Bill > HB3405

This bill modifies Texas Property Code sections related to trust accounting requirements, specifically addressing how trustees must document and allocate financial transactions within a trust. The bill requires trustees to provide a detailed written statement of accounts that includes all trust property, a complete account of receipts and disbursements, and a listing of administered assets. While trustees are generally not required to allocate receipts and disbursements between principal and income if the distribution standards and beneficiaries are the same, the bill introduces a new provision allowing courts to compel such allocation upon a showing of good cause. This means that even if a trust has uniform distribution standards, a court can require the trustee to break down financial transactions into principal and income categories if there is a compelling reason to do so. The changes will apply only to accounting demands made on or after the effective date of September 1, 2025, ensuring that existing accounting demands are not retroactively affected by the new law.

Budget and Finance, Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3405