Tex. Prop. Code § 112.073 · Subchapter D. DISTRIBUTION OF TRUST PRINCIPAL IN FURTHER TRUST
DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH LIMITED DISCRETION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An authorized trustee who has limited 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 as provided by this section.
(b) The current beneficiaries of the second trust must be the same as the current beneficiaries of the first trust, and the successor and presumptive remainder beneficiaries of the second trust must be the same as the successor and presumptive remainder beneficiaries of the first trust.
(c) The second trust must include the same language authorizing the trustee to distribute the income or principal of the trust that was included in the first trust.
(d) If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust must include all persons who become members of that class after the distribution to the second trust.
(e) If the first trust grants a power of appointment to a beneficiary of the trust, the second trust must grant the power of appointment to the beneficiary in the second trust, and the class of permissible appointees under that power must be the same as the class of permissible appointees under the power granted by the first trust.
(f) The authorized trustee shall exercise a power of distribution 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.
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 45c59bafabfaa472259a2b106f9afcb7741a347486a880e106955ab94d3f596a
- 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 11 provisions
Provisions in this library whose text cites Tex. Prop. Code § 112.073. 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 § 112.082NEED 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.