reglab/statecodes huggingface dataset:
2023 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 E. Effect of Dissolution of Marriage on Certain Transfers in Trust › Section 112.104. Liability of Certain Purchasers or Recipients of Certain Payments, Benefits, or Property

Sec. 112.104.  LIABILITY OF CERTAIN PURCHASERS OR RECIPIENTS OF CERTAIN PAYMENTS, BENEFITS, OR PROPERTY.  A bona fide purchaser of property from a divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual or a person who receives from the former spouse or any relative of the former spouse who is not a relative of the divorced individual a payment, benefit, or property in partial or full satisfaction of an enforceable obligation:
(1)  is not required by this subchapter to return the payment, benefit, or property; and
(2)  is not liable under this subchapter for the amount of the payment or the value of the property or benefit.
Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.
2023 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 E. Effect of Dissolution of Marriage on Certain Transfers in Trust › Section 112.105. Liability of Former Spouse or Former Spouse's Relative for Certain Payments, Benefits, or Property

Sec. 112.105.  LIABILITY OF FORMER SPOUSE OR FORMER SPOUSE'S RELATIVE FOR CERTAIN PAYMENTS, BENEFITS, OR PROPERTY.  A divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual who, not for value, receives a payment, benefit, or property to which the former spouse or the relative of the former spouse who is not a relative of the divorced individual is not entitled as a result of Sections 112.102(a) and (b):
(1)  shall return the payment, benefit, or property to the person who is entitled to the payment, benefit, or property under this subchapter; or
(2)  is personally liable to the person described by Subdivision (1) for the amount of the payment or the value of the benefit or property received, as applicable.
Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.
2023 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 E. Effect of Dissolution of Marriage on Certain Transfers in Trust › Section 112.106. Certain Trusts With Divorced Individuals as Joint Settlors

Sec. 112.106.  CERTAIN TRUSTS WITH DIVORCED INDIVIDUALS AS JOINT SETTLORS.  (a)  This section applies only to a trust created under a trust instrument that:
(1)  was executed by two married individuals as settlors whose marriage to each other is subsequently dissolved; and
(2)  includes a provision described by Section 112.102(a).
(b)  On the death of one of the divorced individuals who is a settlor of a trust to which this section applies, the trustee shall divide the trust into two trusts, each of which shall be composed of the property attributable to the contributions of only one of the divorced individuals.
(c)  An action authorized in a trust instrument described by Subsection (a) that requires the actions of both divorced individuals may be taken with respect to a trust established in accordance with Subsection (b) from the surviving divorced individual's contributions solely by that divorced individual.
(d)  The provisions of this subchapter apply independently to each trust established in accordance with Subsection (b) as if the divorced individual from whose contributions the trust was established had been the only settlor to execute the trust instrument described by Subsection (a).
(e)  This section does not apply if one of the following provides otherwise:
(1)  a court order;
(2)  the express terms of a trust instrument executed by the two divorced individuals before their marriage was dissolved; or
(3)  an express provision of a contract relating to the division of the marital estate entered into between the two divorced individuals before, during, or after their marriage.
Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.
2023 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 F. Noncharitable Trust Without Ascertainable Beneficiary › Section 112.121. Validity of Trust; Applicability

Sec. 112.121.  VALIDITY OF TRUST; APPLICABILITY.  (a)  A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary.  A noncharitable purpose may include seeking economic or noneconomic benefits.
(b)  This subchapter does not apply to a trust created under Section 112.037.
Added by Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 2, eff. June 18, 2023.
2023 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 F. Noncharitable Trust Without Ascertainable Beneficiary › Section 112.122. Enforcement of Trust

