purpose.
2-44 SECTION 6. This Act takes effect September 1, 2001.
2-45 * * * * *