Texas Property Code

§ 116.202 — DISBURSEMENTS FROM PRINCIPAL

PR § 116.202Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 116. UNIFORM PRINCIPAL AND INCOME ACT · Art. E. ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST

Statute text

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(a)A trustee shall make the following disbursements from principal:

(1)the remaining one-half of the disbursements described in Section 116.201(1) unless, consistent with the trustee's fiduciary duties, the trustee determines that a different portion, none, or all of those disbursements should be allocated to income, in which case that portion of the disbursements that are not allocated to income shall be allocated to principal; (1-a) the remaining one-half of the disbursements described in Section 116.201(2);

(2)all of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;

(3)payments on the principal of a trust debt;

(4)expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;

(5)premiums paid on a policy of insurance not described in Section 116.201(4) of which the trust is the owner and beneficiary;

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Legislative history

Acts 2013, 83rd Leg., R.S., Ch. 1337 (S.B. 778), Sec. 3, eff. September 1, 2013.