| 1 | 1 | | 89R6822 RAL-F |
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| 2 | 2 | | By: Hayes H.B. No. 3405 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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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 contents of a trust accounting. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 113.151, Property Code, is amended by |
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| 12 | 12 | | adding Subsection (c) to read as follows: |
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| 13 | 13 | | (c) Notwithstanding Section 113.152(b), on a showing of |
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| 14 | 14 | | good cause, the court may compel the trustee to include in a written |
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| 15 | 15 | | statement of account required by the court under Subsection (a) or |
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| 16 | 16 | | (b) an allocation of certain receipts and disbursements to |
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| 17 | 17 | | principal and income regardless of whether the distribution |
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| 18 | 18 | | standard and beneficiaries are the same for principal and income. |
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| 19 | 19 | | SECTION 2. Section 113.152, Property Code, is amended to |
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| 20 | 20 | | read as follows: |
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| 21 | 21 | | Sec. 113.152. CONTENTS OF ACCOUNTING. (a) A written |
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| 22 | 22 | | statement of accounts shall show: |
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| 23 | 23 | | (1) all trust property that has come to the trustee's |
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| 24 | 24 | | knowledge or into the trustee's possession and that has not been |
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| 25 | 25 | | previously listed or inventoried as property of the trust; |
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| 26 | 26 | | (2) a complete account of receipts, disbursements, and |
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| 27 | 27 | | other transactions regarding the trust property for the period |
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| 28 | 28 | | covered by the account, including their source and nature, with |
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| 29 | 29 | | each receipt and disbursement allocated to [receipts of] principal |
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| 30 | 30 | | or [and] income, subject to Subsection (b) [shown separately]; |
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| 31 | 31 | | (3) a listing of all property being administered, with |
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| 32 | 32 | | an adequate description of each asset; |
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| 33 | 33 | | (4) the cash balance on hand and the name and location |
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| 34 | 34 | | of the depository where the balance is kept; and |
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| 35 | 35 | | (5) all known liabilities owed by the trust. |
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| 36 | 36 | | (b) A trustee is not required to allocate a receipt or |
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| 37 | 37 | | disbursement to principal or income under Subsection (a)(2) if the |
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| 38 | 38 | | distribution standard and beneficiaries are the same for both |
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| 39 | 39 | | principal and income. |
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| 40 | 40 | | SECTION 3. The changes in law made by this Act apply only to |
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| 41 | 41 | | a demand for accounting made on or after the effective date of this |
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| 42 | 42 | | Act. A demand for accounting made before the effective date of this |
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| 43 | 43 | | Act is governed by the law in effect immediately before the |
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| 44 | 44 | | effective date of this Act, and the former law is continued in |
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| 45 | 45 | | effect for that purpose. |
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| 46 | 46 | | SECTION 4. This Act takes effect September 1, 2025. |
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