PROPERTY CODE
SUBTITLE B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION
OF TRUSTS
CHAPTER 111. GENERAL PROVISIONS
§ 111.001. SHORT TITLE. This subtitle may be cited as
the Texas Trust Code.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 111.002. CONSTRUCTION OF SUBTITLE. (a) If the
provisions of this subtitle and the terms of a trust conflict, the
terms of the trust control except the settlor may not relieve a
corporate trustee from the duties, restrictions, and liabilities
under Section 113.052 or 113.053.
(b) This subtitle and the Texas Trust Act, as amended
(Articles 7425b-1 through 7425b-48, Vernon's Texas Civil
Statutes), shall be considered one continuous statute, and for the
purposes of any statute or of any instrument creating a trust that
refers to the Texas Trust Act, this subtitle shall be considered an
amendment of the Texas Trust Act.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 111.003. TRUSTS SUBJECT TO THIS SUBTITLE. For the
purposes of this subtitle, a "trust" is an express trust only and
does not include:
(1) a resulting trust;
(2) a constructive trust;
(3) a business trust; or
(4) a security instrument such as a deed of trust,
mortgage, or security interest as defined by the Business &
Commerce Code.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 111.004. DEFINITIONS. In this subtitle:
(1) "Affiliate" includes:
(A) a person who directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under
common control with another person; or
(B) any officer, director, partner, employee, or
relative of a person, and any corporation or partnership of which a
person is an officer, director, or partner.
(2) "Beneficiary" means a person for whose benefit
property is held in trust, regardless of the nature of the interest.
(3) "Court" means a court of appropriate jurisdiction.
(4) "Express trust" means a fiduciary relationship
with respect to property which arises as a manifestation by the
settlor of an intention to create the relationship and which
subjects the person holding title to the property to equitable
duties to deal with the property for the benefit of another person.
(5) "Income" is defined in Section 116.002.
(6) "Interest" means any interest, whether legal or
equitable or both, present or future, vested or contingent,
defeasible or indefeasible.
(7) "Interested person" means a trustee, beneficiary,
or any other person having an interest in or a claim against the
trust or any person who is affected by the administration of the
trust. Whether a person, excluding a trustee or named beneficiary,
is an interested person may vary from time to time and must be
determined according to the particular purposes of and matter
involved in any proceeding.
(8) "Internal Revenue Code" means the Internal Revenue
Code of 1954, as amended, or any corresponding statute subsequently
in effect.
(9) "Inventory value" means the cost of property
purchased by a trustee, the market value of property at the time it
became subject to the trust, or, in the case of a testamentary
trust, any value used by the trustee that is finally determined for
the purposes of an estate or inheritance tax.
(10) "Person" means an individual, a corporation, a
partnership, an association, a joint-stock company, a business
trust, an unincorporated organization, or two or more persons
having a joint or common interest, including an individual or a
corporation acting as a personal representative or in any other
fiduciary capacity.
(11) "Principal" is defined in Section 116.002.
(12) "Property" means any type of property, whether
real, tangible or intangible, legal, or equitable. The term also
includes choses in action, claims, and contract rights, including a
contractual right to receive death benefits as designated
beneficiary under a policy of insurance, contract, employees'
trust, retirement account, or other arrangement.
(13) "Relative" means a spouse or, whether by blood or
adoption, an ancestor, descendant, brother, sister, or spouse of
any of them.
(14) "Settlor" means the person who creates the trust.
The terms "grantor" and "trustor" mean the same as "settlor."
(15) "Terms of the trust" means the manifestation of
intention of the settlor with respect to the trust expressed in a
manner that admits of its proof in judicial proceedings.
(16) "Transaction" means any act performed by a
settlor, trustee, or beneficiary in relation to a trust, including
the creation or termination of a trust, the investment of trust
property, a breach of duty, the receipt of trust property, the
receipt of income or the incurring of expense, a distribution of
trust property, an entry in the books and records of the trust, and
an accounting by a trustee to any person entitled to receive an
accounting.
(17) "Trust property" means property placed in trust
by one of the methods specified in Section 112.001 or property
otherwise transferred to or acquired or retained by the trustee for
the trust.
(18) "Trustee" means the person holding the property
in trust.
(19) "Employees' trust" means:
(A) a trust that forms a part of a stock-bonus,
pension, or profit-sharing plan under Section 401, Internal Revenue
Code of 1954 (26 U.S.C.A. § 401 (1986));
(B) a pension trust under Chapter 111; and
(C) an employer-sponsored benefit plan or
program, or any other retirement savings arrangement, including a
pension plan created under Section 3, Employee Retirement Income
Security Act of 1974 (29 U.S.C.A. § 1002 (1986)), regardless of
whether the plan, program, or arrangement is funded through a
trust.
(20) "Individual retirement account" means a trust,
custodial arrangement, or annuity under Section 408(a) or (b),
Internal Revenue Code of 1954 (26 U.S.C.A. § 408 (1986)).
(21) "Retirement account" means a retirement-annuity
contract, an individual retirement account, a simplified employee
pension, or any other retirement savings arrangement.
(22) "Retirement-annuity contract" means an annuity
contract under Section 403, Internal Revenue Code of 1954 (26
U.S.C.A. § 403 (1986)).
(23) "Simplified employee pension" means a trust,
custodial arrangement, or annuity under Section 408, Internal
Revenue Code of 1954 (26 U.S.C.A. § 408 (1986)).
(24) "Environmental law" means any federal, state, or
local law, rule, regulation, or ordinance relating to protection of
the environment.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2, eff.
Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 741, § 1, 2,
eff. Aug. 31, 1987; Acts 1993, 73rd Leg., ch. 846, § 28, eff.
Sept. 1, 1993; Acts 1995, 74th Leg., ch. 642, § 14, eff. Sept. 1,
1995; Acts 2003, 78th Leg., ch. 659, § 2, eff. Jan. 1, 2004;
Acts 2003, 78th Leg., ch. 1103, § 2, eff. Jan. 1, 2004.
§ 111.005. REENACTMENT OF COMMON LAW. If the law
codified in this subtitle repealed a statute that abrogated or
restated a common law rule, that common law rule is reestablished,
except as the contents of the rule are changed by this subtitle.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2, eff.
Jan. 1, 1984.
§ 111.006. APPLICATION. This subtitle applies:
(1) to all trusts created on or after January 1, 1984,
and to all transactions relating to such trusts; and
(2) to all transactions occurring on or after January
1, 1984, relating to trusts created before January 1, 1984;
provided that transactions entered into before January 1, 1984, and
which were subject to the Texas Trust Act, as amended (Articles
7425b-1 through 7425b-48, Vernon's Texas Civil Statutes), and the
rights, duties, and interests flowing from such transactions remain
valid on and after January 1, 1984, and must be terminated,
consummated, or enforced as required or permitted by this subtitle.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2, eff.
Jan. 1, 1984.
