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A BILL TO BE ENTITLED
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AN ACT
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relating to the removal of a trustee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 113.082, Property Code, is amended by |
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adding Subsections (d) and (e) to read as follows: |
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(d) A trustee shall be removed if the grantor and each |
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beneficiary agrees to the removal and provides the trustee with a |
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written notice of removal signed by the grantor and each |
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beneficiary. On receipt of a notice under this subsection, the |
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trustee may resign or petition a court for discharge. A trustee |
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that petitions a court for discharge under this section is entitled |
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to the trustee's reasonable attorney's fees incurred in the |
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proceeding. |
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(e) For the purposes of Subsection (d): |
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(1) the term "beneficiary" means a person currently |
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receiving or currently entitled to receive distributions from the |
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trust estate and does not include contingent, unborn, or |
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unascertained beneficiaries; and |
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(2) the following persons may act on behalf of a minor |
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or otherwise incapacitated beneficiary: |
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(A) the guardian of the minor or otherwise |
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incapacitated beneficiary; |
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(B) if there is no guardian, the parent of the |
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beneficiary, if the parent does not have a conflict of interest; or |
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(C) if there is not a person acting under |
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Subdivision (1) or (2), any other beneficiary of the trust acting |
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under the doctrine of virtual representation as set forth in |
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Section 115.013(c)(4). |
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SECTION 2. This Act takes effect September 1, 2007. |