Relating to the contents of a trust accounting.
HB 3405 amends Texas Property Code sections 113.151(c) and 113.152 to change trust accounting rules. It allows courts, upon showing "good cause," to require trustees to separately allocate certain trust receipts and disbursements to principal or income - even when the distribution rules for both are identical. This clarifies that trustees must show these allocations in written accountings, unless the distribution standards for principal and income are the same. The law takes effect September 1, 2025, and applies only to trust accounting demands made after that date.
Bill status
passed
3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
Governor
Introduced Mar 21, 2025
Last action May 19, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
3 edits
·
May 16, 2025
MINOR
This bill amends Texas Property Code sections 113.151 and 113.152 to clarify how courts can require trustees to allocate trust receipts and disbursements between principal and income. The changes allow courts to compel trustees to make allocations even when distribution standards and beneficiaries are the same for both accounts, provided there is a showing of good cause.
Scope change
The bill applies to demands for accounting made on or after September 1, 2025, with prior demands governed by existing law.
REQUIREMENT
Added new subsection (c) to Section 113.151 allowing courts to compel trustees to allocate receipts and disbursements to principal and income regardless of whether distribution standards and beneficiaries are the same, when good cause is shown.
Modified Section 113.152 to clarify that trustees are not required to allocate receipts or disbursements to principal or income only when distribution standards and beneficiaries are the same for both, rather than as an absolute prohibition.
TECHNICAL
Added formatting and spacing corrections throughout the bill text to align with standard legislative formatting requirements.
Floor votes · House May 15, 2025
How they voted
138–0
Passed · 6 other
Total votes 144
May 15, 2025
D
Democratic59
94% Yea
R
Republican85
96% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
26
Key actions
8
Committee
8
May 19, 2025
Committee
Referred to Business & Commerce
upper
May 19, 2025
Introduced
Read first time
upper
May 19, 2025
Introduced
Received from the House
upper
May 16, 2025
Lower · Passed
Passed
lower
May 15, 2025
Lower · Passed
Passed to engrossment
lower
May 9, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 8, 2025
Lower · Passed
Committee report distributed
lower
Apr 28, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
Apr 28, 2025
Lower · Passed
Recalled from subcommittee
lower
Apr 14, 2025
Lower · Passed
Left pending in subcommittee
lower
Apr 14, 2025
Lower · Passed
Testimony taken/registration(s) recorded in subcommittee
lower
Mar 21, 2025
Committee
Referred to s/c on Family & Fiduciary Relationships by Speaker
lower
Mar 21, 2025
Introduced
Read first time
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Richard Hayes
RRepublican
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