reglab/housing_qa huggingface dataset:
TX Prop § 112.071 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.071. Definitions

Sec. 112.071.  DEFINITIONS.  In this subchapter:(1)  "Authorized trustee" means a person, other than the settlor, who has authority under the terms of a first trust to distribute the principal of the trust to or for the benefit of one or more current beneficiaries.(2)  "Charity" means a charitable entity or a charitable trust, as those terms are defined by Section 123.001.(3)  "Current beneficiary," with respect to a particular date, means a person who is receiving or is eligible to receive a distribution of income or principal from a trust on that date.(4)  "First trust" means an existing irrevocable inter vivos or testamentary trust all or part of the principal of which is distributed in further trust under Section 112.072 or 112.073.(5)  "Full discretion" means a power to distribute principal to or for the benefit of one or more of the beneficiaries of a trust that is not a trust with limited discretion.(6)  "Limited discretion" means:(A)  a power to distribute principal according to mandatory distribution provisions under which the trustee has no discretion; or(B)  a power to distribute principal to or for the benefit of one or more beneficiaries of a trust that is limited by an ascertainable standard, including the health, education, support, or maintenance of the beneficiary.(7)  "Presumptive remainder beneficiary," with respect to a particular date, means a beneficiary of a trust on that date who, in the absence of notice to the trustee of the exercise of the power of appointment and assuming that any other powers of appointment under the trust are not exercised, would be eligible to receive a distribution from the trust if:(A)  the trust terminated on that date; or(B)  the interests of all current beneficiaries ended on that date without causing the trust to terminate.(8)  "Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates and includes income of the trust that, at the time of the exercise of a power of distribution under Section 112.072 or 112.073, is not currently required to be distributed.(9)  "Second trust" means any irrevocable trust to which principal is distributed under Section 112.072 or 112.073.(10)  "Successor beneficiary" means a beneficiary other than a current or presumptive remainder beneficiary.  The term does not include a potential appointee under a power of appointment held by a beneficiary.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.Amended by: Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 7, eff. September 1, 2017.|
TX Prop § 112.0715 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.0715. Creation of Second Trust

Sec. 112.0715.  CREATION OF SECOND TRUST.  (a)  A second trust may be created by a distribution of principal under Section 112.072 or 112.073 to a trust created under the same trust instrument as the first trust from which the principal is distributed or to a trust created under a different trust instrument.(b)  If a second trust is created by a distribution of principal under Section 112.072 or 112.073 to a trust created under the same trust instrument as the first trust from which the principal is distributed, the property is not required to be retitled.(c)  The legislature intends this section to be a codification of the common law of this state in effect immediately before September 1, 2019.|Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 4, eff. September 1, 2019.|
TX Prop § 112.072 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.072. Distribution to Second Trust: Trustee With Full Discretion

Sec. 112.072.  DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH FULL DISCRETION.  (a)  An authorized trustee who has the full discretion to distribute the principal of a trust may distribute all or part of the principal of that trust in favor of a trustee of a second trust for the benefit of one, more than one, or all of the current beneficiaries of the first trust and for the benefit of one, more than one, or all of the successor or presumptive remainder beneficiaries of the first trust.(b)  The authorized trustee may, in connection with the exercise of a power of distribution under this section, grant a power of appointment, including a currently exercisable power of appointment, in the second trust to one or more of the current beneficiaries of the first trust who, at the time the power of appointment is granted, is eligible to receive the principal outright under the terms of the first trust.(c)  If the authorized trustee grants a power of appointment to a beneficiary under Subsection (b), the class of permissible appointees in whose favor the beneficiary may appoint under that power may be broader or different than the current, successor, and presumptive remainder beneficiaries of the first trust.(d)  If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust may include one or more persons who become members of that class after the distribution to the second trust.(e)  The authorized trustee shall exercise a power to distribute under this section in good faith, in accordance with the terms and purposes of the trust, and in the interests of the beneficiaries.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.Amended by: Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 8, eff. September 1, 2017.|
TX Prop § 112.073 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.073. Distribution to Second Trust: Trustee With Limited Discretion

Sec. 112.073.  DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH LIMITED DISCRETION.  (a)  An authorized trustee who has limited discretion to distribute the principal of a trust may distribute all or part of the principal of that trust in favor of a trustee of a second trust as provided by this section.(b)  The current beneficiaries of the second trust must be the same as the current beneficiaries of the first trust, and the successor and presumptive remainder beneficiaries of the second trust must be the same as the successor and presumptive remainder beneficiaries of the first trust.(c)  The second trust must include the same language authorizing the trustee to distribute the income or principal of the trust that was included in the first trust.(d)  If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust must include all persons who become members of that class after the distribution to the second trust.(e)  If the first trust grants a power of appointment to a beneficiary of the trust, the second trust must grant the power of appointment to the beneficiary in the second trust, and the class of permissible appointees under that power must be the same as the class of permissible appointees under the power granted by the first trust.(f)  The authorized trustee shall exercise a power of distribution under this section in good faith, in accordance with the terms and purposes of the trust, and in the interests of the beneficiaries.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.075 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.075. Written Instrument Required

