Texas § PR.240.0081 - NOTICE REQUIRED BY TRUSTEE DISCLAIMING CERTAIN INTERESTS IN PROPERTY

§ PR.240.0081. NOTICE REQUIRED BY TRUSTEE DISCLAIMING CERTAIN INTERESTS IN PROPERTY

NOTICE REQUIRED BY TRUSTEE DISCLAIMING CERTAIN INTERESTS IN PROPERTY; EFFECT OF NOTICE. (a) A trustee acting in a fiduciary capacity may disclaim an interest in property that would cause the interest in property not to become trust property without court approval if the trustee provides written notice of the disclaimer to all of the current beneficiaries and presumptive remainder beneficiaries of the trust. (b) For the purpose of determining who is a current beneficiary or presumptive remainder beneficiary entitled to the notice under Subsection (a), a beneficiary is determined as of the date the notice is sent. (c) Except as provided by Subsection (e-1), in addition to the notice required under Subsection (a), the trustee shall give written notice of the trustee's disclaimer to the attorney general if: (1) a charity is entitled to notice; (2) a charity entitled to notice is no longer in existence; (3) the trustee has the authority to distribute trust assets to one or more charities that are not named in the trust instrument; or (4) the trustee has the authority to make distributions for a charitable purpose described in the trust instrument, but no charity is named as a beneficiary for that purpose. (d) If the beneficiary has a court-appointed guardian or conservator, the notice required to be given by this section must be given to that guardian or conservator. If the beneficiary is a minor for whom no guardian or conservator has been appointed, the notice required to be given by this section must be given to a parent of the minor. (e) The trustee is not required to provide the notice to a beneficiary who: (1) is known to the trustee and cannot be located by the trustee after reasonable diligence; (2) is not known to the trustee; (3) waives the requirement of the notice under this section; or (4) is a descendant of a beneficiary to whom the trustee has given notice if the beneficiary and the beneficiary's ancestor have similar interests in the trust and no apparent conflict of interest exists between them. (e-1) The trustee is not required to give notice to the attorney general under Subsection (c) if the attorney general waives that requirement in writing. (e-2) For purposes of Subsection (e)(3), a beneficiary is considered to have waived the requirement that notice be given under this section if a person to whom notice is required to be given with respect to that beneficiary under Subsection (d) waives the requirement that notice be given under this section. (f) The notice required under Subsection (a) must: (1) include a statement that: (A) the trustee intends to disclaim an interest in property; (B) if the trustee makes the disclaimer, the property will not become trust property and will not be available to distribute to the beneficiary from the trust; (C) the beneficiary has the right to object to the disclaimer; and (D) the beneficiary may petition a court to approve, modify, or deny the disclaimer; (2) describe the interest in property the trustee intends to disclaim; (3) specify the earliest date the trustee intends to make the disclaimer; (4) include the name and mailing address of the trustee; (5) be given not later than the 30th day before the date the disclaimer is made; and (6) be sent by personal delivery, first-class mail, facsimile, e-mail, or any other method likely to result in the notice's receipt. (g) A beneficiary is not considered to have accepted the disclaimed interest solely because the beneficiary acts or does not act on receipt of a notice provided under this section. (h) If the trustee makes the disclaimer for which notice is provided under this section, the beneficiary does not lose the beneficiary's right, if any, to sue the trustee for breach of the trustee's fiduciary obligations in connection with making the disclaimer. Section 240.008 (g) applies to remedies sought in connection with the alleged breach. Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428 ), Sec. 15, eff. September 1, 2015. Amended by: Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617 ), Sec. 16, eff. September 1, 2017.