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ÚƒoÚÚ  Ú.à0 àÛ€oÛ ù(@3½q$©©Ý ƒKÍ!ÝÔ  ÔÑ  ÑÓ  ÓÝ  Ýy\%¬ Ñ €" Ñ cÝ ƒ#½q)ÝÔ  ÔÓ  ÓÝ  ÝÔ_ÔòòÔ_ÔREPTLÔ_Ô€1999€PROPOSED€LEGISLATIONà@µµµìàòòòòÔÿÔò òóóÔ_ÔAdditionsÔÿÔóóóó;ÔÿÔò òDeletionsÔ_Ôó óÔÿçÔó óòòˆà€!!Ä (#àPAGE€Ú  Ú1Ú  Úóó(W CEMU]emu}AutoList9(a)(a)(a)(a)(a)(a)(a)(a)(wEEGOW_gowAutoList10(a)(a)(a)(a)(a)(a)(a)(a) ¸ºEGOU]emu}AutoList11(a)1.(a)(a)(a)(a)(a)(a)(;³´$´´Ô2 eÔÚ  Ú0Ú  Ú.Ô3  Ôà0  à$ÿÿ35;=CIOW_1I.A.1.a.(1)(a)i) d# e37=CIQYag­­1.a.i.(1)(a)(i)1)a)3•Ñ37=CIOW_e®®I.A.1.a.(1)(a)i)a)I, II,Level 1Level 2Level 3Level 4Level 5N#E&.I, II,Uppercase RomanÚƒmÚÚ  Ú.à0 àÛ€mÛa, b, c,Level 1Level 2Level 3Level 4Level 5V#E¶2a, b, c,Lowercase LettersÚƒoÚÚ  Ú.à0 àÛ€oÛÝ ƒKÍ!ÝÔ  ÔÑ  ÑÓ  ÓÝ  ÝÔ_Ôò òÑ  ÑÔ  ÔÌÌÔ‡ H!XXÔà@ccìàREAL€ESTATE€PROBATE€&€TRUST€LAW€SECTIONˆÐ |Ì ÐÌà@n n ìàPROBATE€&€TRUST€DIVISIONˆÌÔ#†X%¤X! Hl#ÔÌÌÌà@ !ìàÔ‡„&„XX%¤ÔSTATE€BAR€OF€TEXASÔ#†X%¤X„„&?#ÔÔ‡¼ì9»XX%¤ÔˆÐ Ê  ÐÌÔ#†X%¤X»¼ì9“#ÔÌÌà@ìàPROPOSED€1999€LEGISLATIONˆÌÌà@`` ìàApproved€by€à@@¨ ¨ ìàState€Bar€of€Texas€à@@ìàLegislative€Committee€à@@§§$ìàJune€29,€1998ó óˆÐ È ÐÌà@NNìàò òApproved€by€à@@– – ìàReal€Estate,€Probate€and€Trust€Law€Council€October€24,€1998ó óˆÐ  ”ä Ðà@´´"ìàò òTABLE€OF€CONTENTSó óˆÐ ° ÐÓ€Ý ÓÓ  ÓÝ‚VmÿÝÌÝ  ÝÝ‚Vm£Ýà0  àà ° àÝ  Ýò ò1.à0(#(#àPROBATE€CODEó óà‚#Ä"Ä"J(#.D D (#(##à1݃Vm£¿ÝŒˆÐ |Ì ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù{Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àa.à0¸ ` (#` (#àProposed€Amendments€to€Section€89A.ó óà‚#Ä"Ä"J(#.ªª<¸ (#¸ (##à1݃!ù{–ÝŒˆÐ b² ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù‘Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àb.à0¸ ` (#` (#àProposed€Amendments€to€Section€89B.€€Proof€Required€for݃!ù‘¬ÝŒÐH˜¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùÝà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àProbate€of€a€Will€as€a€Muniment€of€Title.ó óà‚#Ä"Ä"J(#.hhB¸ (#¸ (##à2݃!ù¸ÝŒˆÐ . ~ ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù´Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àc.à0¸ ` (#` (#àSection€149D.€€Approval€of€an€Independent€Executor's€Account݃!ù´Ï݌Рd¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùÅÝà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àfor€Final€Settlement€of€Estates€of€Decedents.ó óà‚#Ä"Ä"J(#.llF¸ (#¸ (##à3݃!ùÅàÝŒˆÐ ú J ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùà Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àd.à0¸ ` (#` (#àProposed€Section€221A.€Resignation€of€Resident€Agent.ó óà‚#Ä"Ä"J(#.N¸ (#¸ (##à5݃!ùà û ÝŒˆÐ à 0 ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àe.à0¸ ` (#` (#àProposed€amendments€to€Section€222.€Removal.ó ó€à‚#Ä"Ä"J(#.ÚÚF¸ (#¸ (##à6݃!ù # ÝŒˆÐ Æ   ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù( Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àf.à0¸ ` (#` (#àProposed€Amendment€to€Section€270.€€Liability€of݃!ù( C ݌Ь ü ¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù- Ýà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àHomestead€for€Debts.€ó óà‚#Ä"Ä"J(#.  .¸ (#¸ (##à8à‚#@(#(#K(#.  ¸ (#¸ (##à݃!ù- H ÝŒˆÐ ’â  ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùSÝà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àg.à0¸ ` (#` (#àSection€378B.€€Allocation€of€Income€and€Expenses݃!ùSnÝŒÐxÈ ¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùXÝà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àDuring€Administration€of€Decedent's€Estate.ó óà‚#Ä"Ä"J(#.ˆˆD¸ (#¸ (##à9݃!ùXsÝŒˆÐ ^®  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmqÝà0  àà ° àÝ  Ýò ò2.à0(#(#àGUARDIANSHIP€CODE€ó óà‚#`"`"I(#.ÌÌ!(#(##à10݃VmqÝŒˆÐ *z  ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùPÝà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àa.à0¸ ` (#` (#àProposed€Section€760A.€Resignation€of€Resident€Agentó óà‚#`"`"I(#.ààM¸ (#¸ (##à10݃!ùPkÝŒˆÐ ` ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùxÝà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àb.à0¸ ` (#` (#àProposed€amendments€to€Section€761.€Removaló ó.à‚#`"`"I(#.¨¨E¸ (#¸ (##à12݃!ùx“ÝŒˆÐ öF ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù˜Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àc.à0¸ ` (#` (#àProposed€amendments€to€Section€865.€Power€to€Make݃!ù˜³ÝŒÐÜ,¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùžÝà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àTax„Motivated€Gifts.€ó óà‚#`"`"I(#.ðð.¸ (#¸ (##à14݃!ùž¹ÝŒˆÐ Â ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù¢Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àd.à0¸ ` (#` (#à€Proposed€amendments€to€Section€867.€Creation€of݃!ù¢½ÝŒÐ¨ø¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù§Ýà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àManagement€Trust.ó óñSññRñ€ñRñÐ ŽÞ ÐñSñà‚#`"`"I(#.ZZ*¸ (#¸ (##à15à‚#@(#(#K(#.€ € ¸ (#¸ (##à݃!ù§ÂÝŒˆÐ ŽÞ ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùõÝà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àe.à0¸ ` (#` (#àProposed€amendments€to€Section€868A.€Discharge€of€ñTñ݃!ùõÝŒÐtĸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùÝà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àñTñGuardian€of€Estate€and€Continuation€of€Trustó ó.€à‚#`"`"I(#.~~G¸ (#¸ (##à17݃!ùÝŒˆÐ Zª ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù#Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àf.à0¸ ` (#` (#àProposed€amendments€to€Section€869C.€Jurisdiction€Over€ñUñ݃!ù#>ÝŒÐ@¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù4Ýà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àñUñTrust€Mattersó óñVñ€ñVññWñÐ &v ÐñWñà‚#`"`"I(#.œœ'¸ (#¸ (##à18à‚#@(#(#K(#.€ € ¸ (#¸ (##à݃!ù4OÝŒˆÐ &v ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùƒÝà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àg.à0¸ ` (#` (#àProposed€Section€745.€Closing€Guardianships€of€the€Estate.ó óà‚#`"`"I(#.vvS¸ (#¸ (##à18݃!ùƒžÝŒˆÐ  \ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm±Ýà0  àà ° àÝ  Ýò ò3.à0(#(#à€TRUST€CODEó óà‚#`"`"I(#.J J (#(##à19݃Vm±ÍÝŒˆÐ Ø( ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù‰Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àa.à0¸ ` (#` (#àProposed€Amendments€to€Section€113.056ó óà‚#`"`"I(#.ªª?¸ (#¸ (##à19݃!ù‰¤ÝŒˆÐ ¾ ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù£Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àb.à0¸ ` (#` (#àProposed€New€Section€113.060.€Authority€to€Delegate€ñXñ݃!ù£¾ÝŒÐ¤ô¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ù± Ýà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àñXñInvestment€Management€of€Trust€Assetsó óà‚#`"`"I(#.22>¸ (#¸ (##à20݃!ù± Ì ÝŒˆÐ Š Ú ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùÊ!Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àc.à0¸ ` (#` (#àProposed€Amendments€to€Section€113.018.€Employment€ofñYñ݃!ùÊ!å!ÝŒÐp!À ¸ (#¸ (# ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùÙ"Ýà0  àà0` (#(#àà  àÝ  Ýà0` ` (#` (#àà0¸ ` (#` (#àñYññZñ€ñZñAgentsó óñ[ñÐ V"¦! Ðñ[ñà‚#`"`"I(#.¸ (#¸ (##à21݃!ùÙ"ô"ÝŒˆÐ V"¦! ÐŒÝ  ÝÝ‚!ùÿÝÝ  ÝÝ‚!ùþ#Ýà0  àà0` (#(#àà  àÝ  Ýò òà0` ` (#` (#àd.à0¸ ` (#` (#àProposed€New€Section€114.007.€Virtual€Representation.ó óà‚#`"`"I(#.&&N¸ (#¸ (##à21݃!ùþ#$ÝŒˆÐ <#Œ" ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm'%Ýà0  àà ° àÝ  Ýò ò4.à0(#(#àPROPERTY€CODE.€Section€42.0021.€Exempting€Roth€IRAs.ó óà‚#`"`"I(#.XXC(#(##à22݃Vm'%C%ÝŒˆÐ %X $ ÐŒÝ  ÝÓ —ÓÐ  î%>!% ÐØØÑ€%'ÑÔ_ÔÖ€&ÿÿÖÔ_ÔÌÔ  Ôò òÝ ‚5³´ ÝÝ  ÝÝ‚5³´µ&ÝÔ2 eÔÚ  Ú1Ú  Ú.Ô3  Ôà0  àÝ  ÝPROBATE€CODEó óÔ ¥&Ô݃5³´µ&à&݌Жæ(#(# ÐŒÝ  ÝÌÔ  ÔÝ ‚ú» ÝÝ  Ýò òÝ‚ú»ª'Ýà0  àÔ2 eÔÚ  ÚaÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Amendments€to€Section€89A.Ô 'Ô€€Contents€of€Application€for€Probate€ofÐ b² ÐWill€as€Muniment€of€Title.€€Section€89A€requires€that€the€social€security€numberÏof€the€decedent€and€the€applicant€be€included€in€the€application€to€probate€willÏas€a€muniment€of€title.€€This€requirement€was€deleted€from€the€requirements€forÏcontents€of€an€application€for€letters€testamentary€(Section€81)€and€should€beÏdeleted€in€this€provision€as€well€for€consistency.݃ú»ª'Ø'݌Р` (#` (# ÐŒÝ  Ýó óÌò òðð89A.€€Contents€of€Application€for€Probate€of€Will€as€Muniment€of€Titleó óÐ ¬ ü  ÐÌà  à(a)€A€written€will€shall,€if€within€the€control€of€the€applicant,€be€filed€with€the€application€forÏprobate€as€a€muniment€of€title,€and€shall€remain€in€the€custody€of€the€county€clerk€unless€removedÏfrom€the€custody€of€the€clerk€by€order€of€a€proper€court.€€An€application€for€probate€of€a€will€as€aÏmuniment€of€title€shall€state:ÌÌà  àà ` à(1)€The€name€and€domicile€of€each€applicant.ÌÌà  àà ` à(2)€The€name,€age€if€known,€and€domicile€of€the€decedent,€and€the€fact,€time,€andÏplace€of€death.ÌÌà  àà ` à(3)€Facts€showing€that€the€court€has€venue.ÌÌà  àà ` à(4)€That€the€decedent€owned€real€or€personal€property,€or€both,€describing€theÏproperty€generally,€and€stating€its€probable€value.ÌÌà  àà ` à(5)€The€date€of€the€will,€the€name€and€residence€of€the€executor€named€in€the€will,Ïif€any,€and€the€names€and€residences€of€the€subscribing€witnesses,€if€any.ÌÌà  àà ` à(6)€Whether€a€child€or€children€born€or€adopted€after€the€making€of€such€will€survivedÏthe€decedent,€and€the€name€of€such€survivor,€if€any.ÌÌà  àà ` à(7)€That€there€are€no€unpaid€debts€owing€by€the€estate€of€the€testator,€excluding€debtsÏsecured€by€liens€on€real€estateò ò€òòòòÔÿÔor€other€reason€why€no€administration€is€needed.