Distribution of Trust Property

Sec. 1301.204. DISTRIBUTION OF TRUST PROPERTY. (a) Unless otherwise provided by the court and except as provided by Subsection (b), the trustee of a management trust shall: (1) prepare a final account in the same form and manner that is required of a guardian under Sections 1204.101 and 1204.102; and (2) on court approval, distribute the principal or any undistributed income of the trust to: (A) the ward or incapacitated person when the trust terminates on the trust's own terms; (B) the successor trustee on appointment of a successor trustee; or (C) the representative of the deceased ward's or incapacitated person's estate on the ward's or incapacitated person's death. (b) The court may not require a trustee of a trust created for a person who has only a physical disability to prepare and file with the court a final account as described by Subsection (a)(1). The trustee shall distribute the principal and any undistributed income of the trust in the manner provided by Subsection (a)(2) for a trust the beneficiary of which is a ward or incapacitated person. Added by Acts 2011, 82nd Leg., R.S., Ch. 823 (H.B. 2759), Sec. 1.02, eff. January 1, 2014. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 6.073, eff. January 1, 2014.