reglab/statecodes huggingface dataset:
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 116 - Uniform Principal and Income Act › Subchapter E. Allocation of Disbursements During Administration of Trust › Section 116.205. Income Taxes

Sec. 116.205.  INCOME TAXES.  (a)  A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
(b)  A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
(c)  A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:
(1)  from income to the extent that receipts from the entity are allocated only to income;
(2)  from principal to the extent that  receipts from the entity are allocated only to principal;
(3)  proportionately from principal and income to the extent that receipts from the entity are allocated to both principal and income; and
(4)  from principal to the extent that the tax exceeds the total receipts from the entity.
(d)  After applying the other provisions of this section, the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 8, eff. September 1, 2011.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 116 - Uniform Principal and Income Act › Subchapter E. Allocation of Disbursements During Administration of Trust › Section 116.206. Adjustments Between Principal and Income Because of Taxes

Sec. 116.206.  ADJUSTMENTS BETWEEN PRINCIPAL AND INCOME BECAUSE OF TAXES.  (a)  A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:
(1)  elections and decisions, other than those described in Subsection (b), that the fiduciary makes from time to time regarding tax matters;
(2)  an income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust;  or
(3)  the ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.
(b)  If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid.  The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment.  The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax.  An estate or trust shall reimburse principal from income.
Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.001. Short Title

Sec. 117.001.  SHORT TITLE.  This chapter may be cited as the "Uniform Prudent Investor Act."
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.002. Uniformity of Application and Construction

Sec. 117.002.  UNIFORMITY OF APPLICATION AND CONSTRUCTION.  This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among the states enacting it.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.003. Prudent Investor Rule

Sec. 117.003.  PRUDENT INVESTOR RULE.  (a)  Except as otherwise provided in Subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter.
(b)  The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust.  A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.004. Standard of Care; Portfolio Strategy; Risk and Return Objectives

Sec. 117.004.  STANDARD OF CARE;  PORTFOLIO STRATEGY;  RISK AND RETURN OBJECTIVES.  (a)  A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust.  In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
(b)  A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
(c)  Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:
(1)  general economic conditions;
(2)  the possible effect of inflation or deflation;
(3)  the expected tax consequences of investment decisions or strategies;
(4)  the role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;
(5)  the expected total return from income and the appreciation of capital;
(6)  other resources of the beneficiaries;
(7)  needs for liquidity, regularity of income, and preservation or appreciation of capital;  and
(8)  an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.
(d)  A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
(e)  Except as otherwise provided by and subject to this subtitle, a trustee may invest in any kind of property or type of investment consistent with the standards of this chapter.
(f)  A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.005. Diversification

Sec. 117.005.  DIVERSIFICATION.  A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.006. Duties at Inception of Trusteeship

Sec. 117.006.  DUTIES AT INCEPTION OF TRUSTEESHIP.  Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.007. Loyalty

Sec. 117.007.  LOYALTY.  A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.008. Impartiality

Sec. 117.008.  IMPARTIALITY.  If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.009. Investment Costs

Sec. 117.009.  INVESTMENT COSTS.  In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.010. Reviewing Compliance

Sec. 117.010.  REVIEWING COMPLIANCE.  Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.011. Delegation of Investment and Management Functions

Sec. 117.011.  DELEGATION OF INVESTMENT AND MANAGEMENT FUNCTIONS.  (a)  A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances.  The trustee shall exercise reasonable care, skill, and caution in:
(1)  selecting an agent;
(2)  establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust;  and
(3)  periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(b)  In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(c)  A trustee who complies with the requirements of Subsection (a) is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated, unless:
(1)  the agent is an affiliate of the trustee;  or
(2)  under the terms of the delegation:
(A)  the trustee or a beneficiary of the trust is required to arbitrate disputes with the agent;  or
(B)  the period for bringing an action by the trustee or a beneficiary of the trust with respect to an agent's actions is shortened from that which is applicable to trustees under the law of this state.
(d)  By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 117 - Uniform Prudent Investor Act › Section 117.012. Language Invoking Standard of Chapter

Sec. 117.012.  LANGUAGE INVOKING STANDARD OF CHAPTER.  The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter:  "investments permissible by law for investment of trust funds," "legal investments," "authorized investments," "using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital," "prudent man rule," "prudent trustee rule," "prudent person rule," and "prudent investor rule."
Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter A. Pension Trusts › Section 121.001. Pension Trusts