ó óÔÿ¾/ÔóóóóÐ <#Œ" ÐÌà  àà ` à(8)€Whether€the€decedent€was€ever€divorced,€and€if€so,€when€and€from€whom.ò òÐ %X $ ÐÌó óà  àà ` àò òÔÿÔò ò(9)€The€social€security€number€of€the€applicant€and€of€the€decedent.ó óÔÿÊ0Ôó óÐ Ô&$"& ÐÌà  àà ` à(ò òÔÿÔò ò10Ôÿm1Ôó óòòÔÿÔòò9ó óóóÔÿœ1Ôóó)€Whether€the€state,€a€governmental€agency€of€the€state,€or€a€charitableÐ  (ð#( Ðorganization€is€named€by€the€will€as€a€devisee.ÌÌà  àThe€foregoing€matters€shall€be€stated€and€averred€in€the€application€to€the€extent€that€theyÏare€known€to€the€applicant,€or€can€with€reasonable€diligence€be€ascertained€by€the€applicant,€and€ifÐ 8,ˆ', Ðany€of€such€matters€is€not€stated€or€averred€in€the€application,€the€application€shall€set€forth€theÏreason€why€such€matter€is€not€so€stated€and€averred.ÌÌà  à(b)€When€a€written€will€cannot€be€produced€in€court,€in€addition€to€the€requirements€ofÏSubsection€(a)€of€this€section,€the€application€shall€state:ÌÌà  àà ` à(1)€The€reason€why€such€will€cannot€be€produced.ÌÌà  àà ` à(2)€The€contents€of€such€will,€to€the€extent€known.ÌÌà  àà ` à(3)€The€date€of€such€will€and€the€executor€appointed€in€the€will,€if€any,€to€the€extentÏknown.ÌÌà  àà ` à(4)€The€name,€age,€marital€status,€and€address,€if€known,€and€the€relationship€to€theÏdecedent,€if€any,€of€each€devisee,€and€of€each€person€who€would€inherit€as€an€heir€in€the€absence€ofÏa€valid€will,€and,€in€cases€of€partial€intestacy,€of€each€heir.ÌÌà  à(c)€An€application€for€probate€of€a€Ô_ÔnuncupativeÔ_Ô€will€as€muniment€of€title€shall€contain€allÏapplicable€statements€required€with€respect€to€written€wills€in€the€foregoing€subsections€and€also:ÌÌà  àà ` à(1)€The€substance€of€testamentary€words€spokenÌÌà  àà ` à(2)€The€names€and€residences€of€the€witnesses€thereto.ÌÌòòò òòòóóSection€89A.€€Effective€Date.€€The€act€takes€effect€September€1,€1999€and€applies€to€allÐ @ Ðapplications€to€probate€a€will€as€a€muniment€of€title€filed€on€or€after€that€date.òòóóóóÐ &v ÐÌó óÌÔ  ÔÝ ‚ú» ÝÝ  Ýò òÝ‚ú»9Ýà0  àÔ2 eÔÚ  ÚbÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Amendments€to€Section€89B.€€Proof€Required€for€Probate€of€a€Will€asÐ Ø( Ða€Muniment€of€Title.Ô 9Ô€€In€1997,€Section€89B€(which€was€formerly€a€part€ofÏSection€89)€was€added€to€specify€the€proof€required€for€probate€of€a€will€as€aÏmuniment.€€Section€89B€adapted€language€from€Section€88€(proof€required€forÏissuance€of€Letters€Testamentary€or€Letters€of€Administration),€whichÏinadvertently€added€the€requirement€that€proof€be€given€that€4€years€have€notÏelapsed€since€decedent's€death.€€This€may€create€the€inference€that€a€will€cannotÏbe€admitted€to€probate€as€a€muniment€after€4€years,€which€conflicts€with€SectionÏ73(a);€which€allows€the€later€probate€of€a€will€in€certain€circumstances.€€ThisÏchange€returns€the€substance€of€the€proof€required€for€probate€as€a€munimentÏof€title€to€its€pre„1997€state.݃ú»9K9݌Р` (#` (# ÐŒÝ  ÝÌðð€89B€Proof€Required€for€Probate€of€a€Will€as€a€Muniment€of€Titleó óÐ  (ð#( ÐÌà  à(a)€General€Proof.€€Whenever€an€applicant€seeks€to€probate€a€will€as€a€muniment€of€title,€theÏapplicant€must€first€prove€to€the€satisfaction€of€the€court:ÌÐ 8,ˆ', Ðà  àà ` à(1)€That€the€person€is€deadòòòòÔÿÔò ò;€however,€if€the€person€has€been€dead€more€than€fourÐ ° Ðyears€the€applicant€must€satisfy€the€requirements€of€Section€73€of€this€ó óÔÿ>ÔóóóóCode€ò òò òÔÿÔ,€and€that€four€yearsÐ –æ Ðhave€not€elapsed€since€the€personððs€death€and€prior€to€the€applicationÔÿ\?Ôó óó ó;€andÐ |Ì ÐÌà  àà ` à(2)€That€the€court€has€jurisdiction€and€venue€over€the€estate;€andÌÌà  àà ` à(3)€That€citation€has€been€served€and€returned€in€the€manner€and€for€the€length€of€timeÏrequired€by€this€Code;€andÌÌà  àà ` à(4)€That€there€are€no€unpaid€debts€owing€by€the€estate€of€the€testator,€excluding€debtsÏsecured€by€liens€on€real€estate€òòÔÿÔò òòòor€other€reason€why€no€administration€is€neededó óóóóóÔÿAÔ.òòóóÐ ¬ ü  ÐÌà  à(b)€To€obtain€probate€of€a€will€as€a€muniment€of€title,€the€applicant€must€also€prove€to€theÏsatisfaction€of€the€court:ÌÌà  àà ` à(1)€If€the€will€is€not€self„proved€as€provided€by€this€Code,€that€the€testator,€at€the€timeÏof€executing€the€will,€was€at€least€18€years€of€age,€or€was€or€had€been€lawfully€married,€or€was€aÏmember€of€the€armed€forces€of€the€United€States€or€of€the€auxiliaries€of€the€armed€forces€of€theÏUnited€States,€or€of€the€Maritime€Services€of€the€United€States,€and€was€of€sound€mind;€and€ÌÌà  àà ` à(2)€If€the€will€is€not€self„proved€as€provided€by€this€Code,€that€the€testator€executedÏthe€will€with€the€formalities€and€solemnities€and€under€the€circumstances€required€by€law€to€makeÏit€a€valid€will;€andÌÌà  àà ` à(3)€That€such€will€was€not€revoked€by€the€testator.ÌÌò òòòSection€89B.€€Effective€Date.€€The€act€takes€effect€September€1,€1999€and€applies€to€allÐ  \ Ðapplications€to€probate€a€will€as€a€muniment€of€title€filed€on€or€after€that€date.óóó óÐ òB Ðò òó óÌÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»VFÝà0  àÔ2 eÔÚ  ÚcÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝSection€149D.€€Approval€of€an€Independent€Executor's€Account€for€FinalÐ ¤ô ÐSettlement€of€Estates€of€Decedents.Ô FFÔ€€Under€current€law,€there€is€no€method€forÏan€independent€personal€representative€to€be€discharged€from€his€liability€uponÏclosing€of€the€estate.€€This€new€provision€allows€an€independent€personalÏrepresentative€to€obtain€a€discharge€by€filing€an€accounting.€€Unless€anÏobjection€to€the€final€account€is€filed,€the€court's€action€on€the€final€account€isÏessentially€ministerial.݃ú»VFF݌Р` (#` (# ÐŒÝ  Ýó óÌòòòòÔÿÔò òðð149D€Approval€of€an€Independent€Executor's€Final€Account€for€Estates€of€DecedentsÐ Ô&$"& ÐÌà  à(a)€When€administration€of€an€estate€is€to€be€settled€and€closed,€an€independent€€executorÔ‡ X%¤XXX%¤ÔÐ  (ð#( Ðmay€present€to€the€court€for€approval€his€or€her€verified€final€account,€and€request€a€dischargeÏfrom€all€liability€as€independent€€executor.Ìâ âÐ R+¢&+ Ðà  àPrior€to,€or€immediately€upon€filing€his€final€account,€the€independent€executorÔ#†X%¤XX X%¤!J#Ô€shallÐ ° Ðâ âdistribute€all€of€the€remaining€estate€to€the€beneficiaries,€but€may€retain€in€his€fiduciary€capacityÏa€reasonable€reserve€from€the€assets€of€the€estate€pending€approval€of€the€final€account.€€TheÏcourt€may€review€the€amount€of€the€reserve€and€order€further€distributions.ÌÌà  à(b)€Unless€waived,€upon€filing€the€final€account€the€independent€€executor€shall€give€noticeÏof€the€filing€of€the€final€account,€by€registered€or€certified€mail,€return€receipt€requested,€to€theÏpersons€interested€in€the€estate.€€The€independent€€executor€shall€file€a€copy€of€the€notices,€alongÏwith€proof€of€delivery,€in€the€court.€€The€notice€shall€include€a€copy€of€the€final€account€and€shallÏstate€that€any€objections€or€exceptions€to€the€final€account€must€be€filed€within€90€days€of€receiptÏof€the€notice.ÌÌà  à(c)€A€final€account€shall€include:ÌÌà  àà ` à(1)€The€property€of€the€estate€which€came€into€the€hands€of€the€independent€Ïexecutor€(which€may€be€described€by€reference€to€the€inventory€rather€than€describing€each€item);ÌÌà  àà ` à(2)€The€debts€that€have€been€paid;ÌÌà  àà ` à(3)€The€debts,€if€any,€still€owing€by€the€estate;ÌÌà  àà0 ` à(4)€All€receipts;Ð ` (#` (# ÐÌà  àà0 ` à(5)€All€disbursements;Ð ` (#` (# ÐÌà  àà ` à(6)€The€property€of€the€estate,€if€any,€remaining€on€hand€after€payment€of€debts;ÏandÌÌà  àà ` à(7)€The€names€and€residences€of€the€persons€to€whom€the€property€of€the€estate,€ifÏany,€remaining€on€hand€after€payment€of€debts€has€been€distributed€along€with€the€amount€to€beÏdistributed€to€each€beneficiary.€€Further,€if€the€estate€is€to€be€distributed€non€prorata,€theÏparticular€assets€to€be€distributed€to€each€beneficiary€shall€be€set€out.ÌÌà  àà ` à(8)€Such€other€facts€as€may€be€necessary€to€a€full€and€definite€understanding€of€theÏexact€condition€of€the€estate.ÌÌà  à(d)€If€no€objection€or€exception€to€the€final€account€is€filed€within€90€days€of€the€dateÏnotice€is€received€as€required€in€Subsection€(b),€the€court€shall€enter€an€order€approving€suchÏfinal€account€and€discharging€the€independent€€executor€from€any€or€all€liability€regarding€allÏtransactions€fully€and€completely€disclosed€in€such€final€account,€without€review€or€audit€of€suchÏaccount.€€If€objections€or€exceptions€to€the€approval€of€the€final€account€or€to€the€independentÏdischarge€are€filed€by€an€interested€person,€the€court€shall€examine€the€final€account,€and€afterÏhearing€all€objections€or€exceptions€thereto,€and€evidence€in€support€of€or€against€such€account,Ïshall€audit€and€settle€the€same,€and€restate€it€if€that€be€necessary.€€Upon€settlement€of€the€finalÏaccount,€if€there€be€any€of€the€estate€remaining€in€the€hands€of€the€independent€€executor,€theÐ 8,ˆ', Ðcourt€shall€order€that€a€partition€and€distribution€be€made€among€the€persons€entitled€to€receiveÏsuch€estate.ÌÌà  à(e)€The€Court€may€assess,€as€may€be€equitable€and€just,€any€fees€and€costs€incurred€by€theÏindependent€executor€or€any€beneficiary€regarding€the€final€account.€€If€the€final€account€isÏapproved€without€objection€or€exception,€the€independent€executor's€legal€fees,€expenses,€andÏother€costs€of€the€proceeding€set€out€in€the€accounting€shall€be€charged€to€the€estate€as€an€expenseÏof€administration.