BILL ANALYSIS

Senate Research Center                                                                                                      S.B. 1518

80R10696 AJA-D                                                                                                      By: Wentworth

Jurisprudence

3/30/2007

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under the Property Code, a trustee may be removed in accordance with the trust instrument or by a court upon petition by an interested person.  However, beneficiaries and grantors do not have such authority. 

As proposed, S.B. 1518 authorizes the removal of a trustee by the agreement of the grantor and all beneficiaries.  This bill requires the trustee to resign or petition a court for discharge upon the written notice of removal and entitles trustees to petition a court for discharge to reasonable attorney's fees incurred in the proceeding. 

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, Property Code, by adding Subsections (d) and (e), as follows:

(d)  Requires that a trustee be removed if the grantor and each beneficiary agrees to the removal and signs a written notice of removal to be provided to the trustee.  Authorizes the trustee, on receipt of said notice, to resign or petition a court for discharge.  Entitles a petitioning trustee to the trustee's reasonable attorney's fees incurred in the proceeding.

(e)  Defines "beneficiary" for the purposes of Subsection (d).  Authorizes certain persons to act on behalf of a minor or an otherwise incapacitated beneficiary.

SECTION 2.  Effective date: September 1, 2007.