SRC-JLB H.B. 1471 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1471
By: Hartnett (Harris)
Jurisprudence
4/28/2003
Engrossed


DIGEST AND PURPOSE 

Current law specifies that a trustee may be removed under certain
conditions in accordance with the terms of the trust instrument or by a
court.  Issues have arisen regarding the failure of trustees to make an
accounting as required by law or by the terms of the trust.  A beneficiary
may demand a written statement of accounts, and current law gives a
trustee a reasonable time to comply. 

H.B. 1471 allows a court to remove a trustee for failure to make the
required accounting; specifies the time by which a trustee must deliver
financial statements;  and allows a beneficiary to collect attorney's fees
and court costs in certain circumstances. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 113.082(a), Property Code, to authorize a
trustee to be removed in accordance with the terms of the trust instrument
or, on the petition of an interested person and after hearing, a court to,
in its discretion, remove a trustee and deny part or all of the trustee's
compensation if certain conditions exist, including that the trustee fails
to make an accounting that is required by law or by the terms of the
trust. 

SECTION 2.  Amends Section 113.151(a), Property Code, to authorize any
beneficiary of the trust, if the trustee fails or refuses to deliver the
statement on or before the 90th day after the date the trustee receives
the demand or after a longer period ordered by a court, rather than within
a reasonable time after the demand is made, to file suit to compel the
trustee to deliver the statement to all beneficiaries of the trust.
Authorizes the court, if a beneficiary is successful in the suit to compel
a statement under this section, to, in its discretion, award all or part
of the costs of court and all of the suing beneficiary's reasonable and
necessary attorney's fees and costs against the trustee in the trustee's
individual capacity or in the trustee's capacity as trustee.  

SECTION 3.  Effective date:  September 1, 2003.  Makes application of this
Act prospective.