€€If€objections€or€exceptions€to€the€accounting€or€to€the€independent€executor'sÏdischarge€are€made€and€the€court€finds€and€upholds€such€objections€or€exceptions€or€finds€thatÏthe€independent€executor€should€not€be€discharged,€the€court€shall€have€discretion€to€determineÏwhat€portion,€if€any,€of€such€legal€fees,€expenses€and€other€costs€of€the€proceeding€are€chargedÏto€the€estate.€€In€all€cases,€the€independent€executor€shall€be€entitled€to€pay€from€the€estate€all€ofÏsuch€expenses€as€they€are€incurred,€unless€otherwise€ordered€by€the€Court,€although€theÏindependent€€executor€shall€be€personally€liable€to€refund€amounts€not€approved€by€the€court€asÏproper€charges€against€the€estate.ÌÌà  à(f)€This€section€is€cumulative€of€all€other€rights€and€remedies€which€persons€interested€inÏan€estate€may€have€against€the€independent€executor€thereof.ó óÔÿ=IÔóóÐ öF ÐÌòòò òóóEffective€Date.€€Section€149D.€€The€act€is€effective€for€accounts€filed€on€or€after€September€1,Ð Â Ð1999.Ìó óóóÌÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»ñ\Ýà0  àÔ2 eÔÚ  ÚdÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Section€221A.€Resignation€of€Resident€Agent.ó óÔ á\Ô€€ò òA€nonresident€personalÐ Zª Ðrepresentative€of€a€decedentððs€estate€is€required€to€file€a€designation€of€residentÏagent€to€accept€service€of€process€in€order€to€be€eligible€for€appointment.€ÏHowever,€the€Texas€Probate€Code€does€not€provide€a€means€for€either€(Ô_ÔiÔ_Ô)€aÏpersonal€representative€to€appoint€a€successor€resident€agent,€or€(ii)€a€residentÏagent€to€resign€should€the€need€arise.€€€Therefore,€once€the€resident€agent€isÏappointed,€it€is€unclear€how€the€agent€can€resign€and€avoid€being€placed€in€theÏposition€of€receiving€service€of€process€for€an€individual€whom€he€or€she€may€noÏlonger€represent,€or€worse,€be€able€to€locate.€€It€has€been€suggested€that€theÏProbate€Code€be€amended€to€provide€a€procedure€for€the€resignation€of€aÏresident€agent.€€This€suggestion€has€been€expanded€to€include€a€method€for€aÏpersonal€representative€to€appoint€a€successor€resident€agent.€€€Proposed€SectionÏ221A€provides€a€method€similar€to€that€used€by€corporations€under€the€TexasÏBusiness€Corporations€Act.ó ó݃ú»ñ\]ÝŒÐ%X $` (#` (# ÐŒÝ  ÝÌòòÔÿÔòòò òðð€221A.€Resignation€of€Resident€Agent€Ð Ô&$"& ÐÌà  à(a)€€A€personal€representative€may€change€his€registered€agent€to€accept€service€of€processÏin€all€actions€or€proceedings€with€respect€to€the€estate€by€filing€with€the€court€a€designation€ofÏsuccessor€resident€agent€which€shall€state:ÌÌà  àà ` à(1)€€The€name€and€addressÔ‡ X%¤XXX%¤Ô€of€the€personal€representative.Ð 8,ˆ', Їà  àà ` à(2)€€The€name€and€address€of€the€current€registered€agent.ÌÌà  àà ` à(3)€€The€name€and€address€of€the€successor€resident€agent.ÌÌà  à(b)€€The€designation€of€successor€resident€agent€shall€be€executed€by€the€personalÏrepresentative€and€filed€with€the€court€in€which€the€estate€proceeding€is€pending.€€Upon€suchÏfiling,€the€appointment€of€the€successor€resident€agent€shall€become€effective.ÌÌà  à(c)€€Upon€notice€to€the€personal€representative€of€the€intent€to€resign,€any€resident€agentÏto€accept€service€of€process€in€all€actions€or€proceedings€with€respect€to€an€estate€on€behalf€of€aÏpersonal€representative€may€resign€by€filing€with€the€court€a€resignation€of€resident€agent€whichÏshall€state:ÌÌà  àà ` à(1)€€The€name€of€the€personal€representative.ÌÌà  àà ` à(2)€€The€last€known€address€of€the€personal€representative.ÌÌà  àà ` à(3)€€That€the€personal€representative€has€been€notified€of€the€resident€agentððs€intentÏto€resign€and€has€failed€to€designate€a€successor€resident€agent€and€the€date€of€such€notice.ÌÌà  à(d)€€A€copy€of€the€resignation€of€resident€agent€shall€be€served,€by€certified€mail,€returnÏreceipt€requested,€on€the€personal€representative,€at€his€last€known€address,€and€all€parties€ofÏrecord,€or€€such€partyððs€duly€authorized€agent€or€attorney€of€record,€as€the€case€may€be,€in€theÏestate.€€The€resignation€of€resident€agent€shall€become€effective€upon€the€entry€of€an€orderÏaccepting€the€resignation€of€resident€agent.ó óóóÔÿ8bÔÐ @ ÐÌòòò òóóSection€221A.€€Effective€Date.€The€Act€takes€effect€September€1,€1999€and€shall€apply€to€allÐ  \ Ðappointments€on€or€after€that€date€and€all€notices€of€intent€to€resign€delivered€to€the€personalÏrepresentative€on€or€after€that€date.ó óóóÐ Ø( ÐØ€oØÌÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»™kÝà0  àÔ2 eÔÚ  ÚeÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€amendments€to€Section€222.€Removal.ó ó€Ô ‰kÔ€ò ò€Section€222€currently€allowsÐ Š Ú Ða€court€to€remove€a€personal€representative€with€or€without€notice€based€on€theÏcircumstances€necessitating€the€removal.€In€light€of€the€proposal€to€enact€aÏmeans€to€appoint€a€successor€resident€agent€and€resign€as€resident€agent,ÏSection€222€should€be€revised€to€clarify€that€the€court€may€remove€a€personalÏrepresentative€òòwithout€noticeóó€if€he€or€she€does€not€have€a€current€designation€ofÐ %X $ Ðresident€agent€on€file.€ó ó݃ú»™kÄkÝŒÐî%>!%` (#` (# ÐŒÝ  Ýà  àÌò òðð€222.€Removaló óÐ º' #' ÐÌà0  à(a)€Without€Notice.Ð (#(# ÐÌà  àà ` à(1)€The€court,€on€its€own€motion€or€on€motion€of€any€interested€person,€and€withoutÏnotice,€may€remove€any€personal€representative,€appointed€under€provisions€of€this€Code,€who:Ð 8,ˆ', Їà  àà ` àà ¸ à(A)€Neglects€to€qualify€in€the€manner€and€time€required€by€law;ÌÌà  àà ` àà ¸ à(B)€Fails€to€return€within€ninety€days€after€qualification,€unless€such€time€isÏextended€by€order€of€the€court,€an€inventory€of€the€property€of€the€estate€and€list€of€claims€that€haveÏcome€to€his€knowledge;ÌÌà  àà ` àà ¸ à(C)€Having€been€required€to€give€a€new€bond,€fails€to€do€so€within€the€timeÏprescribed;ÌÌà  àà ` àà ¸ à(D)€Absents€himself€from€the€State€for€a€period€of€three€months€at€one€timeÏwithout€permission€of€the€court,€or€removes€from€the€State;Ìà  àÌà  àà ` àà ¸ à(E)€Cannot€be€served€with€notices€or€other€processes€by€reason€of€the€fact€thatÏhis€whereabouts€are€unknown€òòÔÿÔòòò òor€is€a€non„resident€of€this€State€who€does€not€have€a€resident€agentÐ ^®  Ðto€accept€service€of€process€on€all€actions€or€proceedings€relating€to€the€estate,ó óóóÔÿsÔóó€or€by€reason€of€theÐ D”  Ðfact€that€he€is€eluding€service;€orÌÌà  àà ` àà ¸ à(F)€Has€misapplied,€embezzled,€or€removed€from€the€State,€or€is€about€toÏmisapply,€embezzle,€or€remove€from€the€State,€all€or€any€part€of€the€property€committed€to€theÏpersonal€representativeððs€care.ÌÌà  àà ` à(2)€The€court€may€remove€a€personal€representative€under€Paragraph€(F),€SubdivisionÏ(1),€of€this€subsection€only€on€the€presentation€of€clear€and€convincing€evidence€given€under€oath.ÌÌà  à(b)€With€Notice.€The€court€may€remove€a€personal€representative€on€its€own€motion,€or€onÏthe€complaint€of€any€interested€person,€after€the€personal€representative€has€been€cited€by€personalÏservice€to€answer€at€a€time€and€place€fixed€in€the€notice,€when:ÌÌà  àà ` à(1)€Sufficient€grounds€appear€to€support€belief€that€he€has€misapplied,€embezzled,€orÏremoved€from€the€state,€or€that€he€is€about€to€misapply,€embezzle,€or€remove€from€the€state,€all€orÏany€part€of€the€property€committed€to€his€care;ÌÌà  àà ` à(2)€He€fails€to€return€any€account€which€is€required€by€law€to€be€made;€ÌÌà  àà ` à(3)€He€fails€to€obey€any€proper€order€of€the€court€having€jurisdiction€with€respect€toÏthe€performance€of€his€duties;ÌÌà  àà ` à(4)€He€is€proved€to€have€been€guilty€of€gross€misconduct,€or€mismanagement€in€theÏperformance€of€his€duties;ÌÌà  àà ` à(5)€He€becomes€an€incapacitated€person,€or€is€sentenced€to€the€penitentiary,€or€fromÏany€other€cause€becomes€incapable€of€properly€performing€the€duties€of€his€trust;Ìâ âÐ l*¼%* Ðà  àà ` à(6)€As€executor€or€administrator,€he€fails€to€make€a€final€settlement€within€three€yearsÏafter€the€grant€of€letters,€unless€the€time€be€extended€by€the€court€upon€a€showing€of€sufficient€causeÏsupported€by€oath;€orÌâ âÌà  àà ` à(7)€As€executor€or€administrator,€he€fails€to€timely€file€the€notice€required€by€SectionÏ128A€of€this€code.ÌÌà  à(c)€Order€of€Removal.€The€order€of€removal€shall€state€the€cause€thereof.€€It€shall€require€thatÏany€letters€issued€to€the€one€removed€shall,€if€he€has€been€personally€served€with€citation,€beÏsurrendered,€and€that€all€such€letters€be€canceled€of€record,€whether€delivered€or€not.€€It€shall€furtherÏrequire,€as€to€all€the€estate€remaining€in€the€hands€of€a€removed€person,€delivery€thereof€to€the€personÏor€persons€entitled€thereto,€or€to€one€who€has€been€appointed€and€has€qualified€as€successorÏrepresentative.ÌÌòòò òSection€222.€Effective€Date.€The€Act€takes€effect€September€1,€1999€and€applies€to€all€motions€onÐ D”  Ðor€after€that€date.ó óóóÐ *z  Ðò òÌó óÔ#†X%¤XX X%¤¶c#ÔÌÔ  ÔÝ ‚ú» ÝÝ  Ýò òÝ‚ú»Ú~Ýà0  àÔ2 eÔÚ  ÚfÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝòòProposed€Amendment€to€Section€270óó.€€Liability€of€Homestead€for€Debts.€Ô Í~Ô€TheÐ Ü, ÐTexas€Constitution€has€been€amended€several€times€to€change€the€homesteadÏexemptions€from€creditors,€most€recently€to€allow€home€equity€loans.€€TheseÏchanges€have€not€been€reflected€in€Section€270.€€The€revised€language€followsÏthe€current€constitutional€exemptions.ó ó݃ú»Ú~ÝŒÐtÄ` (#` (# ÐŒÝ  ÝÌò òÌðð€270.€€Liability€of€Homestead€for€Debtsó óÐ &v ÐÌà  àThe€homestead€shall€not€be€liable€for€the€payment€of€any€of€the€debts€of€the€estate,€exceptÏforòòòòò òÔÿÔ:ÔÿøÔó óóóóóÐ Ø( ÐÌà  àòòÔÿÔò òòò(a)óóó óÔÿK‚Ôóó€the€purchase€money€thereofÔÿÔòòòòò ò€Ð ¤ô ÐÌà  à(b)ó óóóÔÿœ‚Ôóó€the€taxes€due€thereonÔÿÔòòòòò ò;ó óóóóóÔÿƒÔ€ò òò òÔÿÔoró óÔÿLƒÔó óÐ p!