Sec. 112.122.  ENFORCEMENT OF TRUST.  (a)  A trust created under this subchapter must be enforced by one or more persons appointed in the terms of the trust to serve as a trust enforcer.
(b)  A trust enforcer shall enforce the purpose and terms of the trust.  The trust enforcer is not a beneficiary of the trust, but has the rights of a beneficiary provided under this title and the common law of this state, or as otherwise provided by the terms of the trust.
(c)  A trust enforcer shall exercise any authority granted under the terms of the trust or the provisions of this section as a fiduciary owing a duty to the trust and is entitled to reasonable compensation for serving as trust enforcer.
(d)  A trust enforcer may consent to, waive, object to, or petition an appropriate court concerning any matter regarding the purpose or administration of the trust.
(e)  Except as otherwise provided by the terms of the trust, if more than one person is acting as a trust enforcer, any action in that capacity must be decided by the majority vote of the persons acting as trust enforcers.  If there are an even number of trust enforcers and a majority vote cannot be established, the decision of the trustee controls.
(f)  The terms of the trust may provide for the succession of a trust enforcer or a process of appointing any successor trust enforcer.
(g)  If no person is serving as a trust enforcer for a trust created under this subchapter, a court properly exercising jurisdiction shall appoint one or more persons to serve as the trust enforcer.
Added by Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 2, eff. June 18, 2023.
2023 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 F. Noncharitable Trust Without Ascertainable Beneficiary › Section 112.123. Application or Distribution of Trust Property

Sec. 112.123.  APPLICATION OR DISTRIBUTION OF TRUST PROPERTY.  (a)  Property of a trust created under this subchapter may be applied only to the intended purpose of the trust, except to the extent that a court finds that the value of the trust property exceeds the amount required for the intended purpose of the trust.
(b)  Except as provided by the terms of the trust, property found by a court not to be required for the trust's intended purpose shall be distributed:
(1)  as provided by the terms of the trust; or
(2)  if the trust does not provide for the distribution of such property, to the settlor if then living or to the settlor's successors in interest.
Added by Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 2, eff. June 18, 2023.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.001. Limitation of Powers

Sec. 113.001.  LIMITATION OF POWERS.  A power given to a trustee by this subchapter does not apply to a trust to the extent that the instrument creating the trust, a subsequent court order, or another provision of this subtitle conflicts with or limits the power.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.002. General Powers

Sec. 113.002.  GENERAL POWERS.  Except as provided by Section 113.001, a trustee may exercise any powers in addition to the powers authorized by this subchapter that are necessary or appropriate to carry out the purposes of the trust.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.003. Options

Sec. 113.003.  OPTIONS.  A trustee may:
(1)  grant an option involving a sale, lease, or other disposition of trust property, including an option exercisable beyond the duration of the trust; or
(2)  acquire and exercise an option for the acquisition of property, including an option exercisable beyond the duration of the trust.
Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 10, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.004. Additions to Trust Assets

Sec. 113.004.  ADDITIONS TO TRUST ASSETS.  A trustee may receive from any source additions to the assets of the trust.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.005. Acquisition of Undivided Interests

Sec. 113.005.  ACQUISITION OF UNDIVIDED INTERESTS.  A trustee may acquire all or a portion of the remaining undivided interest in property in which the trust holds an undivided interest.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.006. General Authority to Manage and Invest Trust Property

Sec. 113.006.  GENERAL AUTHORITY TO MANAGE AND INVEST TRUST PROPERTY.  Subject to the requirements of Chapter 117, a trustee may manage the trust property and invest and reinvest in property of any character on the conditions and for the lengths of time as the trustee considers proper, notwithstanding that the time may extend beyond the term of the trust.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 3, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.007. Temporary Deposits of Funds

Sec. 113.007.  TEMPORARY DEPOSITS OF FUNDS.  A trustee may deposit trust funds that are being held pending investment, distribution, or the payment of debts in a bank that is subject to supervision by state or federal authorities.  However, a corporate trustee depositing funds with itself is subject to the requirements of Section 113.057 of this code.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984;  Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 11, eff. Oct. 2, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.008. Business Entities

Sec. 113.008.  BUSINESS ENTITIES.  A trustee may invest in, continue, or participate in the operation of any business or other investment enterprise in any form, including a sole proprietorship, partnership, limited partnership, corporation, or association, and the trustee may effect any change in the organization of the business or enterprise.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.009. Real Property Management

Sec. 113.009.  REAL PROPERTY MANAGEMENT.  A trustee may:
(1)  exchange, subdivide, develop, improve, or partition real property;
(2)  make or vacate public plats;
(3)  adjust boundaries;
(4)  adjust differences in valuation by giving or receiving value;
(5)  dedicate real property to public use or, if the trustee considers it in the best interest of the trust, dedicate easements to public use without consideration;
(6)  raze existing walls or buildings;
(7)  erect new party walls or buildings alone or jointly with an owner of adjacent property;
(8)  make repairs;  and
(9)  make extraordinary alterations or additions in structures as necessary to make property more productive.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.010. Sale of Property

