Texas 2023 - 88th Regular

Texas House Bill HB2333 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 2333
2	2
3	3
4	4	AN ACT
5	5	relating to noncharitable trusts without an ascertainable
6	6	beneficiary.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 111.004(4), Property Code, is amended to
9	9	read as follows:
10	10	(4) "Express trust" means a fiduciary relationship
11	11	with respect to property which arises as a manifestation by the
12	12	settlor of an intention to create the relationship and which
13	13	subjects the person holding title to the property to equitable
14	14	duties to deal with the property:
15	15	(A) for the benefit of another person; or
16	16	(B) for a particular purpose, in the case of a
17	17	trust subject to Subchapter F.
18	18	SECTION 2. Chapter 112, Property Code, is amended by adding
19	19	Subchapter F to read as follows:
20	20	SUBCHAPTER F. NONCHARITABLE TRUST WITHOUT ASCERTAINABLE
21	21	BENEFICIARY
22	22	Sec. 112.121. VALIDITY OF TRUST; APPLICABILITY. (a) A
23	23	trust may be created for a noncharitable purpose without a definite
24	24	or definitely ascertainable beneficiary. A noncharitable purpose
25	25	may include seeking economic or noneconomic benefits.
26	26	(b) This subchapter does not apply to a trust created under
27	27	Section 112.037.
28	28	Sec. 112.122. ENFORCEMENT OF TRUST. (a) A trust created
29	29	under this subchapter must be enforced by one or more persons
30	30	appointed in the terms of the trust to serve as a trust enforcer.
31	31	(b) A trust enforcer shall enforce the purpose and terms of
32	32	the trust. The trust enforcer is not a beneficiary of the trust,
33	33	but has the rights of a beneficiary provided under this title and
34	34	the common law of this state, or as otherwise provided by the terms
35	35	of the trust.
36	36	(c) A trust enforcer shall exercise any authority granted
37	37	under the terms of the trust or the provisions of this section as a
38	38	fiduciary owing a duty to the trust and is entitled to reasonable
39	39	compensation for serving as trust enforcer.
40	40	(d) A trust enforcer may consent to, waive, object to, or
41	41	petition an appropriate court concerning any matter regarding the
42	42	purpose or administration of the trust.
43	43	(e) Except as otherwise provided by the terms of the trust,
44	44	if more than one person is acting as a trust enforcer, any action in
45	45	that capacity must be decided by the majority vote of the persons
46	46	acting as trust enforcers. If there are an even number of trust
47	47	enforcers and a majority vote cannot be established, the decision
48	48	of the trustee controls.
49	49	(f) The terms of the trust may provide for the succession of
50	50	a trust enforcer or a process of appointing any successor trust
51	51	enforcer.
52	52	(g) If no person is serving as a trust enforcer for a trust
53	53	created under this subchapter, a court properly exercising
54	54	jurisdiction shall appoint one or more persons to serve as the trust
55	55	enforcer.
56	56	Sec. 112.123. APPLICATION OR DISTRIBUTION OF TRUST
57	57	PROPERTY. (a) Property of a trust created under this subchapter
58	58	may be applied only to the intended purpose of the trust, except to
59	59	the extent that a court finds that the value of the trust property
60	60	exceeds the amount required for the intended purpose of the trust.
61	61	(b) Except as provided by the terms of the trust, property
62	62	found by a court not to be required for the trust's intended purpose
63	63	shall be distributed:
64	64	(1) as provided by the terms of the trust; or
65	65	(2) if the trust does not provide for the distribution
66	66	of such property, to the settlor if then living or to the settlor's
67	67	successors in interest.
68	68	SECTION 3. Subchapter F, Chapter 112, Property Code, as
69	69	added by this Act, applies only to a trust created on or after the
70	70	effective date of this Act.
71	71	SECTION 4. This Act takes effect immediately if it receives
72	72	a vote of two-thirds of all the members elected to each house, as
73	73	provided by Section 39, Article III, Texas Constitution. If this
74	74	Act does not receive the vote necessary for immediate effect, this
75	75	Act takes effect September 1, 2023.
76	76	______________________________ ______________________________
77	77	President of the Senate Speaker of the House
78	78	I certify that H.B. No. 2333 was passed by the House on May 9,
79	79	2023, by the following vote: Yeas 137, Nays 3, 2 present, not
80	80	voting.
81	81	______________________________
82	82	Chief Clerk of the House
83	83	I certify that H.B. No. 2333 was passed by the Senate on May
84	84	24, 2023, by the following vote: Yeas 31, Nays 0.
85	85	______________________________
86	86	Secretary of the Senate
87	87	APPROVED: _____________________
88	88	Date
89	89	_____________________
90	90	Governor