Texas 2025 - 89th Regular

Texas House Bill HB5069 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Leach H.B. No. 5069
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to trustee settlement of accounts.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subtitle B, Chapter 114, Property Code, is
9	11		amended by adding Section 114.009 to read as follows:
10	12		Section 114.009. TRUSTEE SETTLEMENT OF ACCOUNTS
11	13		(A) A trustee may obtain a settlement of its accounts in
12	14		accordance with subsection (B) when any of the following occur:
13	15		(1) A trust terminates pursuant to the terms of the trust.
14	16		(2) A trust terminates early pursuant to § 112.054.
15	17		(3) A trustee resigns or is removed.
16	18		(4) A trustee seeks discharge of an interim accounting
17	19		period when the trust is continuing.
18	20		(B) (1) A trustee who elects to proceed under this section
19	21		shall provide all of the following to the qualified beneficiaries
20	22		of the trust and the successor trustee, if applicable, within a
21	23		reasonable time after termination of the trust pursuant to its
22	24		terms, the resignation or removal of the trustee, or the end of the
23	25		period for which the trustee is seeking discharge:
24	26		a. A statement showing the fair market value of the new
25	27		assets to be distributed from a terminating trust or to a successor
26	28		trustee.
27	29		b. A trust accounting for the prior two years showing all
28	30		receipts and disbursements and inventory value of the net assets.
29	31		c. An estimate for any items reasonably anticipated to be
30	32		received or disbursed.
31	33		d. The amount of any fees, including trustee fees, remaining
32	34		to be paid.
33	35		e. Notice that the trust is terminating, or that the trustee
34	36		has resigned or been removed, the time period for which the trustee
35	37		seeks discharge of its accounts, and a statement providing that
36	38		claims against a trustee shall be barred if no objections are
37	39		received within the time period described in subsection (C).
38	40		f. The name and mailing address of the trustee.
39	41		g. The name and telephone number of a person who may be
40	42		contacted for additional information.
41	43		(2) The trustee may also provide the statement and notice
42	44		described in this subsection to any other person who the trustee
43	45		reasonably believes may have an interest in the trust.
44	46		(C) (1) If, after receiving the notice and trust information
45	47		described in subsection (B), a qualified beneficiary or any other
46	48		party that received the notice and trust information objects to a
47	49		disclosed act or omission, the qualified beneficiary shall provide
48	50		written notice of the objection to the trustee not later than 45
49	51		days after the notice was sent by the trustee. If no written
50	52		objection is provided in the 45-day time period, the information
51	53		provided under subsection (B) shall be considered approved by the
52	54		recipient. The trustee, in the case of a trust terminating pursuant
53	55		to the terms of the trust or the trustee's resignation or removal,
54	56		within a reasonable period of time following the expiration of the
55	57		45-day time period, shall distribute the assets as provided in the
56	58		trust or to the successor trustee. If a qualified beneficiary gives
57	59		the trustee a written objection within the applicable 45-day time
58	60		period, the trustee or the qualified beneficiary may do either of
59	61		the following:
60	62		a. Submit the written objection to the court for resolution
61	63		and charge the expense of commencing a proceeding to the trust.
62	64		b. Resolve the objection by written agreement.
63	65		(2) Any agreement entered into pursuant to paragraph (1)b
64	66		may include a release, an indemnity clause, or both, on the part of
65	67		the beneficiary against the trustee relating to the trust. If the
66	68		parties agree to a nonjudicial settlement agreement or other
67	69		written agreement, any related expenses shall be charged to the
68	70		trust. Upon a resolution of an objection under this subsection,
69	71		within a reasonable period of time, the trustee shall distribute
70	72		the remaining trust assets as provided in the trust or to the
71	73		successor trustee.
72	74		(D) The trustee may rely upon the written statement of a
73	75		person receiving notice that the person does not object.
74	76		(E) When a trustee distributes assets of a terminating trust
75	77		or to the successor trustee after complying with this article and
76	78		having received no objections, each person who received notice and
77	79		either consented or failed to object pursuant to this section is
78	80		barred from doing either of the following:
79	81		(1) Bringing a claim against the trustee or challenging the
80	82		validity of the trust to the same extent and with the same
81	83		preclusive effect as if the court had entered a final order
82	84		approving the trustee's final account.
83	85		(2) Bringing a claim against the trustee for the period of
84	86		such interim accounts to the same extent and with the same
85	87		preclusive effect as if the court had entered a final order
86	88		approving the trustee's interim accounts.
87	89		(F) The court, as defined under § 111.004, shall have
88	90		exclusive jurisdiction over matters under this section.
89	91		(G) In the event the trustee is not released and his actions
90	92		ratified pursuant to the process provided by subsection (b), the
91	93		trustee shall not be precluded from obtaining a release of
92	94		liability by another permitted method.
93	95		SECTION 2. This Act takes effect immediately if it receives
94	96		a vote of two-thirds of all the members elected to each house, as
95	97		provided by Section 39, Article III, Texas Constitution. If this
96	98		Act does not receive the vote necessary for immediate effect, this
97	99		Act takes effect on September 1, 2025.