À  ÐÌà  àòòÔÿÔòòò ò(c)ó óóóÔÿƒÔóó€work€and€material€used€in€constructing€improvements€thereonòòòòò òÔÿÔ,ñ[ñóóñ[ñò òñ[ñòòñ[ñó ó€if€the€provisions€ofÐ <#Œ" ÐSection€50(a)(5))€of€Article€XVI€of€the€Texas€Constitution€are€metÔÿ„Ôóóó óóó;€ò òÔÿÔò òand€in€this€last€case€theÐ "$r# Ðhomestead€shall€not€be€liable€for€the€payment€of€any€of€the€debts€of€the€estate,€except€for€theÏpurchase€money€thereof,€the€taxes€due€thereon,€or€work€and€material€used€in€constructingÏimprovements€thereon;€and€in€this€last€case€only€when€the€work€and€material€are€contractedÏfor€in€writing,€with€the€consent€of€both€spouses€given€in€the€same€manner€as€required€inÏmaking€a€sale€and€conveyance€of€the€homesteadó ó.ó óÔÿׄÔÐ  (ð#( ÐÌà  àòòòòò òÔÿÔ(d)€an€Ô_ÔoweltyÔ_Ô€of€partition€imposed€against€the€entirety€of€the€property€by€a€court€order€orÐ l*¼%* Ðâ âby€a€written€agreement€of€the€parties€to€the€partition,€including€a€debt€of€one€spouse€in€favor€ofÐ R+¢&+ Ðthe€other€spouse€resulting€from€a€division€or€an€award€of€a€family€homestead€in€a€divorceÏproceeding;Ìâ âÌà  à(e)€The€refinance€of€a€lien€against€a€homestead,€including€a€federal€tax€lien€resulting€fromÏthe€tax€debt€of€both€spouses,€if€the€homestead€is€a€family€homestead,€or€from€the€tax€debt€of€theÏdecedent;€orÌÌà  à(f)€an€extension€of€credit€on€the€homestead,€if€the€requirements€of€Section€50(a)(6)€ofÏArticle€XVI€of€the€Texas€Constitution€are€met.Ôÿø†Ôó óóóóóÐ à 0 ÐÌòòò òSection€270.€€Effective€Date.€€The€act€takes€effect€September€1,€1999.ó óóóÐ ¬ ü  ÐÔ  ÔÌÌÔ  ÔÝ ‚ú» ÝÝ  Ýò òÝ‚ú»©ŠÝà0  àÔ2 eÔÚ  ÚgÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝòòSection€378Bóó.€€Allocation€of€Income€and€Expenses€During€Administration€ofÐ ^®  ÐDecedent's€Estate.Ô œŠÔ€€Charging€interest€due€on€taxes€to€principal€may€beÏinequitable€in€many€cases.€€This€revision€gives€the€personal€representative€theÏdiscretion€to€charge€these€to€income€or€principal.ó ó݃ú»©Š×ŠÝŒÐ`` (#` (# ÐŒÝ  ÝÌÌò òðð€378B.€€Allocation€of€Income€and€Expenses€During€Administration€of€Decedent's€Estateó óÐ Â ÐÌà  à(a)€Except€as€provided€by€Subsection€(b)€of€this€section€and€unless€the€will€providesÏotherwise,€all€expenses€incurred€in€connection€with€the€settlement€of€a€decedent's€estate,€includingÏdebts,€funeral€expenses,€estate€taxes,€ò òÔÿÔò òinterestÔÿ/ŽÔÔÿÔ€ó óÔÿ^ŽÔó óand€penalties€relating€to€estate€taxes,€and€familyÐ Zª Ðallowances,€shall€be€charged€against€the€principal€of€the€estate.€€Fees€and€expenses€of€an€attorney,Ïaccountant,€or€other€professional€advisor,€commissions€and€expenses€of€a€personal€representative,Ïcourt€costs,€òòòòò òÔÿÔinterest€relating€to€estate€taxesÔÿ­Ôó óóóóó€and€all€other€similar€fees€or€expenses€relating€to€theÐ  \ Ðadministration€of€the€estate€shall€be€allocated€between€the€income€and€principal€of€the€estate€as€theÏexecutor€determines€in€its€discretion€to€be€just€and€equitable.ÌÌà  à(b)€Unless€the€will€provides€otherwise,€income€from€the€assets€of€a€decedent's€estate€thatÏaccrues€after€the€death€of€the€testator€and€before€distribution,€including€income€from€property€usedÏto€discharge€liabilities,€shall€be€determined€according€to€the€rules€applicable€to€a€trustee€under€theÏTexas€Trust€Code€(Subtitle€B,€Title€9,€Property€Code)ò òÔÿÔò òñ\ññ\ññ]ññ\ñ׃×ñ\ññ]ññ\ñ׃ ×ñ\ññ]ñÝ ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×ñ]ññ^ññ^ññ_ñòòñ_ññ^ñ1ñ^ññ_ñóóñ_ñó ó€ó óÔÿY’Ô€and€distributed€as€provided€by€SubsectionsÐ V"¦! Ð(c),€(d),€and€(e)€of€this€section.ÌÌà  à(c)€The€income€from€the€property€bequeathed€or€devised€to€a€specific€devisee€shall€beÏdistributed€to€the€devisee€after€reduction€for€property€taxes,€ordinary€repairs,€insurance€premiums,Ïinterest€accrued€after€the€death€of€the€testator,€other€expenses€of€management€and€operation€of€theÏproperty,€and€other€taxes,€including€the€taxes€imposed€on€the€income€that€accrues€during€the€periodÏof€administration€and€that€is€payable€to€the€devisee.ÌÌà  à(d)€Except€as€provided€by€Subsection€(f)€of€this€section,€the€balance€of€the€net€income€shallÏbe€distributed€to€all€other€devisees€after€reduction€for€the€balance€of€property€taxes,€ordinary€repairs,Ïinsurance€premiums,€interest€accrued,€including€interest€accruing€as€provided€by€Subsection€(f)€ofÐ 8,ˆ', Ðthis€section€after€the€death€of€the€testator,€other€expenses€of€management€and€operation€of€allÏproperty€from€which€the€estate€is€entitled€to€income,€and€taxes€imposed€on€income€that€accruesÏduring€the€period€of€administration€and€that€is€payable€or€allocable€to€the€devisees,€in€proportion€toÏthe€devisees'€respective€interests€in€the€undistributed€assets€of€the€estate.ÌÌà  à(e)€If€a€charitable€organization€is€entitled€to€receive€income€under€Subsection€(b)€of€thisÏsection,€any€amount€allowed€as€a€tax€deduction€to€the€estate€for€income€payable€to€the€charitableÏorganization€shall€be€paid,€without€reduction€for€taxes,€to€the€charitable€organization.ÌÌà  à(f)€A€devisee€of€a€pecuniary€bequest,€whether€or€not€in€trust,€shall€be€paid€interest€on€theÏbequest€at€the€legal€rate€of€interest€as€provided€by€Article€1.03,€Revised€Statutes€(Article€5069„1.03,ÏVernon's€Texas€Civil€Statutes),€and€its€subsequent€amendments,€beginning€one€year€after€the€dateÏthe€court€grants€letters€testamentary€or€letters€of€administration.ÌÌà  à(g)€Income€received€by€a€trustee€under€this€section€shall€be€treated€as€income€of€the€trust€asÏprovided€by€Section€113.103,€Property€Code.ÌÌà  à(h)€In€this€section,€ð ðundistributed€assetsðð€includes€funds€used€to€pay€debts,€administrationÏexpenses,€and€federal€and€state€estate,€inheritance,€succession,€and€generation„skipping€transfer€taxesÏuntil€the€date€of€payment€of€the€debts,€expenses,€and€taxes.€€Except€as€required€by€Sections€2055€andÏ2056€of€the€Internal€Revenue€Code€of€1986€(26€U.S.C.€Ô_ÔSecsÔ_Ô.€2055€and€2056),€and€its€subsequentÏamendments,€the€frequency€and€method€of€determining€the€beneficiaries'€respective€interests€in€theÏundistributed€assets€of€the€estate€shall€be€in€the€executor's€sole€and€absolute€discretion.€€The€executorÏmay€consider€all€relevant€factors,€including€administrative€convenience€and€expense€and€the€interestsÏof€the€various€beneficiaries€of€the€estate€in€order€to€reach€a€fair€and€equitable€result€amongÏbeneficiaries.ñ`ñÌÌòòñ`ññaññaññfñÔÿÔñfññeñò òñeññdñò òñdññeññcñò òñcññeññañ1€€ñaññdñó óñdññfñÔÿãžÔñfññbñóóñbññcññbñò òñbññcññbñò òÔÿÔÔ_ÔV.T.C.A.Ô_Ô€Property€Code,€ðð€111.001€et€seq.ó óó óÔÿŸÔòòñbññ`ñóóñ`ñÐ òB ÐÌò òòòSection€378B.€€Effective€Date.€€This€act€takes€effect€September€1,€1999€and€applies€to€all€interestÐ ¾ Ðaccrued€on€or€after€that€date.óóó óÐ ¤ô ÐÌÌÔ  Ôò òÝ ‚5³´ ÝÝ  ÝÝ‚5³´÷ ÝÔ2 eÔÚ  Ú2Ú  Ú.Ô3  Ôà0  àÝ  ÝGUARDIANSHIP€CODE€Ô ç Ôó ó݃5³´÷ "¡ÝŒÐV"¦!(#(# ÐŒÝ  ÝÌÔ  ÔÝ ‚ú» ÝÝ  Ýò òÝ‚ú»ò¡Ýà0  àÔ2 eÔÚ  ÚaÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Section€760A.€Resignation€of€Resident€AgentÔ å¡Ô€ó ó€ò òA€nonresidentÐ "$r# Ðindividual€seeking€to€be€appointed€guardian€is€required€to€file€a€designation€ofÏresident€agent€to€accept€service€of€process€in€order€to€be€eligible€forÏappointment.€€However,€the€Texas€Probate€Code€does€not€provide€a€means€forÏeither€(Ô_ÔiÔ_Ô)€a€guardian€to€appoint€a€successor€resident€agent,€or€(ii)€a€residentÏagent€to€resign€should€the€need€arise.€€€Therefore,€once€the€resident€agent€isÏappointed,€it€is€unclear€how€the€agent€can€resign€and€avoid€being€placed€in€theÏposition€of€receiving€service€of€process€for€an€individual€whom€he€or€she€may€noÏlonger€represent,€or€worse,€be€able€to€locate.€€à È àIt€has€been€suggested€that€theÐ R+¢&+ ÐProbate€Code€be€amended€to€provide€a€procedure€for€the€resignation€of€aÐ 8,ˆ', Ðresident€agent.€€This€suggestion€has€been€expanded€to€include€a€method€for€aÏguardian€to€appoint€a€successor€resident€agent.€€€Proposed€Section€760AÏprovides€a€method€similar€to€that€used€by€corporations€under€the€TexasÏBusiness€Corporations€Act.ó ó݃ú»ò¡ ¢ÝŒÐb²` (#` (# ÐŒÝ  ÝØ€oØà  àÌÌòòÔÿÔòòò òðð€760A.€Resignation€of€Resident€AgentÐ  d ÐÌà  à(a)€€A€guardian€may€change€his€registered€agent€to€accept€service€of€process€in€all€actionsÏor€proceedings€with€respect€to€the€guardianship€by€filing€with€the€court€a€designation€of€successorÏresident€agent€which€shall€state:ÌÌà  àà ` à(1)€€The€name€and€address€of€the€guardian.ÌÌà  àà ` à(2)€€The€name€and€address€of€the€current€registered€agent.ÌÌà  àà ` à(3)€€The€name€and€address€of€the€successor€resident€agent.ÌÌà  à(b)€€The€designation€of€successor€resident€agent€shall€be€executed€by€the€guardian€andÏfiled€with€the€court€in€which€the€guardianship€proceeding€is€pending.€€Upon€such€filing,€theÏappointment€of€the€successor€resident€agent€shall€become€effective.ÌÌà  à(c)€€Upon€notice€to€the€guardian€of€the€intent€to€resign,€any€resident€agent€to€accept€serviceÏof€process€in€all€actions€or€proceedings€with€respect€to€a€guardianship€on€behalf€of€a€guardianÏmay€resign€by€filing€with€the€court€a€resignation€of€resident€agent€which€shall€state:ÌÌà  àà ` à(1)€€The€name€of€the€guardian.ÌÌà  àà ` à(2)€€The€last€know€address€of€the€guardian.ÌÌà  àà ` à(3)€€That€the€guardian€has€been€notified€of€the€resident€agentððs€intent€to€resign€andÏhas€failed€to€designate€a€successor€resident€agent€and€the€date€of€such€notice.