78R2257 KCR-F

By:  Hartnett                                                     H.B. No. 1471



A BILL TO BE ENTITLED

AN ACT

relating to the duties and removal of a trustee.                              
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 113.082(a), Property Code, is amended to 
read as follows:
	(a)  A trustee may be removed in accordance with the terms of 
the trust instrument, or, on the petition of an interested person 
and after hearing, a court may remove a trustee and deny part or all 
of the trustee's compensation if:
		(1)  the trustee materially violated or attempted to 
violate the terms of the trust and the violation or attempted 
violation results in a material financial loss to the trust;
		(2)  the trustee becomes incompetent or insolvent; [or]      
		(3)  the trustee fails to make an accounting that is 
required by law or by the terms of the trust; or
		(4)  in the discretion of the court, for other cause.                  
	SECTION 2.  Section 113.151(a), Property Code, is amended to 
read as follows:
	(a)  A beneficiary by written demand may request the trustee 
to deliver to each beneficiary of the trust a written statement of 
accounts covering all transactions since the last accounting or 
since the creation of the trust, whichever is later.  If the trustee 
fails or refuses to deliver the statement on or before the 60th day 
after the date the trustee receives the demand or after a longer 
period ordered by a court [within a reasonable time after the demand 
is made], any beneficiary of the trust may file suit to compel the 
trustee to deliver the statement to all beneficiaries of the trust.  
The court may require the trustee to deliver a written statement of 
account to all beneficiaries on finding that the nature of the 
beneficiary's interest in the trust or the effect of the 
administration of the trust on the beneficiary's interest is 
sufficient to require an accounting by the trustee.  However, the 
trustee is not obligated or required to account to the 
beneficiaries of a trust more frequently than once every 12 months 
unless a more frequent accounting is required by the court.  If a 
beneficiary is successful in the suit to compel a statement under 
this section, the court may award all 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, 
rather than in the trustee's capacity as trustee.
	SECTION 3.  This Act takes effect September 1, 2003, and 
applies only to a demand for an accounting made on or after that 
date.