HB3405 - Relating to the contents of a trust accounting.

  89R6822 RAL-F     By: Hayes H.B. No. 3405       A BILL TO BE ENTITLED   AN ACT   relating to the contents of a trust accounting.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 113.151, Property Code, is amended by   adding Subsection (c) to read as follows:           (c)     Notwithstanding Section 113.152(b), on a showing of   good cause, the court may compel the trustee to include in a written   statement of account required by the court under Subsection (a) or   (b) an allocation of certain receipts and disbursements to   principal and income regardless of whether the distribution   standard and beneficiaries are the same for principal and income.          SECTION 2.  Section 113.152, Property Code, is amended to   read as follows:          Sec. 113.152.  CONTENTS OF ACCOUNTING. (a) A written   statement of accounts shall show:                (1)  all trust property that has come to the trustee's   knowledge or into the trustee's possession and that has not been   previously listed or inventoried as property of the trust;                (2)  a complete account of receipts, disbursements, and   other transactions regarding the trust property for the period   covered by the account, including their source and nature, with   each receipt and disbursement allocated to [ receipts of ] principal   or [ and ] income , subject to Subsection (b) [ shown separately ];                (3)  a listing of all property being administered, with   an adequate description of each asset;                (4)  the cash balance on hand and the name and location   of the depository where the balance is kept; and                (5)  all known liabilities owed by the trust.           (b)     A trustee is not required to allocate a receipt or   disbursement to principal or income under Subsection (a)(2) if the   distribution standard and beneficiaries are the same for both   principal and income.          SECTION 3.  The changes in law made by this Act apply only to   a demand for accounting made on or after the effective date of this   Act. A demand for accounting made before the effective date of this   Act is governed by the law in effect immediately before the   effective date of this Act, and the former law is continued in   effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.