ÌÌà  à(d)€€A€copy€of€the€resignation€of€resident€agent€shall€be€served,€by€certified€mail,€returnÏreceipt€requested,€on€the€guardian,€at€his€last€known€address,€and€all€parties€of€record,€or€suchÏpartyððs€duly€authorized€agent€or€attorney€of€record,€as€the€case€may€be,€in€the€estate.€€TheÏresignation€of€resident€agent€shall€become€effective€upon€the€entry€of€an€order€accepting€theÏresignation€of€resident€agent.ó óóóÔÿt§ÔÐ î%>!% ÐÌò òòòóóSection€221A.€€Effective€Date.€The€Act€takes€effect€September€1,€1999€and€shall€apply€to€allÐ º' #' Ðappointments€on€or€after€that€date€and€all€notices€of€intent€to€resign€delivered€to€the€personalÏrepresentative€on€or€after€that€date.óóó óÐ †)Ö$) ÐÌâ âÐ R+¢&+ ÐÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»+°Ýà0  àÔ2 eÔÚ  ÚbÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€amendments€to€Section€761.€Removaló ó.Ô °Ô€€€ò òSection€761€currently€allowsÐ ° Ðâ âa€court€to€remove€a€guardian€with€or€without€notice€based€on€the€circumstancesÏnecessitating€the€removal.€In€light€of€the€proposal€to€enact€a€means€to€appointÏa€successor€resident€agent€and€resign€as€resident€agent,€Section€761€should€beÏrevised€to€clarify€that€the€court€may€remove€a€guardian€òòwithout€noticeóó€if€he€orÐ H˜ Ðshe€does€not€have€a€current€designation€of€resident€agent€on€file.€€€Ýƒú»+°V°ÝŒÐ ` (#` (# ÐŒÝ  ÝÌó óà  àÌò òðð€761.€€Removaló óÐ à 0 ÐÌà  à(a)€The€court,€on€its€own€motion€or€on€motion€of€any€interested€person,€including€the€ward,Ïand€without€notice,€may€remove€any€guardian,€appointed€under€this€chapter,€who:ÌÌà  àà ` à(1)€neglects€to€qualify€in€the€manner€and€time€required€by€law;ÌÌà  àà ` à(2)€fails€to€return€within€90€days€after€qualification,€unless€the€time€is€extended€byÏorder€of€the€court,€an€inventory€of€the€property€of€the€guardianship€estate€and€list€of€claims€that€haveÏcome€to€the€guardianððs€knowledge;ÌÌà  àà ` à(3)€having€been€required€to€give€a€new€bond,€fails€to€do€so€within€the€time€prescribed;ÌÌà  àà ` à(4)€absents€himself€from€the€state€for€a€period€of€three€months€at€one€time€withoutÏpermission€of€the€court,€or€removes€from€the€stateÌÌà  àà ` à(5)€cannot€be€served€with€notices€or€other€processes€because€the€guardianððsÏwhereabouts€are€unknown€òòÔÿÔòòò òor€is€a€non„resident€of€this€State€who€does€not€have€a€resident€agent€toÐ &v Ðaccept€service€of€process€on€all€actions€or€proceedings€relating€to€the€guardianshipó óóóÔÿþ¶Ôóó,€or€because€theÐ  \ Ðguardian€is€eluding€service;ÌÌà  àà ` à(6)€has€misapplied,€embezzled,€or€removed€from€the€state,€or€is€about€to€misapply,Ïembezzle,€or€remove€from€the€state,€all€or€any€part€of€the€property€committed€to€the€guardianððs€care;ÏorÌÌà  àà ` à(7)€has€cruelly€treated€a€ward,€or€has€neglected€to€educate€or€maintain€the€ward€asÏliberally€as€the€means€of€the€ward€and€the€condition€of€the€wardððs€estate€permit.ÌÌà  à(b)€The€court€may€remove€a€personal€representative€under€Subsection€(a)(6)€or€(7)€of€thisÏsection€only€on€the€presentation€of€clear€and€convincing€evidence€given€under€oath.ÌÌà  à(c)€The€court€may€remove€a€guardian€on€its€own€motion,€or€on€the€complaint€of€an€interestedÏperson,€after€the€guardian€has€been€cited€by€personal€service€to€answer€at€a€time€and€place€set€in€theÏnotice,€when:Ìâ âÐ l*¼%* Ðà  àà ` à(1)€sufficient€grounds€appear€to€support€belief€that€the€guardian€has€misapplied,Ïembezzled,€or€removed€from€the€state,€or€that€the€guardian€is€about€to€misapply,€embezzle,€orÏremove€from€the€state,€all€or€any€part€of€the€property€committed€to€the€care€of€the€guardian;Ìâ âÌà  àà ` à(2)€the€guardian€fails€to€return€any€account€or€report€that€is€required€by€law€to€beÏmade;ÌÌà  àà ` à(3)€the€guardian€fails€to€obey€any€proper€order€of€the€court€having€jurisdiction€withÏrespect€to€the€performance€of€the€guardianððs€duties;ÌÌà  àà ` à(4)€the€guardian€is€proved€to€have€been€guilty€of€gross€misconduct€or€mismanagementÏin€the€performance€of€the€duties€of€the€guardian;ÌÌà  àà ` à(5)€the€guardian€becomes€incapacitated,€or€is€sentenced€to€the€penitentiary,€or€fromÏany€other€cause€becomes€incapable€of€properly€performing€the€duties€of€the€guardianððs€trust;ÌÌà  àà ` à(6)€as€guardian€of€the€person,€the€guardian€cruelly€treats€the€ward,€or€neglects€toÏeducate€or€maintain€the€ward€as€liberally€as€the€means€of€the€wardððs€estate€and€the€wardððs€ability€orÏcondition€permit;ÌÌà  àà ` à(7)€the€guardian€interferes€with€the€wardððs€progress€or€participation€in€programs€inÏthe€community;€orÌÌà  àà ` à(8)€the€guardian€fails€to€comply€with€the€requirements€of€Section€697€of€this€code.ÌÌà  à(d)€The€order€of€removal€shall€state€the€cause€of€the€removal.€€It€must€require€that€any€lettersÏissued€to€the€person€who€is€removed€shall,€if€the€removed€person€has€been€personally€served€withÏcitation,€be€surrendered€and€that€all€those€letters€be€canceled€of€record,€whether€or€not€delivered.€€ItÏmust€further€require,€as€to€all€the€estate€remaining€in€the€hand€of€a€removed€person,€delivery€of€theÏestate€to€the€person€or€persons€entitled€to€the€estate,€or€to€one€who€has€been€appointed€and€hasÏqualified€as€successor€guardian,€and€as€to€the€person€of€a€ward,€that€control€be€relinquished€asÏrequired€in€the€order.ÌÌà  à(e)€If€the€necessity€exists,€the€court€may€immediately€appoint€a€successor€but€may€notÏdischarge€the€person€removed€as€guardian€of€the€estate€or€release€the€person€or€the€sureties€on€theÏpersonððs€bond€until€final€order€or€judgment€is€rendered€on€the€final€account€of€the€guardian.ÌÌà  à(f)€The€court€at€any€time€may€order€a€person€removed€as€guardian€under€this€section€who€hasÏall€or€part€of€the€estate€of€a€ward€to€deliver€all€or€part€of€the€wardððs€estate€to€a€person€who€has€beenÏappointed€and€has€qualified€as€successor€guardian.ÌÌò òòòSection€222.€Effective€Date.€The€Act€takes€effect€September€1,€1999€and€applies€to€all€motions€onÐ †)Ö$) Ðor€after€that€date.óóó óÐ l*¼%* Ðâ âÐ R+¢&+ ÐÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»‹ÆÝà0  àÔ2 eÔÚ  ÚcÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝÔ‡ X%¤XXX%¤ÔProposed€amendments€to€Section€865.€Power€to€Make€Tax„Motivated€Gifts.Ð ° Ðâ âÔ {ÆÔGenerally,€Texas€case€law€seems€to€provide€that€a€guardian€of€a€wardððs€estateÏis€not€entitled€to€possess€or€review€a€wardððs€will.€€However,€€Section€865€allowsÏtax€motivated€gifts€to€beneficiaries€under€a€wardððs€will€and€requires€that€aÏguardian€notify€each€devisee€by€certified€mail€of€any€request€to€make€taxÏmotivated€gifts.€€Proposed€Section€865€would€allow€a€guardian€of€a€wardððs€estateÏto€apply€to€the€court€for€an€order€which€compels€the€individual,€in€possessionÏof€the€wardððs€will,€to€forward€a€copy€to€the€court€for€inspection.€€However,€inÏlight€of€the€concern€that€a€guardian€may€use€this€opportunity€to€determine€theÏcontents€of€a€wardððs€will,€the€guardian€would€have€the€burden€of€showing€justÏcause€exists€for€the€inspection.€ó ó݃ú»‹Æ¶Æ݌Ь ü ` (#` (# ÐŒÝ  ÝÌò òðð€865.€€Power€to€Make€Tax„Motivated€Gifts€ó óÐ xÈ  ÐÌà  à(a)à ` àOn€application€of€the€guardian€of€the€estate€or€any€interested€party€and€after€theÐ D”  Ðposting€of€notice,€the€court,€after€hearing,€may€enter€an€order€that€authorizes€the€guardian€to€applyÏthe€principal€or€income€of€the€wardððs€estate€that€is€not€required€for€the€support€of€the€ward€or€theÏwardððs€family€during€the€wardððs€lifetime€toward€the€establishment€of€an€estate€plan€for€the€purposeÏof€minimizing€income,€estate,€inheritance,€or€other€taxes€payable€out€of€the€wardððs€estate€on€aÏshowing€that€the€ward€will€probably€remain€incapacitated€during€the€wardððs€lifetime.€€On€the€wardððsÏbehalf,€the€court€may€authorize€the€guardian€to€make€gifts,€outright€or€in€trust,€of€the€wardððs€personalÏproperty€or€real€estate€to€or€for€the€benefit€of:ÌÌà  àà ` à(1)à ¸ àan€organization€to€which€charitable€contributions€may€be€made€under€theÐ Zª ÐInternal€Revenue€Code€and€in€which€it€is€shown€the€ward€would€reasonably€have€an€interest;ÌÌà  àà ` à(2)à ¸ àthe€wardððs€spouse,€descendant,€or€other€person€related€to€the€ward€by€bloodÐ  \ Ðor€marriage€who€are€identifiable€at€the€time€of€the€order;ÌÌà  àà ` à(3)à ¸ àa€devisee€under€the€wardððs€last€validly€executed€will,€trust,€or€other€beneficialÐ ¾ Ðinstrument€if€the€instrument€exists;€and€ÌÌà  àà ` à(4)à ¸ àa€person€serving€as€guardian€of€the€ward€if€the€person€is€eligible€under€eitherÐ p!À  ÐSubdivision€(2)€or€(3)€of€this€subsection.ÌÌà  à(b)à ` àThe€person€making€an€application€to€the€court€under€this€section€shall€outline€theÐ "$r# Ðproposed€estate€plan€and€set€forth€all€the€benefits€that€are€to€be€derived€from€the€estate€plan.€€TheÏapplication€must€indicate€that€the€planned€disposition€is€consistent€with€the€wardððs€intentions€if€theÏwardððs€intentions€can€be€ascertained.€€If€the€wardððs€intentions€cannot€be€ascertained,€the€ward€willÏbe€presumed€to€favor€reduction€in€the€incidence€of€the€various€forms€of€taxation€and€the€partialÏdistribution€of€the€wardððs€estate€as€provided€by€this€section.ÌÌà  àÔ#†X%¤XX X%¤#Ç#ÔòòÔÿÔòòò ò(c)€€Upon€the€filing€of€an€application€under€this€section,€the€guardian€of€an€estate€mayÐ l*¼%* Ðapply€to€the€court€where€the€guardianship€proceeding€is€pending€for€an€order€directing€any€personÏhaving€custody€of€the€wardððs€purported€will,€codicil,€trust€or€other€estate€planning€instrument€€toÐ 8,ˆ', Ðdeliver€a€true€and€correct€copy€of€such€instruments€to€the€Court€for€óóin€cameraòò€inspection.