Tex. Prop. Code § 112.072 · Subchapter D. DISTRIBUTION OF TRUST PRINCIPAL IN FURTHER TRUST
DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH FULL DISCRETION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An authorized trustee who has the full discretion to distribute the principal of a trust may distribute all or part of the principal of that trust in favor of a trustee of a second trust for the benefit of one, more than one, or all of the current beneficiaries of the first trust and for the benefit of one, more than one, or all of the successor or presumptive remainder beneficiaries of the first trust.
(b) The authorized trustee may, in connection with the exercise of a power of distribution under this section, grant a power of appointment, including a currently exercisable power of appointment, in the second trust to one or more of the current beneficiaries of the first trust who, at the time the power of appointment is granted, is eligible to receive the principal outright under the terms of the first trust.
(c) If the authorized trustee grants a power of appointment to a beneficiary under Subsection (b), the class of permissible appointees in whose favor the beneficiary may appoint under that power may be broader or different than the current, successor, and presumptive remainder beneficiaries of the first trust.
(d) If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust may include one or more persons who become members of that class after the distribution to the second trust.
(e) The authorized trustee shall exercise a power to distribute under this section in good faith, in accordance with the terms and purposes of the trust, and in the interests of the beneficiaries.
Notes and commentary — not statutory text
History
Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 8, eff. September 1, 2017.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/PR/htm/PR.112.htm
- Text hash
- sha256 e8f5300eafa96adaf0a16083385a3c812599a342fff4cd55b550b7551acdc893
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 12 provisions
Provisions in this library whose text cites Tex. Prop. Code § 112.072. Each shows the citation as that text prints it.
Property Code
- Tex. Prop. Code § 112.071DEFINITIONS.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.0715CREATION OF SECOND TRUST.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.074NOTICE REQUIRED.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.075WRITTEN INSTRUMENT REQUIRED.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.078COURT-ORDERED DISTRIBUTION.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.079DIVIDED DISCRETION.Printed as Section 112.072
- Tex. Prop. Code § 112.082NEED FOR DISTRIBUTION NOT REQUIRED.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.083DUTIES NOT CREATED.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.084CERTAIN DISTRIBUTIONS PROHIBITED.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.085EXCEPTIONS TO POWER OF DISTRIBUTION.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.086TAX-RELATED LIMITATIONS.Printed as Section 112.072 or 112.073
- Tex. Prop. Code § 112.087COMPENSATION OF TRUSTEE.Printed as Section 112.072 or 112.073
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.