81R9486 PMO-F
By: Geren H.B. No. 3635
A BILL TO BE ENTITLED
AN ACT
relating to administration of a trust involving cotrustees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 113.085, Property Code, is amended by
amending Subsections (b), (c), and (d) and adding Subsection (c-1)
to read as follows:
(b) Except as provided in Subsection (c-1), if [If] a
vacancy, including a temporary vacancy due to the suspension of a
trustee, occurs in a cotrusteeship, the remaining cotrustees may
act for the trust.
(c) A cotrustee shall participate in the performance of a
trustee's function unless the cotrustee:
(1) is unavailable to perform the function because of
absence, illness, suspension by court order, disqualification
under other law, or other temporary incapacity; or
(2) has delegated the performance of the function to
another trustee in accordance with the terms of the trust or
applicable law, has communicated the delegation to all other
cotrustees, and has filed the delegation in the records of the
trust.
(c-1) Notwithstanding Subsection (c), a cotrustee who is a
beneficiary of the trust may not exercise sole discretion in taking
an action or making a decision regarding the trust if the action or
decision benefits the cotrustee as beneficiary.
(d) If a cotrustee is unavailable to participate in the
performance of a trustee's function for a reason described by
Subsection (c)(1) or (c-1) and performance of the trustee's
function [prompt action] is necessary to achieve the timely
administration [purposes] of the trust or to avoid injury to the
trust property, the remaining cotrustee or [a majority of] the
remaining cotrustees may act for the trust.
SECTION 2. Section 113.085, Property Code, as amended by
this Act, applies only to a trust created on or after September 1,
2009. A trust created before September 1, 2009, is governed by the
law in effect on the date the trust was created, and the former law
is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.