€€TheÐ ° Ðapplication€must€be€sworn€to€by€the€guardian€and€state€facts€and€reasons€that€support€the€needÏto€inspect€the€purported€estate€planning€documents.€€A€person€who€makes€application€to€the€courtÏunder€this€Section€shall€serve€a€copy€of€the€application,€by€registered€or€certified€mail,€to€anyÏperson€having€custody€of€the€wardððs€purported€estate€planning€documents.€€After€the€expirationÏof€ten€days€from€the€date€the€application€is€filed€and€notice€as€provided€by€this€section€is€given,Ïthe€guardian€may€set€the€application€for€hearing€and€upon€conclusion€of€the€hearing,€the€courtÏmay€enter€an€order€directing€any€person€having€custody€of€the€instruments€to€deliver€a€true€andÏcorrect€copy€of€the€wardððs€purported€estate€planning€instrument€to€the€court€for€inspection,€uponÏa€finding€that€there€is€just€cause€for€an€óóin€cameraòò€inspection.€€Guardian€shall€give€any€personÐ Æ   Ðhaving€custody€of€the€wardððs€purported€estate€planning€documents€notice€of€the€date€of€theÏhearing.Ô‡ X%¤XXX%¤Ô€€Ô#†X%¤XX X%¤ÕÙ#ÔIn€the€event€the€order€directs€an€attorney€to€release€a€copy€of€the€estate€planningÐ ’â  Ðinstrument€to€the€Court€for€óóin€cameraòò€inspection,€no€attorney€shall€be€held€to€have€breached€theÐ xÈ  Ðattorney€client€privilege€by€complying€with€an€order€of€the€court€under€this€section.ó óóóÔÿÔÔóóÐ ^®  ÐÌà  àÔ_Ôò òò òÔÿÔ(c)Ôÿ¦ÛÔòòó óÔÿÔòò(d)ó óóóÔÿÓÛÔóóÔ_Ôà ` àThe€court€may€appoint€a€guardian€ad€litem€for€the€ward€or€any€interested€party€at€anyÐ *z  Ðstage€of€the€proceedings€if€it€is€deemed€advisable€for€the€protection€of€the€ward€or€the€interestedÏparty.ÌÌà  àÔ_Ôò òÔÿÔò ò(d)ÔÿÝÔó óòòÔÿÔòò(e)ó óóóÔÿGÝÔóóÔ_Ôà ` àA€subsequent€modification€of€an€approved€plan€may€be€made€by€similar€applicationÐ Â Ðto€the€court.ÌÌà  àÔ_Ôò òÔÿÔò ò(e)Ôÿ)ÞÔòòó óÔÿÔòò(f)óóó óÔÿYÞÔóóÔ_Ôà ` àA€person€who€makes€an€application€to€the€court€under€this€section€shall€mail€noticeÐ tÄ Ðof€the€application€by€certified€mail€to:ÌÌà  àà ` à(1)à ¸ àall€devisees€under€a€will,€trust,€or€other€beneficial€instrument€relating€to€theÐ &v Ðwardððs€estate;ÌÌà  àà ` à(2)à ¸ àthe€wardððs€spouse;Ð Ø( ÐÌà  àà ` à(3)à0 ¸ àthe€wardððs€dependents;Фô¸ (#¸ (# ÐÌà  àà ` à(4)à0 ¸ àany€other€person€as€directed€by€the€court.òòÐp!À ¸ (#¸ (# ÐóóÌòòò òSection€865.€Effective€Date.€The€Act€applies€to€all€applications€to€make€tax„motived€gifts€filed€onÐ <#Œ" Ðor€after€September€1,€1999.ó óóóÐ "$r# ÐÌÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»ÈáÝà0  àÔ2 eÔÚ  ÚdÚ  Ú.Ô3  Ôà0` (#(#àÝ  Ý€Proposed€amendments€to€Section€867.€Creation€of€Management€Trust.Ô ¸áÔó ó€€ò òSectionÐ Ô&$"& Ð867€was€amended€in€the€last€legislative€session€to€allow€a€wardððs€attorney€adÏlitem€to€seek€the€establishment€of€an€867€trust.€€The€statute,€as€currentlyÏdrafted,€appears€to€imply€that€it€is€still€necessary€for€the€court€to€appoint€aÏguardian€before€it€may€create€an€867€trust.€€Furthermore,€the€only€person,€otherÏthan€the€guardian,€which€may€create€an€867€trust€is€the€wardððs€attorney€adÏlitem.€€This€places€the€attorney€ad€litem€in€the€dilemma€of€seeking€theÐ 8,ˆ', Ðappointment€of€an€867€trust€while€at€the€same€time€potentially€arguing€the€wardÏhas€capacity€and€does€not€require€the€appointment€of€a€guardian.€€Additionally,ÏSection€867€does€not€currently€provide€a€clear€procedure€to€create€an€867€trustÏwhen€a€guardian€has€not€been€appointed.€€ó ó݃ú»ÈáóáÝŒÐb²` (#` (# ÐŒÝ  ÝÌà0  àà0` (#(#àò òProposed€Section€867€clarifies€who€may€initially€seek€the€creation€of€a€trust,€i.e.,Ð . ~ Ðthe€guardian,€a€wardððs€guardian€or€attorney€ad€litem€or€a€person€who€couldÏapply€for€the€appointment€of€a€guardian.€€Further,€subsections€(b)€and€(c)Ïdelineate€the€requisite€findings€that€must€be€made€prior€to€the€creation€of€an€867Ïtrust.€€These€are€similar€to€that€necessary€to€appoint€a€guardian.€€Finally,Ïsubsections€(d)€and€(e)€are€simply€a€reorganization€of€the€information€which€isÏcurrently€required€under€Section€867.€à p àÐ’â ` (#` (# Ðó óÌò òðð€867.€€Creation€of€Management€Trustó óÐ ^®  ÐÌà  àò òÔÿÔò òOn€application€by€the€guardian€of€a€ward€or€by€a€wardððs€attorney€ad€litem€at€any€timeÐ *z  Ðafter€the€date€of€the€attorneyððs€appointment€under€Section€646€of€this€code,€the€court€in€whichÏthe€guardianship€proceeding€is€pending€may€enter€an€order€that€creates€for€the€wardððs€benefitÏa€trust€for€the€management€of€guardianship€funds€if€the€court€finds€that€the€creation€of€theÏtrust€is€in€the€wardððs€best€interests.ÔÿÛèÔó óòòÔÿÔ€€òò€(a)€An€application€to€create€a€trust€for€the€management€ofÐ Â Ðall€or€a€part€of€the€estate€of€€a€ward€or€proposed€ward€may€be€filed€in€the€court€in€which€theÏguardianship€proceeding€is€pending€by:€ÌÌà0  àà ` à(1)€the€guardian€of€the€person€or€estate;Ð (#(# ÐÌà0  àà ` à(2)€a€ward€or€proposed€wardððs€attorney€ad€litem€at€any€time€after€the€date€of€theÏattorney€ad€litemððs€appointment€under€Section€646€of€this€code;ò òÔÿ¿êÔÔÿÔóóóó€or€òòòòÔÿËìÔÔÿaåÔó óÐ \(#(# Ðà0  àà0` (#(#àÐ ` (#` (# Ðà0  àà ` à(3)€a€ward€or€proposed€wardððs€guardian€ad€litem€at€any€time€after€the€date€of€theÏguardian€ad€litemððs€appointment€under€Section€645€of€this€code;€or€Ð (#(# ÐÌà0  àà ` à(4)€any€person€who€has€standing€to€commence€a€proceeding€under€Section€642€ofÏthis€code.Ð (#(# ÐÌà  à(b)€Before€entering€an€order€that€creates€a€trust€for€the€management€of€all€or€part€of€theÏestate€of€a€ward€or€proposed€ward,€the€court€must€find€by€clear€and€convincing€evidence€that:ÌÌà0  àà0` (#(#à(1)€the€ward€or€proposed€ward€is€an€incapacitated€person;Ð ` (#` (# ÐÌà0  àà ` à(2)€it€is€in€the€best€interest€of€the€ward€or€proposed€ward€to€have€the€court€createÏa€trust€for€the€management€of€all€or€a€part€of€the€estate€of€the€ward€or€proposed€ward;€and€Ð (#(# ÐÌà0  àà ` à(3)€the€rights€of€the€ward€or€proposed€wardððs€property€will€be€protected€by€theÏcreation€of€a€trust€for€the€management€of€all€or€part€of€the€estate€of€the€ward€or€proposedÏward.Ð8,ˆ',(#(# Їà  à(c)€The€court€may€not€grant€an€application€to€create€a€trust€under€this€Section€unless€theÏapplicant€proves€each€element€required€by€this€code.€€A€determination€of€incapacity€of€an€adultÏproposed€ward€must€be€in€the€same€manner€as€that€required€to€appoint€a€guardian€of€the€estate.óóÐ |Ì ÐÌà  àòò(d)ó óÔÿÿìÔóóóó€The€order€shallòòÔÿÔòòò ò:ó óóóÔÿCóÔóó€Ð H˜ ÐÌà0  àà ` àòòÔÿÔòòò ò(1)ó óóóÔÿ©óÔóó€direct€the€guardian€or€another€person€to€deliver€all€or€part€of€the€assets€of€theÐ  d ÐÔÿÔò òòòòòestate€of€the€ward€or€proposed€wardóóó óÔÿFôÔóó€ò òÔÿÔò òguardianshipó óÔÿ£ôÔó ó€to€a€trust€company€or€a€state€or€nationalÐ ú J Ðbank€that€has€trust€powers€in€this€stateò òÔÿÔò ò.ÔÿFõÔòòó óÔÿÔòò;óó€óóó óÔÿtõÔÐà 0(#(# ÐÌà0  àà ` àòòòòÔÿÔò ò(2)ó óÔÿäõÔóóóó€include€òòÔÿÔòòò òtheó óóóÔÿ#öÔóó€terms,€conditions,€and€limitations€placed€on€the€trust;€òòÔÿÔòòò òandЬ ü (#(# ÐÌà0  àà ` à(3)€constitute€sufficient€legal€authority€to€all€persons€owing€any€money€to€the€ward,Ïhaving€custody€of€any€property,€or€acting€as€register€or€transfer€agent€of€any€evidence€ofÏinterest,€indebtedness,€property€or€right€belonging€to€the€ward€to€deliver,€transfer,€or€payÏsuch€interest,€indebtedness,€property€or€right€to€the€trustee.ó óóóÔÿ•öÔÐ*z (#(# ÐÌà  àÔÿÔòòò ò(e)ó óóóÔÿxøÔóó€The€court€shall€maintain€the€trust€under€the€same€cause€number€as€the€guardianshipÐ öF Ðproceeding.ÌÌòòò òSection€867.€€Effective€Date.€€The€Act€takes€effect€September€1,€1999,€and€applies€to€allÐ ¨ø Ðapplications€to€create€a€trust€on€or€after€September€1,€1999.ó óóóÐ ŽÞ ÐÌÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»úÝà0  àÔ2 eÔÚ  ÚeÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝÔ‡ X%¤XXX%¤ÔProposed€amendments€to€Section€868A.€Discharge€of€Guardian€of€Estate€andÐ @ ÐContinuation€of€Trustó ó.€Ô ñùÔò ò€Section€868A€currently€requires€the€continuedÐ &v Ðappointment€of€a€guardian€of€the€person€after€the€creation€of€an€867€Trust.€ÏHowever,€in€certain€cases,€a€guardian€of€the€person€is€not€necessary€and€resultsÏin€an€added€expense€to€the€wardððs€estate.€€€For€example,€a€minorððs€parents€areÏthe€minorððs€natural€guardians€and,€as€such,€it€is€not€necessary€to€appoint€eitherÏparent€guardian€of€the€minorððs€person.€€However,€it€may€be€necessary€to€createÏan€867€trust€for€the€minor€to€manage€the€proceeds€he/she€may€receive€from€aÏpersonal€injury€settlement€or€inheritance.€€Thus,€in€conjunction€with€theÏproposed€amendment€to€Section€867,€proposed€Section€868A€allows€a€court€toÏdischarge€the€guardian€of€a€wardððs€estate€after€the€creation€of€an€867€TrustÏregardless€whether€a€guardian€of€the€person€remains.€€The€court€must€stillÏdetermine€the€discharge€is€in€the€wardððs€best€interest.݃ú»ú,ú݌Р` (#` (# ÐŒÝ  Ýó óÌò òðð€868A.€Discharge€of€Guardian€ò òÔÿÔof€EstateÔÿ<ÿÔó ó€and€Continuation€of€Trustó óÐ Ô&$"& ÐÌà  àOn€or€at€any€time€after€the€creation€of€a€trust€under€this€subpart,€the€court€may€discharge€theÏguardian€of€the€wardððs€estate€ò òÔÿÔò òonlyó óÔÿ/Ôó ó€òòÔÿÔòòò òor€the€person€or€bothó óóóÔÿdÔóó€if€ò òÔÿÔò òa€guardian€of€the€wardððs€personÐ †)Ö$) Ðremains€and€ó óÔÿ³Ôó óthe€court€determines€that€the€discharge€is€in€the€wardððs€best€interests.Ð l*¼%* Ðâ âÐ R+¢&+ Ðòòò òSection€868A.€€Effective€Date.€The€Act€takes€effect€September€1,€1999,€and€applies€to€allÐ ° Ðâ âapplications€for€discharge€filed€on€or€after€that€date.ó óóóÐ –æ ÐÌÔ#†X%¤XX X%¤™ú#ÔÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»§Ýà0  àÔ2 eÔÚ  ÚfÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€amendments€to€Section€869C.