Texas Property Code

§ 112.055 — AMENDMENT OF CHARITABLE TRUSTS BY OPERATION OF LAW

PR § 112.055Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 112. CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUSTS · Art. C. REVOCATION, MODIFICATION, AND TERMINATION OF TRUSTS

Statute text

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(a)Except as provided by Section 112.056 and Subsection (b) of this section, the governing instrument of a trust that is a private foundation under Section 509, Internal Revenue Code, as amended, a nonexempt charitable trust that is treated as a private foundation under Section 4947(a)(1), Internal Revenue Code, as amended, or, to the extent that Section 508(e), Internal Revenue Code, is applicable to it, a nonexempt split-interest trust under Section 4947(a)(2), Internal Revenue Code, as amended, is considered to contain provisions stating that the trust:

(1)shall make distributions at times and in a manner as not to subject the trust to tax under Section 4942, Internal Revenue Code;

(2)may not engage in an act of self-dealing that would be subject to tax under Section 4941, Internal Revenue Code;

(3)may not retain excess business holdings that would subject it to tax under Section 4943, Internal Revenue Code;

(4)may not make an investment that would subject it to tax under Section 4944, Internal Revenue Code; and

(5)may not make a taxable expenditure that would subject it to tax under Section 4945, Internal Revenue Code.

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Legislative history

Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.