Relating to the administration of charitable trusts.
The introduction of SB666 is poised to solidify the framework governing charitable trusts within Texas, specifically addressing the challenges that may arise when trustees believe a re-location is necessary to fulfill the trust's charitable purposes. It grants authority to the attorney general to review and potentially contest relocation decisions, ensuring that selections made by trustees align with the intent of the trust. Furthermore, if disputes arise between trustees and settlors regarding location changes, district courts will have a role in adjudicating those disagreements.
SB666 seeks to amend the Texas Property Code to establish regulations around the administration of charitable trusts. The primary focus of the bill is the relocation of the administration or property of such trusts, which must be conducted under specific circumstances outlined within the new regulations. The bill defines a 'charitable trust' and sets conditions under which trustees may change the municipality or county in which the trust operates. A key component is the requirement for trustees to consult living settlors when feasible for any proposed relocation, thereby allowing for informed decision-making that respects the settlor's intentions.
Some points of contention may arise from the requirement for trustees to navigate both the legal obligations to serve the trust's charitable mission and the expectations of settlors. If a settlor is incapacitated or deceased, the trust's operation could become more complex, prompting discussions about who has the authority and how decisions should be made. Opponents of the bill may argue that the added layer of attorney general involvement and court authority could delay necessary relocations, potentially hindering the timely fulfillment of the trust's purposes.