Bill Text: TX HB3762 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the designation of a trust as a business purpose trust.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Business & Industry [HB3762 Detail]
Download: Texas-2015-HB3762-Introduced.html
| 84R5957 AJA-F | ||
| By: Elkins | H.B. No. 3762 | |
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| relating to the designation of a trust as a business purpose trust. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 101, Property Code, is amended by adding | ||
| Section 101.003 to read as follows: | ||
| Sec. 101.003. BUSINESS PURPOSE TRUSTS. (a) In this | ||
| section, "express trust" has the meaning assigned by Section | ||
| 111.004. | ||
| (b) If the settlor of an express trust, whether irrevocable | ||
| or revocable, and regardless of whether the trust is a disregarded | ||
| entity for federal tax purposes, designates the trust as a | ||
| "business purpose trust" in the trust instrument, the trust shall | ||
| be considered a legal organization for all purposes under the laws | ||
| of this state. | ||
| (c) An express trust whose trust instrument declares that | ||
| the trust is a "business purpose trust" shall be treated for all | ||
| purposes as a business trust even if distributions from the trust | ||
| are for personal, family, or household purposes. | ||
| SECTION 2. (a) Except as otherwise expressly provided by a | ||
| trust, a will creating a trust, or this section, the changes in law | ||
| made by this Act apply to a trust existing or created on or after | ||
| September 1, 2015. | ||
| (b) For a trust existing on September 1, 2015, that was | ||
| created before that date, the changes in law made by this Act apply | ||
| only to an act or omission relating to the trust that occurs on or | ||
| after September 1, 2015. | ||
| SECTION 3. This Act takes effect September 1, 2015. | ||