Sec. 113.010.  SALE OF PROPERTY.  A trustee may contract to sell, sell and convey, or grant an option to sell real or personal property at public auction or private sale for cash or for credit or for part cash and part credit, with or without security.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.011. Leases

Sec. 113.011.  LEASES.  (a)  A trustee may grant or take a lease of real or personal property for any term, with or without options to purchase and with or without covenants relating to erection of buildings or renewals, including the lease of a right or privilege above or below the surface of real property.
(b)  A trustee may execute a lease containing terms or options that extend beyond the duration of the trust.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.013. Insurance

Sec. 113.013.  INSURANCE.  A trustee may purchase insurance of any nature, form, or amount to protect the trust property and the trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.014. Payment of Taxes

Sec. 113.014.  PAYMENT OF TAXES.  A trustee may pay taxes and assessments levied or assessed against the trust estate or the trustee by governmental taxing or assessing authorities.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.015. Authority to Borrow

Sec. 113.015.  AUTHORITY TO BORROW.  A trustee may borrow money from any source, including a trustee, purchase property on credit, and mortgage, pledge, or in any other manner encumber all or any part of the assets of the trust as is advisable in the judgment of the trustee for the advantageous administration of the trust.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.016. Management of Securities

Sec. 113.016.  MANAGEMENT OF SECURITIES.  A trustee may:
(1)  pay calls, assessments, or other charges against or because of securities or other investments held by the trust;
(2)  sell or exercise stock subscription or conversion rights;
(3)  vote corporate stock, general or limited partnership interests, or other securities in person or by general or limited proxy;
(4)  consent directly or through a committee or other agent to the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise;  and
(5)  participate in voting trusts and deposit stocks, bonds, or other securities with any protective or other committee formed by or at the instance of persons holding similar securities, under such terms and conditions respecting the deposit thereof as the trustee may approve;  sell any stock or other securities obtained by conversion, reorganization, consolidation, merger, liquidation, or the exercise of subscription rights free of any restrictions upon sale otherwise contained in the trust instrument relative to the securities originally held;  assent to corporate sales, leases, encumbrances, and other transactions.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.017. Corporate Stock or Other Securities Held in Name of Nominee

Sec. 113.017.  CORPORATE STOCK OR OTHER SECURITIES HELD IN NAME OF NOMINEE.  A trustee may:
(1)  hold corporate stock or other securities in the name of a nominee;
(2)  under Subchapter B, Chapter 161, or other law, employ a bank incorporated in this state or a national bank located in this state as custodian of any corporate stock or other securities held in trust;  and
(3)  under Subchapter C, Chapter 161, or other law, deposit or arrange for the deposit of securities with a Federal Reserve Bank or in a clearing corporation.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.019. Claims

Sec. 113.019.  CLAIMS.  A trustee may compromise, contest, arbitrate, or settle claims of or against the trust estate or the trustee.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.020. Burdensome or Worthless Property

Sec. 113.020.  BURDENSOME OR WORTHLESS PROPERTY.  A trustee may abandon property the trustee considers burdensome or worthless.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.021. Distribution to Minor or Incapacitated Beneficiary

Sec. 113.021.  DISTRIBUTION TO MINOR OR INCAPACITATED BENEFICIARY.  (a)  A trustee may make a distribution required or permitted to be made to any beneficiary in any of the following ways when the beneficiary is a minor or a person who in the judgment of the trustee is incapacitated by reason of legal incapacity or physical or mental illness or infirmity:
(1)  to the beneficiary directly;
(2)  to the guardian of the beneficiary's person or estate;
(3)  by utilizing the distribution, without the interposition of a guardian, for the health, support, maintenance, or education of the beneficiary;
(4)  to a custodian for the minor beneficiary under the Texas Uniform Transfers to Minors Act (Chapter 141) or a uniform gifts or transfers to minors act of another state;
(5)  by reimbursing the person who is actually taking care of the beneficiary, even though the person is not the legal guardian, for expenditures made by the person for the benefit of the beneficiary; or
(6)  by managing the distribution as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution.
(b)  The written receipts of persons receiving distributions under Subsection (a) of this section are full and complete acquittances to the trustee.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 11, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.0211. Adjustment of Charitable Trust