Sec. 121.001.  PENSION TRUSTS.  (a)  For the purposes of this subchapter, a pension trust is an express trust:
(1)  containing or relating to property;
(2)  created by an employer as part of a stock-bonus plan, pension plan, disability or death benefit plan, or profit-sharing plan for the benefit of some or all of the employer's employees;
(3)  to which contributions are made by the employer, by some or all of the employees, or by both;  and
(4)  created for the principal purpose of distributing to the employees, or the successor to their beneficial interest in the trust, the principal or income, or both, of the property held in trust.
(b)  This subchapter applies to a pension trust regardless of when the trust was created.
Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter A. Pension Trusts › Section 121.002. Employees of Controlled Corporations

Sec. 121.002.  EMPLOYEES OF CONTROLLED CORPORATIONS.  For the purposes of this subchapter, the relationship of employer and employee exists between a corporation and its own employees, and between a corporation and the employees of each other corporation that it controls, by which it is controlled, or with which it is under common control through the exercise by one or more persons of a majority of voting rights in one or more corporations.
Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter A. Pension Trusts › Section 121.003. Application of Texas Trust Code

Sec. 121.003.  APPLICATION OF TEXAS TRUST CODE.  The Texas Trust Code (Chapters 111 through 117) applies to a pension trust.
Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 27, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter A. Pension Trusts › Section 121.004. Rule Against Perpetuities

Sec. 121.004.  RULE AGAINST PERPETUITIES.  A pension trust may continue for as long as is necessary to accomplish the purposes of the trust and is not invalid under the rule against perpetuities or any other law restricting or limiting the duration of a trust.
Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter A. Pension Trusts › Section 121.005. Accumulation of Income

Sec. 121.005.  ACCUMULATION OF INCOME.  Notwithstanding any law limiting the time during which trust income may be accumulated, the income of a pension trust may be accumulated under the terms of the trust for as long as is necessary to accomplish the purposes of the trust.
Acts 1983, 68th Leg., p. 3692, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.051. Definitions

Sec. 121.051.  DEFINITIONS.  (a)  In this subchapter:
(1)  "Death benefit" means a benefit of any kind, including the proceeds of a life insurance policy or any other payment, in cash or property, under an employees' trust or a retirement account, a contract purchased by an employees' trust or a retirement account, or a retirement-annuity contract that is payable because of an employee's, participant's, or beneficiary's death to or for the benefit of the employee's, participant's, or beneficiary's beneficiary.
(2)  "Employee" means a person covered by an employees' trust or a retirement account that provides a death benefit or a person whose interest in an employees' trust or a retirement account has not been fully distributed.
(3)  "Employees' trust" means:
(A)  a trust forming a part of a stock-bonus, pension, or profit-sharing plan under Section 401, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 401 (1986));
(B)  a pension trust under Chapter 111;  and
(C)  an employer-sponsored benefit plan or program, or any other retirement savings arrangement, including a pension plan created under Section 3, Employee Retirement Income Security Act of 1974 (29 U.S.C.A. Sec. 1002 (1986)), regardless of whether the plan, program, or arrangement is funded through a trust.
(4)  "Individual retirement account" means a trust, custodial arrangement, or annuity under Section 408(a) or (b), Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).
(5)  "Participant" means a person covered by an employees' trust or a retirement account that provides a death benefit or a person whose interest in an employees' trust or a retirement account has not been fully distributed.
(6)  "Retirement account" means a retirement-annuity contract, an individual retirement account, a simplified employee pension, or any other retirement savings arrangement.
(7)  "Retirement-annuity contract" means an annuity contract under Section 403, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 403 (1986)).
(8)  "Simplified employee pension" means a trust, custodial arrangement, or annuity under Section 408, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).
(9)  "Trust" and "trustee" have the meanings assigned by the Texas Trust Code (Chapters 111 through 115), except that "trust" includes any trust, regardless of when it is created.
(b)  References to specific provisions of the Internal Revenue Code of 1954 (26 U.S.C.A.) include corresponding provisions of any subsequent federal tax laws.
Acts 1983, 68th Leg., p. 3692, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 741, Sec. 3, eff. Aug. 31, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.052. Payment of Death Benefit to Trustee

