House Bill No. 3405 amends the Texas Property Code to clarify the requirements for trust accountings. It introduces a new provision allowing a court to compel a trustee to include an allocation of receipts and disbursements to principal and income in a written statement of account, even if the distribution standard and beneficiaries are the same for both categories. This is contingent upon a showing of good cause. Additionally, the bill specifies that a written statement of accounts must detail all trust property, transactions, and liabilities, with receipts and disbursements allocated to principal or income, unless the distribution standard is the same for both.

The bill also modifies existing language regarding the contents of trust accountings, ensuring that trustees are not required to allocate receipts or disbursements to principal or income if the distribution standard and beneficiaries are identical. The changes will apply only to demands for accounting made on or after the effective date of the Act, which is set for September 1, 2025. Any demands made prior to this date will be governed by the previous law.

Statutes affected:
Introduced: Property Code 113.151, Property Code 113.152 (Property Code 113)
House Committee Report: Property Code 113.151, Property Code 113.152 (Property Code 113)
Engrossed: Property Code 113.151, Property Code 113.152 (Property Code 113)