Sec. 113.0211.  ADJUSTMENT OF CHARITABLE TRUST.  (a)  In this section:
(1)  "Charitable entity" has the meaning assigned by Section 123.001(1).
(2)  "Charitable trust" means a trust:
(A)  the stated purpose of which is to benefit only one or more charitable entities;  and
(B)  that qualifies as a charitable entity.
(b)  The trustee of a charitable trust may acquire, exchange, sell, supervise, manage, or retain any type of investment, subject to restrictions and procedures established by the trustee and in an amount considered appropriate by the trustee, that a prudent investor, exercising reasonable skill, care, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the trust.  The prudence of a trustee's actions under this subsection is judged with reference to the investment of all of the trust assets rather than with reference to a single trust investment.
(c)  The trustee of a charitable trust may make one or more adjustments between the principal and the income portions of a trust to the extent that the trustee considers the adjustments necessary:
(1)  to comply with the terms of the trust, if any, that describe the amount that may or must be distributed to a charitable entity beneficiary by referring to the income portion of the trust;  and
(2)  to administer the trust in order to carry out the purposes of the charitable trust.
(d)  The authority to make adjustments under Subsection (c) includes the authority to allocate all or part of a capital gain to trust income.
(e)  In making adjustments under Subsection (c), the trustee shall consider:
(1)  except to the extent that the terms of the trust clearly manifest an intention that the trustee shall or may favor one or more charitable entity beneficiaries, the needs of a charitable entity beneficiary, based on what is fair and reasonable to all other charitable entity beneficiaries of the trust, if any;  and
(2)  the need of the trust to maintain the purchasing power of the trust's investments over time.
Added by Acts 2003, 78th Leg., ch. 550, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.022. Power to Provide Residence and Pay Funeral Expenses

Sec. 113.022.  POWER TO PROVIDE RESIDENCE AND PAY FUNERAL EXPENSES.  A trustee of a trust that is not a charitable remainder unitrust, annuity trust, or pooled income fund that is intended to qualify for a federal tax deduction under Section 664, Internal Revenue Code, after giving consideration to the probable intention of the settlor and finding that the trustee's action would be consistent with that probable intention, may:
(1)  permit real estate held in trust to be occupied by a beneficiary who is currently eligible to receive distributions from the trust estate;
(2)  if reasonably necessary for the maintenance of a beneficiary who is currently eligible to receive distributions from the trust estate, invest trust funds in real property to be used for a home by the beneficiary;  and
(3)  in the trustee's discretion, pay funeral expenses of a beneficiary who at the time of the beneficiary's death was eligible to receive distributions from the trust estate.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 1985, 69th Leg., ch. 149, Sec. 2, eff. May 24, 1985.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.023. Ancillary Trustee

Sec. 113.023.  ANCILLARY TRUSTEE.  (a)  If trust property is situated outside this state, a Texas trustee may name in writing an individual or corporation qualified to act in the foreign jurisdiction in connection with trust property as ancillary trustee.
(b)  Within the limits of the authority of the Texas trustee, the ancillary trustee has the rights, powers, discretions, and duties the Texas trustee delegates, subject to the limitations and directions of the Texas trustee specified in the instrument evidencing the appointment of the ancillary trustee.
(c)  The Texas trustee may remove an ancillary trustee and appoint a successor at any time as to all or part of the trust assets.
(d)  The Texas trustee may require security of the ancillary trustee, who is answerable to the Texas trustee for all trust property entrusted to or received by the ancillary trustee in connection with the administration of the trust.
(e)  If the law of the foreign jurisdiction requires a certain procedure or a judicial order for the appointment of an ancillary trustee or to authorize an ancillary trustee to act, the Texas trustee and the ancillary trustee must satisfy the requirements.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.024. Implied Powers

Sec. 113.024.  IMPLIED POWERS.  The powers, duties, and responsibilities under this subtitle do not exclude other implied powers, duties, or responsibilities that are not inconsistent with this subtitle.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.025. Powers of Trustee Regarding Environmental Laws

Sec. 113.025.  POWERS OF TRUSTEE REGARDING ENVIRONMENTAL LAWS.  (a)  A trustee or a potential trustee may inspect, investigate, cause to be inspected, or cause to be investigated trust property, property that the trustee or potential trustee has been asked to hold, or property owned or operated by an entity in which the trustee or potential trustee holds or has been asked to hold any interest or for the purpose of determining the potential application of environmental law with respect to the property.  This subsection does not grant any person the right of access to any property.  The taking of any action under this subsection with respect to a trust or an addition to a trust is not evidence that a person has accepted the trust or the addition to the trust.
(b)  A trustee may take on behalf of the trust any action before or after the initiation of an enforcement action or other legal proceeding that the trustee reasonably believes will help to prevent, abate, or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee.
Added by Acts 1993, 73rd Leg., ch. 846, Sec. 29, eff. Sept. 1, 1993.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.027. Distributions Generally

