Texas § PR.111.0035 - DEFAULT AND MANDATORY RULES

§ PR.111.0035. DEFAULT AND MANDATORY RULES

DEFAULT AND MANDATORY RULES; CONFLICT BETWEEN TERMS AND STATUTE. (a) Except as provided by the terms of a trust and Subsection (b), this subtitle governs: (1) the duties and powers of a trustee; (2) relations among trustees; and (3) the rights and interests of a beneficiary. (b) The terms of a trust prevail over any provision of this subtitle, except that the terms of a trust may not limit: (1) the requirements imposed under Section 112.031 ; (2) the applicability of Section 114.007 to an exculpation term of a trust; (3) the periods of limitation for commencing a judicial proceeding regarding a trust; (4) a trustee's duty: (A) with regard to an irrevocable trust, to respond to a demand for accounting made under Section 113.151 if the demand is from a beneficiary who, at the time of the demand: (i) is entitled or permitted to receive distributions from the trust; or (ii) would receive a distribution from the trust if the trust terminated at the time of the demand; and (B) to act in good faith and in accordance with the purposes of the trust; (5) the power of a court, in the interest of justice, to take action or exercise jurisdiction, including the power to: (A) modify, reform, or terminate a trust or take other action under Section 112.054 ; (B) remove a trustee under Section 113.082 ; (C) exercise jurisdiction under Section 115.001 ; (D) require, dispense with, modify, or terminate a trustee's bond; (E) adjust, deny, or order disgorgement of a trustee's compensation if the trustee commits a breach of trust; or (F) make an award of costs and attorney's fees under Section 114.064 ; or (6) the applicability of Section 112.038 . (c) The terms of a trust may not limit any common-law duty to keep a beneficiary of an irrevocable trust who is 25 years of age or older informed at any time during which the beneficiary: (1) is entitled or permitted to receive distributions from the trust; or (2) would receive a distribution from the trust if the trust were terminated. Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190 ), Sec. 2, eff. January 1, 2006. Amended by: Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564 ), Sec. 2, eff. June 16, 2007. Acts 2009, 81st Leg., R.S., Ch. 414 (H.B. 1969 ), Sec. 2, eff. June 19, 2009. Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617 ), Sec. 1, eff. September 1, 2017. Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245 ), Sec. 1, eff. September 1, 2019.