Texas Finance Code - Section 34.306. Trust Account With Limited Documentation
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§ 34.306. TRUST ACCOUNT WITH LIMITED DOCUMENTATION. (a)
Subject to Chapter XI, Probate Code, a bank may accept and
administer a deposit account:
(1) that is opened with the bank by one or more persons
expressly as a trustee for one or more other named persons; and
(2) for which further notice of the existence and
terms of a trust is not given in writing to the bank.
(b) For a deposit account that is opened with a bank by one
or more persons expressly as a trustee for one or more other named
persons under or purporting to be under a written trust agreement,
the trustee may provide the bank with a certificate of trust to
evidence the trust relationship. The certificate must be an
affidavit of the trustee and must include the effective date of the
trust, the name of the trustee, the name of or method for choosing
successor trustees, the name and address of each beneficiary, the
authority granted to the trustee, the disposition of the account on
the death of the trustee or the survivor of two or more trustees,
other information required by the bank, and an indemnification of
the bank. The bank may accept and administer the account, subject
to Chapter XI, Probate Code, in accordance with the certificate of
trust without requiring a copy of the trust agreement. The bank is
not liable for administering the account as provided by the
certificate of trust, even if the certificate of trust is contrary
to the terms of the trust agreement, unless the bank has actual
knowledge of the terms of the trust agreement.
(c) On the death of the trustee or of the survivor of two or
more trustees, the bank may pay all or part of the withdrawal value
of the account with interest as provided by the certificate of
trust. If the trustee did not deliver a certificate of trust, the
bank's right to treat the account as owned by a trustee ceases on
the death of the trustee. On the death of the trustee or of the
survivor of two or more trustees, the bank, unless the certificate
of trust provides otherwise, shall pay the withdrawal value of the
account with interest in equal shares to the persons who survived
the trustee, are named as beneficiaries in the certificate of
trust, and can be located by the bank from its own records. If there
is not a certificate of trust, payment of the withdrawal value and
interest shall be made as provided by Chapter XI, Probate Code. Any
payment made under this section for all or part of the withdrawal
value and interest discharges any liability of the bank to the
extent of the payment. The bank may pay all or part of the
withdrawal value and interest in the manner provided by this
section, regardless of whether it has knowledge of a competing
claim, unless the bank receives actual knowledge that payment has
been restrained by court order.
(d) This section does not obligate a bank to accept a
deposit account from a trustee who does not furnish a copy of the
trust agreement or to search beyond its own records for the location
of a named beneficiary.
(e) This section does not affect a contractual provision to
the contrary that otherwise complies with the laws of this state.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 34.203 34.204 34.301 34.302 34.303 34.304 34.305 34.306 34.307 35.001 35.002 35.003 35.004 35.005 35.006
Last modified: August 10, 2007
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