86R2877 BEE-F
 
  By: Wray H.B. No. 2246
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the fiduciary status of a directed trust advisor.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 114.0031, Property Code, is amended by
  amending Subsection (e) and adding Subsection (e-1) to read as
  follows:
         (e)  If the terms of a trust give a person the authority to
  direct, consent to, or disapprove a trustee's actual or proposed
  investment decisions, distribution decisions, or other decisions,
  the person is [considered to be] an advisor. An advisor is [and] a
  fiduciary regardless of trust terms to the contrary [when
  exercising that authority] except that the trust terms may provide
  that an advisor acts in a nonfiduciary capacity if:
               (1)  the advisor's only power is to remove and appoint
  trustees, advisors, trust committee members, or other protectors;
  and
               (2)  the advisor does not exercise that power to
  appoint the advisor's self to a position described by Subdivision
  (1).
         (e-1)  Subsection (e) does not prohibit the exercise of a
  power in a nonfiduciary capacity as required by the Internal
  Revenue Code for a grantor or other person to be treated as the
  owner of any portion of the trust for federal income tax purposes.
         SECTION 2.  (a)  Except as specifically provided by a trust
  term in effect before September 1, 2019, the changes in law made by
  this Act apply to a trust created before, on, or after September 1,
  2019, with respect to an action taken or not taken on or after
  September 1, 2019, by a trustee, custodian, or other person with
  respect to the trust.
         (b)  An action taken or not taken with respect to a trust
  before September 1, 2019, is governed by the law that applied to the
  action taken or not taken immediately before September 1, 2019, and
  that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.