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By: Hartnett H.B. No. 3503
A BILL TO BE ENTITLED
AN ACT
relating to exculpatory clauses in trusts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 142.005, Property Code, is amended by
adding Subsections (h), (i), and (j) to read as follows:
(h) A trust created under this section is subject to
Subtitle B, Title 9.
(i) Notwithstanding Subsection (h), this section prevails
over a provision in Subtitle B, Title 9, that is in conflict or
inconsistent with this section.
(j) A provision in a trust created under this section that
relieves a trustee from a duty, responsibility, or liability
imposed by this section or Subtitle B, Title 9, is enforceable only
if:
(1) the provision is limited to specific facts and
circumstances unique to the property of that trust and is not
applicable generally to the trust; and
(2) the court creating or modifying the trust makes a
specific finding that there is clear and convincing evidence that
the inclusion of the provision is in the best interests of the
beneficiary of the trust.
SECTION 2. Section 868, Texas Probate Code, is amended by
adding Subsection (c) to read as follows:
(c) A provision in a trust created under Section 867 that
relieves a trustee from a duty, responsibility, or liability
imposed by this subpart or Subtitle B, Title 9, Property Code, is
enforceable only if:
(1) the provision is limited to specific facts and
circumstances unique to the property of that trust and is not
applicable generally to the trust; and
(2) the court creating or modifying the trust makes a
specific finding that there is clear and convincing evidence that
the inclusion of the provision is in the best interests of the
beneficiary of the trust.
SECTION 3. This Act takes effect September 1, 2003, and
applies only to a trust existing on or created after that date.