Honorable Joan Huffman, Chair, Senate Committee on State Affairs
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB2245 by Wray (Relating to trusts.), As Engrossed
No fiscal implication to the State is anticipated.
The bill clarifies that the terms of a trust may not limit the ability of a court to require a trustee to disgorge a payment received in bad faith from the trust. New provisions are created to automatically terminate certain trusts (in most circumstances) when the settlors and beneficiaries divorce. Procedures are also created to address joint trusts created by spouses who divorce. Revisions are made to allow for the transfer of management trusts to become subaccounts in a pooled trust which meets the requirements for an exemption under federal law to allow a disabled individual to be eligible for medical assistance.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council