Texas Estates Code 1301.204 – Distribution of Trust Property
(a) Unless otherwise provided by the court and except as provided by Subsection (b), the trustee of a management trust shall:
(1) prepare a final account in the same form and manner that is required of a guardian under Sections 1204.101 and 1204.102; and
(2) on court approval, distribute the principal or any undistributed income of the trust to:
(A) the ward or incapacitated person when the trust terminates on the trust’s own terms;
(B) the successor trustee on appointment of a successor trustee; or
(C) the representative of the deceased ward’s or incapacitated person’s estate on the ward’s or incapacitated person’s death.
(b) The court may not require a trustee of a trust created for a person who has only a physical disability to prepare and file with the court a final account as described by Subsection (a)(1). The trustee shall distribute the principal and any undistributed income of the trust in the manner provided by Subsection (a)(2) for a trust the beneficiary of which is a ward or incapacitated person.
Terms Used In Texas Estates Code 1301.204
- 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
- Court: means and includes:
(1) a county court in the exercise of its probate jurisdiction;
(2) a court created by statute and authorized to exercise original probate jurisdiction; and
(3) a district court exercising original probate jurisdiction in a contested matter. See Texas Estates Code 22.007 - Estate: means a decedent's property, as that property:
(1) exists originally and as the property changes in form by sale, reinvestment, or otherwise;
(2) is augmented by any accretions and other additions to the property, including any property to be distributed to the decedent's representative by the trustee of a trust that terminates on the decedent's death, and substitutions for the property; and
(3) is diminished by any decreases in or distributions from the property. See Texas Estates Code 22.012 - Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Person: includes a natural person and a corporation. See Texas Estates Code 22.027
- Trustee: A person or institution holding and administering property in trust.
- Ward: means a person for whom a guardian has been appointed. See Texas Estates Code 22.033