Texas § PR.112.085 - EXCEPTIONS TO POWER OF DISTRIBUTION

§ PR.112.085. EXCEPTIONS TO POWER OF DISTRIBUTION

EXCEPTIONS TO POWER OF DISTRIBUTION. An authorized trustee may not exercise a power to distribute principal of a trust under Section 112.072 or 112.073 to: (1) reduce, limit, or modify a beneficiary's current, vested right to: (A) receive a mandatory distribution of income or principal; (B) receive a mandatory annuity or unitrust interest; (C) withdraw a percentage of the value of the trust; or (D) withdraw a specified dollar amount from the trust; (2) materially limit a trustee's fiduciary duty: (A) under the terms of the trust; or (B) in a manner that would be prohibited by Section 111.0035 ; (3) decrease or indemnify against a trustee's liability; (4) add a provision exonerating a trustee from liability for failure to exercise reasonable care, diligence, and prudence; (5) eliminate a provision granting another person the right to remove or replace the authorized trustee exercising the distribution power under Section 112.072 or 112.073 ; or (6) reduce, limit, or modify in the second trust a perpetuities provision included in the first trust, unless expressly permitted by the terms of the first trust. Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913 ), Sec. 3, eff. September 1, 2013. Amended by: Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617 ), Sec. 11, eff. September 1, 2017.