Sec. 121.052.  PAYMENT OF DEATH BENEFIT TO TRUSTEE.  (a)  A death benefit is payable to a trustee of a trust evidenced by a written instrument or declaration existing on the date of an employee's or participant's death, or to a trustee named or to be named as trustee of a trust created under an employee's or participant's will, if the trustee is designated as beneficiary under the plan containing the employees' trust or under the retirement account.
(b)  A trustee of a testamentary trust may be designated under Subsection (a) prior to the execution of the will.
(c)  A death benefit under a will is not payable until the will is probated.
(d)  The trustee shall hold, administer, and dispose of a death benefit payable under this section in accordance with the terms of the trust on the date of the employee's death.
(e)  A death benefit is payable to a trustee of a trust created by the will of a person other than the employee if:
(1)  the will has been probated at the time of the employee's death;  and
(2)  the death benefit is payable to the trustee to be held, administered, and disposed of in accordance with the terms of the testamentary trust.
Acts 1983, 68th Leg., p. 3693, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 741, Sec. 4, eff. Aug. 31, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.053. Validity of Trust Declaration

Sec. 121.053.  VALIDITY OF TRUST DECLARATION.  The validity of a trust agreement or declaration is not affected by:
(1)  the absence of a corpus other than the right of the trustee to receive a death benefit as beneficiary;
(2)  the employee's reservation of the right to designate another beneficiary of the death benefit;  or
(3)  the existence of authority to amend, modify, revoke, or terminate the agreement or declaration.
Acts 1983, 68th Leg., p. 3693, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.054. Unclaimed Benefits

Sec. 121.054.  UNCLAIMED BENEFITS.  If a trustee does not claim a death benefit on or before the first anniversary of the employee's or participant's death or if satisfactory evidence is provided to a trustee, custodian, other fiduciary, or other obligor of the employees' trust, contract purchased by the employees' trust, or the retirement account before the first anniversary of the employee's or participant's death that there is or will be no trustee to receive the death benefit, the death benefit shall be paid:
(1)  according to the beneficiary designation under the plan, trust, contract, or arrangement providing the death benefit under the employees' trust or retirement account;  or
(2)  if there is no designation in the employees' trust or retirement account, to the personal representative of the deceased employee's or participant's estate.
Acts 1983, 68th Leg., p. 3693, ch. 576, Sec. 1, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 741, Sec. 5, eff. Aug. 31, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.055. Exemption From Taxes and Debts

Sec. 121.055.  EXEMPTION FROM TAXES AND DEBTS.  Unless the trust agreement, declaration of trust, or will provides otherwise, a death benefit payable to a trustee under this subchapter is not:
(1)  part of the deceased employee's estate;
(2)  subject to the debts of the deceased employee or the employee's estate, or to other charges enforceable against the estate;  or
(3)  subject to the payment of taxes enforceable against the deceased employee's estate to a greater extent than if the death benefit is payable, free of trust, to a beneficiary other than the executor or administrator of the estate of the employee.
Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.056. Commingling of Assets

Sec. 121.056.  COMMINGLING OF ASSETS.  A trustee who receives a death benefit under this subchapter may commingle the property with other assets accepted by the trustee and held in trust, either before or after the death benefit is received.
Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.057. Prior Designations Not Affected

Sec. 121.057.  PRIOR DESIGNATIONS NOT AFFECTED.  This subchapter does not affect the validity of a beneficiary designation made by an employee before April 3, 1975, that names a trustee as beneficiary of a death benefit.
Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 121 - Employees' Trusts › Subchapter B. Death Benefits Under Employees' Trusts › Section 121.058. Construction

Sec. 121.058.  CONSTRUCTION.  (a)  This subchapter is intended to be declaratory of the common law of this state.
(b)  A court shall liberally construe this subchapter to effect the intent that a death benefit received by a trustee under this subchapter is not subject to the obligations of the employee or the employee's estate unless the trust receiving the benefit expressly provides otherwise.
(c)  A death benefit shall not be included in property administered as part of a testator's estate or in an inventory filed with the county court because of a reference in a will to the death benefit or because of the naming of the trustee of a testamentary trust.
Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 123 - Attorney General Participation in Proceedings Involving Charitable Trusts › Section 123.001. Definitions