€Jurisdiction€Over€Trust€MattersÔ —Ô.€Ð H˜ ÐSection€869C€confirms€that€the€court€has€jurisdiction€over€trust€matters.€ÏHowever,€in€conjunction€with€the€proposed€amendment€to€Section€867€andÏ868A,€proposed€Section€869C€clarifies€that€the€court€also€has€continuingÏjurisdiction€over€the€trustee€of€an€867€Trust€regardless€whether€either€aÏguardian€of€the€person€or€estate€is€currently€appointed.€ó ó݃ú»§ÒÝŒÐÆ  ` (#` (# ÐŒÝ  ÝÌò òðð€869C.€Jurisdiction€Over€Trust€Mattersó óÐ ’â  ÐÌà  àA€court€that€creates€a€trust€under€Section€867€of€this€code€has€the€same€jurisdiction€òòÔÿÔòòò òover€theÐ ^®  Ðtrustee€andó óóóÔÿûÔóó€to€hear€matters€relating€to€the€trust€as€the€court€has€with€respect€to€òòÔÿÔòòò òa€court€appointedÐ D”  Ðguardian,ó óóóÔÿ¡Ôóó€the€guardianship€and€other€matters€covered€by€this€chapter.Ð *z  ÐÌòòò òSection€869C.€Effective€Date.€€The€Act€takes€effect€September€1,€1999,€and€applies€to€all€trustsÐ öF Ðcreated€under€Section€867€of€the€Texas€Probate€Code,€whether€created€before,€on,€or€after€theÏeffective€date€of€the€Act.ó óóóÐ Â ÐÌÌÔ  ÔÝ ‚ú» ÝÝ  Ýò òÝ‚ú»rÝà0  àÔ2 eÔÚ  ÚgÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Section€745.€Closing€Guardianships€of€the€Estate.Ô eÔ€ó ó݃ú»r ÝŒÐtÄ` (#` (# ÐŒÝ  ÝÌò òðð€745.€Closing€Guardianships€of€the€Estate€ó óÐ @ ÐÌà  à(a)€€A€guardianship€of€the€estate€of€a€ward€is€settled€and€closed€when:ÌÌà  àà ` à(1)€€a€minor€ward€dies€or€becomes€an€adult€by€becoming€18€years€of€age,€or€byÏremoval€of€disabilities€of€minority€according€to€the€law€of€this€state,€or€by€marriage;ÌÌà  àà ` à(2)€€an€incapacitated€ward€dies,€or€is€decreed€as€provided€by€law€to€have€been€restoredÏto€full€legal€capacity;ÌÌà  àà ` à(3)€€the€spouse€of€a€married€ward€has€qualified€as€survivor€in€community€and€the€wardÏowns€no€separate€property;ÌÌà  àà ` à(4)€€the€estate€of€a€ward€becomes€exhausted;ÌÌà  àà ` à(5)€the€foreseeable€income€accruing€to€a€ward€to€his€estate€is€so€negligible€thatÏmaintaining€the€guardianship€in€force€would€be€burdensome;ÌÌà  àà ` à(6)€all€of€the€assets€of€the€estate€have€been€placed€in€a€management€trust€underÏsubpart€N,€Part€4,€of€this€code€and€the€court€determines€that€a€guardianship€for€the€ward€is€no€longerÏnecessary;€orÐ 8,ˆ', Ðà  àà ` à(7)€€the€court€determines€for€any€other€reason€that€a€guardianship€for€the€ward€is€noÏlonger€necessary.ÌÌà  à(b)€€In€a€case€arising€under€Subsection€(a)(5)€of€this€section,€the€court€may€authorize€theÏincome€to€be€paid€to€a€parent,€or€other€person€who€has€acted€as€guardian€of€the€ward,€to€assist€in€theÏmaintenance€of€the€ward€and€without€liability€to€account€to€the€court€for€the€income.ÌÌà  à(c)€€When€the€estate€of€a€minor€ward€consists€only€of€cash€or€cash€equivalents€in€an€amountÏof€ò òò òÔÿÔ$25,000ÔÿÔó óó ó€òòÔÿÔòòò ò$50,000ó óóóÔÿ<Ôóó€or€less,€the€guardianship€of€the€estate€may€be€terminated€and€the€assets€paid€toÐ à 0 Ðthe€county€clerk€of€the€county€in€which€the€guardianship€proceeding€is€pending,€and€the€clerk€shallÏmanage€the€funds€as€provided€by€Section€887€of€this€code.ÌÌà  à(d)à ` àIn€the€settlement€and€closing€of€a€guardianship,€the€court€may€appoint€an€attorney€adÐ xÈ  Ðlitem€to€represent€the€interests€of€the€ward,€and€may€allow€the€attorney€reasonable€compensation€forÏservices€provided€by€the€attorney€out€of€the€wardððs€estate.òòÐ D”  ÐóóÌòòò òSection€745.€Effective€Date.€€The€Act€takes€effect€September€1,€1999,€and€applies€to€allÐ ` Ðapplications€to€close€guardianships€filed€on€or€after€that€date.ó óóóÐ öF ÐÌÔ  Ôò òÝ ‚5³´ ÝÝ  ÝÝ‚5³´žÝÔ2 eÔÚ  Ú3Ú  Ú.Ô3  Ôà0  àÝ  Ý€TRUST€CODEó óÔ ŽÔ݃5³´žÉÝŒÐÂ(#(# ÐŒÝ  ÝÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»•Ýà0  àÔ2 eÔÚ  ÚaÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Amendments€to€Section€113.056ó óÔ …Ô݃ú»•À݌ЎÞ` (#` (# ÐŒÝ  ÝÌò òðð113.056.€€Standard€for€Trust€Management€and€Investment.ó óÐ Zª ÐÌà  à(a)€€Unless€the€terms€of€the€trust€instrument€provide€otherwise,€in€acquiring,€investing,Ïreinvesting,€exchanging,€retaining,€selling,€supervising,€and€managing€trust€property,€including€anÏinvestment€vehicle€authorized€for€the€collective€investment€of€trust€funds€pursuant€to€Part€9,€TitleÏ12,€of€the€Code€of€Federal€Regulations,€a€trustee€shall€exercise€the€judgment€and€care€under€theÏcircumstances€then€prevailing€that€persons€of€ordinary€prudence,€discretion,€and€intelligence€exerciseÏin€the€management€of€their€own€affairs,€not€in€regard€to€speculation€but€in€regard€to€the€permanentÏdisposition€of€their€funds,€considering€the€probable€income€from€as€well€as€the€ò òÔÿÔò òprobable€increaseÐ Š Ú Ðin€value€and€the€ó óÔÿ°Ôó ósafety€of€their€capitalòòòòÔÿÔò ò.ò òó ó€€€The€foregoing€standard€is€intended€to€be€a€flexible€oneÐ p!À  Ðthat€does€not€require€or€prohibit€a€trustee€from€also€investing€for€capital€appreciation€or€fromÏfollowing€modern€portfolio€theory€in€investing.óóÔÿ1Ôó óóó€€In€determining€whether€a€trustee€has€exercisedÐ <#Œ" Ðprudence€with€respect€to€an€investment€decision,€such€determination€shall€be€made€taking€intoÏconsideration€the€investment€of€all€the€assets€of€the€trust,€or€the€assets€of€the€collective€investmentÏvehicle,€as€the€case€may€be,€over€which€the€trustee€had€management€and€control,€rather€than€aÏconsideration€as€to€the€prudence€of€the€single€investment€of€the€trust,€or€the€single€investment€of€theÏcollective€investment€vehicle,€as€the€case€may€be.€€ÌÌà  à(b)€€Within€the€limitations€of€Subsection€(a)€of€this€section,€a€trustee€may€acquire€and€retainÏevery€kind€of€property€and€every€kind€of€investment€that€persons€of€ordinary€prudence,€discretion,Ïand€intelligence€acquire€or€retain€for€their€own€account.ÌÐ 8,ˆ', Ðà  à(c)€€Within€the€limitations€of€Subsection€(a)€of€this€section,€a€trustee€may€indefinitely€retainÏproperty€acquired€under€this€section€without€regard€to€its€suitability€for€original€purchase.€€ÌÌà  à(d)€€Within€the€limitations€of€Subsection€(a)€of€this€section,€whenever€the€instrument€directs,Ïrequires,€authorizes,€or€permits€investment€in€obligations€of€the€United€States€government,€theÏtrustee€may€invest€in€and€hold€such€obligations€either€directly€or€in€the€form€of€interests€in€an€open„¼end€management€type€investment€company€or€investment€trust€registered€under€the€InvestmentÏCompany€Act€of€1940,€15€U.S.C.€80a„1€et€seq.,€or€in€an€investment€vehicle€authorized€for€theÏcollective€investment€of€funds€pursuant€to€Part€9,€Title€12€of€the€Code€of€Federal€Regulations,€soÏlong€as€the€portfolio€of€such€investment€company,€investment€trust,€or€collective€investment€vehicleÏis€limited€to€such€obligations€and€to€repurchase€agreements€fully€collateralized€by€such€obligations.Ìà  àÌòòò òSection€113.056.€€Effective€Date.€€The€act€takes€effect€September€1,€1999.òòóóóóÐ xÈ  Ðó óÌÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»ä!Ýà0  àÔ2 eÔÚ  ÚbÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€New€Section€113.060.€Authority€to€Delegate€Investment€ManagementÐ *z  Ðof€Trust€Assetsó óÔ Ô!Ô݃ú»ä!"ÝŒÐ`` (#` (# ÐŒÝ  ÝÔ‡ X%¤XXX%¤ÔÌòòÔÿÔòòò òðð€113.060.€€Authority€to€Delegate€Investment€Management€of€Trust€AssetsÐ Ü, ÐÌà  àa.€€A€trustee,€without€complying€with€the€requirements€of€subsection€(b),€may€employ€anÏinvestment€agent€and€delegate€investment€functions€to€such€agent,€but€the€trustee€shall€beÏresponsible€for€the€investment€decisions,€actions€or€omissions€of€such€agent.ÌÌà  àb.€€A€trust€may€employ€an€investment€agent€and€delegate€investment€functions€to€suchÏagent.€€The€trustee€shall€not€be€responsible€for€the€investment€decisions,€actions€or€omissions€ofÏthe€investment€agent€if€the€following€requirements€are€met:ÌÌà  àà ` à1.€€The€trustee€shall€exercise€the€judgment€and€care€under€the€circumstances€thenÏprevailing€that€persons€of€ordinary€prudence,€discretion€and€intelligence€exercise€in€theÏmanagement€of€their€own€funds€in€the€selection€of€the€investment€agent€and€in€establishing€theÏscope€and€specific€terms€of€any€delegation;ÌÌà  àà ` à2.€€The€trustee€must€conduct€an€inquiry€into€the€experience,€performance€history,Ïprofessional€licensing€of€and€registration,€if€any,€of€the€investment€agent€selected€by€the€trustee,Ïas€well€as€its€capitalization,€insurance€and/or€bonding;ÌÌà  àà ` à3.€€The€investment€agent€must€be€subject€to€the€jurisdiction€of€the€courts€of€theÏState€of€Texas;ÌÌà  àà ` à4.€€Under€the€terms€of€the€delegation,€the€investment€agent€must€be€made€subjectÏto€the€same€investment€standard€that€is€applicable€to€the€trustee€and€must€assume€liability€to€theÏbeneficiaries€of€the€trust€and€to€the€trustee€for€failure€by€the€investment€agent€to€follow€thatÏinvestment€standard€applicable€to€the€trust;ÌÐ 8,ˆ', Ðà  àà ` à5.€€The€trustee€shall€conduct€a€periodic€review€of€the€actions€taken,€results€obtainedÏand€the€compliance€or€non€compliance€by€the€investment€agent€with€the€overall€investmentÏstrategy€developed€by€or€for€the€trustee€to€meet€the€investment€standard€applicable€to€the€trust.ÌÌà  àThe€trustee€will€send€a€notice€in€writing€to€all€beneficiaries€stating€the€intention€of€theÏtrustee(s)€to€delegate€investment€authority€to€an€investment€agent€and€the€identity€thereof€no€laterÏthan€thirty€(30)€days€prior€to€the€date€of€the€delegation.€€€Beneficiaries€for€the€purposes€of€theÏpreceding€sentence€means€all€persons€currently€entitled€to€distributions€as€well€as€all€persons€whoÏwould€be€entitled€to€distributions€of€the€trust€if€the€trust€terminated€at€the€time€of€delegation.