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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforcement of a penalty clause for instituting a |
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challenge of a will or trust. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter IV, Texas Probate Code, is amended by |
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adding Section 64 to read as follows: |
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Sec. 64. PENALTY CLAUSE FOR WILL CONTEST. A provision in a |
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will that purports to penalize an interested person for contesting |
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the will is unenforceable if: |
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(1) probable cause exists for commencing the contest; |
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and |
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(2) the contest was brought in good faith. |
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SECTION 2. Subchapter B, Chapter 112, Property Code, is |
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amended by adding Section 112.038 to read as follows: |
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Sec. 112.038. PENALTY CLAUSE FOR TRUST CONTEST. A provision |
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in a trust that purports to penalize an interested person for |
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contesting the trust is unenforceable if: |
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(1) probable cause exists for commencing the contest; |
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and |
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(2) the contest was brought in good faith. |
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SECTION 3. (a) Section 64, Texas Probate Code, as added by |
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this Act, applies only to the estate of a decedent who dies on or |
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after the effective date of this Act. The estate of a decedent who |
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dies before the effective date of this Act is governed by the law in |
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effect on the date of the decedent's death, and the former law is |
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continued in effect for that purpose. |
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(b) Section 112.038, Property Code, as added by this Act, |
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applies to a trust existing on or created on or after the effective |
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date of this Act. |
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(c) The intent of this Act is to clarify existing law. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |