Texas House Bill HB3085 House Committee Report / Bill

                    81R25847 MTB-F
 By: Hartnett H.B. No. 3085
 Substitute the following for H.B. No. 3085:
 By: Madden C.S.H.B. No. 3085


 A BILL TO BE ENTITLED
 AN ACT
 relating to the independent administration of a decedent's estate.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. INDEPENDENT ADMINISTRATION: TEXAS PROBATE CODE
 SECTION 1.01. The Texas Probate Code is amended by adding
 Chapter VI-1 to read as follows:
 CHAPTER VI-1.  INDEPENDENT ADMINISTRATION
 PART 1.  CREATION
 Sec. 177A.  EXPRESSION OF TESTATOR'S INTENT IN WILL.  (a)
 Any person capable of making a will may provide in the person's will
 that no other action shall be had in the probate court in relation
 to the settlement of the person's estate than the probating and
 recording of the will and the return of an inventory, appraisement,
 and list of claims of the person's estate.
 (b)  Any person capable of making a will may provide in the
 person's will that no independent administration of his or her
 estate may be allowed. In such case the person's estate, if
 administered, shall be administered and settled under the direction
 of the probate court as other estates are required to be settled and
 not as an independent administration.
 Sec. 177B.  CREATION IN TESTATE ESTATE BY AGREEMENT. (a)
 Except as provided in Section 177A(b) of this code, if a decedent's
 will names an executor but the will does not provide for independent
 administration as provided in Section 177A(a) of this code, all of
 the distributees of the decedent may agree on the advisability of
 having an independent administration and collectively designate in
 the application for probate of the decedent's will the executor
 named in the will to serve as independent executor and request in
 the application that no other action shall be had in the probate
 court in relation to the settlement of the decedent's estate other
 than the probating and recording of the decedent's will and the
 return of an inventory, appraisement, and list of claims of the
 decedent's estate.  In such case the probate court shall enter an
 order granting independent administration and appointing the
 person, firm, or corporation designated in the application as
 independent executor, unless the court finds that it would not be in
 the best interest of the estate to do so.
 (b)  Except as provided in Section 177A(b) of this code, in
 situations where no executor is named in the decedent's will, or in
 situations where each executor named in the will is deceased or is
 disqualified to serve as executor or indicates by affidavit filed
 with the application for administration of the decedent's estate
 the executor's inability or unwillingness to serve as executor, all
 of the distributees of the decedent may agree on the advisability of
 having an independent administration and collectively designate in
 the application for probate of the decedent's will a qualified
 person, firm, or corporation to serve as independent administrator
 and request in the application that no other action shall be had in
 the probate court in relation to the settlement of the decedent's
 estate other than the probating and recording of the decedent's
 will and the return of an inventory, appraisement, and list of
 claims of the decedent's estate.  In such case the probate court
 shall enter an order granting independent administration and
 appointing the person, firm, or corporation designated in the
 application as independent administrator, unless the court finds
 that it would not be in the best interest of the estate to do so.
 Sec. 177C.  CREATION IN INTESTATE ESTATE BY AGREEMENT.  (a)
 All of the distributees of a decedent dying intestate may agree on
 the advisability of having an independent administration and
 collectively designate in the application for administration of the
 decedent's estate a qualified person, firm, or corporation to serve
 as independent administrator and request in the application that no
 other action shall be had in the probate court in relation to the
 settlement of the decedent's estate other than the return of an
 inventory, appraisement, and list of claims of the decedent's
 estate.  In such case the probate court shall enter an order
 granting independent administration and appointing the person,
 firm, or corporation designated in the application as independent
 administrator, unless the court finds that it would not be in the
 best interest of the estate to do so.
 (b)  The court shall not appoint an independent
 administrator to serve in an intestate administration unless and
 until the parties seeking appointment of the independent
 administrator have been determined, through a proceeding to declare
 heirship under Chapter III of this code, to constitute all of the
 decedent's heirs.
 Sec. 177D.  MEANS OF ESTABLISHING DISTRIBUTEE CONSENT.  (a)
 This section applies to the creation of an independent
 administration under Section 177B or 177C of this code.
 (b)  All distributees shall be served with citation and
 notice of the application for independent administration unless the
 distributee waives the issuance or service of citation or enters an
 appearance in court.
 (c)  If a distributee is an incapacitated person, the
 guardian of the person of the distributee may sign the application
 on behalf of the distributee.  If the probate court finds that
 either the granting of independent administration or the
 appointment of the person, firm, or corporation designated in the
 application as independent executor would not be in the best
 interest of the incapacitated person, then, notwithstanding
 anything to the contrary in Section 177B or 177C of this code, the
 court shall not enter an order granting independent administration
 of the estate.  If a distributee who is an incapacitated person has
 no guardian of the person, the probate court may appoint a guardian
 ad litem to make application on behalf of the incapacitated person
 if the court considers such an appointment necessary to protect the
 interest of the distributees. Alternatively, if the distributee who
 is an incapacitated person is a minor and has no guardian of the
 person, the natural guardian or guardians of such minor may consent
 on behalf of such incapacitated person if there is no conflict of
 interest between the minor and such natural guardian or guardians.
 (d)  If a trust is created in the decedent's will, the person
 or class of persons first eligible to receive the income from the
 trust, when determined as if the trust were to be in existence on
 the date of the decedent's death, shall, for the purposes of Section
 177B of this code, be considered to be the distributee or
 distributees on behalf of such trust, and any other trust or trusts
 coming into existence on the termination of such trust, and are
 authorized to apply for independent administration on behalf of the
 trusts without the consent or agreement of the trustee or any other
 beneficiary of the trust, or the trustee or any beneficiary of any
 other trust which may come into existence on the termination of such
 trust.  If a person who is a trust beneficiary and who is considered
 to be a distributee under this subsection is an incapacitated
 person, then such trustee or cotrustee may file the application or
 give the consent, provided that such trustee or cotrustee is not the
 person proposed to serve as the independent executor.
 (e)  If a life estate is created either in the decedent's
 will or by law, the life tenant or life tenants, when determined as
 if the life estate were to commence on the date of the decedent's
 death, shall, for the purposes of Section 177B or 177C of this code,
 be considered to be the distributee or distributees on behalf of the
 entire estate created, and are authorized to apply for independent
 administration on behalf of the estate without the consent or
 approval of any remainderman.
 (f)  If a decedent's will contains a provision that a
 distributee must survive the decedent by a prescribed period of
 time in order to take under the decedent's will, then, for the
 purposes of determining who shall be the distributee under Section
 177B of this code and under Subsection (c) of this section, it shall
 be presumed that the distributees living at the time of the filing
 of the application for probate of the decedent's will survived the
 decedent by the prescribed period.
 (g)  In the case of all decedents, whether dying testate or
 intestate, for the purposes of determining who shall be the
 distributees under Section 177B or 177C of this code and under
 Subsection (c) of this section, it shall be presumed that no
 distributee living at the time the application for independent
 administration is filed shall subsequently disclaim any portion of
 such distributee's interest in the decedent's estate.
 (h)  If a distributee of a decedent's estate should die and
 if by virtue of such distributee's death such distributee's share of
 the decedent's estate shall become payable to such distributee's
 estate, then the deceased distributee's personal representative
 may sign the application for independent administration of the
 decedent's estate under Section 177B or 177C of this code and under
 Subsection (c) of this section.
 Sec. 177E.  BOND; WAIVER OF BOND.  If an independent
 administration of a decedent's estate is created under Section 177B
 or 177C of this code, then, unless the probate court waives bond on
 application for waiver, the independent executor shall be required
 to enter into bond payable to and to be approved by the judge and the
 judge's successors in a sum that is found by the judge to be
 adequate under all circumstances, or a bond with one surety in a sum
 that is found by the judge to be adequate under all circumstances,
 if the surety is an authorized corporate surety.  This section does
 not repeal any other section of this code.
 Sec. 177F.  GRANTING POWER OF SALE BY AGREEMENT.  In a
 situation in which a decedent does not have a will or the will does
 not contain or insufficiently contains language authorizing the
 personal representative to sell real property, the court may
 include in an order appointing an independent executor under
 Section 177B or 177C of this code such general or specific authority
 regarding the power of the independent executor to sell real
 property as may be consented to by the beneficiaries who are to
 receive any such real property in their consents to the independent
 administration.  The independent executor, in such event, may sell
 the real property under the authority granted in the court order
 without the further consent of those beneficiaries.
 Sec. 177G.  NO LIABILITY OF JUDGE.  Absent proof of fraud or
 collusion on the part of a judge, no judge may be held civilly
 liable for the commission of misdeeds or the omission of any
 required act of any person, firm, or corporation designated as an
 independent executor under Section 177B or 177C of this code.
 Section 36 of this code does not apply to the appointment of an
 independent executor under Section 177B or 177C of this code.
 Sec. 177H.  PERSON DECLINING TO SERVE.  A person who declines
 to serve or resigns as independent executor of a decedent's estate
 may be appointed an executor or administrator of the estate if the
 estate will be administered and settled under the direction of the
 court.
 PART 2.  ADMINISTRATION
 Sec. 177I.  GENERAL SCOPE AND EXERCISE OF POWERS.  When an
 independent administration has been created, and the order
 appointing an independent executor has been entered by the probate
 court, and the inventory, appraisement, and list of claims has been
 filed by the independent executor and approved by the court, as long
 as the estate is represented by an independent executor, further
 action of any nature shall not be had in the probate court except
 where this code specifically and explicitly provides for some
 action in such court.
 Sec. 177J.  INDEPENDENT EXECUTORS MAY ACT WITHOUT COURT
 APPROVAL.  Unless this code specifically provides otherwise, any
 action that a personal representative subject to court supervision
 may do with or without a court order may be taken by an independent
 executor without a court order.  The other provisions of this
 chapter are designed to provide additional guidance regarding
 independent administrations in specified situations, and are not
 designed to limit by omission or otherwise the application of the
 general principles set forth in this part.
 Sec. 177K.  POWER OF SALE.  (a)  General.  (1)  An independent
 executor has the power of sale set forth in the will, if applicable,
 exercisable without court approval as otherwise provided for
 independent administrations.
 (2)  Unless limited by the terms of a will, an
 independent executor has, in addition to any power of sale given in
 the will, the same power of sale for the same purposes as personal
 representatives have in a supervised administration, but without
 the requirement of court approval. The procedural requirements
 applicable to a supervised administration do not apply.
 (b)  Protection of Person Purchasing Estate Property.  (1)  A
 person who is not a devisee or heir is not required to inquire into
 the independent executor's power of sale or the propriety of the
 exercise of the power of sale if the person deals with the
 independent executor in good faith and:
 (A)  a power of sale is granted to the independent
 executor in the will or in the court order appointing the
 independent executor; or
 (B)  the independent executor provides an
 affidavit, sworn to under oath and recorded in the deed records of
 the county where the property is located, that the sale is necessary
 or advisable for any of the purposes described in Section 341(1) of
 this code.
 (2)  As to acts undertaken in good faith reliance, the
 affidavit executed by the independent executor and described by
 Subsection (b)(1)(B)of this section is conclusive proof, as between
 a purchaser of property from an estate, and the personal
 representative of an estate or the heirs and distributees of the
 estate, with respect to the authority of the independent executor
 to sell the property.  The signature or joinder of any person who is
 a devisee or heir and who has an interest in the property being sold
 as described in this section is not necessary for the purchaser to
 obtain all right, title, and interest of the estate in the property
 being sold.
 (3)  This section does not relieve the independent
 executor of any duty owing to a devisee or heir related directly or
 indirectly to the sale.
 (c)  No Limitations.  This section does not limit the
 authority of an independent executor to take other actions without
 court supervision or approval with respect to estate assets that
 may take place in a supervised administration, for purposes and
 within the scope otherwise authorized by this code, including
 leases and borrowing money.
 PART 3. CLAIMS; EXEMPTIONS AND ALLOWANCES
 Sec. 177L.  SETTING ASIDE EXEMPT PROPERTY AND ALLOWANCES.
 The independent executor shall set aside and deliver to those
 entitled exempt property and allowances for support, and allowances
 in lieu of exempt property, as prescribed in this code, to the same
 extent and result as if the independent executor's actions had been
 accomplished in, and under orders of, the court.
 Sec. 177M.  CLAIMS.  (a)  Duty of the Independent Executor.
 An independent executor, in the administration of an estate,
 independently of and without application to, or any action in or by
 the court:
 (1)  shall give the notices required under Sections 294
 and 295 of this code;
 (2)  may give the notice to an unsecured creditor with a
 claim for money permitted under Section 294(d) of this code and bar
 a claim under Subsection (e) of this section; and
 (3)  may approve or reject any claim, or take no action
 on a claim, and shall classify and pay claims approved or
 established by suit against the estate in the same order of
 priority, classification, and proration prescribed in this code.
 (a-1)  Statement in Notice of Claim.  In order to be
 effective, the notice described by Subsection (a)(2) of this
 section must include, in addition to the other information required
 by Section 294(d) of this code, a statement that a claim may be
 effectively presented only by one of the methods described in this
 section.
 (b)  Secured Claims for Money. Within six months after the
 date letters are granted or within four months after the date notice
 is received under Section 295 of this code, whichever is later, a
 creditor with a claim for money secured by real or personal property
 of the estate must give notice to the independent executor of the
 creditor's election to have the creditor's claim approved as a
 matured secured claim to be paid in due course of administration.
 In addition to such notice, such creditor whose claim is secured by
 real property shall record a notice of such election in the deed
 records of the county in which such real property is located.  If no
 election to be a matured secured creditor is made, or is made but
 not within the required period, or is made within the required
 period but the creditor has a lien against real property and fails
 to record notice of the claim in the deed records as described above
 within the required period, the claim shall be a preferred debt and
 lien against the specific property securing the indebtedness and
 shall be paid according to the terms of the contract that secured
 the lien, and the claim may not be asserted against other assets of
 the estate.  The independent executor may pay the claim prior to
 maturity if it is determined to be in the best interest of the
 estate to do so.
 (c)  Matured Secured Claims.  (1)  A claim approved as a
 matured secured claim under Subsection (b) of this section shall
 remain secured by any lien or security interest against the
 specific property securing its payment but subordinated to the
 payment from the property of claims having a higher classification
 under Section 322 of this code.  However, the secured creditor:
 (A)  shall not be entitled to exercise any
 remedies in a manner that prevents the payment of such higher
 priority claims and allowances; and
 (B)  during the administration of the estate,
 shall not be entitled to exercise any contractual collection
 rights, including the power to foreclose, without either the prior
 written approval of the independent executor or court approval.
 (1-a)  Nothing in Subdivision (1) of this subsection
 shall be construed to suspend or otherwise prevent a creditor with a
 matured secured claim from seeking judicial relief of any kind or
 executing on any judgment against an independent executor. Except
 with respect to real property, any third party acting in good faith
 may obtain good title with respect to an estate asset acquired
 through a secured creditor's extrajudicial collection rights,
 without regard to whether such creditor had the right to collect or
 whether the creditor acted improperly in exercising such rights
 during an estate administration due to having elected matured
 secured status.
 (2)  If a claim approved or established by suit as a
 matured secured claim is secured by property passing to one or more
 devisees in accordance with Section 71A of this code, the
 independent executor shall collect from the devisees the amount of
 the debt and pay that amount to the claimant or sell the property
 and pay out of the sale proceeds the claim and associated expenses
 of sale consistent with the provisions of Section 306(c-1) of this
 code applicable in court supervised administrations.
 (d)  Preferred Debt and Lien Claims.  During an independent
 administration, a secured creditor whose claim is a preferred debt
 and lien against property securing the indebtedness under
 Subsection (b) of this section is free to exercise any and all
 judicial or extrajudicial collection rights, including foreclosure
 and execution; provided, however, that such creditor shall not have
 the right to conduct a nonjudicial foreclosure sale within a period
 of six months after letters are granted.
 (e)  Certain Unsecured Claims; Barring of Claims.  An
 unsecured creditor who has a claim for money against an estate and
 who receives a notice under Section 294(d) of this code shall give
 notice to the independent executor of the nature and amount of the
 claim not later than the 120th day after the date on which the
 notice is received or the claim is barred.
 (f)  Notices Required by Creditors.  Notice to the personal
 representative required by Subsections (b) and (e) of this section
 must be contained in:
 (1)  a written instrument that is hand-delivered with
 proof of receipt, or mailed by certified mail, return receipt
 requested with proof of receipt, to the independent executor or the
 executor's attorney;
 (2)  a pleading filed in a lawsuit with respect to the
 claim; or
 (3)  a written instrument or pleading filed in the
 court in which the administration of the estate is pending.
 (f-1)  Filing Requirements Applicable.  Nothing in
 Subsection (f) of this section shall relieve a creditor who elects
 matured secured status from the filing requirements in Subsection
 (b) of this section, to the extent applicable.
 (g)  Statute of Limitations.  Except as otherwise provided in
 Section 16.062, Civil Practice and Remedies Code, the running of
 the statute of limitations shall be tolled only by a written
 approval of a claim signed by an independent executor, a pleading
 filed in a suit pending at the time of the decedent's death, or a
 suit brought by the creditor against the independent executor.  In
 particular, the presentation of a statement or claim, or a notice
 with respect to a claim, to an independent executor shall not toll
 the running of the statute of limitations with respect to that
 claim.
 (h)  Other Claim Procedures of Code Generally Do Not Apply.
 Except as otherwise provided in this section, the procedural
 provisions of this code governing creditor claims in supervised
 administrations do not apply in independent administrations. By way
 of example only and not of limitation:
 (1)  Section 313 of this code does not apply in
 independent administrations, and consequently a creditor's claim
 shall not be barred solely because the creditor failed to file a
 suit within 90 days after a claim has been rejected by an
 independent executor or with respect to which the independent
 executor takes no action; and
 (2)  Sections 306(f)-(k) of this code do not apply in
 independent administrations.
 (i)  Liability of Independent Executor.  An independent
 executor, in the administration of an estate, may pay at any time
 and without personal liability a claim for money against the estate
 to the extent approved and classified by the personal
 representative if:
 (1) the claim is not barred by limitations; and
 (2)  at the time of payment, the independent executor
 reasonably believes the estate will have sufficient assets to pay
 all claims against the estate.
 Sec. 177N.  ENFORCEMENT OF CLAIMS BY SUIT.  Any person having
 a debt or claim against the estate may enforce the payment of the
 same by suit against the independent executor; and, when judgment
 is recovered against the independent executor, the execution shall
 run against the estate of the decedent in the possession of the
 independent executor that is subject to such debt.  The independent
 executor shall not be required to plead to any suit brought against
 the executor for money until after six months after the date that an
 independent administration was created and the order appointing the
 executor was entered by the probate court.
 Sec. 177O.  REQUIRING HEIRS TO GIVE BOND.  When an
 independent administration is created and the order appointing an
 independent executor is entered by the probate court, any person
 having a debt against such estate may, by written complaint filed in
 the probate court in which such order was entered, cause all
 distributees of the estate, heirs at law, and other persons
 entitled to any portion of such estate under the will, if any, to be
 cited by personal service to appear before such probate court and
 execute a bond for an amount equal to the amount of the creditor's
 claim or the full value of such estate, as shown by the inventory
 and list of claims, whichever is the smaller, such bond to be
 payable to the judge, and the judge's successors, and to be approved
 by the judge, and conditioned that all obligors shall pay all debts
 that shall be established against such estate in the manner
 provided by law. On the return of the citation served, unless such
 person so entitled to any portion of the estate, or some of them, or
 some other person for them, shall execute such bond to the
 satisfaction of the probate court, such estate shall be
 administered and settled under the direction of the probate court
 as other estates are required to be settled.  If the bond is
 executed and approved, the independent administration shall
 proceed. Creditors of the estate may sue on such bond, and shall be
 entitled to judgment on the bond for the amount of their debt, or
 they may have their action against those in possession of the
 estate.
 PART 4.  ACCOUNTINGS, SUCCESSORS, AND OTHER REMEDIES
 Sec. 177P.  ACCOUNTING.  (a)  Interested Person May Demand
 Accounting.  At any time after the expiration of 15 months after the
 date that an independent administration was created and the order
 appointing an independent executor was entered by the probate
 court, any person interested in the estate may demand an accounting
 from the independent executor.  The independent executor shall
 furnish to the person or persons making the demand an exhibit in
 writing, sworn and subscribed by the independent executor, setting
 forth in detail:
 (1)  the property belonging to the estate that has come
 into the executor's possession as executor;
 (2)  the disposition that has been made of such
 property;
 (3) the debts that have been paid;
 (4)  the debts and expenses, if any, still owing by the
 estate;
 (5)  the property of the estate, if any, still
 remaining in the executor's possession;
 (6)  such other facts as may be necessary to a full and
 definite understanding of the exact condition of the estate; and
 (7)  such facts, if any, that show why the
 administration should not be closed and the estate distributed.
 (a-1)  Copy of Exhibit or Accounting.  Any other interested
 person shall, on demand, be entitled to a copy of any exhibit or
 accounting that has been made by an independent executor in
 compliance with this section.
 (b)  Enforcement of Demand.  Should the independent executor
 not comply with a demand for an accounting authorized by this
 section within 60 days after receipt of the demand, the person
 making the demand may compel compliance by an action in the probate
 court. After a hearing, the court shall enter an order requiring the
 accounting to be made at such time as it considers proper under the
 circumstances.
 (c)  Subsequent Demands.  After an initial accounting has
 been given by an independent executor, any person interested in an
 estate may demand subsequent periodic accountings at intervals of
 not less than 12 months, and such subsequent demands may be enforced
 in the same manner as an initial demand.
 (d)  Remedies Cumulative.  The right to an accounting
 accorded by this section is cumulative of any other remedies which
 persons interested in an estate may have against the independent
 executor of the estate.
 Sec. 177Q.  REQUIRING INDEPENDENT EXECUTOR TO GIVE BOND.
 When it has been provided by will, regularly probated, that an
 independent executor appointed by such will shall not be required
 to give bond for the management of the estate devised by such will,
 or the independent executor is not required to give bond because
 bond has been waived by court order as authorized under Section 177E
 of this code, then such independent executor may be required to give
 bond, on proper proceedings had for that purpose as in the case of
 personal representatives in a supervised administration, if it be
 made to appear at any time that such independent executor is
 mismanaging the property, or has betrayed or is about to betray the
 independent executor's trust, or has in some other way become
 disqualified.
 Sec. 177R.  REMOVAL OF INDEPENDENT EXECUTOR.  (a)  The
 probate court, on its own motion or on motion of any interested
 person, after the independent executor has been cited by personal
 service to answer at a time and place fixed in the notice, may
 remove an independent executor when:
 (1)  the independent executor fails to return within 90
 days after qualification, unless such time is extended by order of
 the court, an inventory of the property of the estate and list of
 claims that have come to the independent executor's knowledge;
 (2)  sufficient grounds appear to support belief that
 the independent executor has misapplied or embezzled, or that the
 independent executor is about to misapply or embezzle, all or any
 part of the property committed to the independent executor's care;
 (3)  the independent executor fails to make an
 accounting which is required by law to be made;
 (4)  the independent executor fails to timely file the
 affidavit or certificate required by Section 128A of this code;
 (5)  the independent executor is proved to have been
 guilty of gross misconduct or gross mismanagement in the
 performance of the independent executor's duties; or
 (6)  the independent executor becomes an incapacitated
 person, or is sentenced to the penitentiary, or from any other cause
 becomes legally incapacitated from properly performing the
 independent executor's fiduciary duties.
 (b)  The order of removal shall state the cause of removal
 and shall direct by order the disposition of the assets remaining in
 the name or under the control of the removed executor. The order of
 removal shall require that letters issued to the removed executor
 shall be surrendered and that all letters shall be canceled of
 record. If an independent executor is removed by the court under
 this section, the court may, on application, appoint a successor
 independent executor as provided by Section 177T of this code.
 (c)  An independent executor who defends an action for the
 independent executor's removal in good faith, whether successful or
 not, shall be allowed out of the estate the independent executor's
 necessary expenses and disbursements, including reasonable
 attorney's fees, in the removal proceedings.
 (d)  Costs and expenses incurred by the party seeking removal
 that are incident to removal of an independent executor appointed
 without bond, including reasonable attorney's fees and expenses,
 may be paid out of the estate.
 Sec. 177S.  POWERS OF AN ADMINISTRATOR WHO SUCCEEDS AN
 INDEPENDENT EXECUTOR.  (a)  Grant of Powers by Court. Whenever a
 person has died, or shall die, testate, owning property in this
 state, and such person's will has been or shall be admitted to
 probate by the court, and such probated will names an independent
 executor or executors, or trustees acting in the capacity of
 independent executors, to execute the terms and provisions of said
 will, and such will grants to such independent executor, or
 executors, or trustees acting in the capacity of independent
 executors, the power to raise or borrow money and to mortgage, and
 such independent executor, or executors, or trustees, have died or
 shall die, resign, fail to qualify, or be removed from office,
 leaving unexecuted parts or portions of the will of the testator,
 and an administrator with the will annexed is appointed by the
 probate court, and an administrator's bond is filed and approved by
 the court, then in all such cases, the court may, in addition to the
 powers conferred on such administrator under other provisions of
 the laws of this state, authorize, direct, and empower such
 administrator to do and perform the acts and deeds, clothed with the
 rights, powers, authorities, and privileges, and subject to the
 limitations, set forth in the subsequent provisions of this
 section.
 (b)  Power to Borrow Money and Mortgage or Pledge Property.
 The court, on application, citation, and hearing, may, by its
 order, authorize, direct, and empower such administrator to raise
 or borrow such sums of money and incur such obligations and debts as
 the court shall, in its said order, direct, and to renew and extend
 same from time to time, as the court, on application and order,
 shall provide; and, if authorized by the court's order, to secure
 such loans, obligations, and debts, by pledge or mortgage on
 property or assets of the estate, real, personal, or mixed, on such
 terms and conditions, and for such duration of time, as the court
 shall consider to be in the best interests of the estate, and by its
 order shall prescribe; and all such loans, obligations, debts,
 pledges, and mortgages shall be valid and enforceable against the
 estate and against such administrator in the administrator's
 official capacity.
 (c)  Powers Limited to Those Granted by the Will. The court
 may order and authorize such administrator to have and exercise the
 powers and privileges set forth in Subsection (a) or (b) of this
 section only to the extent that same are granted to or possessed by
 the independent executor, or executors, or trustees acting in the
 capacity of independent executors, under the terms of the probated
 will of such deceased person, and then only in such cases as it
 appears, at the hearing of the application, that at the time of the
 appointment of such administrator, there are outstanding and unpaid
 obligations and debts of the estate, or of the independent
 executor, or executors, or trustees, chargeable against the estate,
 or unpaid expenses of administration, or when the court appointing
 such administrator orders the business of such estate to be carried
 on and it becomes necessary, from time to time, under orders of the
 court, for such administrator to borrow money and incur obligations
 and indebtedness in order to protect and preserve the estate.
 (d)  Powers Other Than Those Relating to Borrowing Money and
 Mortgaging or Pledging Property. The court, in addition, may, on
 application, citation, and hearing, order, authorize, and empower
 such administrator to assume, exercise, and discharge, under the
 orders and directions of said court, made from time to time, all or
 such part of the rights, powers, and authorities vested in and
 delegated to, or possessed by, the independent executor, or
 executors, or trustees acting in the capacity of independent
 executors, under the terms of the will of such deceased person, as
 the court finds to be in the best interests of the estate and shall,
 from time to time, order and direct.
 (e)  Application for Grant of Powers.  The granting to such
 administrator by the court of some, or all, of the powers and
 authorities set forth in this section shall be on application filed
 by such administrator with the county clerk, setting forth such
 facts as, in the judgment of the administrator, require the
 granting of the power or authority requested.
 (f)  Citation.  On the filing of such application, the clerk
 shall issue citation to all persons interested in the estate,
 stating the nature of the application, and requiring such persons
 to appear on the return day named in such citation and show cause
 why such application should not be granted, should they choose to do
 so. Such citation shall be served by posting.
 (g)  Hearing and Order.  The court shall hear such
 application and evidence on the application, on or after the return
 day named in the citation, and, if satisfied a necessity exists and
 that it would be in the best interests of the estate to grant said
 application in whole or in part, the court shall so order;
 otherwise, the court shall refuse said application.
 Sec. 177T.  COURT-APPOINTED SUCCESSOR INDEPENDENT EXECUTOR.
 (a)  If the will of a person who dies testate names an independent
 executor who, having qualified, fails for any reason to continue to
 serve, or is removed for cause by the court, and the will does not
 name a successor independent executor or if each successor executor
 named in the will fails for any reason to qualify as executor or
 indicates by affidavit filed with the application for an order
 continuing independent administration the successor executor's
 inability or unwillingness to serve as successor independent
 executor, all of the distributees of the decedent as of the filing
 of the application for an order continuing independent
 administration may apply to the probate court for the appointment
 of a qualified person, firm, or corporation to serve as successor
 independent executor. If the probate court finds that continued
 administration of the estate is necessary, the probate court shall
 enter an order continuing independent administration and
 appointing the person, firm, or corporation designated in the
 application as successor independent executor, unless the probate
 court finds that it would not be in the best interests of the estate
 to do so. Such successor shall serve with all of the powers and
 privileges granted to the successor's predecessor independent
 executor.
 (b)  If a distributee described in this section is an
 incapacitated person, the guardian of the person of the distributee
 may sign the application on behalf of the distributee. If the
 probate court finds that either the continuing of independent
 administration or the appointment of the person, firm, or
 corporation designated in the application as successor independent
 executor would not be in the best interest of the incapacitated
 person, then, notwithstanding Subsection (a) of this section, the
 probate court may not enter an order continuing independent
 administration of the estate. If the distributee is an
 incapacitated person and has no guardian of the person, the court
 may appoint a guardian ad litem to make application on behalf of the
 incapacitated person if the probate court considers such an
 appointment necessary to protect the interest of such distributee.
 (c)  If a trust is created in the decedent's will, the person
 or class of persons first eligible to receive the income from the
 trust, determined as if the trust were to be in existence on the
 date of the filing of the application for an order continuing
 independent administration, shall, for the purposes of this
 section, be considered to be the distributee or distributees on
 behalf of such trust, and any other trust or trusts coming into
 existence on the termination of such trust, and are authorized to
 apply for an order continuing independent administration on behalf
 of the trust without the consent or agreement of the trustee or any
 other beneficiary of the trust, or the trustee or any beneficiary of
 any other trust which may come into existence on the termination of
 such trust.
 (d)  If a life estate is created either in the decedent's
 will or by law, and if a life tenant is living at the time of the
 filing of the application for an order continuing independent
 administration, then the life tenant or life tenants, determined as
 if the life estate were to commence on the date of the filing of the
 application for an order continuing independent administration,
 shall, for the purposes of this section, be considered to be the
 distributee or distributees on behalf of the entire estate created,
 and are authorized to apply for an order continuing independent
 administration on behalf of the estate without the consent or
 approval of any remainderman.
 (e)  If a decedent's will contains a provision that a
 distributee must survive the decedent by a prescribed period of
 time in order to take under the decedent's will, for the purposes of
 determining who shall be the distributee under this section, it
 shall be presumed that the distributees living at the time of the
 filing of the application for an order continuing independent
 administration of the decedent's estate survived the decedent for
 the prescribed period.
 (f)  In the case of all decedents, for the purposes of
 determining who shall be the distributees under this section, it
 shall be presumed that no distributee living at the time the
 application for an order continuing independent administration of
 the decedent's estate is filed shall subsequently disclaim any
 portion of such distributee's interest in the decedent's estate.
 (g)  If a distributee of a decedent's estate should die, and
 if by virtue of such distributee's death such distributee's share of
 the decedent's estate shall become payable to such distributee's
 estate, then the deceased distributee's personal representative
 may sign the application for an order continuing independent
 administration of the decedent's estate under this section.
 (h)  If a successor independent executor is appointed under
 this section, then, unless the probate court shall waive bond on
 application for waiver, the successor independent executor shall be
 required to enter into bond payable to and to be approved by the
 judge and the judge's successors in a sum that is found by the judge
 to be adequate under all circumstances, or a bond with one surety in
 an amount that is found by the judge to be adequate under all
 circumstances, if the surety is an authorized corporate surety.
 (i)  Absent proof of fraud or collusion on the part of a
 judge, the judge may not be held civilly liable for the commission
 of misdeeds or the omission of any required act of any person, firm,
 or corporation designated as a successor independent executor under
 this section. Section 36 of this code does not apply to an
 appointment of a successor independent executor under this section.
 PART 5. CLOSING AND DISTRIBUTIONS
 Sec. 177U.  ACCOUNTING AND DISTRIBUTION.  (a)  In addition to
 or in lieu of the right to an accounting provided by Section 177P of
 this code, at any time after the expiration of two years after the
 date that an independent administration was created and the order
 appointing an independent executor was entered, a person interested
 in the estate may petition the court for an accounting and
 distribution.  The court may order an accounting to be made with the
 court by the independent executor at such time as the court
 considers proper. The accounting shall include the information that
 the court considers necessary to determine whether any part of the
 estate should be distributed.
 (b)  On receipt of the accounting and, after notice to the
 independent executor and a hearing, unless the court finds a
 continued necessity for administration of the estate, the court
 shall order its distribution by the independent executor to the
 distributees entitled to the property.  If the court finds there is
 a continued necessity for administration of the estate, the court
 shall order the distribution of any portion of the estate that the
 court finds should not be subject to further administration by the
 independent executor.  If any portion of the estate that is ordered
 to be distributed is incapable of distribution without prior
 partition or sale, the court shall order partition and
 distribution, or sale, in the manner provided for the partition and
 distribution of property incapable of division in supervised
 estates.
 (c)  If all the property in the estate is ordered distributed
 by the court and the estate is fully administered, the court may
 also order the independent executor to file a final account with the
 court and may enter an order closing the administration and
 terminating the power of the independent executor to act as
 executor.
 Sec. 177V.  RECEIPTS AND RELEASES FOR DISTRIBUTIONS BY
 INDEPENDENT EXECUTOR. (a) An independent executor may not be
 required to deliver tangible or intangible personal property to a
 distributee unless the independent executor shall receive, at or
 before the time of delivery of the property, a signed receipt or
 other proof of delivery of the property to the distributee.
 (b)  An independent executor may not require a waiver or
 release from the distributee as a condition of delivery of property
 to a distributee.
 Sec. 177W.  JUDICIAL DISCHARGE OF INDEPENDENT EXECUTOR. (a)
 After an estate has been administered and if there is no further
 need for an independent administration of the estate, the
 independent executor of the estate may file an action for
 declaratory judgment under Chapter 37, Civil Practice and Remedies
 Code, seeking to discharge the independent executor from any
 liability involving matters relating to the past administration of
 the estate that have been fully and fairly disclosed.
 (b)  On the filing of an action under this section, each
 beneficiary of the estate shall be personally served with citation,
 except for a beneficiary who has waived the issuance and service of
 citation.
 (c)  In a proceeding under this section, the court may
 require the independent executor to file a final account that
 includes any information the court considers necessary to
 adjudicate the independent executor's request for a discharge of
 liability.  The court may audit, settle, or approve a final account
 filed under this subsection.
 (d)  On or before filing an action under this section, the
 independent executor must distribute to the beneficiaries of the
 estate any of the remaining assets or property of the estate that
 remains in the independent executor's possession after all of the
 estate's debts have been paid, except for a reasonable reserve of
 assets that the independent executor may retain in a fiduciary
 capacity pending court approval of the final account.  The court may
 review the amount of assets on reserve and may order the independent
 executor to make further distributions under this section.
 (e)  Except as ordered by the court, the independent executor
 is entitled to pay from the estate legal fees, expenses, or other
 costs incurred in relation to a proceeding for judicial discharge
 filed under this section. The independent executor shall be
 personally liable to refund any amount of such fees, expenses, or
 other costs not approved by the court as a proper charge against the
 estate.
 Sec. 177X.  CLOSING INDEPENDENT ADMINISTRATION BY CLOSING
 REPORT OR NOTICE OF CLOSING ESTATE.  When all of the debts known to
 exist against the estate have been paid, or when they have been paid
 so far as the assets in the independent executor's possession will
 permit, when there is no pending litigation, and when the
 independent executor has distributed to the distributees entitled
 to the estate all assets of the estate, if any, remaining after
 payment of debts, the independent executor may file with the court a
 closing report or a notice of closing of the estate.
 (a)  Closing Report. An independent executor may file a
 closing report verified by affidavit that:
 (1) shows:
 (A)  the property of the estate that came into the
 independent executor's possession;
 (B) the debts that have been paid;
 (C) the debts, if any, still owing by the estate;
 (D)  the property of the estate, if any, remaining
 on hand after payment of debts; and
 (E)  the names and addresses of the distributees
 to whom the property of the estate, if any, remaining on hand after
 payment of debts has been distributed; and
 (2)  includes signed receipts or other proof of
 delivery of property to the distributees named in the closing
 report if the closing report reflects that there was property
 remaining on hand after payment of debts.
 (b)  Notice of Closing Estate.  (1)  An independent executor
 is not required to but may file a notice of closing estate verified
 by affidavit that states:
 (A)  that all debts known to exist against the
 estate have been paid or that the debts have been paid so far as the
 assets in the possession of the independent executor will permit;
 (B)  that all remaining assets of the estate, if
 any, have been distributed; and
 (C)  the names and addresses of the distributees
 to whom the property of the estate, if any, remaining on hand after
 payment of debts has been distributed.
 (2)  Before filing the notice, the independent executor
 shall provide all distributees of the estate with a copy of the
 notice of closing estate. The notice of closing estate filed by the
 independent executor shall include signed receipts or other proof
 that all distributees have received a copy of the notice of closing
 estate.
 (c)  Effect of Filing Closing Report or Notice of Closing
 Estate.  (1)  The independent administration of an estate shall be
 considered closed 30 days after the filing of a closing report or
 notice of closing estate unless an interested person files an
 objection within the 30-day period. If an interested person files
 an objection, the independent administration of the estate shall be
 closed when the objection has been disposed of or the court signs an
 order closing the estate.
 (2)  The closing of an independent administration by
 filing of a closing report or notice of closing estate terminates
 the power and authority of the independent executor, but does not
 relieve the independent executor from liability for any
 mismanagement of the estate or from liability for any false
 statements contained in the report or notice.
 (3)  When a closing report or notice of closing estate
 has been filed, persons dealing with properties of the estate, or
 with claims against the estate, shall deal directly with the
 distributees of the estate; and the acts of such distributees with
 respect to such properties or claims shall in all ways be valid and
 binding as regards the persons with whom they deal, notwithstanding
 any false statements made by the independent executor in such
 report or notice.
 (4)  If the independent executor is required to give
 bond, the independent executor's filing of the closing report and
 proof of delivery, if required, automatically releases the sureties
 on the bond from all liability for the future acts of the principal.
 The filing of a notice of closing estate does not release the
 sureties on the bond of an independent executor.
 (5)  An independent executor's closing report or notice
 of closing estate shall constitute sufficient legal authority to
 all persons owing any money, having custody of any property, or
 acting as registrar or transfer agent or trustee of any evidence of
 interest, indebtedness, property, or right that belongs to the
 estate, for payment or transfer without additional administration
 to the distributees described in the will as entitled to receive the
 particular asset or who as heirs at law are entitled to receive the
 asset. The distributees described in the will as entitled to
 receive the particular asset or the heirs at law entitled to receive
 the asset may enforce their right to the payment or transfer by
 suit.
 Sec. 177Y.  PARTITION AND DISTRIBUTION OR SALE OF PROPERTY
 INCAPABLE OF DIVISION.  If the will does not distribute the entire
 estate of the testator or provide a means for partition of the
 estate, or if no will was probated, the independent executor may,
 but may not be required to, petition the probate court for either a
 partition and distribution of the estate or an order of sale of any
 portion of the estate alleged by the independent executor and found
 by the court to be incapable of a fair and equal partition and
 distribution, or both.  The estate or portion of the estate shall
 either be partitioned and distributed or sold, or both, in the
 manner provided for the partition and distribution of property and
 the sale of property incapable of division in supervised estates.
 Sec. 177Z.  CLOSING INDEPENDENT ADMINISTRATION ON
 APPLICATION BY DISTRIBUTEE.  (a)  At any time after an estate has
 been fully administered and there is no further need for an
 independent administration of such estate, any distributee may file
 an application to close the administration; and, after citation on
 the independent executor, and on hearing, the court may enter an
 order:
 (1)  requiring the independent executor to file a
 closing report meeting the requirements of Section 177X of this
 code;
 (2) closing the administration;
 (3)  terminating the power of the independent executor
 to act as such; and
 (4)  releasing the sureties on any bond the independent
 executor was required to give from all liability for the future acts
 of the principal.
 (b)  The order of the court closing the independent
 administration shall constitute sufficient legal authority to all
 persons owing any money, having custody of any property, or acting
 as registrar or transfer agent or trustee of any evidence of
 interest, indebtedness, property, or right that belongs to the
 estate, for payment or transfer without additional administration
 to the distributees described in the will as entitled to receive the
 particular asset or who as heirs at law are entitled to receive the
 asset.  The distributees described in the will as entitled to
 receive the particular asset or the heirs at law entitled to receive
 the asset may enforce their right to the payment or transfer by
 suit.
 Sec. 177AA. ISSUANCE OF LETTERS.  At any time before the
 authority of an independent executor has been terminated in the
 manner set forth in this chapter, the clerk shall issue such number
 of letters testamentary as the independent executor shall request.
 Sec. 177BB. RIGHTS AND REMEDIES CUMULATIVE.  The rights and
 remedies conferred by this part are cumulative of other rights and
 remedies to which a person interested in the estate may be entitled
 under law.
 Sec. 177CC. CLOSING PROCEDURES NOT REQUIRED.  An independent
 executor is not required to close the independent administration of
 an estate under Section 177W or 177X of this code.
 SECTION 1.02. Section 3(q), Texas Probate Code, is amended
 to read as follows:
 (q) "Independent executor" means the personal
 representative of an estate under independent administration as
 provided in Chapter VI-1 [Section 145] of this Code. The term
 "independent executor" includes the term "independent
 administrator."
 SECTION 1.03. Section 5A(b), Texas Probate Code, is amended
 to read as follows:
 (b) In proceedings in the statutory probate courts, the
 phrases "appertaining to estates" and "incident to an estate" in
 this Code include the probate of wills, the issuance of letters
 testamentary and of administration, and the determination of
 heirship, and also include, but are not limited to, all claims by or
 against an estate, all actions for trial of title to land and for
 the enforcement of liens thereon, all actions for trial of the right
 of property, all actions to construe wills, the interpretation and
 administration of testamentary trusts and the applying of
 constructive trusts, and generally all matters relating to the
 collection, settlement, partition, and distribution of estates of
 deceased persons. All statutory probate courts may, in the
 exercise of their jurisdiction, notwithstanding any other
 provisions of this Code, hear all suits, actions, and applications
 filed against or on behalf of any heirship proceeding or decedent's
 estate, including estates administered by an independent executor;
 all such suits, actions, and applications are appertaining to and
 incident to an estate. This subsection shall be construed in
 conjunction with and in harmony with Chapter VI-1 of this Code
 [Section 145] and all other sections of this Code dealing with
 independent executors, but shall not be construed so as to increase
 permissible judicial control over independent executors. Except
 for situations in which the jurisdiction of a statutory probate
 court is concurrent with that of a district court as provided by
 Section 5(e) of this Code or any other court, any cause of action
 appertaining to estates or incident to an estate shall be brought in
 a statutory probate court.
 SECTION 1.04. Section 5C(a), Texas Probate Code, is amended
 to read as follows:
 (a) This section applies only to a decedent's estate that:
 (1) is being administered in a pending probate
 proceeding;
 (2) owns or claims an interest in property against
 which a taxing unit has imposed ad valorem taxes that are
 delinquent; and
 (3) is not being administered as an independent
 administration under Chapter VI-1 [Section 145] of this code.
 SECTION 1.05. Section 110, Texas Probate Code, is amended
 to read as follows:
 Sec. 110. REQUIREMENTS FOR EMERGENCY INTERVENTION. An
 applicant may file an emergency application with the court under
 Section 108 of this code only if an application has not been filed
 and is not pending under Section 81, 82, or 137 of this code[,] or
 Part 1, Chapter VI-1 [145] of this code and the applicant:
 (1) needs to obtain funds for the funeral and burial of
 the decedent; or
 (2) needs to gain access to rental accommodations in
 which the decedent's personal property is located and the applicant
 has been denied access to those accommodations.
 SECTION 1.06. Section 241(a), Texas Probate Code, is
 amended to read as follows:
 (a) Executors, administrators, and temporary
 administrators shall be entitled to receive a commission of five
 per cent (5%) on all sums they may actually receive in cash, and the
 same per cent on all sums they may actually pay out in cash, in the
 administration of the estate on a finding by the court that the
 executor or administrator has taken care of and managed the estate
 in compliance with the standards of this code; provided, no
 commission shall be allowed for receiving funds belonging to the
 testator or intestate which were on hand or were held for the
 testator or intestate at the time of his death in a financial
 institution or a brokerage firm, including cash or a cash
 equivalent held in a checking account, savings account, certificate
 of deposit, or money market account; nor for collecting the
 proceeds of any life insurance policy; nor for paying out cash to
 the heirs or legatees as such; provided, further, however, that in
 no event shall the executor or administrator be entitled in the
 aggregate to more than five per cent (5%) of the gross fair market
 value of the estate subject to administration. If the executor or
 administrator manages a farm, ranch, factory, or other business of
 the estate, or if the compensation as calculated above is
 unreasonably low, the court may allow him reasonable compensation
 for his services, including unusual effort to collect funds or life
 insurance. For this purpose, the county court shall have
 jurisdiction to receive, consider, and act on applications from
 independent executors. The court may, on application of an
 interested person or on its own motion, deny a commission allowed by
 this subsection in whole or in part if:
 (1) the court finds that the executor or administrator
 has not taken care of and managed estate property prudently; or
 (2) the executor or administrator has been removed
 under Section [149C or] 222 of this code or Part 4, Chapter VI-1 of
 this code.
 SECTION 1.07. Notwithstanding the transfer of Sections 145,
 146, 147, 148, 149, 149A, 149B, 149C, 149D, 149E, 149F, 149G, 150,
 151, 152, 153, 154, and 154A, Texas Probate Code, to the Estates and
 Guardianships Code, as adopted by H.B. No. 2502 or S.B. No. 2071,
 Acts of the 81st Legislature, Regular Session, 2009, by one of those
 Acts, Sections 145, 146, 147, 148, 149, 149A, 149B, 149C, 149D,
 149E, 149F, 149G, 150, 151, 152, 153, 154, and 154A, Texas Probate
 Code, are repealed.
 SECTION 1.08. The changes in law made by this article apply
 only to the estate of a decedent who dies on or after the effective
 date of this Act. The estate of a decedent who dies before the
 effective date of this Act is governed by the law in effect on the
 date of the decedent's death, and the former law is continued in
 effect for that purpose.
 ARTICLE 2. INDEPENDENT ADMINISTRATION: ESTATES AND GUARDIANSHIPS
 CODE
 SECTION 2.01. Effective January 1, 2014, Subtitle I, Title
 2, Estates and Guardianships Code, as adopted by H.B. 2502 or S.B.
 2071, Acts of the 81st Legislature, Regular Session, 2009, is
 amended by adding Chapters 401, 402, 403, 404, and 405 to read as
 follows:
 CHAPTER 401.  CREATION
 Sec. 401.001.  EXPRESSION OF TESTATOR'S INTENT IN WILL.  (a)
 Any person capable of making a will may provide in the person's will
 that no other action shall be had in the probate court in relation
 to the settlement of the person's estate than the probating and
 recording of the will and the return of an inventory, appraisement,
 and list of claims of the person's estate.
 (b)  Any person capable of making a will may provide in the
 person's will that no independent administration of his or her
 estate may be allowed. In such case the person's estate, if
 administered, shall be administered and settled under the direction
 of the probate court as other estates are required to be settled and
 not as an independent administration.
 Sec. 401.002.  CREATION IN TESTATE ESTATE BY AGREEMENT. (a)
 Except as provided in Section 401.001(b), if a decedent's will
 names an executor but the will does not provide for independent
 administration as provided in Section 401.001(a), all of the
 distributees of the decedent may agree on the advisability of
 having an independent administration and collectively designate in
 the application for probate of the decedent's will the executor
 named in the will to serve as independent executor and request in
 the application that no other action shall be had in the probate
 court in relation to the settlement of the decedent's estate other
 than the probating and recording of the decedent's will and the
 return of an inventory, appraisement, and list of claims of the
 decedent's estate.  In such case the probate court shall enter an
 order granting independent administration and appointing the
 person, firm, or corporation designated in the application as
 independent executor, unless the court finds that it would not be in
 the best interest of the estate to do so.
 (b)  Except as provided in Section 401.001(b), in situations
 where no executor is named in the decedent's will, or in situations
 where each executor named in the will is deceased or is disqualified
 to serve as executor or indicates by affidavit filed with the
 application for administration of the decedent's estate the
 executor's inability or unwillingness to serve as executor, all of
 the distributees of the decedent may agree on the advisability of
 having an independent administration and collectively designate in
 the application for probate of the decedent's will a qualified
 person, firm, or corporation to serve as independent administrator
 and request in the application that no other action shall be had in
 the probate court in relation to the settlement of the decedent's
 estate other than the probating and recording of the decedent's
 will and the return of an inventory, appraisement, and list of
 claims of the decedent's estate.  In such case the probate court
 shall enter an order granting independent administration and
 appointing the person, firm, or corporation designated in the
 application as independent administrator, unless the court finds
 that it would not be in the best interest of the estate to do so.
 Sec. 401.003.  CREATION IN INTESTATE ESTATE BY AGREEMENT.
 (a)  All of the distributees of a decedent dying intestate may agree
 on the advisability of having an independent administration and
 collectively designate in the application for administration of the
 decedent's estate a qualified person, firm, or corporation to serve
 as independent administrator and request in the application that no
 other action shall be had in the probate court in relation to the
 settlement of the decedent's estate other than the return of an
 inventory, appraisement, and list of claims of the decedent's
 estate.  In such case the probate court shall enter an order
 granting independent administration and appointing the person,
 firm, or corporation designated in the application as independent
 administrator, unless the court finds that it would not be in the
 best interest of the estate to do so.
 (b)  The court shall not appoint an independent
 administrator to serve in an intestate administration unless and
 until the parties seeking appointment of the independent
 administrator have been determined, through a proceeding to declare
 heirship under Chapter 202, to constitute all of the decedent's
 heirs.
 Sec. 401.004.  MEANS OF ESTABLISHING DISTRIBUTEE CONSENT.
 (a)  This section applies to the creation of an independent
 administration under Section 401.002 or 401.003.
 (b)  All distributees shall be served with citation and
 notice of the application for independent administration unless the
 distributee waives the issuance or service of citation or enters an
 appearance in court.
 (c)  If a distributee is an incapacitated person, the
 guardian of the person of the distributee may sign the application
 on behalf of the distributee.  If the probate court finds that
 either the granting of independent administration or the
 appointment of the person, firm, or corporation designated in the
 application as independent executor would not be in the best
 interest of the incapacitated person, then, notwithstanding
 anything to the contrary in Section 401.002 or 401.003, the court
 shall not enter an order granting independent administration of the
 estate.  If a distributee who is an incapacitated person has no
 guardian of the person, the probate court may appoint a guardian ad
 litem to make application on behalf of the incapacitated person if
 the court considers such an appointment necessary to protect the
 interest of the distributees. Alternatively, if the distributee who
 is an incapacitated person is a minor and has no guardian of the
 person, the natural guardian or guardians of such minor may consent
 on behalf of such incapacitated person if there is no conflict of
 interest between the minor and such natural guardian or guardians.
 (d)  If a trust is created in the decedent's will, the person
 or class of persons first eligible to receive the income from the
 trust, when determined as if the trust were to be in existence on
 the date of the decedent's death, shall, for the purposes of Section
 401.002, be considered to be the distributee or distributees on
 behalf of such trust, and any other trust or trusts coming into
 existence on the termination of such trust, and are authorized to
 apply for independent administration on behalf of the trusts
 without the consent or agreement of the trustee or any other
 beneficiary of the trust, or the trustee or any beneficiary of any
 other trust which may come into existence on the termination of such
 trust.  If a person who is a trust beneficiary and who is considered
 to be a distributee under this subsection is an incapacitated
 person, then such trustee or cotrustee may file the application or
 give the consent, provided that such trustee or cotrustee is not the
 person proposed to serve as the independent executor.
 (e)  If a life estate is created either in the decedent's
 will or by law, the life tenant or life tenants, when determined as
 if the life estate were to commence on the date of the decedent's
 death, shall, for the purposes of Section 401.002 or 401.003, be
 considered to be the distributee or distributees on behalf of the
 entire estate created, and are authorized to apply for independent
 administration on behalf of the estate without the consent or
 approval of any remainderman.
 (f)  If a decedent's will contains a provision that a
 distributee must survive the decedent by a prescribed period of
 time in order to take under the decedent's will, then, for the
 purposes of determining who shall be the distributee under Section
 401.002 and under Subsection (c), it shall be presumed that the
 distributees living at the time of the filing of the application for
 probate of the decedent's will survived the decedent by the
 prescribed period.
 (g)  In the case of all decedents, whether dying testate or
 intestate, for the purposes of determining who shall be the
 distributees under Section 401.002 or 401.003 and under Subsection
 (c), it shall be presumed that no distributee living at the time the
 application for independent administration is filed shall
 subsequently disclaim any portion of such distributee's interest in
 the decedent's estate.
 (h)  If a distributee of a decedent's estate should die and
 if by virtue of such distributee's death such distributee's share of
 the decedent's estate shall become payable to such distributee's
 estate, then the deceased distributee's personal representative
 may sign the application for independent administration of the
 decedent's estate under Section 401.002 or 401.003 and under
 Subsection (c).
 Sec. 401.005.  BOND; WAIVER OF BOND.  If an independent
 administration of a decedent's estate is created under Section
 401.002 or 401.003, then, unless the probate court waives bond on
 application for waiver, the independent executor shall be required
 to enter into bond payable to and to be approved by the judge and the
 judge's successors in a sum that is found by the judge to be
 adequate under all circumstances, or a bond with one surety in a sum
 that is found by the judge to be adequate under all circumstances,
 if the surety is an authorized corporate surety.  This section does
 not repeal any other section of this title.
 Sec. 401.006.  GRANTING POWER OF SALE BY AGREEMENT.  In a
 situation in which a decedent does not have a will or the will does
 not contain or insufficiently contains language authorizing the
 personal representative to sell real property, the court may
 include in an order appointing an independent executor under
 Section 401.002 or 401.003 such general or specific authority
 regarding the power of the independent executor to sell real
 property as may be consented to by the beneficiaries who are to
 receive any such real property in their consents to the independent
 administration.  The independent executor, in such event, may sell
 the real property under the authority granted in the court order
 without the further consent of those beneficiaries.
 Sec. 401.007.  NO LIABILITY OF JUDGE.  Absent proof of fraud
 or collusion on the part of a judge, no judge may be held civilly
 liable for the commission of misdeeds or the omission of any
 required act of any person, firm, or corporation designated as an
 independent executor under Section 401.002 or 401.003.  Section
 351.354 does not apply to the appointment of an independent
 executor under Section 401.002 or 401.003.
 Sec. 401.008.  PERSON DECLINING TO SERVE.  A person who
 declines to serve or resigns as independent executor of a
 decedent's estate may be appointed an executor or administrator of
 the estate if the estate will be administered and settled under the
 direction of the court.
 CHAPTER 402.  ADMINISTRATION
 Sec. 402.001.  GENERAL SCOPE AND EXERCISE OF POWERS.  When an
 independent administration has been created, and the order
 appointing an independent executor has been entered by the probate
 court, and the inventory, appraisement, and list of claims has been
 filed by the independent executor and approved by the court, as long
 as the estate is represented by an independent executor, further
 action of any nature shall not be had in the probate court except
 where this title specifically and explicitly provides for some
 action in such court.
 Sec. 402.002.  INDEPENDENT EXECUTORS MAY ACT WITHOUT COURT
 APPROVAL.  Unless this title specifically provides otherwise, any
 action that a personal representative subject to court supervision
 may do with or without a court order may be taken by an independent
 executor without a court order.  The other provisions of this
 subtitle are designed to provide additional guidance regarding
 independent administrations in specified situations, and are not
 designed to limit by omission or otherwise the application of the
 general principles set forth in this chapter.
 Sec. 402.003.  POWER OF SALE.  (a)  General.  (1)  An
 independent executor has the power of sale set forth in the will, if
 applicable, exercisable without court approval as otherwise
 provided for independent administrations.
 (2)  Unless limited by the terms of a will, an
 independent executor has, in addition to any power of sale given in
 the will, the same power of sale for the same purposes as personal
 representatives have in a supervised administration, but without
 the requirement of court approval. The procedural requirements
 applicable to a supervised administration do not apply.
 (b)  Protection of Person Purchasing Estate Property.  (1)  A
 person who is not a devisee or heir is not required to inquire into
 the independent executor's power of sale or the propriety of the
 exercise of the power of sale if the person deals with the
 independent executor in good faith and:
 (A)  a power of sale is granted to the independent
 executor in the will or in the court order appointing the
 independent executor; or
 (B)  the independent executor provides an
 affidavit, sworn to under oath and recorded in the deed records of
 the county where the property is located, that the sale is necessary
 or advisable for any of the purposes described in Section
 356.251(1).
 (2)  As to acts undertaken in good faith reliance, the
 affidavit executed by the independent executor and described by
 Subsection (b)(1)(B) is conclusive proof, as between a purchaser of
 property from an estate, and the personal representative of an
 estate or the heirs and distributees of the estate, with respect to
 the authority of the independent executor to sell the property.  The
 signature or joinder of any person who is a devisee or heir and who
 has an interest in the property being sold as described in this
 section is not necessary for the purchaser to obtain all right,
 title, and interest of the estate in the property being sold.
 (3)  This section does not relieve the independent
 executor of any duty owing to a devisee or heir related directly or
 indirectly to the sale.
 (c)  No Limitations.  This section does not limit the
 authority of an independent executor to take other actions without
 court supervision or approval with respect to estate assets that
 may take place in a supervised administration, for purposes and
 within the scope otherwise authorized by this title, including
 leases and borrowing money.
 CHAPTER 403. CLAIMS; EXEMPTIONS AND ALLOWANCES
 Sec. 403.001.  SETTING ASIDE EXEMPT PROPERTY AND ALLOWANCES.
 The independent executor shall set aside and deliver to those
 entitled exempt property and allowances for support, and allowances
 in lieu of exempt property, as prescribed in this title, to the same
 extent and result as if the independent executor's actions had been
 accomplished in, and under orders of, the court.
 Sec. 403.002.  CLAIMS.  (a)  Duty of the Independent
 Executor. An independent executor, in the administration of an
 estate, independently of and without application to, or any action
 in or by the court:
 (1)  shall give the notices required under Sections
 308.051, 308.052, 308.053, and 308.054;
 (2)  may give the notice to an unsecured creditor with a
 claim for money permitted under Section 308.054 and bar a claim
 under Subsection (e); and
 (3)  may approve or reject any claim, or take no action
 on a claim, and shall classify and pay claims approved or
 established by suit against the estate in the same order of
 priority, classification, and proration prescribed in this title.
 (a-1)  Statement in Notice of Claim.  In order to be
 effective, the notice described by Subsection (a)(2) must include,
 in addition to the other information required by Section 308.054, a
 statement that a claim may be effectively presented only by one of
 the methods described in this section.
 (b)  Secured Claims for Money. Within six months after the
 date letters are granted or within four months after the date notice
 is received under Section 308.053, whichever is later, a creditor
 with a claim for money secured by real or personal property of the
 estate must give notice to the independent executor of the
 creditor's election to have the creditor's claim approved as a
 matured secured claim to be paid in due course of administration.
 In addition to such notice, such creditor whose claim is secured by
 real property shall record a notice of such election in the deed
 records of the county in which such real property is located.  If no
 election to be a matured secured creditor is made, or is made but
 not within the required period, or is made within the required
 period but the creditor has a lien against real property and fails
 to record notice of the claim in the deed records as described above
 within the required period, the claim shall be a preferred debt and
 lien against the specific property securing the indebtedness and
 shall be paid according to the terms of the contract that secured
 the lien, and the claim may not be asserted against other assets of
 the estate.  The independent executor may pay the claim prior to
 maturity if it is determined to be in the best interest of the
 estate to do so.
 (c)  Matured Secured Claims.  (1)  A claim approved as a
 matured secured claim under Subsection (b) shall remain secured by
 any lien or security interest against the specific property
 securing its payment but subordinated to the payment from the
 property of claims having a higher classification under Section
 355.102.  However, the secured creditor:
 (A)  shall not be entitled to exercise any
 remedies in a manner that prevents the payment of such higher
 priority claims and allowances; and
 (B)  during the administration of the estate,
 shall not be entitled to exercise any contractual collection
 rights, including the power to foreclose, without either the prior
 written approval of the independent executor or court approval.
 (1-a)  Nothing in Subdivision (1) shall be construed to
 suspend or otherwise prevent a creditor with a matured secured
 claim from seeking judicial relief of any kind or executing on any
 judgment against an independent executor. Except with respect to
 real property, any third party acting in good faith may obtain good
 title with respect to an estate asset acquired through a secured
 creditor's extrajudicial collection rights, without regard to
 whether such creditor had the right to collect or whether the
 creditor acted improperly in exercising such rights during an
 estate administration due to having elected matured secured status.
 (2)  If a claim approved or established by suit as a
 matured secured claim is secured by property passing to one or more
 devisees in accordance with Subchapter G, Chapter 255, the
 independent executor shall collect from the devisees the amount of
 the debt and pay that amount to the claimant or sell the property
 and pay out of the sale proceeds the claim and associated expenses
 of sale consistent with the provisions of Sections 355.153(b), (c),
 (d), and (e) applicable in court supervised administrations.
 (d)  Preferred Debt and Lien Claims.  During an independent
 administration, a secured creditor whose claim is a preferred debt
 and lien against property securing the indebtedness under
 Subsection (b) is free to exercise any and all judicial or
 extrajudicial collection rights, including foreclosure and
 execution; provided, however, that such creditor shall not have the
 right to conduct a nonjudicial foreclosure sale within a period of
 six months after letters are granted.
 (e)  Certain Unsecured Claims; Barring of Claims.  An
 unsecured creditor who has a claim for money against an estate and
 who receives a notice under Section 308.054 shall give notice to the
 independent executor of the nature and amount of the claim not later
 than the 120th day after the date on which the notice is received or
 the claim is barred.
 (f)  Notices Required by Creditors.  Notice to the personal
 representative required by Subsections (b) and (e) must be
 contained in:
 (1)  a written instrument that is hand-delivered with
 proof of receipt, or mailed by certified mail, return receipt
 requested with proof of receipt, to the independent executor or the
 executor's attorney;
 (2)  a pleading filed in a lawsuit with respect to the
 claim; or
 (3)  a written instrument or pleading filed in the
 court in which the administration of the estate is pending.
 (f-1)  Filing Requirements Applicable.  Nothing in
 Subsection (f) shall relieve a creditor who elects matured secured
 status from the filing requirements in Subsection (b), to the
 extent applicable.
 (g)  Statute of Limitations.  Except as otherwise provided in
 Section 16.062, Civil Practice and Remedies Code, the running of
 the statute of limitations shall be tolled only by a written
 approval of a claim signed by an independent executor, a pleading
 filed in a suit pending at the time of the decedent's death, or a
 suit brought by the creditor against the independent executor.  In
 particular, the presentation of a statement or claim, or a notice
 with respect to a claim, to an independent executor shall not toll
 the running of the statute of limitations with respect to that
 claim.
 (h)  Other Claim Procedures of Code Generally Do Not Apply.
 Except as otherwise provided in this section, the procedural
 provisions of this title governing creditor claims in supervised
 administrations do not apply in independent administrations. By way
 of example only and not of limitation:
 (1)  Sections 355.064 and 355.066 do not apply in
 independent administrations, and consequently a creditor's claim
 shall not be barred solely because the creditor failed to file a
 suit within 90 days after a claim has been rejected by an
 independent executor or with respect to which the independent
 executor takes no action; and
 (2)  Sections 355.156, 355.157, 355.158, 355.159, and
 355.160 do not apply in independent administrations.
 (i)  Liability of Independent Executor.  An independent
 executor, in the administration of an estate, may pay at any time
 and without personal liability a claim for money against the estate
 to the extent approved and classified by the personal
 representative if:
 (1) the claim is not barred by limitations; and
 (2)  at the time of payment, the independent executor
 reasonably believes the estate will have sufficient assets to pay
 all claims against the estate.
 Sec. 403.003.  ENFORCEMENT OF CLAIMS BY SUIT.  Any person
 having a debt or claim against the estate may enforce the payment of
 the same by suit against the independent executor; and, when
 judgment is recovered against the independent executor, the
 execution shall run against the estate of the decedent in the
 possession of the independent executor that is subject to such
 debt.  The independent executor shall not be required to plead to
 any suit brought against the executor for money until after six
 months after the date that an independent administration was
 created and the order appointing the executor was entered by the
 probate court.
 Sec. 403.004.  REQUIRING HEIRS TO GIVE BOND.  When an
 independent administration is created and the order appointing an
 independent executor is entered by the probate court, any person
 having a debt against such estate may, by written complaint filed in
 the probate court in which such order was entered, cause all
 distributees of the estate, heirs at law, and other persons
 entitled to any portion of such estate under the will, if any, to be
 cited by personal service to appear before such probate court and
 execute a bond for an amount equal to the amount of the creditor's
 claim or the full value of such estate, as shown by the inventory
 and list of claims, whichever is the smaller, such bond to be
 payable to the judge, and the judge's successors, and to be approved
 by the judge, and conditioned that all obligors shall pay all debts
 that shall be established against such estate in the manner
 provided by law. On the return of the citation served, unless such
 person so entitled to any portion of the estate, or some of them, or
 some other person for them, shall execute such bond to the
 satisfaction of the probate court, such estate shall be
 administered and settled under the direction of the probate court
 as other estates are required to be settled.  If the bond is
 executed and approved, the independent administration shall
 proceed. Creditors of the estate may sue on such bond, and shall be
 entitled to judgment on the bond for the amount of their debt, or
 they may have their action against those in possession of the
 estate.
 CHAPTER 404.  ACCOUNTINGS, SUCCESSORS, AND OTHER REMEDIES
 Sec. 404.001.  ACCOUNTING.  (a)  Interested Person May
 Demand Accounting.  At any time after the expiration of 15 months
 after the date that an independent administration was created and
 the order appointing an independent executor was entered by the
 probate court, any person interested in the estate may demand an
 accounting from the independent executor.  The independent executor
 shall furnish to the person or persons making the demand an exhibit
 in writing, sworn and subscribed by the independent executor,
 setting forth in detail:
 (1)  the property belonging to the estate that has come
 into the executor's possession as executor;
 (2)  the disposition that has been made of such
 property;
 (3) the debts that have been paid;
 (4)  the debts and expenses, if any, still owing by the
 estate;
 (5)  the property of the estate, if any, still
 remaining in the executor's possession;
 (6)  such other facts as may be necessary to a full and
 definite understanding of the exact condition of the estate; and
 (7)  such facts, if any, that show why the
 administration should not be closed and the estate distributed.
 (a-1)  Copy of Exhibit or Accounting.  Any other interested
 person shall, on demand, be entitled to a copy of any exhibit or
 accounting that has been made by an independent executor in
 compliance with this section.
 (b)  Enforcement of Demand.  Should the independent executor
 not comply with a demand for an accounting authorized by this
 section within 60 days after receipt of the demand, the person
 making the demand may compel compliance by an action in the probate
 court. After a hearing, the court shall enter an order requiring the
 accounting to be made at such time as it considers proper under the
 circumstances.
 (c)  Subsequent Demands.  After an initial accounting has
 been given by an independent executor, any person interested in an
 estate may demand subsequent periodic accountings at intervals of
 not less than 12 months, and such subsequent demands may be enforced
 in the same manner as an initial demand.
 (d)  Remedies Cumulative.  The right to an accounting
 accorded by this section is cumulative of any other remedies which
 persons interested in an estate may have against the independent
 executor of the estate.
 Sec. 404.002.  REQUIRING INDEPENDENT EXECUTOR TO GIVE BOND.
 When it has been provided by will, regularly probated, that an
 independent executor appointed by such will shall not be required
 to give bond for the management of the estate devised by such will,
 or the independent executor is not required to give bond because
 bond has been waived by court order as authorized under Section
 401.005, then such independent executor may be required to give
 bond, on proper proceedings had for that purpose as in the case of
 personal representatives in a supervised administration, if it be
 made to appear at any time that such independent executor is
 mismanaging the property, or has betrayed or is about to betray the
 independent executor's trust, or has in some other way become
 disqualified.
 Sec. 404.003.  REMOVAL OF INDEPENDENT EXECUTOR.  (a)  The
 probate court, on its own motion or on motion of any interested
 person, after the independent executor has been cited by personal
 service to answer at a time and place fixed in the notice, may
 remove an independent executor when:
 (1)  the independent executor fails to return within 90
 days after qualification, unless such time is extended by order of
 the court, an inventory of the property of the estate and list of
 claims that have come to the independent executor's knowledge;
 (2)  sufficient grounds appear to support belief that
 the independent executor has misapplied or embezzled, or that the
 independent executor is about to misapply or embezzle, all or any
 part of the property committed to the independent executor's care;
 (3)  the independent executor fails to make an
 accounting which is required by law to be made;
 (4)  the independent executor fails to timely file the
 affidavit or certificate required by Section 308.004;
 (5)  the independent executor is proved to have been
 guilty of gross misconduct or gross mismanagement in the
 performance of the independent executor's duties; or
 (6)  the independent executor becomes an incapacitated
 person, or is sentenced to the penitentiary, or from any other cause
 becomes legally incapacitated from properly performing the
 independent executor's fiduciary duties.
 (b)  The order of removal shall state the cause of removal
 and shall direct by order the disposition of the assets remaining in
 the name or under the control of the removed executor. The order of
 removal shall require that letters issued to the removed executor
 shall be surrendered and that all letters shall be canceled of
 record. If an independent executor is removed by the court under
 this section, the court may, on application, appoint a successor
 independent executor as provided by Section 404.005.
 (c)  An independent executor who defends an action for the
 independent executor's removal in good faith, whether successful or
 not, shall be allowed out of the estate the independent executor's
 necessary expenses and disbursements, including reasonable
 attorney's fees, in the removal proceedings.
 (d)  Costs and expenses incurred by the party seeking removal
 that are incident to removal of an independent executor appointed
 without bond, including reasonable attorney's fees and expenses,
 may be paid out of the estate.
 Sec. 404.004.  POWERS OF AN ADMINISTRATOR WHO SUCCEEDS AN
 INDEPENDENT EXECUTOR.  (a)  Grant of Powers by Court. Whenever a
 person has died, or shall die, testate, owning property in this
 state, and such person's will has been or shall be admitted to
 probate by the court, and such probated will names an independent
 executor or executors, or trustees acting in the capacity of
 independent executors, to execute the terms and provisions of said
 will, and such will grants to such independent executor, or
 executors, or trustees acting in the capacity of independent
 executors, the power to raise or borrow money and to mortgage, and
 such independent executor, or executors, or trustees, have died or
 shall die, resign, fail to qualify, or be removed from office,
 leaving unexecuted parts or portions of the will of the testator,
 and an administrator with the will annexed is appointed by the
 probate court, and an administrator's bond is filed and approved by
 the court, then in all such cases, the court may, in addition to the
 powers conferred on such administrator under other provisions of
 the laws of this state, authorize, direct, and empower such
 administrator to do and perform the acts and deeds, clothed with the
 rights, powers, authorities, and privileges, and subject to the
 limitations, set forth in the subsequent provisions of this
 section.
 (b)  Power to Borrow Money and Mortgage or Pledge Property.
 The court, on application, citation, and hearing, may, by its
 order, authorize, direct, and empower such administrator to raise
 or borrow such sums of money and incur such obligations and debts as
 the court shall, in its said order, direct, and to renew and extend
 same from time to time, as the court, on application and order,
 shall provide; and, if authorized by the court's order, to secure
 such loans, obligations, and debts, by pledge or mortgage on
 property or assets of the estate, real, personal, or mixed, on such
 terms and conditions, and for such duration of time, as the court
 shall consider to be in the best interests of the estate, and by its
 order shall prescribe; and all such loans, obligations, debts,
 pledges, and mortgages shall be valid and enforceable against the
 estate and against such administrator in the administrator's
 official capacity.
 (c)  Powers Limited to Those Granted by the Will.  The court
 may order and authorize such administrator to have and exercise the
 powers and privileges set forth in Subsection (a) or (b) only to the
 extent that same are granted to or possessed by the independent
 executor, or executors, or trustees acting in the capacity of
 independent executors, under the terms of the probated will of such
 deceased person, and then only in such cases as it appears, at the
 hearing of the application, that at the time of the appointment of
 such administrator, there are outstanding and unpaid obligations
 and debts of the estate, or of the independent executor, or
 executors, or trustees, chargeable against the estate, or unpaid
 expenses of administration, or when the court appointing such
 administrator orders the business of such estate to be carried on
 and it becomes necessary, from time to time, under orders of the
 court, for such administrator to borrow money and incur obligations
 and indebtedness in order to protect and preserve the estate.
 (d)  Powers Other Than Those Relating to Borrowing Money and
 Mortgaging or Pledging Property.  The court, in addition, may, on
 application, citation, and hearing, order, authorize, and empower
 such administrator to assume, exercise, and discharge, under the
 orders and directions of said court, made from time to time, all or
 such part of the rights, powers, and authorities vested in and
 delegated to, or possessed by, the independent executor, or
 executors, or trustees acting in the capacity of independent
 executors, under the terms of the will of such deceased person, as
 the court finds to be in the best interests of the estate and shall,
 from time to time, order and direct.
 (e)  Application for Grant of Powers.  The granting to such
 administrator by the court of some, or all, of the powers and
 authorities set forth in this section shall be on application filed
 by such administrator with the county clerk, setting forth such
 facts as, in the judgment of the administrator, require the
 granting of the power or authority requested.
 (f)  Citation.  On the filing of such application, the clerk
 shall issue citation to all persons interested in the estate,
 stating the nature of the application, and requiring such persons
 to appear on the return day named in such citation and show cause
 why such application should not be granted, should they choose to do
 so. Such citation shall be served by posting.
 (g)  Hearing and Order.  The court shall hear such
 application and evidence on the application, on or after the return
 day named in the citation, and, if satisfied a necessity exists and
 that it would be in the best interests of the estate to grant said
 application in whole or in part, the court shall so order;
 otherwise, the court shall refuse said application.
 Sec. 404.005.  COURT-APPOINTED SUCCESSOR INDEPENDENT
 EXECUTOR.  (a)  If the will of a person who dies testate names an
 independent executor who, having qualified, fails for any reason to
 continue to serve, or is removed for cause by the court, and the
 will does not name a successor independent executor or if each
 successor executor named in the will fails for any reason to qualify
 as executor or indicates by affidavit filed with the application
 for an order continuing independent administration the successor
 executor's inability or unwillingness to serve as successor
 independent executor, all of the distributees of the decedent as of
 the filing of the application for an order continuing independent
 administration may apply to the probate court for the appointment
 of a qualified person, firm, or corporation to serve as successor
 independent executor.  If the probate court finds that continued
 administration of the estate is necessary, the probate court shall
 enter an order continuing independent administration and
 appointing the person, firm, or corporation designated in the
 application as successor independent executor, unless the probate
 court finds that it would not be in the best interest of the estate
 to do so.  Such successor shall serve with all of the powers and
 privileges granted to the successor's predecessor independent
 executor.
 (b)  If a distributee described in this section is an
 incapacitated person, the guardian of the person of the distributee
 may sign the application on behalf of the distributee.  If the
 probate court finds that either the continuing of independent
 administration or the appointment of the person, firm, or
 corporation designated in the application as successor independent
 executor would not be in the best interest of the incapacitated
 person, then, notwithstanding Subsection (a), the probate court may
 not enter an order continuing independent administration of the
 estate.  If the distributee is an incapacitated person and has no
 guardian of the person, the court may appoint a guardian ad litem to
 make application on behalf of the incapacitated person if the
 probate court considers such an appointment necessary to protect
 the interest of such distributee.
 (c)  If a trust is created in the decedent's will, the person
 or class of persons first eligible to receive the income from the
 trust, determined as if the trust were to be in existence on the
 date of the filing of the application for an order continuing
 independent administration, shall, for the purposes of this
 section, be considered to be the distributee or distributees on
 behalf of such trust, and any other trust or trusts coming into
 existence on the termination of such trust, and are authorized to
 apply for an order continuing independent administration on behalf
 of the trust without the consent or agreement of the trustee or any
 other beneficiary of the trust, or the trustee or any beneficiary of
 any other trust which may come into existence on the termination of
 such trust.
 (d)  If a life estate is created either in the decedent's
 will or by law, and if a life tenant is living at the time of the
 filing of the application for an order continuing independent
 administration, then the life tenant or life tenants, determined as
 if the life estate were to commence on the date of the filing of the
 application for an order continuing independent administration,
 shall, for the purposes of this section, be considered to be the
 distributee or distributees on behalf of the entire estate created,
 and are authorized to apply for an order continuing independent
 administration on behalf of the estate without the consent or
 approval of any remainderman.
 (e)  If a decedent's will contains a provision that a
 distributee must survive the decedent by a prescribed period of
 time in order to take under the decedent's will, for the purposes of
 determining who shall be the distributee under this section, it
 shall be presumed that the distributees living at the time of the
 filing of the application for an order continuing independent
 administration of the decedent's estate survived the decedent for
 the prescribed period.
