Bill Text: TX HB2333 | 2023-2024 | 88th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to noncharitable trusts without an ascertainable beneficiary.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2023-06-18 - Effective immediately [HB2333 Detail]
Download: Texas-2023-HB2333-Comm_Sub.html
Bill Title: Relating to noncharitable trusts without an ascertainable beneficiary.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2023-06-18 - Effective immediately [HB2333 Detail]
Download: Texas-2023-HB2333-Comm_Sub.html
By: Allison (Senate Sponsor - Flores) | H.B. No. 2333 | |
(In the Senate - Received from the House May 10, 2023; | ||
May 11, 2023, read first time and referred to Committee on Business & | ||
Commerce; May 19, 2023, reported favorably by the following vote: | ||
Yeas 10, Nays 0; May 19, 2023, sent to printer.) | ||
COMMITTEE VOTE | ||
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SchwertnerX | ||
KingX | ||
BirdwellX | ||
CampbellX | ||
CreightonX | ||
JohnsonX | ||
KolkhorstX | ||
MenéndezX | ||
MiddletonX | ||
NicholsX | ||
ZaffiriniX | ||
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relating to noncharitable trusts without an ascertainable | ||
beneficiary. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 111.004(4), Property Code, is amended to | ||
read as follows: | ||
(4) "Express trust" means a fiduciary relationship | ||
with respect to property which arises as a manifestation by the | ||
settlor of an intention to create the relationship and which | ||
subjects the person holding title to the property to equitable | ||
duties to deal with the property: | ||
(A) for the benefit of another person; or | ||
(B) for a particular purpose, in the case of a | ||
trust subject to Subchapter F. | ||
SECTION 2. Chapter 112, Property Code, is amended by adding | ||
Subchapter F to read as follows: | ||
SUBCHAPTER F. NONCHARITABLE TRUST WITHOUT ASCERTAINABLE | ||
BENEFICIARY | ||
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. | ||
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. | ||
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. | ||
SECTION 3. Subchapter F, Chapter 112, Property Code, as | ||
added by this Act, applies only to a trust created on or after the | ||
effective date of this Act. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2023. | ||
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