| 1 | 1 | | 82R17072 AJA-D |
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| 2 | 2 | | By: Phillips H.B. No. 1813 |
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| 3 | 3 | | Substitute the following for H.B. No. 1813: |
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| 4 | 4 | | By: Quintanilla C.S.H.B. No. 1813 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the beneficiaries of a trust who are entitled to demand |
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| 10 | 10 | | an accounting from the trustee. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 113.151(a), Property Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (a) A beneficiary, including a person whose right to benefit |
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| 15 | 15 | | from the trust is contingent, regardless of whether the right to |
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| 16 | 16 | | benefit from the trust is presently vested, by written demand may |
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| 17 | 17 | | request the trustee to deliver to each beneficiary of the trust a |
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| 18 | 18 | | written statement of accounts covering all transactions since the |
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| 19 | 19 | | last accounting or since the creation of the trust, whichever is |
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| 20 | 20 | | later. If the trustee fails or refuses to deliver the statement on |
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| 21 | 21 | | or before the 90th day after the date the trustee receives the |
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| 22 | 22 | | demand or after a longer period ordered by a court, any beneficiary |
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| 23 | 23 | | of the trust may file suit to compel the trustee to deliver the |
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| 24 | 24 | | statement to all beneficiaries of the trust. The court may require |
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| 25 | 25 | | the trustee to deliver a written statement of account to all |
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| 26 | 26 | | beneficiaries on finding that the nature of the beneficiary's |
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| 27 | 27 | | interest in the trust or the effect of the administration of the |
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| 28 | 28 | | trust on the beneficiary's interest is sufficient to require an |
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| 29 | 29 | | accounting by the trustee. However, the trustee is not obligated or |
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| 30 | 30 | | required to account to the beneficiaries of a trust more frequently |
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| 31 | 31 | | than once every 12 months unless a more frequent accounting is |
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| 32 | 32 | | required by the court. If a beneficiary is successful in the suit |
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| 33 | 33 | | to compel a statement under this section, the court may, in its |
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| 34 | 34 | | discretion, award all or part of the costs of court and all of the |
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| 35 | 35 | | suing beneficiary's reasonable and necessary attorney's fees and |
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| 36 | 36 | | costs against the trustee in the trustee's individual capacity or |
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| 37 | 37 | | in the trustee's capacity as trustee. |
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| 38 | 38 | | SECTION 2. This Act takes effect September 1, 2011. |
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