Sec. 112.075.  WRITTEN INSTRUMENT REQUIRED.  A distribution under Section 112.072 or 112.073 must be made by a written instrument that is signed and acknowledged by the authorized trustee and filed with the records of the first trust and the second trust.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.076 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.076. Reference to Trust Terms

Sec. 112.076.  REFERENCE TO TRUST TERMS.  A reference to the governing instrument or terms of the governing instrument of a trust includes the terms of a second trust to which that trust's principal was distributed under this subchapter.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.077 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.077. Settlor of Second Trust

Sec. 112.077.  SETTLOR OF SECOND TRUST.  (a)  Except as provided by Subsection (b), the settlor of a first trust is considered to be the settlor of a second trust established under this subchapter.(b)  If a settlor of a first trust is not also the settlor of a second trust into which principal of that first trust is distributed, the settlor of the first trust is considered the settlor of the portion of the second trust distributed to the second trust from that first trust under this subchapter.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.078 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.078. Court-Ordered Distribution

Sec. 112.078.  COURT-ORDERED DISTRIBUTION.  (a)  An authorized trustee may petition a court to order a distribution under this subchapter.(b)  If the authorized trustee receives a written objection to a distribution under this subchapter from a beneficiary before the proposed effective date of the distribution specified in the notice provided to the beneficiary under Section 112.074, the trustee or the beneficiary may petition a court to approve, modify, or deny the exercise of the trustee's power to make a distribution under this subchapter.(c)  If the authorized trustee receives a written objection to the distribution from the attorney general not later than the 30th day after the date the notice required by Section 112.074 was received by the attorney general, the trustee may not make a distribution under Section 112.072 or 112.073 without petitioning a court to approve or modify the exercise of the trustee's power to make a distribution under this subchapter.(d)  In a judicial proceeding under this section, the authorized trustee may present the trustee's reasons for supporting or opposing a proposed distribution, including whether the trustee believes the distribution would enable the trustee to better carry out the purposes of the trust.(e)  The authorized trustee has the burden of proving that the proposed distribution furthers the purposes of the trust, is in accordance with the terms of the trust, and is in the interests of the beneficiaries.(f)  This section does not limit a beneficiary's right to bring an action against a trustee for a breach of trust.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.Amended by: Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 10, eff. September 1, 2017.|
TX Prop § 112.079 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.079. Divided Discretion

Sec. 112.079.  DIVIDED DISCRETION.  If an authorized trustee has full discretion to distribute the principal of a trust and another trustee has limited discretion to distribute principal under the trust instrument, the authorized trustee having full discretion may exercise the power to distribute the trust's principal under Section 112.072.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.080 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.080. Later Discovered Assets

Sec. 112.080.  LATER DISCOVERED ASSETS.  To the extent the authorized trustee does not provide otherwise:(1)  the distribution of all of the principal of a first trust to a second trust includes subsequently discovered assets otherwise belonging to the first trust and principal paid to or acquired by the first trust after the distribution of the first trust's principal to the second trust; and(2)  the distribution of part of the principal of a first trust to a second trust does not include subsequently discovered assets belonging to the first trust or principal paid to or acquired by the first trust after the distribution of principal from the first trust to the second trust, and those assets or that principal remain the assets or principal of the first trust.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.081 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.081. Other Authority to Distribute in Further Trust Not Limited

Sec. 112.081.  OTHER AUTHORITY TO DISTRIBUTE IN FURTHER TRUST NOT LIMITED.  This subchapter may not be construed to limit the power of an authorized trustee to distribute property in further trust under the terms of the governing instrument of a trust, other law, or a court order.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.082 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.082. Need for Distribution Not Required

Sec. 112.082.  NEED FOR DISTRIBUTION NOT REQUIRED.  An authorized trustee may exercise the power to distribute principal to a second trust under Section 112.072 or 112.073 regardless of whether there is a current need to distribute principal under the terms of the first trust.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.083 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.083. Duties Not Created

Sec. 112.083.  DUTIES NOT CREATED.  (a)  This subchapter does not create or imply a duty for an authorized trustee to exercise a power to distribute principal, and impropriety may not be inferred as a result of the trustee not exercising a power conferred by Section 112.072 or 112.073.(b)  An authorized trustee does not have a duty to inform beneficiaries about the availability of the authority provided by this subchapter or a duty to review the trust to determine whether any action should be taken under this subchapter.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.084 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.084. Certain Distributions Prohibited

