HB5069 - Relating to trustee settlement of accounts.

      By: Leach H.B. No. 5069       A BILL TO BE ENTITLED   AN ACT   relating to trustee settlement of accounts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Chapter 114, Property Code, is   amended by adding Section 114.009 to read as follows:                 Section 114.009. TRUSTEE SETTLEMENT OF ACCOUNTS           (A)     A trustee may obtain a settlement of its accounts in   accordance with subsection (B) when any of the following occur:           (1)  A trust terminates pursuant to the terms of the trust.           (2)  A trust terminates early pursuant to § 112.054.           (3)  A trustee resigns or is removed.           (4)     A trustee seeks discharge of an interim accounting   period when the trust is continuing.           (B)     (1) A trustee who elects to proceed under this section   shall provide all of the following to the qualified beneficiaries   of the trust and the successor trustee, if applicable, within a   reasonable time after termination of the trust pursuant to its   terms, the resignation or removal of the trustee, or the end of the   period for which the trustee is seeking discharge:           a.     A statement showing the fair market value of the new   assets to be distributed from a terminating trust or to a successor   trustee.           b.     A trust accounting for the prior two years showing all   receipts and disbursements and inventory value of the net assets.           c.     An estimate for any items reasonably anticipated to be   received or disbursed.           d.     The amount of any fees, including trustee fees, remaining   to be paid.           e.     Notice that the trust is terminating, or that the trustee   has resigned or been removed, the time period for which the trustee   seeks discharge of its accounts, and a statement providing that   claims against a trustee shall be barred if no objections are   received within the time period described in subsection (C).           f.  The name and mailing address of the trustee.           g.     The name and telephone number of a person who may be   contacted for additional information.           (2)     The trustee may also provide the statement and notice   described in this subsection to any other person who the trustee   reasonably believes may have an interest in the trust.           (C)     (1) If, after receiving the notice and trust information   described in subsection (B), a qualified beneficiary or any other   party that received the notice and trust information objects to a   disclosed act or omission, the qualified beneficiary shall provide   written notice of the objection to the trustee not later than 45   days after the notice was sent by the trustee. If no written   objection is provided in the 45-day time period, the information   provided under subsection (B) shall be considered approved by the   recipient. The trustee, in the case of a trust terminating pursuant   to the terms of the trust or the trustee's resignation or removal,   within a reasonable period of time following the expiration of the   45-day time period, shall distribute the assets as provided in the   trust or to the successor trustee. If a qualified beneficiary gives   the trustee a written objection within the applicable 45-day time   period, the trustee or the qualified beneficiary may do either of   the following:           a.     Submit the written objection to the court for resolution   and charge the expense of commencing a proceeding to the trust.           b.  Resolve the objection by written agreement.           (2)     Any agreement entered into pursuant to paragraph (1)b   may include a release, an indemnity clause, or both, on the part of   the beneficiary against the trustee relating to the trust. If the   parties agree to a nonjudicial settlement agreement or other   written agreement, any related expenses shall be charged to the   trust. Upon a resolution of an objection under this subsection,   within a reasonable period of time, the trustee shall distribute   the remaining trust assets as provided in the trust or to the   successor trustee.           (D)     The trustee may rely upon the written statement of a   person receiving notice that the person does not object.           (E)     When a trustee distributes assets of a terminating trust   or to the successor trustee after complying with this article and   having received no objections, each person who received notice and   either consented or failed to object pursuant to this section is   barred from doing either of the following:           (1)     Bringing a claim against the trustee or challenging the   validity of the trust to the same extent and with the same   preclusive effect as if the court had entered a final order   approving the trustee's final account.           (2)     Bringing a claim against the trustee for the period of   such interim accounts to the same extent and with the same   preclusive effect as if the court had entered a final order   approving the trustee's interim accounts.           (F)     The court, as defined under § 111.004, shall have   exclusive jurisdiction over matters under this section.           (G)     In the event the trustee is not released and his actions   ratified pursuant to the process provided by subsection (b), the   trustee shall not be precluded from obtaining a release of   liability by another permitted method.            SECTION 2.  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 on September 1, 2025.