Texas 2009 - 81st Regular

Texas House Bill HB1969 Compare Versions

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1	1	H.B. No. 1969
2	2
3	3
4	4	AN ACT
5	5	relating to the enforcement of certain provisions in a will or trust
6	6	that forfeit or void devises or interests.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter IV, Texas Probate Code, is amended by
9	9	adding Section 64 to read as follows:
10	10	Sec. 64. FORFEITURE CLAUSE. A provision in a will that
11	11	would cause a forfeiture of a devise or void a devise or provision
12	12	in favor of a person for bringing any court action, including
13	13	contesting a will, is unenforceable if:
14	14	(1) probable cause exists for bringing the action; and
15	15	(2) the action was brought and maintained in good
16	16	faith.
17	17	SECTION 2. Section 111.0035(b), Property Code, is amended
18	18	to read as follows:
19	19	(b) The terms of a trust prevail over any provision of this
20	20	subtitle, except that the terms of a trust may not limit:
21	21	(1) the requirements imposed under Section 112.031;
22	22	(2) the applicability of Section 114.007 to an
23	23	exculpation term of a trust;
24	24	(3) the periods of limitation for commencing a
25	25	judicial proceeding regarding a trust;
26	26	(4) a trustee's duty:
27	27	(A) with regard to an irrevocable trust, to
28	28	respond to a demand for accounting made under Section 113.151 if the
29	29	demand is from a beneficiary who, at the time of the demand:
30	30	(i) is entitled or permitted to receive
31	31	distributions from the trust; or
32	32	(ii) would receive a distribution from the
33	33	trust if the trust terminated at the time of the demand; and
34	34	(B) to act in good faith and in accordance with
35	35	the purposes of the trust; [or]
36	36	(5) the power of a court, in the interest of justice,
37	37	to take action or exercise jurisdiction, including the power to:
38	38	(A) modify or terminate a trust or take other
39	39	action under Section 112.054;
40	40	(B) remove a trustee under Section 113.082;
41	41	(C) exercise jurisdiction under Section 115.001;
42	42	(D) require, dispense with, modify, or terminate
43	43	a trustee's bond; or
44	44	(E) adjust or deny a trustee's compensation if
45	45	the trustee commits a breach of trust; or
46	46	(6) the applicability of Section 112.038.
47	47	SECTION 3. Subchapter B, Chapter 112, Property Code, is
48	48	amended by adding Section 112.038 to read as follows:
49	49	Sec. 112.038. FORFEITURE CLAUSE. A provision in a trust
50	50	that would cause a forfeiture of or void an interest for bringing
51	51	any court action, including contesting a trust, is unenforceable
52	52	if:
53	53	(1) probable cause exists for bringing the action; and
54	54	(2) the action was brought and maintained in good
55	55	faith.
56	56	SECTION 4. (a) Section 64, Texas Probate Code, as added by
57	57	this Act, applies only to the estate of a decedent who dies on or
58	58	after the effective date of this Act. The estate of a decedent who
59	59	dies before the effective date of this Act is governed by the law in
60	60	effect on the date of the decedent's death, and the former law is
61	61	continued in effect for that purpose.
62	62	(b) Section 112.038, Property Code, as added by this Act,
63	63	and Section 111.0035(b), Property Code, as amended by this Act,
64	64	apply to a trust existing on or created on or after the effective
65	65	date of this Act.
66	66	(c) The intent of this Act is to clarify existing law.
67	67	SECTION 5. This Act takes effect immediately if it receives
68	68	a vote of two-thirds of all the members elected to each house, as
69	69	provided by Section 39, Article III, Texas Constitution. If this
70	70	Act does not receive the vote necessary for immediate effect, this
71	71	Act takes effect September 1, 2009.
72	72	______________________________ ______________________________
73	73	President of the Senate Speaker of the House
74	74	I certify that H.B. No. 1969 was passed by the House on April
75	75	28, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
76	76	voting; and that the House concurred in Senate amendments to H.B.
77	77	No. 1969 on May 25, 2009, by the following vote: Yeas 142, Nays 0,
78	78	1 present, not voting.
79	79	______________________________
80	80	Chief Clerk of the House
81	81	I certify that H.B. No. 1969 was passed by the Senate, with
82	82	amendments, on May 21, 2009, by the following vote: Yeas 31, Nays
83	83	0.
84	84	______________________________
85	85	Secretary of the Senate
86	86	APPROVED: __________________
87	87	Date
88	88	__________________
89	89	Governor