Sec. 123.001.  DEFINITIONS.  In this chapter:
(1)  "Charitable entity" means a corporation, trust, community chest, fund, foundation, or other entity organized for scientific, educational, philanthropic, or environmental purposes, social welfare, the arts and humanities, or another civic or public purpose described by Section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)).
(2)  "Charitable trust" means a charitable entity, a trust the stated purpose of which is to benefit a charitable entity, or an inter vivos or testamentary gift to a charitable entity.
(3)  "Proceeding involving a charitable trust" means a suit or other judicial proceeding the object of which is to:
(A)  terminate a charitable trust or distribute its assets to other than charitable donees;
(B)  depart from the objects of the charitable trust stated in the instrument creating the trust, including a proceeding in which the doctrine of cy-pres is invoked;
(C)  construe, nullify, or impair the provisions of a testamentary or other instrument creating or affecting a charitable trust;
(D)  contest or set aside the probate of an alleged will under which money, property, or another thing of value is given for charitable purposes;
(E)  allow a charitable trust to contest or set aside the probate of an alleged will;
(F)  determine matters relating to the probate and administration of an estate involving a charitable trust;  or
(G)  obtain a declaratory judgment involving a charitable trust.
(4)  "Fiduciary or managerial agent" means an individual, corporation, or other entity acting either as a trustee, a member of the board of directors, an officer, an executor, or an administrator for a charitable trust.
Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.  Amended by Acts 1995, 74th Leg., ch. 172, Sec. 2, eff. Sept. 1, 1995.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 123 - Attorney General Participation in Proceedings Involving Charitable Trusts › Section 123.002. Attorney General's Participation

Sec. 123.002.  ATTORNEY GENERAL'S PARTICIPATION.  For and on behalf of the interest of the general public of this state in charitable trusts, the attorney general is a proper party and may intervene in a proceeding involving a charitable trust.  The attorney general may join and enter into a compromise, settlement agreement, contract, or judgment relating to a proceeding involving a charitable trust.
Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 123 - Attorney General Participation in Proceedings Involving Charitable Trusts › Section 123.003. Notice

Sec. 123.003.  NOTICE.  (a)  Any party initiating a proceeding involving a charitable trust shall give notice of the proceeding to the attorney general by sending to the attorney general, by registered or certified mail, a true copy of the petition or other instrument initiating the proceeding involving a charitable trust within 30 days of the filing of such petition or other instrument, but no less than 25 days prior to a hearing in such a proceeding.  This subsection does not apply to a proceeding that is initiated by an application that exclusively seeks the admission of a will to probate, regardless of whether the application seeks the appointment of a personal representative, if the application:
(1)  is uncontested; and
(2)  is not subject to Subchapter C, Chapter 256, Estates Code.
(b)  Notice shall be given to the attorney general of any pleading which adds new causes of action or additional parties to a proceeding involving a charitable trust in which the attorney general has previously waived participation or in which the attorney general has otherwise failed to intervene.  Notice shall be given by sending to the attorney general by registered or certified mail a true copy of the pleading within 30 days of the filing of the pleading, but no less than 25 days prior to a hearing in the proceeding.
(c)  The party or the party's attorney shall execute and file in the proceeding an affidavit stating the facts of the notice and shall attach to the affidavit the customary postal receipts signed by the attorney general or an assistant attorney general.
Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.  Amended by Acts 1995, 74th Leg., ch. 172, Sec. 3, eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 1017 (H.B. 934), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 15, eff. September 1, 2007.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.061, eff. September 1, 2017.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 123 - Attorney General Participation in Proceedings Involving Charitable Trusts › Section 123.004. Voidable Judgment or Agreement

Sec. 123.004.  VOIDABLE JUDGMENT OR AGREEMENT.  (a)  A judgment in a proceeding involving a charitable trust is voidable if the attorney general is not given notice of the proceeding as required by this chapter.  On motion of the attorney general after the judgment is rendered, the judgment shall be set aside.
(b)  A compromise, settlement agreement, contract, or judgment relating to a proceeding involving a charitable trust is voidable on motion of the attorney general if the attorney general is not given notice as required by this chapter unless the attorney general has:
(1)  declined in writing to be a party to the proceeding;  or
(2)  approved and joined in the compromise, settlement agreement, contract, or judgment.
Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 123 - Attorney General Participation in Proceedings Involving Charitable Trusts › Section 123.005. Breach of Fiduciary Duty: Venue; Jurisdiction

Sec. 123.005.  BREACH OF FIDUCIARY DUTY: VENUE; JURISDICTION.  (a)  Venue in a proceeding brought by the attorney general alleging breach of a fiduciary duty by a charitable entity or a fiduciary or managerial agent of a charitable trust shall be a court of competent jurisdiction in Travis County or in the county where the defendant resides or has its principal office.  To the extent of a conflict between this subsection and any provision of the Estates Code providing for venue of a proceeding brought with respect to a charitable trust created by a will that has been admitted to probate, this subsection controls.
(b)  A statutory probate court of Travis County has concurrent jurisdiction with any other court on which jurisdiction is conferred by Section 32.001, Estates Code, in a proceeding brought by the attorney general alleging breach of a fiduciary duty with respect to a charitable trust created by a will that has been admitted to probate.
Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.  Amended by Acts 1995, 74th Leg., ch. 172, Sec. 4, eff. Sept. 1, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 133 (S.B. 918), Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1351 (S.B. 408), Sec. 12(g), eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 401 (S.B. 587), Sec. 1, eff. June 17, 2011.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.062, eff. September 1, 2017.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 123 - Attorney General Participation in Proceedings Involving Charitable Trusts › Section 123.006. Attorney's Fees

Sec. 123.006.  ATTORNEY'S FEES.  (a)  In a proceeding subject to Section 123.005, the attorney general, if successful in the proceeding, is entitled to recover from the charitable entity or fiduciary or managerial agent of the charitable trust actual costs incurred in bringing the suit and may recover reasonable attorney's fees.
(b)  In a proceeding in which the attorney general intervenes under this chapter, other than a proceeding subject to Section 123.005, a court may award the attorney general court costs and reasonable and necessary attorney's fees as may seem equitable and just.
Added by Acts 2009, 81st Leg., R.S., Ch. 133 (S.B. 918), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 124 - Partition of Mineral Interests of Charitable Trust › Section 124.001. Definitions

Sec. 124.001.  DEFINITIONS.  In this chapter:
(1)  "Charitable entity" means a corporation, trust, community chest, fund, foundation, or other entity organized for scientific, educational, philanthropic, or environmental purposes, social welfare, the arts and humanities, or another civic or public purpose described by Section 501(c)(3), Internal Revenue Code of 1986.
(2)  "Charitable trust" means a charitable entity, a trust the stated purpose of which is to benefit a charitable entity, or an inter vivos or testamentary gift to a charitable entity.
(3)  "Mineral interest" means an interest in oil, gas, or other mineral substance in place or that otherwise constitutes real property without regard to the depth at which such mineral substance is found.
Added by Acts 2013, 83rd Leg., R.S., Ch. 480 (S.B. 1240), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle C - Miscellaneous Trusts › Chapter 124 - Partition of Mineral Interests of Charitable Trust › Section 124.002. Compulsory Divestment Prohibited

Sec. 124.002.  COMPULSORY DIVESTMENT PROHIBITED.  In a suit or other judicial proceeding the object or effect of which is to compel the partition of a mineral interest owned or claimed by a charitable trust, a sale or other action that would divest the charitable trust of the trust's ownership of a mineral interest may not be ordered unless the trust has refused to execute a mineral lease, the terms of which are fair and reasonable, to the plaintiff or petitioner in the proceeding.
Added by Acts 2013, 83rd Leg., R.S., Ch. 480 (S.B. 1240), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.001. Short Title

Sec. 141.001.  SHORT TITLE.  This chapter may be cited as the Texas Uniform Transfers to Minors Act.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 1 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.002. Definitions

Sec. 141.002.  DEFINITIONS.  In this chapter:
(1)  "Adult" means an individual who is at least 21 years of age.
(2)  "Benefit plan" means a retirement plan, including an interest described by Sections 111.004(19)-(23).
(3)  "Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of another.
(4)  "Court" means a court with original probate jurisdiction.
(5)  "Custodial property" means:
(A)  any interest in property transferred to a custodian under this chapter;  and
(B)  the income from and proceeds of that interest in property.
(6)  "Custodian" means a person designated as a custodian under Section 141.010 or a successor or substitute custodian designated under Section 141.019.
(7)  "Financial institution" means a bank, trust company, savings institution, or credit union chartered and supervised under state or federal law.
(8)  "Guardian" means a person appointed or qualified by a court to act as general, limited, or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions.
(9)  "Legal representative" means an executor, independent executor, administrator or independent administrator of a decedent's estate, an obligor under a benefit plan or other governing instrument, a successor legal representative, or a person legally authorized to perform substantially the same functions.
(10)  "Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle, or aunt, whether of whole or half blood or by adoption.
(11)  "Minor" means an individual who is younger than 21 years of age.
(12)  "Transfer" means a transaction that creates custodial property under Section 141.010.
(12-a)  "Qualified minor's trust" means a trust to which a gift is considered a present interest under Section 2503(c), Internal Revenue Code of 1986.
(13)  "Transferor" means a person who makes a transfer under this chapter.
(14)  "Trust company" means a financial institution, corporation, or other legal entity authorized to exercise general trust powers.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 2 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 16, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.003. Scope and Jurisdiction

