81R17816 MTB-F
 
  By: Hartnett H.B. No. 1969
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the enforcement of a penalty clause for contesting a
  will or trust.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter IV, Texas Probate Code, is amended by
  adding Section 64 to read as follows:
         Sec. 64.  PENALTY CLAUSE FOR WILL CONTEST. A provision in a
  will that purports to penalize an interested person for contesting
  the will is unenforceable if:
               (1)  probable cause exists for commencing the contest;
  and
               (2)  the contest was brought in good faith.
         SECTION 2.  Subchapter B, Chapter 112, Property Code, is
  amended by adding Section 112.038 to read as follows:
         Sec. 112.038.  PENALTY CLAUSE FOR TRUST CONTEST. A provision
  in a trust that purports to penalize an interested person for
  contesting the trust is unenforceable if:
               (1)  probable cause exists for commencing the contest;
  and
               (2)  the contest was brought in good faith.
         SECTION 3.  (a) Section 64, Texas Probate Code, as added by
  this Act, applies only to the estate of a decedent who dies on or
  after the effective date of this Act. The estate of a decedent who
  dies before the effective date of this Act is governed by the law in
  effect on the date of the decedent's death, and the former law is
  continued in effect for that purpose.
         (b)  Section 112.038, Property Code, as added by this Act,
  applies to a trust existing on or created on or after the effective
  date of this Act.
         (c)  The intent of this Act is to clarify existing law.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.