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A BILL TO BE ENTITLED
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AN ACT
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relating to trustee settlement of accounts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Chapter 114, Property Code, is |
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amended by adding Section 114.009 to read as follows: |
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Section 114.009. TRUSTEE SETTLEMENT OF ACCOUNTS |
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(A) A trustee may obtain a settlement of its accounts in |
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accordance with subsection (B) when any of the following occur: |
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(1) A trust terminates pursuant to the terms of the trust. |
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(2) A trust terminates early pursuant to § 112.054. |
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(3) A trustee resigns or is removed. |
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(4) A trustee seeks discharge of an interim accounting |
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period when the trust is continuing. |
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(B) (1) A trustee who elects to proceed under this section |
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shall provide all of the following to the qualified beneficiaries |
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of the trust and the successor trustee, if applicable, within a |
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reasonable time after termination of the trust pursuant to its |
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terms, the resignation or removal of the trustee, or the end of the |
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period for which the trustee is seeking discharge: |
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a. A statement showing the fair market value of the new |
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assets to be distributed from a terminating trust or to a successor |
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trustee. |
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b. A trust accounting for the prior two years showing all |
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receipts and disbursements and inventory value of the net assets. |
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c. An estimate for any items reasonably anticipated to be |
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received or disbursed. |
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d. The amount of any fees, including trustee fees, remaining |
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to be paid. |
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e. Notice that the trust is terminating, or that the trustee |
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has resigned or been removed, the time period for which the trustee |
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seeks discharge of its accounts, and a statement providing that |
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claims against a trustee shall be barred if no objections are |
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received within the time period described in subsection (C). |
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f. The name and mailing address of the trustee. |
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g. The name and telephone number of a person who may be |
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contacted for additional information. |
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(2) The trustee may also provide the statement and notice |
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described in this subsection to any other person who the trustee |
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reasonably believes may have an interest in the trust. |
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(C) (1) If, after receiving the notice and trust information |
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described in subsection (B), a qualified beneficiary or any other |
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party that received the notice and trust information objects to a |
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disclosed act or omission, the qualified beneficiary shall provide |
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written notice of the objection to the trustee not later than 45 |
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days after the notice was sent by the trustee. If no written |
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objection is provided in the 45-day time period, the information |
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provided under subsection (B) shall be considered approved by the |
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recipient. The trustee, in the case of a trust terminating pursuant |
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to the terms of the trust or the trustee's resignation or removal, |
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within a reasonable period of time following the expiration of the |
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45-day time period, shall distribute the assets as provided in the |
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trust or to the successor trustee. If a qualified beneficiary gives |
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the trustee a written objection within the applicable 45-day time |
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period, the trustee or the qualified beneficiary may do either of |
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the following: |
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a. Submit the written objection to the court for resolution |
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and charge the expense of commencing a proceeding to the trust. |
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b. Resolve the objection by written agreement. |
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(2) Any agreement entered into pursuant to paragraph (1)b |
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may include a release, an indemnity clause, or both, on the part of |
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the beneficiary against the trustee relating to the trust. If the |
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parties agree to a nonjudicial settlement agreement or other |
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written agreement, any related expenses shall be charged to the |
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trust. Upon a resolution of an objection under this subsection, |
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within a reasonable period of time, the trustee shall distribute |
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the remaining trust assets as provided in the trust or to the |
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successor trustee. |
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(D) The trustee may rely upon the written statement of a |
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person receiving notice that the person does not object. |
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(E) When a trustee distributes assets of a terminating trust |
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or to the successor trustee after complying with this article and |
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having received no objections, each person who received notice and |
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either consented or failed to object pursuant to this section is |
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barred from doing either of the following: |
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(1) Bringing a claim against the trustee or challenging the |
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validity of the trust to the same extent and with the same |
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preclusive effect as if the court had entered a final order |
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approving the trustee's final account. |
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(2) Bringing a claim against the trustee for the period of |
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such interim accounts to the same extent and with the same |
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preclusive effect as if the court had entered a final order |
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approving the trustee's interim accounts. |
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(F) The court, as defined under § 111.004, shall have |
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exclusive jurisdiction over matters under this section. |
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(G) In the event the trustee is not released and his actions |
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ratified pursuant to the process provided by subsection (b), the |
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trustee shall not be precluded from obtaining a release of |
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liability by another permitted method. |
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SECTION 2. 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 on September 1, 2025. |