Sec. 113.027.  DISTRIBUTIONS GENERALLY.  When distributing trust property or dividing or terminating a trust, a trustee may:
(1)  make distributions in divided or undivided interests;
(2)  allocate particular assets in proportionate or disproportionate shares;
(3)  value the trust property for the purposes of acting under Subdivision (1) or (2); and
(4)  adjust the distribution, division, or termination for resulting differences in valuation.
Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 12, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.028. Certain Claims and Causes of Action Prohibited

Sec. 113.028.  CERTAIN CLAIMS AND CAUSES OF ACTION PROHIBITED.  (a)  A trustee may not prosecute or assert a claim for damages in a cause of action against a party who is not a beneficiary of the trust if each beneficiary of the trust provides written notice to the trustee of the beneficiary's opposition to the trustee's prosecuting or asserting the claim in the cause of action.
(b)  This section does not apply to a cause of action that is prosecuted by a trustee in the trustee's individual capacity.
(c)  The trustee is not liable for failing to prosecute or assert a claim in a cause of action if prohibited by the beneficiaries under Subsection (a).
Added by Acts 2005, 79th Leg., Ch. 765 (H.B. 3434), Sec. 3, eff. June 17, 2005.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.029. Discretionary Powers; Tax Savings

Sec. 113.029.  DISCRETIONARY POWERS; TAX SAVINGS.  (a)  Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of terms such as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
(b)  Subject to Subsection (d), and unless the terms of the trust expressly indicate that a requirement provided by this subsection does not apply:
(1)  a person, other than a settlor, who is a beneficiary and trustee, trustee affiliate, or discretionary power holder of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's, the trustee affiliate's, or the discretionary power holder's personal benefit may exercise the power only in accordance with an ascertainable standard relating to the trustee's, the trustee affiliate's, or the discretionary power holder's individual health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) or 2514(c)(1), Internal Revenue Code of 1986; and
(2)  a trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
(c)  A power the exercise of which is limited or prohibited by Subsection (b) may be exercised by a majority of the remaining trustees whose exercise of the power is not limited or prohibited by Subsection (b). If the power of all trustees is limited or prohibited by Subsection (b), the court may appoint a special fiduciary with authority to exercise the power.
(d)  Subsection (b) does not apply to:
(1)  a power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined by Section 2056(b)(5) or 2523(e), Internal Revenue Code of 1986, was previously allowed;
(2)  any trust during any period that the trust may be revoked or amended by its settlor; or
(3)  a trust if contributions to the trust qualify for the annual exclusion under Section 2503(c), Internal Revenue Code of 1986.
(e)  In this section, "discretionary power holder" means a person who has the sole power or power shared with another person to make discretionary decisions on behalf of a trustee with respect to distributions from a trust.
Added by Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 3, eff. September 1, 2009.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 4, eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.030. Relocation of Administration of Charitable Trust

