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Texas Laws | Probate Code
CHAPTER VIII. PROCEEDINGS DURING ADMINISTRATION
PART 8. PARTITION AND DISTRIBUTION OF ESTATES OF DECEDENTS

(3009)

(b) Unless the governing instrument provides otherwise, if a will or trust contains a pecuniary bequest, devise, or transfer that may be satisfied by distributing assets in kind and if the executor, administrator, or trustee determines to fund the bequest, devise, or transfer by distributing assets in kind, the property shall, for the purpose of funding the bequest, devise, or transfer, be valued at its value on the date or dates of distribution. (3010)

Added by Acts 1987, 70th Leg., ch. 1110, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1991, 72nd Leg., ch. 895, Sec. 15, eff. Sept. 1, 1991. (3011)

Text of article effective until January 01, 2014 (3012)

Sec. 378B. ALLOCATION OF INCOME AND EXPENSES DURING ADMINISTRATION OF DECEDENT'S ESTATE. (a) Except as provided by Subsection (b) of this section and unless the will provides otherwise, all expenses incurred in connection with the settlement of a decedent's estate, including debts, funeral expenses, estate taxes, penalties relating to estate taxes, and family allowances, shall be charged against the principal of the estate. (3013)(Text)

Fees and expenses of an attorney, accountant, or other professional advisor, commissions and expenses of a personal representative, court costs, and all other similar fees or expenses relating to the administration of the estate and interest relating to estate taxes shall be allocated between the income and principal of the estate as the executor determines in its discretion to be just and equitable. (3014)

(b) Unless the will provides otherwise, income from the assets of a decedent's estate that accrues after the death of the testator and before distribution, including income from property used to discharge liabilities, shall be determined according to the rules applicable to a trustee under the Texas Trust Code (Subtitle B, Title 9, Property Code) and distributed as provided by Chapter 116, Property Code, and Subsections (c) and (d) of this section. (3015)

(c) The income from the property bequeathed or devised to a specific devisee shall be distributed to the devisee after reduction for property taxes, ordinary repairs, insurance premiums, interest accrued after the death of the testator, other expenses of management and operation of the property, and other taxes, including the taxes imposed on the income that accrues during the period of administration and that is payable to the devisee. (3016)

(d) The balance of the net income shall be distributed to all other devisees after reduction for the balance of property taxes, ordinary repairs, insurance premiums, interest accrued, other expenses of management and operation of all property from which the estate is entitled to income, and taxes imposed on income that accrues during the period of administration and that is payable or allocable to the devisees, in proportion to the devisees' respective interests in the undistributed assets of the estate. (3017)

(g) Income received by a trustee under this section shall be treated as income of the trust as provided by Section 116.101, Property Code. (3018)

(h) In this section, "undistributed assets" includes funds used to pay debts, administration expenses, and federal and state estate, inheritance, succession, and generation-skipping transfer taxes until the date of payment of the debts, expenses, and taxes. Except as required by Sections 2055 and 2056 of the Internal Revenue Code of 1986 (26 U.S.C. Secs. 2055 and 2056), and its subsequent amendments, the frequency and method of determining the beneficiaries' respective interests in the undistributed assets of the estate shall be in the executor's sole and absolute discretion. The executor may consider all relevant factors, including administrative convenience and expense and the interests of the various beneficiaries of the estate in order to reach a fair and equitable result among beneficiaries. (3019)

(i) Chapter 116, Property Code, prevails to the extent of any conflict between this section and Chapter 116, Property Code. (3020)

Added by Acts 1993, 73rd Leg., ch. 846, Sec. 24, eff. Sept. 1, 1993. (3021)

Subsecs. (a), (b), (d) and (g) amended by Acts 2003, 78th Leg., ch. 659, Sec. 3, eff. Jan. 1, 2004; Subsecs. (e), (f), repealed by Acts 2003, ch. 659, Sec. 4, eff. Jan. 1, 2004; Subsec. (f) amended by Acts 2003, 78th Leg., ch. 1060, Sec. 15, eff. Sept. 1, 2003; Subsec. (i) added by Acts 2003, 78th Leg., ch. 659, Sec. 3, eff. Jan. 1, 2004. (3022)

Text of article effective until January 01, 2014 (3023)

Sec. 379. PARTITION WHEN ESTATE CONSISTS OF MONEY OR DEBTS ONLY. If the estate to be distributed shall consist only of money or debts due the estate, or both, the court shall fix the amount to which each distributee is entitled, and shall order the payment and delivery thereof by the executor or administrator. (3024)(Text)

(3025)

Acts 1955, 54th Leg., p. 88, ch. 55, eff. Jan. 1, 1956. (3026)

Text of article effective until January 01, 2014 (3027)

Sec. 380. PARTITION AND DISTRIBUTION WHEN PROPERTY IS CAPABLE OF DIVISION. (a) Appointment of Commissioners. (3028)(Text)

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