Sec. 112.084.  CERTAIN DISTRIBUTIONS PROHIBITED.  (a)  Except as provided by Subsection (b), an authorized trustee may not exercise a power to distribute principal of a trust otherwise provided by Section 112.072 or 112.073 if the distribution is expressly prohibited by the terms of the governing instrument of the trust.(b)  A general prohibition of the amendment or revocation of a trust or a provision that constitutes a spendthrift clause does not preclude the exercise of a power to distribute principal of a trust under Section 112.072 or 112.073.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.085 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.085. Exceptions to Power of Distribution

Sec. 112.085.  EXCEPTIONS TO POWER OF DISTRIBUTION.  An authorized trustee may not exercise a power to distribute principal of a trust under Section 112.072 or 112.073 to:(1)  reduce, limit, or modify a beneficiary's current, vested right to:(A)  receive a mandatory distribution of income or principal;(B)  receive a mandatory annuity or unitrust interest;(C)  withdraw a percentage of the value of the trust; or(D)  withdraw a specified dollar amount from the trust;(2)   materially limit a trustee's fiduciary duty:(A)  under the terms of the trust; or(B)  in a manner that would be prohibited by Section 111.0035;(3)  decrease or indemnify against a trustee's liability;(4)  add a provision exonerating a trustee from liability for failure to exercise reasonable care, diligence, and prudence;(5)  eliminate a provision granting another person the right to remove or replace the authorized trustee exercising the distribution power under Section 112.072 or 112.073; or(6)  reduce, limit, or modify in the second trust a perpetuities provision included in the first trust, unless expressly permitted by the terms of the first trust.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.Amended by: Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 11, eff. September 1, 2017.|
TX Prop § 112.086 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.086. Tax-Related Limitations

Sec. 112.086.  TAX-RELATED LIMITATIONS.  (a)  The authorized trustee may not distribute the principal of a trust under Section 112.072 or 112.073 in a manner that would prevent a contribution to that trust from qualifying for or that would reduce the exclusion, deduction, or other federal tax benefit that was originally claimed for that contribution, including:(1)  the annual exclusion under Section 2503(b), Internal Revenue Code of 1986;(2)  a marital deduction under Section 2056(a) or 2523(a), Internal Revenue Code of 1986;(3)  the charitable deduction under Section 170(a), 642(c), 2055(a), or 2522(a), Internal Revenue Code of 1986;(4)  direct skip treatment under Section 2642(c), Internal Revenue Code of 1986; or(5)  any other tax benefit for income, gift, estate, or generation-skipping transfer tax purposes under the Internal Revenue Code of 1986.(b)  Notwithstanding Subsection (a), an authorized trustee may distribute the principal of a first trust to a second trust regardless of whether the settlor is treated as the owner of either or both trusts under Sections 671-679, Internal Revenue Code of 1986.(c)  If S corporation stock is held in trust, an authorized trustee may not distribute all or part of that stock under Section 112.072 or 112.073 to a second trust that is not a permitted shareholder under Section 1361(c)(2), Internal Revenue Code of 1986.(d)  If an interest in property that is subject to the minimum distribution rules of Section 401(a)(9), Internal Revenue Code of 1986, is held in trust, an authorized trustee may not distribute the trust's interest in the property to a second trust under Section 112.072 or 112.073 if the distribution would shorten the minimum distribution period applicable to the property.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|
TX Prop § 112.087 (2021)
2021 Texas Statutes|Property Code|Title 9 - Trusts|Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts|Chapter 112 - Creation, Validity, Modification, and Termination of Trusts|Subchapter D. Distribution of Trust Principal in Further Trust|Section 112.087. Compensation of Trustee

Sec. 112.087.  COMPENSATION OF TRUSTEE.  (a)  Except as provided by Subsection (b) and unless a court, on application of the authorized trustee, directs otherwise, the trustee may not exercise a power under Section 112.072 or 112.073 solely to change trust provisions regarding the determination of the compensation of any trustee.(b)  An authorized trustee, in connection with the exercise of a power under Section 112.072 or 112.073 for another valid and reasonable purpose, may bring the trustee's compensation into conformance with reasonable limits authorized by state law.(c)  The compensation payable to an authorized trustee of the first trust may continue to be paid to the trustee of the second trust during the term of the second trust and may be determined in the same manner as the compensation would have been determined in the first trust.(d)  An authorized trustee may not receive a commission or other compensation for the distribution of a particular asset from a first trust to a second trust under Section 112.072 or 112.073.|Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.|