Tex. Prop. Code § 116.153 · Part 1. RECEIPTS FROM ENTITIES
BUSINESS AND OTHER ACTIVITIES CONDUCTED BY TRUSTEE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
(b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.
(c) Activities for which a trustee may maintain separate accounting records include:
(1) retail, manufacturing, service, and other traditional business activities;
(2) farming;
(3) raising and selling livestock and other animals;
(4) management of rental properties;
(5) extraction of minerals and other natural resources;
(6) timber operations; and
(7) activities to which Section 116.177 applies.
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/PR/htm/PR.116.htm
- Text hash
- sha256 649cf056d29041ba9b70b68ae69549046f5afdc7752379c3ae6da821cac19aeb
- 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
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 4 provisions
Provisions in this library whose text cites Tex. Prop. Code § 116.153. Each shows the citation as that text prints it.
Property Code
- Tex. Prop. Code § 116.151CHARACTER OF RECEIPTS.Printed as Section 116.153
- Tex. Prop. Code § 116.164INSURANCE POLICIES AND SIMILAR CONTRACTS.Printed as Section 116.153
- Tex. Prop. Code § 116.177DERIVATIVES AND OPTIONS.Printed as Section 116.153
- Tex. Prop. Code § 116.203TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION.Printed as Section 116.153
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.