| 1 | 1 | | H.B. No. 3635 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to administration of a trust with cotrustees. |
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| 6 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 7 | 7 | | SECTION 1. Sections 113.085(c) and (d), Property Code, are |
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| 8 | 8 | | amended to read as follows: |
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| 9 | 9 | | (c) A cotrustee shall participate in the performance of a |
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| 10 | 10 | | trustee's function unless the cotrustee: |
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| 11 | 11 | | (1) is unavailable to perform the function because of |
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| 12 | 12 | | absence, illness, suspension under this code or other law, |
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| 13 | 13 | | disqualification, if any, under this code, disqualification under |
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| 14 | 14 | | other law, or other temporary incapacity; or |
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| 15 | 15 | | (2) has delegated the performance of the function to |
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| 16 | 16 | | another trustee in accordance with the terms of the trust or |
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| 17 | 17 | | applicable law, has communicated the delegation to all other |
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| 18 | 18 | | cotrustees, and has filed the delegation in the records of the |
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| 19 | 19 | | trust. |
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| 20 | 20 | | (d) If a cotrustee is unavailable to participate in the |
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| 21 | 21 | | performance of a trustee's function for a reason described by |
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| 22 | 22 | | Subsection (c)(1) and prompt action is necessary to achieve the |
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| 23 | 23 | | efficient administration or purposes of the trust or to avoid |
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| 24 | 24 | | injury to the trust property or a beneficiary, the remaining |
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| 25 | 25 | | cotrustee or a majority of the remaining cotrustees may act for the |
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| 26 | 26 | | trust. |
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| 27 | 27 | | SECTION 2. Section 113.085, Property Code, as amended by |
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| 28 | 28 | | this Act, applies only to a trust existing on or after September 1, |
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| 29 | 29 | | 2009, regardless of the date the trust was created. |
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| 30 | 30 | | SECTION 3. This Act takes effect September 1, 2009. |
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| 31 | 31 | | ______________________________ ______________________________ |
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| 32 | 32 | | President of the Senate Speaker of the House |
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| 33 | 33 | | I certify that H.B. No. 3635 was passed by the House on May 5, |
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| 34 | 34 | | 2009, by the following vote: Yeas 144, Nays 0, 1 present, not |
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| 35 | 35 | | voting; and that the House concurred in Senate amendments to H.B. |
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| 36 | 36 | | No. 3635 on May 29, 2009, by the following vote: Yeas 141, Nays 0, |
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| 37 | 37 | | 1 present, not voting. |
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| 38 | 38 | | ______________________________ |
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| 39 | 39 | | Chief Clerk of the House |
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| 40 | 40 | | I certify that H.B. No. 3635 was passed by the Senate, with |
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| 41 | 41 | | amendments, on May 27, 2009, by the following vote: Yeas 31, Nays |
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| 42 | 42 | | 0. |
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| 43 | 43 | | ______________________________ |
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| 44 | 44 | | Secretary of the Senate |
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| 45 | 45 | | APPROVED: __________________ |
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| 46 | 46 | | Date |
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| 47 | 47 | | __________________ |
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| 48 | 48 | | Governor |
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