The bill amends the Texas Property Code to modify the requirements for trust accountings. It introduces a new provision allowing a court to compel a trustee to include an allocation of certain 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 clarifies that a trustee is not required to allocate receipts or disbursements to principal or income if the distribution standard and beneficiaries are the same for both.

Furthermore, the bill specifies that a written statement of accounts must include a complete account of receipts, disbursements, and other transactions regarding trust property, with each receipt and disbursement allocated to principal or income as applicable. The changes in law will only apply 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)