| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the contents of a trust accounting. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 113.151, Property Code, is amended by |
|
|
adding Subsection (c) to read as follows: |
|
|
(c) Notwithstanding Section 113.152(b), on a showing of |
|
|
good cause, the court may compel the trustee to include in a written |
|
|
statement of account required by the court under Subsection (a) or |
|
|
(b) an allocation of certain receipts and disbursements to |
|
|
principal and income regardless of whether the distribution |
|
|
standard and beneficiaries are the same for principal and income. |
|
|
SECTION 2. Section 113.152, Property Code, is amended to |
|
|
read as follows: |
|
|
Sec. 113.152. CONTENTS OF ACCOUNTING. (a) A written |
|
|
statement of accounts shall show: |
|
|
(1) all trust property that has come to the trustee's |
|
|
knowledge or into the trustee's possession and that has not been |
|
|
previously listed or inventoried as property of the trust; |
|
|
(2) a complete account of receipts, disbursements, and |
|
|
other transactions regarding the trust property for the period |
|
|
covered by the account, including their source and nature, with |
|
|
each receipt and disbursement allocated to [receipts of] principal |
|
|
or [and] income, subject to Subsection (b) [shown separately]; |
|
|
(3) a listing of all property being administered, with |
|
|
an adequate description of each asset; |
|
|
(4) the cash balance on hand and the name and location |
|
|
of the depository where the balance is kept; and |
|
|
(5) all known liabilities owed by the trust. |
|
|
(b) A trustee is not required to allocate a receipt or |
|
|
disbursement to principal or income under Subsection (a)(2) if the |
|
|
distribution standard and beneficiaries are the same for both |
|
|
principal and income. |
|
|
SECTION 3. The changes in law made by this Act apply only to |
|
|
a demand for accounting made on or after the effective date of this |
|
|
Act. A demand for accounting made before the effective date of this |
|
|
Act is governed by the law in effect immediately before the |
|
|
effective date of this Act, and the former law is continued in |
|
|
effect for that purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2025. |