Texas Property Code 111.0035 – 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 § 112.031;
(2) the applicability of § 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 § 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 § 112.054;
(B) remove a trustee under § 113.082;
(C) exercise jurisdiction under § 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 § 114.064; or
(6) the applicability of § 112.038.
Terms Used In Texas Property Code 111.0035
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Justice: when applied to a magistrate, means justice of the peace. See Texas Government Code 312.011
- Trustee: A person or institution holding and administering property in trust.
(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.