Tex. Prop. Code Section 112.059
Termination of Uneconomic Trust


(a)

After notice to beneficiaries who are distributees or permissible distributees of trust income or principal or who would be distributees or permissible distributees if the interests of the distributees or the trust were to terminate and no powers of appointment were exercised, the trustee of a trust consisting of trust property having a total value of less than $50,000 may terminate the trust if the trustee concludes after considering the purpose of the trust and the nature of the trust assets that the value of the trust property is insufficient to justify the continued cost of administration.

(b)

On termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

(c)

A trustee may not exercise a power described by Subsection (a) if the trustee’s possession of the power would cause the assets of the trust to be included in the trustee’s estate for federal estate tax purposes.

(d)

This section does not apply to an easement for conservation or preservation.
Added by Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 5, eff. September 1, 2007.

Source: Section 112.059 — Termination of Uneconomic Trust, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­112.­htm#112.­059 (accessed Mar. 23, 2024).

112.001
Methods of Creating Trust
112.002
Intention to Create Trust
112.003
Consideration
112.004
Statute of Frauds
112.005
Trust Property
112.006
Additions to Trust Property
112.007
Capacity of Settlor
112.008
Capacity of Trustee
112.009
Acceptance by Trustee
112.010
Presumed Acceptance by Beneficiary
112.011
Posthumous Class Gifts Membership
112.031
Trust Purposes
112.032
Active and Passive Trusts
112.033
Reservation of Interests and Powers by Settlor
112.034
Merger
112.035
Spendthrift Trusts
112.036
Rule Against Perpetuities
112.037
Trust for Care of Animal
112.038
Forfeiture Clause
112.051
Revocation, Modification, or Amendment by Settlor
112.052
Termination
112.053
Disposition of Trust Property on Failure of Trust
112.054
Judicial Modification, Reformation, or Termination of Trusts
112.055
Amendment of Charitable Trusts by Operation of Law
112.056
Permissive Amendment by Trustee of Charitable Trust
112.057
Division and Combination of Trusts
112.058
Conversion of Community Trust to Nonprofit Corporation
112.059
Termination of Uneconomic Trust
112.071
Definitions
112.072
Distribution to Second Trust: Trustee with Full Discretion
112.073
Distribution to Second Trust: Trustee with Limited Discretion
112.074
Notice Required
112.075
Written Instrument Required
112.076
Reference to Trust Terms
112.077
Settlor of Second Trust
112.078
Court-ordered Distribution
112.079
Divided Discretion
112.080
Later Discovered Assets
112.081
Other Authority to Distribute in Further Trust Not Limited
112.082
Need for Distribution Not Required
112.083
Duties Not Created
112.084
Certain Distributions Prohibited
112.085
Exceptions to Power of Distribution
112.086
Tax-related Limitations
112.087
Compensation of Trustee
112.101
Definitions
112.102
Revocation of Certain Nontestamentary Transfers
112.103
Effect of Revocation
112.104
Liability of Certain Purchasers or Recipients of Certain Payments, Benefits, or Property
112.105
Liability of Former Spouse or Former Spouse’s Relative for Certain Payments, Benefits, or Property
112.106
Certain Trusts with Divorced Individuals as Joint Settlors
112.121
Validity of Trust
112.122
Enforcement of Trust
112.123
Application or Distribution of Trust Property
112.0335
Construction of Certain Trusts
112.0715
Creation of Second Trust

Accessed:
Mar. 23, 2024

§ 112.059’s source at texas​.gov