|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
|
relating to trusts. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subsection (f), Section 113.053, Property Code, |
|
is amended to read as follows: |
|
(f) A national banking association, a state-chartered |
|
corporation, including a state-chartered bank or trust company, a |
|
state or federal savings and loan association that has the right to |
|
exercise trust powers and that is serving as trustee, or such an |
|
institution that is serving as custodian with respect to an |
|
individual retirement account, as defined by Section 408, Internal |
|
Revenue Code, or an employee benefit plan, as defined by Section |
|
3(3), Employee Retirement Income Security Act of 1974 (29 U.S.C. |
|
Section 1002(3)), regardless of whether the custodial account is, |
|
or would otherwise be, considered a trust for purposes of this |
|
subtitle, may, subject to its fiduciary duties: |
|
(1) employ an affiliate or division within a financial |
|
institution to provide brokerage, investment, administrative, |
|
custodial, or other account services for the trust or custodial |
|
account and charge the trust or custodial account for the |
|
services[, provided, however, nothing in this section shall allow
|
|
an affiliate or division to engage in the sale or business of
|
|
insurance if not otherwise permitted to do so]; [and] |
|
(2) unless the instrument governing the fiduciary |
|
relationship expressly prohibits the purchase or charge, purchase |
|
insurance underwritten or otherwise distributed by an affiliate, a |
|
division within the financial institution, or a syndicate or |
|
selling group that includes the financial institution or an |
|
affiliate and charge the trust or custodial account for the |
|
insurance premium, provided that the insurance product and premium |
|
are the same or similar to a product and premium offered by |
|
organizations that are not an affiliate, a division within the |
|
financial institution, or a syndicate or selling group that |
|
includes the financial institution or an affiliate; and |
|
(3) receive a fee or compensation, directly or |
|
indirectly, on account of the services performed or the insurance |
|
product sold by the affiliate, [or] division within the financial |
|
institution, or syndicate or selling group that includes the |
|
financial institution or an affiliate, whether in the form of |
|
shared commissions, fees, or otherwise, provided that any amount |
|
charged by the affiliate, [or] division, or syndicate or selling |
|
group that includes the financial institution or an affiliate for |
|
the services or insurance product is disclosed and does not exceed |
|
the customary or prevailing amount that is charged by the |
|
affiliate, [or] division, or syndicate or selling group that |
|
includes the financial institution or an affiliate, or a comparable |
|
entity, for comparable services rendered or insurance provided to a |
|
person other than the trust. |
|
SECTION 2. Section 116.201, Property Code, is amended to |
|
read as follows: |
|
Sec. 116.201. DISBURSEMENTS FROM INCOME. A trustee shall |
|
make the following disbursements from income to the extent that |
|
they are not disbursements to which Section 116.051(2)(B) or (C) |
|
applies: |
|
(1) one-half of the regular compensation of the |
|
trustee and of any person providing investment advisory or |
|
custodial services to the trustee unless, consistent with the |
|
trustee's fiduciary duties, the trustee determines that a different |
|
portion, none, or all of the compensation should be allocated to |
|
income; |
|
(2) one-half of all expenses for accountings, judicial |
|
proceedings, or other matters that involve both the income and |
|
remainder interests; |
|
(3) all of the other ordinary expenses incurred in |
|
connection with the administration, management, or preservation of |
|
trust property and the distribution of income, including interest, |
|
ordinary repairs, regularly recurring taxes assessed against |
|
principal, and expenses of a proceeding or other matter that |
|
concerns primarily the income interest; and |
|
(4) recurring premiums on insurance covering the loss |
|
of a principal asset or the loss of income from or use of the asset. |
|
SECTION 3. Subsection (a), Section 116.202, Property Code, |
|
is amended to read as follows: |
|
(a) A trustee shall make the following disbursements from |
|
principal: |
|
(1) the remaining one-half of the disbursements |
|
described in Section [Sections] 116.201(1) unless, consistent with |
|
the trustee's fiduciary duties, the trustee determines that a |
|
different portion, none, or all of those disbursements should be |
|
allocated to income, in which case that portion of the |
|
disbursements that are not allocated to income shall be allocated |
|
to principal; |
|
(1-a) the remaining one-half of the disbursements |
|
described in Section 116.201(2) [and (2)]; |
|
(2) all of the trustee's compensation calculated on |
|
principal as a fee for acceptance, distribution, or termination, |
|
and disbursements made to prepare property for sale; |
|
(3) payments on the principal of a trust debt; |
|
(4) expenses of a proceeding that concerns primarily |
|
principal, including a proceeding to construe the trust or to |
|
protect the trust or its property; |
|
(5) premiums paid on a policy of insurance not |
|
described in Section 116.201(4) of which the trust is the owner and |
|
beneficiary; |
|
(6) estate, inheritance, and other transfer taxes, |
|
including penalties, apportioned to the trust; and |
|
(7) disbursements related to environmental matters, |
|
including reclamation, assessing environmental conditions, |
|
remedying and removing environmental contamination, monitoring |
|
remedial activities and the release of substances, preventing |
|
future releases of substances, collecting amounts from persons |
|
liable or potentially liable for the costs of those activities, |
|
penalties imposed under environmental laws or regulations and other |
|
payments made to comply with those laws or regulations, statutory |
|
or common law claims by third parties, and defending claims based on |
|
environmental matters. |
|
SECTION 4. (a) Except as otherwise expressly provided by a |
|
trust, a will creating a trust, or this section, the changes in law |
|
made by this Act apply to a trust existing or created on or after |
|
September 1, 2013. |
|
(b) For a trust existing on September 1, 2013, that was |
|
created before that date, the changes in law made by this Act apply |
|
only to an act or omission relating to the trust that occurs on or |
|
after September 1, 2013. |
|
SECTION 5. This Act takes effect September 1, 2013. |
|
|
|
* * * * * |