Sec. 113.030.  RELOCATION OF ADMINISTRATION OF CHARITABLE TRUST.  (a)  In this section:
(1)  "Charitable entity" has the meaning assigned by Section 123.001.
(2)  "Charitable trust" means a trust:
(A)  the stated purpose of which is to benefit only one or more charitable entities; and
(B)  that qualifies as a charitable entity.
(3)  "Trust administration" means the grant-making function of the trust.
(b)  Except as provided by this section or specifically authorized by the terms of a trust, the trustee of a charitable trust may not change the location in which the trust administration takes place from a location in this state to a location outside this state.
(c)  If the trustee decides to change the location in which the trust is administered from a location in this state to a location outside this state, the trustee shall:
(1)  if the settlor is living and not incapacitated:
(A)  consult the settlor concerning the selection of a new location for the administration of the trust; and
(B)  submit the selection to the attorney general; or
(2)  if the settlor is not living or is incapacitated:
(A)  propose a new location; and
(B)  submit the proposal to the attorney general.
(d)  The trustee may file an action in the district court or statutory probate court in which the trust was created seeking a court order authorizing the trustee to change the location in which the trust is administered to a location outside this state.  The court may exercise its equitable powers to effectuate the original purpose of the trust.
(e)  Except as provided by Subsection (b), the location in which the administration of the trust takes place may not be changed to a location outside this state unless:
(1)  the charitable purposes of the trust would not be impaired if the trust administration is moved; and
(2)  a district court or statutory probate court authorizes the relocation.
(f)  The attorney general may bring an action to enforce the provisions of this section.  If a trustee of a charitable trust fails to comply with the provisions of this section, the district court or statutory probate court in the county in which the trust administration was originally located may remove the trustee and appoint a new trustee.  Costs of a proceeding to remove a trustee, including reasonable attorney's fees, may be assessed against the removed trustee.  This provision is in addition to and does not supersede the provisions of Chapter 123.
(g)  This section does not affect a trustee's authority to sell real estate owned by a charitable trust.
Added by Acts 2009, 81st Leg., R.S., Ch. 754 (S.B. 666), Sec. 1, eff. September 1, 2009.
Redesignated from Property Code, Section 113.029 by Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 27.001(52), eff. September 1, 2011.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter A. Powers of Trustee › Section 113.031. Digital Assets

Sec. 113.031.  DIGITAL ASSETS.  (a)  In this section, "digital asset" has the meaning assigned by Section 2001.002, Estates Code.
(b)  A trustee may access digital assets as provided by Chapter 2001, Estates Code.
Added by Acts 2017, 85th Leg., R.S., Ch. 400 (S.B. 1193), Sec. 6, eff. September 1, 2017.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.051. General Duty

Sec. 113.051.  GENERAL DUTY.  The trustee shall administer the trust in good faith according to its terms and this subtitle.  In the absence of any contrary terms in the trust instrument or contrary provisions of this subtitle, in administering the trust the trustee shall perform all of the duties imposed on trustees by the common law.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 13, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.052. Loan of Trust Funds to Trustee

Sec. 113.052.  LOAN OF TRUST FUNDS TO TRUSTEE.  (a)  Except as provided by Subsection (b) of this section, a trustee may not lend trust funds to:
(1)  the trustee or an affiliate;
(2)  a director, officer, or employee of the trustee or an affiliate;
(3)  a relative of the trustee;  or
(4)  the trustee's employer, employee, partner, or other business associate.
(b)  This section does not prohibit:
(1)  a loan by a trustee to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust;  or
(2)  a deposit by a corporate trustee with itself under Section 113.057 of this Act.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.054. Sales From One Trust to Another

Sec. 113.054.  SALES FROM ONE TRUST TO ANOTHER.  A trustee of one trust may not sell property to another trust of which it is also trustee unless the property is:
(1)  a bond, note, bill, or other obligation issued or fully guaranteed as to principal and interest by the United States;  and
(2)  sold for its current market price.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.055. Purchase of Trustee's Securities

Sec. 113.055.  PURCHASE OF TRUSTEE'S SECURITIES.  (a)  Except as provided by Subsection (b) of this section, a corporate trustee may not purchase for the trust the stock, bonds, obligations, or other securities of the trustee or an affiliate, and a noncorporate trustee may not purchase for the trust the stock, bonds, obligations, or other securities of a corporation with which the trustee is connected as director, owner, manager, or any other executive capacity.
(b)  A trustee may:
(1)  retain stock already owned by the trust unless the retention does not satisfy the requirements prescribed by Chapter 117;  and
(2)  exercise stock rights or purchase fractional shares under Section 113.053 of this Act.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 5, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.056. Authorization to Make Certain Investments

Sec. 113.056.  AUTHORIZATION TO MAKE CERTAIN INVESTMENTS.  (a)  Unless the terms of the trust instrument provide otherwise, and subject to the investment standards provided by this subtitle and any investment standards provided by the trust instrument, the trustee may invest all or part of the trust assets in an investment vehicle authorized for the collective investment of trust funds pursuant to Part 9, Title 12, of the Code of Federal Regulations.
(d)  Subject to any investment standards provided by this chapter, Chapter 117, or the trust instrument, whenever the instrument directs, requires, authorizes, or permits investment in obligations of the United States government, the trustee may invest in and hold such obligations either directly or in the form of interests in an open-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., or in an investment vehicle authorized for the collective investment of trust funds pursuant to Part 9, Title 12 of the Code of Federal Regulations, so long as the portfolio of such investment company, investment trust, or collective investment vehicle is limited to such obligations and to repurchase agreements fully collateralized by such obligations.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 1985, 69th Leg., ch. 341, Sec. 1, eff. June 10, 1985;  Acts 1991, 72nd Leg., ch. 876, Sec. 1, eff. June 16, 1991;  Acts 2003, 78th Leg., ch. 1103, Sec. 6, 7, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.057. Deposits by Corporate Trustee With Itself