€ÏNotice€to€any€minors€or€incapacitated€beneficiaries€will€be€to€their€natural€or€court€appointedÏguardians.€€The€trustee€shall€provide€a€similar€notice€to€any€charitable€entity€as€defined€by€SectionÏ123.001€that€has€an€interest€in€the€trust.ó óóóÔÿc#ÔÐ ’â  ÐÌÔ#†X%¤XX X%¤@##Ôò òòòóóSection€Ô‡ X%¤XXX%¤Ô113.060Ô#†X%¤XX X%¤¢.#Ô.€€Effective€Date.€€The€act€takes€effect€September€1,€1999.óóó óÐ ^®  Ðò òÌó óÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»Y/Ýà0  àÔ2 eÔÚ  ÚcÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€Amendments€to€Section€113.018.€Employment€of€AgentsÔ I/Ôó ó݃ú»Y/„/ÝŒÐ`` (#` (# ÐŒÝ  ÝÌò òðð€113.018.€€Employment€of€Agentsó óÐ Ü, ÐÌà  àA€trustee€may€employ€attorneys,€accountants,€agents€òòÔÿÔòòò ò(including€investment€agents)ó óóóÔÿ1Ôóó€andÐ ¨ø Ðbrokers€reasonably€necessary€in€the€administration€of€the€trust€estate.€€ÌÌò òòòSection€Ô‡ X%¤XXX%¤Ô113.018Ô#†X%¤XX X%¤É1#Ô.€€Effective€Date.€€The€act€takes€effect€September€1,€1999.òòóóóóÐ Zª ÐÌó óÌÔ  Ôò òÝ ‚ú» ÝÝ  ÝÝ‚ú»€2Ýà0  àÔ2 eÔÚ  ÚdÚ  Ú.Ô3  Ôà0` (#(#àÝ  ÝProposed€New€Section€114.007.€Virtual€Representation.Ô p2Ôó ó݃ú»€2«2݌Р\` (#` (# ÐŒÝ  ÝÌÔÿÔò òòòòòðð114.007.€€Virtual€RepresentationÐ Ø( ÐÌà  à1.€€Except€as€provided€in€subsection€(5),€any€written€instrument€including€a€release,Ïconsent,€or€other€agreement€(including,€but€not€limited€to,€an€instrument€relating€to€any€duty,Ïpower,€responsibility,€restriction,€liability,€action€or€inaction€of€the€trustee)€between€the€trusteeÏand€a€beneficiary€who€has€full€legal€capacity€and€who€is€acting€on€full€information€shall€be€finalÏand€binding€on€such€beneficiary€and€all€other€persons€who€he€or€she€virtually€represents,€asÏdescribed€below.ÌÌà  à2.€€Any€such€written€instrument€executed€by€a€beneficiary€who€possesses€a€power€ofÏrevocation€or€a€power€to€appoint€(including€one€in€the€form€of€a€power€of€amendment)€the€incomeÏor€principal€of€the€trust€to€or€for€the€benefit€of€himself€or€herself,€his€or€her€creditors,€his€or€herÏestate,€or€creditors€of€his€or€her€estate,€shall€be€final€and€binding€on€those€persons€who€either€takeÏupon€the€exercise€of€such€power€of€appointment€or€take€in€default€if€such€power€of€appointmentÏis€not€exercised.€€Ìâ âÐ R+¢&+ Ðà  à3.€€If€there€is€no€conflict€of€interest€and€no€guardian€of€the€estate€or€guardian€ad€litem€hasÏâ âbeen€appointed,€a€parent€(including€a€parent€who€is€also€a€trust€beneficiary)€may€execute€suchÏa€written€instrument€for€and€on€behalf€of€his€or€her€minor€child€and€bind€such€child€by€suchÏinstrument.ÌÌà  à4.€€An€unborn€or€Ô_ÔunascertainedÔ_Ô€beneficiary€shall€be€bound€by€a€written€instrumentÏexecuted€by€a€beneficiary€(including€a€minor€child€through€a€parent,€as€provided€above,€or€by€aÏlegal€guardian)€having€an€interest€substantially€identical€to€the€interest€of€such€unborn€orÏÔ_ÔunascertainedÔ_Ô€beneficiary.€€For€these€purposes,€it€shall€be€presumed€that€unborn€or€Ô_ÔunascertainedÔ_ÔÏbeneficiaries€who€are€descendants€of€other€living€trust€beneficiaries€have€a€substantially€identicalÏinterest€only€with€those€living€trust€beneficiaries€from€whom€they€descend.€€ÌÌà  à5.€€This€Section€shall€not€apply€to€a€written€instrument€that€terminates€a€trust,€in€wholeÏor€in€part,€unless€such€written€instrument€is€otherwise€allowed€by€law.ÌÌà  à6.€€A€written€instrument€under€this€Section€must€be€in€writing€and€signed€by€theÏbeneficiary.ÌÌà  à7.€€This€Section€applies€to€all€written€instruments€entered€into€on€or€after€the€effective€date.Ïóóó óÔÿ¥3ԀР Ðóóòòò òSection€Ô‡ X%¤XXX%¤Ô113.056Ô#†X%¤XX X%¤ª=#Ô.€€Effective€Date.€€The€act€takes€effect€September€1,€1999.ó óóóÐ ¨ø ÐÌÌÔ  Ôò òÝ ‚5³´ ÝÝ  ÝÝ‚5³´[>ÝÔ2 eÔÚ  Ú4Ú  Ú.Ô3  Ôà0  àÝ  ÝPROPERTY€CODE.€Section€42.0021.€Exempting€Roth€IRAs.Ô K>Ôó ó€€ò òThis€amendment€to€theÐ Zª ÐTexas€Property€Code€exempts€the€new€Roth€IRAs€from€execution€by€creditors,€makeÏthis€asset€compatible€with€other€IRAs€and€is€designed€to€avoid€individuals€losingÏprotection€from€creditors€on€these€retirement€assets€as€a€result€of€rolling€over€currentÏIRAs€to€Roth€IRAs.ó ó݃5³´[>†>ÝŒÐòB(#(# ÐŒÝ  ÝÌò òðð€42.0021.€€Additional€Exemption€for€Retirement€Planó óÐ ¾ ÐÌà  à(a)€In€addition€to€the€exemption€prescribed€by€Section€42.001,€a€person's€right€to€the€assetsÏheld€in€or€to€receive€payments,€whether€vested€or€not,€under€any€stock€bonus,€pension,€profit„sharing,Ïor€similar€plan,€including€a€retirement€plan€for€self„employed€individuals,€and€under€any€annuity€orÏsimilar€contract€purchased€with€assets€distributed€from€that€type€of€plan,€and€under€any€retirementÏannuity€or€account€described€by€Section€403(b)€of€the€Internal€Revenue€Code€of€1986ÔÿÔò òòòò ò1ó óÔÿêBÔóóó ó€òòòòò òÔÿÔ(26€U.S.C.A.Ð "$r# Ððð€403(b)),€under€any€Roth€IRA€described€by€Section€408A€of€the€Internal€Revenue€Code€of€1986,Ôÿ+CÔóóóóó óÐ %X $ ÐòòÔÿÔòòò ò(26€U.S.C.A.€ðð€408A)€ó óóóÔÿñCÔóóand€under€any€individual€retirement€account€or€any€individual€retirementÐ î%>!% Ðannuity,€including€a€simplified€employee€€pension€plan,€is€exempt€from€attachment,€execution,€andÏseizure€for€the€satisfaction€of€debts€unless€the€plan,€contract,€or€account€does€not€qualify€under€theÏapplicable€provisions€of€the€Internal€Revenue€Code€of€1986€òòò òòòóóóóÔÿÔò òòò2óóó óó óÔÿ¬EÔ€òòÔÿÔòòò ò(26€U.S.C.A.€et€seq.).ó óóóÔÿäEÔóó€€A€person's€rightÐ  (ð#( Ðto€the€assets€held€in€or€to€receive€payments,€whether€vested€or€not,€under€a€government€or€churchÏplan€or€contract€is€also€exempt€unless€the€plan€or€contract€does€not€qualify€under€the€definition€ofÏa€government€or€church€plan€under€the€applicable€provisions€of€the€federal€Employee€RetirementÏIncome€Security€Act€of€1974òòò òÔÿÔò ò3ó óóóó óÔÿÔ€òòÔÿÔòòò ò(26€U.S.C.A.€ðð€1001€et€seq).ó óóóÔÿÌGÔóó€€If€this€subsection€is€held€invalid€orÐ 8,ˆ', Ðpreempted€by€federal€law€in€whole€or€in€part€or€in€certain€circumstances,€the€subsection€remains€inÏeffect€in€all€other€respects€to€the€maximum€extent€permitted€by€law.ÌÌà  à(b)€Contributions€to€an€individual€retirement€account€òòÔÿÔòòò ò(other€than€contributions€to€a€RothÐ b² ÐIRA€described€in€Section€408A€of€the€Internal€Revenue€Code€of€1986€(26€U.S.C.A.€ðð€408A)),ó óóóÔÿIIÔóó€orÐ H˜ Ðannuity€that€exceed€the€amounts€deductible€under€the€applicable€provisions€of€the€Internal€RevenueÏCode€of€1986€òòÔÿÔòòò ò(26€U.S.C.A.€ðð€1001€et€seq.)ó óóóÔÿ›JÔóó€and€any€accrued€earnings€on€such€contributions€are€notÐ  d Ðexempt€under€this€section€unless€otherwise€exempt€by€law.€€Amounts€qualifying€as€nontaxableÏrollover€contributions€under€Section€402(a)(5),€403(a)(4),€403(b)(8),€or€408(d)(3)€òòÔÿÔòòò ò(26€U.S.C.A.€ððððÐ à 0 Ð402(a)(5),€403(a)(4),€403(b)(8),€or€408(d)(3))ó óóóÔÿëKÔóó€of€the€Internal€Revenue€Code€of€1986ò òòòò òÔÿÔ4ÔÿÔó óó óóó€before€JanuaryÐ Æ   Ð1,€1993,€are€treated€as€exempt€amounts€under€Subsection€(a).€€òòÔÿÔòòò òAmounts€treated€as€a€qualifiedÐ ¬ ü  Ðrollover€contribution€under€Section€408A€of€the€Internal€Revenue€Code€of€1986€(26€U.S.C.A.Ï408A),€are€treated€as€exempt€amounts€under€Subsection€(a).óó€€ó óóóÔÿ3MÔIn€addition,€amounts€qualifying€asÐ xÈ  Ðnontaxable€rollover€contributions€under€Section€402(c),€402(e)(6),€402(f),€403(a)(4),€403(a)(5),Ï403(b)(8),€403(b)(10),€or€408(d)(3)€of€the€Internal€Revenue€Code€of€1986€on€or€after€January€1,Ï1993,€are€treated€as€exempt€amounts€under€Subsection€(a).ÌÌà  à(c)€Amounts€distributed€from€a€plan€or€contract€entitled€to€the€exemption€under€SubsectionÏ(a)€are€not€subject€to€seizure€for€a€creditor's€claim€for€60€days€after€the€date€of€distribution€if€theÏamounts€qualify€as€a€nontaxable€rollover€contribution€under€Subsection€(b).ÌÌà  à(d)€A€participant€or€beneficiary€of€a€stock€bonus,€pension,€profit„sharing,€retirement€plan,€orÏgovernment€plan€is€not€prohibited€from€granting€a€valid€and€enforceable€security€interest€in€theÏparticipant's€or€beneficiary's€right€to€the€assets€held€in€or€to€receive€payments€under€the€plan€toÏsecure€a€loan€to€the€participant€or€beneficiary€from€the€plan,€and€the€right€to€the€assets€held€in€or€toÏreceive€payments€from€the€plan€is€subject€to€attachment,€execution,€and€seizure€for€the€satisfactionÏof€the€security€interest€or€lien€granted€by€the€participant€or€beneficiary€to€secure€the€loan.ÌÌà  à(e)€If€Subsection€(a)€is€declared€invalid€or€preempted€by€federal€law,€in€whole€or€in€part€orÏin€certain€circumstances,€as€applied€to€a€person€who€has€not€brought€a€proceeding€under€Title€11,ÏUnited€States€Code,€the€subsection€remains€in€effect,€to€the€maximum€extent€permitted€by€law,€asÏto€any€person€who€has€filed€that€type€of€proceeding.ÌÌà  à(f)€A€reference€in€this€section€to€a€specific€provision€of€the€Internal€Revenue€Code€of€1986Ïincludes€a€subsequent€amendment€of€the€substance€of€that€provision.ñkñÌñkññiñÌñiññjñòòÌò òÔÿÔò ò1óó26€U.S.C.A.€ðð€403(b)Ð ¬$ü$ Ðòò2óó26€U.S.C.A.€ðð€1€et€seq.Ð ’%â % Ðòò3óó26€U.S.C.A.€ðð€1001€et€seq.Ð x&È!& Ðòò4óó26€U.S.C.A.€ðððð€402(a)(5),€403(a)(4),€403(b)(8)€or€408(d)(3)ó óÔÿUÔó óñjññlññhñÐ ^'®"' ÐñhññlññhñÐ ^'®"' ÐñhñÌòòò òSection€42.0021.€€Effective€Date.€€The€act€takes€effect€September€1,€1999.ó óóóÐ *)z$) ÐñgñòòÌñgñò òñgñÔÿÔò ò1óó26€U.S.C.A.€ðð€403(b)Ð x&È!& Ðòò2óó26€U.S.C.A.€ðð€1€et€seq.Ð ^'®"' Ðòò3óó26€U.S.C.A.€ðð€1001€et€seq.Ð D(”#( Ðòò4óó26€U.S.C.A.€ðððð€402(a)(5),€403(a)(4),€403(b)(8)€or€408(d)(3)ó óÔÿaUÔñgñÌó óòòóó