Bill > SB1218

This bill modifies Texas Property Code sections 113.151 and 113.152 regarding trust accounting requirements, specifically addressing how trustees must report financial transactions in trust accounts. Under the new provisions, trustees will be required to provide a written statement of accounts that details all trust property, receipts, disbursements, and transactions, with a key change being how these financial movements are allocated between principal and income. While previously trustees were not required to separately allocate receipts and disbursements if the distribution standards and beneficiaries were the same for principal and income, the bill now allows courts to compel trustees to provide such allocations upon a showing of "good cause". The bill specifies that these new accounting requirements will only apply to accounting demands made on or after September 1, 2025, meaning prior accounting demands will be governed by the existing law. This change aims to provide more transparency and flexibility in how trust financial information is reported and reviewed by courts.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1218