Sec. 113.057.  DEPOSITS BY CORPORATE TRUSTEE WITH ITSELF.  (a)  A corporate trustee may deposit trust funds with itself as a permanent investment if authorized by the settlor in the instrument creating the trust or if authorized in a writing delivered to the trustee by a beneficiary currently eligible to receive distributions from a trust created before January 1, 1988.
(b)  A corporate trustee may deposit with itself trust funds that are being held pending investment, distribution, or payment of debts if, except as provided by Subsection (d) of this section:
(1)  it maintains under control of its trust department as security for the deposit a separate fund of securities legal for trust investments;
(2)  the total market value of the security is at all times at least equal to the amount of the deposit;  and
(3)  the separate fund is marked as such.
(c)  The trustee may make periodic withdrawals from or additions to the securities fund required by Subsection (b) of this section as long as the required value is maintained.  Income from securities in the fund belongs to the trustee.
(d)  Security for a deposit under this section is not required for a deposit under Subsection (a) or under Subsection (b) of this section to the extent the deposit is insured or otherwise secured under state or federal law.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 1985, 69th Leg., ch. 149, Sec. 3, eff. May 24, 1985.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter B. Duties of Trustee › Section 113.058. Bond

Sec. 113.058.  BOND.  (a)  A corporate trustee is not required to provide a bond to secure performance of its duties as trustee.
(b)  Unless the instrument creating the trust provides otherwise, a noncorporate trustee must give bond:
(1)  payable to the trust estate of the trust, the registry of the court, or each person interested in the trust, as their interests may appear; and
(2)  conditioned on the faithful performance of the trustee's duties.
(c)  The bond must be in an amount and with the sureties required by order of a court in a proceeding brought for this determination.
(d)  Any interested person may bring an action to increase or decrease the amount of a bond, require a bond, or substitute or add sureties.  Notwithstanding Subsection (b), for cause shown, a court may require a bond even if the instrument creating the trust provides otherwise.
(e)  The trustee shall deposit the bond with the clerk of the court that issued the order requiring the bond.  A suit on the bond may be maintained on a certified copy.  Appropriate proof of a recovery on a bond reduces the liability of the sureties pro tanto.
(f)  Failure to comply with this section does not make void or voidable or otherwise affect an act or transaction of a trustee with any third person.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 14, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 6, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter C. Resignation or Removal of Trustee, and Authority of Multiple and Successor Trustees › Section 113.081. Resignation of Trustee

Sec. 113.081.  RESIGNATION OF TRUSTEE.  (a)  A trustee may resign in accordance with the terms of the trust instrument, or a trustee may petition a court for permission to resign as trustee.
(b)  The court may accept a trustee's resignation and discharge the trustee from the trust on the terms and conditions necessary to protect the rights of other interested persons.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter C. Resignation or Removal of Trustee, and Authority of Multiple and Successor Trustees › Section 113.082. Removal of Trustee

Sec. 113.082.  REMOVAL OF TRUSTEE.  (a)  A trustee may be removed in accordance with the terms of the trust instrument, or, on the petition of an interested person and after hearing, a court may, in its discretion, remove a trustee and deny part or all of the trustee's compensation if:
(1)  the trustee materially violated or attempted to violate the terms of the trust and the violation or attempted violation results in a material financial loss to the trust;
(2)  the trustee becomes incapacitated or insolvent;
(3)  the trustee fails to make an accounting that is required by law or by the terms of the trust; or
(4)  the court finds other cause for removal.
(b)  A beneficiary, cotrustee, or successor trustee may treat a violation resulting in removal as a breach of trust.
(c)  A trustee of a charitable trust may not be removed solely on the grounds that the trustee exercised the trustee's power to adjust between principal and income under Section 113.0211.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 2003, 78th Leg., ch. 550, Sec. 2, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 16, eff. January 1, 2006.