Texas Property Code Title 9, Chapter 116 - Uniform Principal And Income Act
SUBCHAPTER A DEFINITIONS, FIDUCIARY DUTIES, AND OTHER MISCELLANEOUS PROVISIONS
- Texas Section 116.001 - Short Title
This chapter may be cited as the Uniform Principal and Income Act. Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1,
- Texas Section 116.002 - Definitions
In this chapter: (1) "Accounting period" means a calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of...
- Texas Section 116.003 - Uniformity Of Application And Construction
In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject...
- Texas Section 116.004 - Fiduciary Duties; General Principles
(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Subchapters B and...
- Texas Section 116.005 - Trustee's Power To Adjust
(a) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as...
- Texas Section 116.006 - Judicial Control Of Discretionary Power
(a) The court may not order a trustee to change a decision to exercise or not to exercise a discretionary power conferred by Section 116.005...
SUBCHAPTER B DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST
- Texas Section 116.007 - Provisions Regarding Noncharitable Unitrusts
(a) This section does not apply to a charitable remainder unitrust as defined by Section 664(d), Internal Revenue Code of 1986 (26 U.S.C. Section 664),...
- Texas Section 116.051 - Determination And Distribution Of Net Income
After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1) A...
SUBCHAPTER C APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST
- Texas Section 116.052 - Distribution To Residuary And Remainder Beneficiaries
(a) Each beneficiary described in Section 116.051(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed...
- Texas Section 116.101 - When Right To Income Begins And Ends
(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date...
- Texas Section 116.102 - Apportionment Of Receipts And Disbursements When Decedent Dies Or Income Interest Begins
(a) A trustee shall allocate an income receipt or disbursement other than one to which Section 116.051(1) applies to principal if its due date occurs...
SUBCHAPTER D ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
- Texas Section 116.103 - Apportionment When Income Interest Ends
(a) In this section, "undistributed income" means net income received before the date on which an income interest ends. The term does not include an...
- Texas Section 116.151 - Character Of Receipts
(a) In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other...
- Texas Section 116.152 - Distribution From Trust Or Estate
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has...
- Texas Section 116.153 - Business And Other Activities Conducted By Trustee
(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account...
- Texas Section 116.161 - Principal Receipts
A trustee shall allocate to principal: (1) to the extent not allocated to income under this chapter, assets received from a transferor during the transferor's...
- Texas Section 116.162 - Rental Property
To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received...
- Texas Section 116.163 - Obligation To Pay Money
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including...
- Texas Section 116.164 - Insurance Policies And Similar Contracts
(a) Except as otherwise provided in Subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in...
- Texas Section 116.171 - Insubstantial Allocations Not Required
If a trustee determines that an allocation between principal and income required by Section 116.172, 116.173, 116.174, 116.175, or 116.178 is insubstantial, the trustee may...
- Texas Section 116.172 - Deferred Compensation, Annuities, And Similar Payments
(a) In this section: (1) "Future payment asset" means the asset from which a payment is derived. (2) "Payment" means a payment that a trustee...
- Texas Section 116.173 - Liquidating Asset
(a) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a...
- Texas Section 116.174 - Minerals, Water, And Other Natural Resources
(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee...
- Texas Section 116.175 - Timber
(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall...
- Texas Section 116.176 - Property Not Productive Of Income
(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the...
- Texas Section 116.177 - Derivatives And Options
(a) In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right...
SUBCHAPTER E ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
- Texas Section 116.178 - Asset-backed Securities
(a) In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the...
- Texas Section 116.201 - Disbursements From Income
A trustee shall make the following disbursements from income to the extent that they are not disbursements to which Section 116.051(2)(B) or (C) applies: (1)...
- Texas Section 116.202 - Disbursements From Principal
(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...
- Texas Section 116.203 - Transfers From Income To Principal For Depreciation
(a) In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a...
- Texas Section 116.204 - Transfers From Income To Reimburse Principal
(a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income...
- Texas Section 116.205 - Income Taxes
(a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. (b) A tax required...
- Texas Section 116.206 - Adjustments Between Principal And Income Because Of Taxes
(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder...
Last modified: September 28, 2016