Sec. 141.003.  SCOPE AND JURISDICTION.  (a)  This chapter applies to a transfer that refers to the Texas Uniform Transfers to Minors Act in the designation under Section 141.010(a) by which the transfer is made if at the time of the transfer, the transferor, the minor, or the custodian is a resident of this state or the custodial property is located in this state.  The custodianship created under Section 141.010 remains subject to this chapter despite a subsequent change in residence of a transferor, the minor, or the custodian or the removal of custodial property from this state.
(b)  A person designated as custodian under this chapter is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship.
(c)  A transfer that purports to be made and that is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act, or a substantially similar act of another state is governed by the law of the designated state and may be executed and is enforceable in this state if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 3 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.004. Nomination of Custodian

Sec. 141.004.  NOMINATION OF CUSTODIAN.  (a)  A person having the right to designate the recipient of property transferable on the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary on the occurrence of that event by naming the custodian followed in substance by the words: "as custodian for       (name of minor)       under the Texas Uniform Transfers to Minors Act."   The nomination may name one or more persons as substitute custodians to whom the property must be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve.  The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights, including the right to receive payments from a benefit plan, that is registered with or delivered to the payor, issuer, or other obligor of the contractual rights.
(b)  A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under Section 141.010(a).
(c)  The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under Section 141.010.  Unless the nomination of a custodian has been revoked, the custodianship becomes effective on the occurrence of the future event, and the custodian shall enforce a transfer of the custodial property under Section 141.010.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 4 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 17, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.005. Transfer by Gift or Exercise of Power of Appointment

Sec. 141.005.  TRANSFER BY GIFT OR EXERCISE OF POWER OF APPOINTMENT.  A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor under Section 141.010.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 5 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.006. Transfer Authorized by Will or Trust

Sec. 141.006.  TRANSFER AUTHORIZED BY WILL OR TRUST.  (a)  A legal representative or trustee may make an irrevocable transfer under Section 141.010 to a custodian for a minor's benefit as authorized in the governing will or trust.
(b)  If the testator or settlor has nominated a custodian under Section 141.004 to receive the custodial property, the transfer must be made to that person.
(c)  If the testator or settlor has not nominated a custodian under Section 141.004, or all persons nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, the legal representative or the trustee shall designate the custodian from among those persons eligible to serve as custodian for property of that kind under Section 141.010(a).
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 6 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.007. Other Transfer by Fiduciary

Sec. 141.007.  OTHER TRANSFER BY FIDUCIARY.  (a)  Subject to Subsections (b) and (c), a guardian, legal representative, or trustee may make an irrevocable transfer to another adult or trust company as custodian for a minor's benefit under Section 141.010 in the absence of a will or under a will or trust that does not contain an authorization to do so.
(b)  With the approval of the court supervising the guardianship, a guardian may make an irrevocable transfer to another adult or trust company as custodian for the minor's benefit under Section 141.010.
(c)  A transfer under Subsection (a) or (b) may be made only if:
(1)  the legal representative or trustee considers the transfer to be in the best interest of the minor;
(2)  the transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and
(3)  the transfer is authorized by the court if it exceeds $25,000 in value.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 7 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 622 (S.B. 1202), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Property Code › Title 10 - Miscellaneous Beneficial Property Interests › Subtitle A - Persons Under Disability › Chapter 141 - Transfers to Minors › Section 141.008. Transfer by Obligor

Sec. 141.008.  TRANSFER BY OBLIGOR.  (a)  Subject to Subsections (b) and (c), a person who is not subject to Section 141.006 or 141.007 and who holds property, including a benefit plan of a minor who does not have a guardian, or who owes a liquidated debt to a minor who does not have a guardian may make an irrevocable transfer to a custodian for the benefit of the minor under Section 141.010.
(b)  If a person who has the right to nominate a custodian under Section 141.004 has nominated a custodian under that section to receive the custodial property, the transfer must be made to that person.
(c)  If a custodian has not been nominated under Section 141.004, or all persons nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, a transfer under this section may be made to an adult member of the minor's family or to a trust company unless the property exceeds $25,000 in value.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995.  Renumbered from Property Code Sec. 8 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 18, eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 622 (S.B. 1202), Sec. 2, eff. September 1, 2015.