S.B. No. 998

TRUST CODE CHANGE REGARDING CRUMMEY WITHDRAWAL POWERS

Effective Date: September 1, 1997

AN ACT

relating to the administration and operation of certain trusts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1.  Section 112.035, Property Code, is amended by adding Subsection (e) to read as follows:

(e)  A beneficiary of the trust may not be considered a settlor merely because of a lapse, waiver, or release of the beneficiary's right to withdraw a part of the trust property if the value of the property that could have been withdrawn by exercising the right of withdrawal in any calendar year does not exceed at the time of the lapse, waiver, or release the greater of the amount specified in:

(1)  Section 2041(b)(2) or 2514(e), Internal Revenue Code of 1986; or

(2)  Section 2503(b), Internal Revenue Code of 1986.

SECTION 2.  This Act takes effect September 1, 1997.

SECTION 3.  The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.


Courtesy of Glenn M. Karisch, Ikard & Golden, P. C., Austin, Texas. This page was last revised May 9, 1997.