Tex. Prop. Code § 116.173 · Part 3. RECEIPTS NORMALLY APPORTIONED
LIQUIDATING ASSET.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to Section 116.172, resources subject to Section 116.174, timber subject to Section 116.175, an activity subject to Section 116.177, an asset subject to Section 116.178, or any asset for which the trustee establishes a reserve for depreciation under Section 116.203.
(b) A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.
(c) The trustee may allocate a receipt from any interest in a liquidating asset the trust owns on January 1, 2004, in the manner provided by this chapter or in any lawful manner used by the trustee before January 1, 2004, to make the same allocation.
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 ecf0e0b1386704424291b0bdb9515b60c175d04cba2adfe9a22118b8ac168c14
- 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.
Property Code
- Tex. Prop. Code § 116.172DEFERRED COMPENSATION, ANNUITIES, AND SIMILAR PAYMENTS.Printed as Section 116.172
- Tex. Prop. Code § 116.174MINERALS, WATER, AND OTHER NATURAL RESOURCES.Printed as Section 116.174
- Tex. Prop. Code § 116.175TIMBER.Printed as Section 116.175
- Tex. Prop. Code § 116.177DERIVATIVES AND OPTIONS.Printed as Section 116.177
- Tex. Prop. Code § 116.178ASSET-BACKED SECURITIES.Printed as Section 116.178
- Tex. Prop. Code § 116.203TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION.Printed as Section 116.203
Cited by 2 provisions
Provisions in this library whose text cites Tex. Prop. Code § 116.173. Each shows the citation as that text prints it.
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.