Relating to the beneficiaries of a trust who are entitled to demand an accounting from the trustee.
Impact
The key impact of HB1813 is on the transparency and accountability mechanisms that govern trust management in Texas. By providing beneficiaries with a clear path to require an accounting, the bill seeks to ensure that trustees manage the trust assets responsibly and that beneficiaries can easily access important financial information pertaining to their interests. The amendment empowers beneficiaries significantly, which could lead to increased demands for transparency among trustees.
Summary
House Bill 1813 aims to clarify and strengthen the rights of beneficiaries of a trust when it comes to demanding accountings from the trustee. This bill specifically amends Section 113.151(a) of the Property Code to establish that any beneficiary, even those with contingent rights, can request a written statement of accounts from the trustee. The request must be met within 90 days or the beneficiary may initiate legal action against the trustee to compel compliance.
Contention
During discussions of the bill, opponents raised concerns that the increased power for beneficiaries could potentially lead to abuse, with some suggesting that it might invite frivolous lawsuits against trustees. Proponents of HB1813 contend, however, that ensuring beneficiaries have the right to information is vital for fair trust management and that the bill strikes an appropriate balance between accountability and reasonable limitations on lawsuits.