 (f)  In the case of all decedents, for the purposes of
 determining who shall be the distributees under this section, it
 shall be presumed that no distributee living at the time the
 application for an order continuing independent administration of
 the decedent's estate is filed shall subsequently disclaim any
 portion of such distributee's interest in the decedent's estate.
 (g)  If a distributee of a decedent's estate should die, and
 if by virtue of such distributee's death such distributee's share of
 the decedent's estate shall become payable to such distributee's
 estate, then the deceased distributee's personal representative
 may sign the application for an order continuing independent
 administration of the decedent's estate under this section.
 (h)  If a successor independent executor is appointed under
 this section, then, unless the probate court shall waive bond on
 application for waiver, the successor independent executor shall be
 required to enter into bond payable to and to be approved by the
 judge and the judge's successors in a sum that is found by the judge
 to be adequate under all circumstances, or a bond with one surety in
 an amount that is found by the judge to be adequate under all
 circumstances, if the surety is an authorized corporate surety.
 (i)  Absent proof of fraud or collusion on the part of a
 judge, the judge may not be held civilly liable for the commission
 of misdeeds or the omission of any required act of any person, firm,
 or corporation designated as a successor independent executor under
 this section. Section 351.354 does not apply to an appointment of a
 successor independent executor under this section.
 CHAPTER 405.  CLOSING AND DISTRIBUTIONS
 Sec. 405.001.  ACCOUNTING AND DISTRIBUTION.  (a)  In
 addition to or in lieu of the right to an accounting provided by
 Section 404.001, at any time after the expiration of two years after
 the date that an independent administration was created and the
 order appointing an independent executor was entered, a person
 interested in the estate may petition the court for an accounting
 and distribution.  The court may order an accounting to be made with
 the court by the independent executor at such time as the court
 considers proper. The accounting shall include the information that
 the court considers necessary to determine whether any part of the
 estate should be distributed.
 (b)  On receipt of the accounting and, after notice to the
 independent executor and a hearing, unless the court finds a
 continued necessity for administration of the estate, the court
 shall order its distribution by the independent executor to the
 distributees entitled to the property.  If the court finds there is
 a continued necessity for administration of the estate, the court
 shall order the distribution of any portion of the estate that the
 court finds should not be subject to further administration by the
 independent executor.  If any portion of the estate that is ordered
 to be distributed is incapable of distribution without prior
 partition or sale, the court shall order partition and
 distribution, or sale, in the manner provided for the partition and
 distribution of property incapable of division in supervised
 estates.
 (c)  If all the property in the estate is ordered distributed
 by the court and the estate is fully administered, the court may
 also order the independent executor to file a final account with the
 court and may enter an order closing the administration and
 terminating the power of the independent executor to act as
 executor.
 Sec. 405.002.  RECEIPTS AND RELEASES FOR DISTRIBUTIONS BY
 INDEPENDENT EXECUTOR.  (a)  An independent executor may not be
 required to deliver tangible or intangible personal property to a
 distributee unless the independent executor shall receive, at or
 before the time of delivery of the property, a signed receipt or
 other proof of delivery of the property to the distributee.
 (b)  An independent executor may not require a waiver or
 release from the distributee as a condition of delivery of property
 to a distributee.
 Sec. 405.003.  JUDICIAL DISCHARGE OF INDEPENDENT EXECUTOR.
 (a)  After an estate has been administered and if there is no
 further need for an independent administration of the estate, the
 independent executor of the estate may file an action for
 declaratory judgment under Chapter 37, Civil Practice and Remedies
 Code, seeking to discharge the independent executor from any
 liability involving matters relating to the past administration of
 the estate that have been fully and fairly disclosed.
 (b)  On the filing of an action under this section, each
 beneficiary of the estate shall be personally served with citation,
 except for a beneficiary who has waived the issuance and service of
 citation.
 (c)  In a proceeding under this section, the court may
 require the independent executor to file a final account that
 includes any information the court considers necessary to
 adjudicate the independent executor's request for a discharge of
 liability.  The court may audit, settle, or approve a final account
 filed under this subsection.
 (d)  On or before filing an action under this section, the
 independent executor must distribute to the beneficiaries of the
 estate any of the remaining assets or property of the estate that
 remains in the independent executor's possession after all of the
 estate's debts have been paid, except for a reasonable reserve of
 assets that the independent executor may retain in a fiduciary
 capacity pending court approval of the final account.  The court may
 review the amount of assets on reserve and may order the independent
 executor to make further distributions under this section.
 (e)  Except as ordered by the court, the independent executor
 is entitled to pay from the estate legal fees, expenses, or other
 costs incurred in relation to a proceeding for judicial discharge
 filed under this section.  The independent executor shall be
 personally liable to refund any amount of such fees, expenses, or
 other costs not approved by the court as a proper charge against the
 estate.
 Sec. 405.004.  CLOSING INDEPENDENT ADMINISTRATION BY
 CLOSING REPORT OR NOTICE OF CLOSING ESTATE.  When all of the debts
 known to exist against the estate have been paid, or when they have
 been paid so far as the assets in the independent executor's
 possession will permit, when there is no pending litigation, and
 when the independent executor has distributed to the distributees
 entitled to the estate all assets of the estate, if any, remaining
 after payment of debts, the independent executor may file with the
 court a closing report or a notice of closing of the estate.
 (a)  Closing Report. An independent executor may file a
 closing report verified by affidavit that:
 (1) shows:
 (A)  the property of the estate that came into the
 independent executor's possession;
 (B) the debts that have been paid;
 (C) the debts, if any, still owing by the estate;
 (D)  the property of the estate, if any, remaining
 on hand after payment of debts; and
 (E)  the names and addresses of the distributees
 to whom the property of the estate, if any, remaining on hand after
 payment of debts has been distributed; and
 (2)  includes signed receipts or other proof of
 delivery of property to the distributees named in the closing
 report if the closing report reflects that there was property
 remaining on hand after payment of debts.
 (b)  Notice of Closing Estate.  (1)  An independent executor
 is not required to but may file a notice of closing estate verified
 by affidavit that states:
 (A)  that all debts known to exist against the
 estate have been paid or that the debts have been paid so far as the
 assets in the possession of the independent executor will permit;
 (B)  that all remaining assets of the estate, if
 any, have been distributed; and
 (C)  the names and addresses of the distributees
 to whom the property of the estate, if any, remaining on hand after
 payment of debts has been distributed.
 (2)  Before filing the notice, the independent executor
 shall provide all distributees of the estate with a copy of the
 notice of closing estate. The notice of closing estate filed by the
 independent executor shall include signed receipts or other proof
 that all distributees have received a copy of the notice of closing
 estate.
 (c)  Effect of Filing Closing Report or Notice of Closing
 Estate.  (1)  The independent administration of an estate shall be
 considered closed 30 days after the filing of a closing report or
 notice of closing estate unless an interested person files an
 objection within the 30-day period.  If an interested person files
 an objection, the independent administration of the estate shall be
 closed when the objection has been disposed of or the court signs an
 order closing the estate.
 (2)  The closing of an independent administration by
 filing of a closing report or notice of closing estate terminates
 the power and authority of the independent executor, but does not
 relieve the independent executor from liability for any
 mismanagement of the estate or from liability for any false
 statements contained in the report or notice.
 (3)  When a closing report or notice of closing estate
 has been filed, persons dealing with properties of the estate, or
 with claims against the estate, shall deal directly with the
 distributees of the estate; and the acts of such distributees with
 respect to such properties or claims shall in all ways be valid and
 binding as regards the persons with whom they deal, notwithstanding
 any false statements made by the independent executor in such
 report or notice.
 (4)  If the independent executor is required to give
 bond, the independent executor's filing of the closing report and
 proof of delivery, if required, automatically releases the sureties
 on the bond from all liability for the future acts of the principal.
 The filing of a notice of closing estate does not release the
 sureties on the bond of an independent executor.
 (5)  An independent executor's closing report or notice
 of closing estate shall constitute sufficient legal authority to
 all persons owing any money, having custody of any property, or
 acting as registrar or transfer agent or trustee of any evidence of
 interest, indebtedness, property, or right that belongs to the
 estate, for payment or transfer without additional administration
 to the distributees described in the will as entitled to receive the
 particular asset or who as heirs at law are entitled to receive the
 asset.  The distributees described in the will as entitled to
 receive the particular asset or the heirs at law entitled to receive
 the asset may enforce their right to the payment or transfer by
 suit.
 Sec. 405.005.  PARTITION AND DISTRIBUTION OR SALE OF
 PROPERTY INCAPABLE OF DIVISION.  If the will does not distribute the
 entire estate of the testator or provide a means for partition of
 the estate, or if no will was probated, the independent executor
 may, but may not be required to, petition the probate court for
 either a partition and distribution of the estate or an order of
 sale of any portion of the estate alleged by the independent
 executor and found by the court to be incapable of a fair and equal
 partition and distribution, or both.  The estate or portion of the
 estate shall either be partitioned and distributed or sold, or
 both, in the manner provided for the partition and distribution of
 property and the sale of property incapable of division in
 supervised estates.
 Sec. 405.006.  CLOSING INDEPENDENT ADMINISTRATION ON
 APPLICATION BY DISTRIBUTEE.  (a)  At any time after an estate has
 been fully administered and there is no further need for an
 independent administration of such estate, any distributee may file
 an application to close the administration; and, after citation on
 the independent executor, and on hearing, the court may enter an
 order:
 (1)  requiring the independent executor to file a
 closing report meeting the requirements of Section 405.004;
 (2) closing the administration;
 (3)  terminating the power of the independent executor
 to act as such; and
 (4)  releasing the sureties on any bond the independent
 executor was required to give from all liability for the future acts
 of the principal.
 (b)  The order of the court closing the independent
 administration shall constitute sufficient legal authority to all
 persons owing any money, having custody of any property, or acting
 as registrar or transfer agent or trustee of any evidence of
 interest, indebtedness, property, or right that belongs to the
 estate, for payment or transfer without additional administration
 to the distributees described in the will as entitled to receive the
 particular asset or who as heirs at law are entitled to receive the
 asset.  The distributees described in the will as entitled to
 receive the particular asset or the heirs at law entitled to receive
 the asset may enforce their right to the payment or transfer by
 suit.
 Sec. 405.007.  ISSUANCE OF LETTERS.  At any time before the
 authority of an independent executor has been terminated in the
 manner set forth in this subtitle, the clerk shall issue such number
 of letters testamentary as the independent executor shall request.
 Sec. 405.008.  RIGHTS AND REMEDIES CUMULATIVE.  The rights
 and remedies conferred by this chapter are cumulative of other
 rights and remedies to which a person interested in the estate may
 be entitled under law.
 Sec. 405.009.  CLOSING PROCEDURES NOT REQUIRED.  An
 independent executor is not required to close the independent
 administration of an estate under Section 405.003 or 405.004.
 SECTION 2.02. Chapter VI-1, Texas Probate Code, as added by
 Article 1 of this Act, is repealed.
 SECTION 2.03. (a) Except as provided by Subsection (b) of
 this section, this article takes effect January 1, 2014.
 (b) The changes in law made by this article take effect only
 if H.B. No. 2502 or S.B. No. 2071, Acts of the 81st Legislature,
 Regular Session, 2009, are enacted and become law. If neither bill
 becomes law, this article has no effect.
 ARTICLE 3. EFFECTIVE DATE
 SECTION 3.01. Except as otherwise provided by this Act,
 this Act takes effect September 1, 2009.