Texas Estates Code 310.004 – Income Determination and Distribution
(a) Unless a 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:
(1) determined according to the rules applicable to a trustee under the Texas Trust Code (Subtitle B, Title 9, Property Code); and
(2) distributed as provided by Subsections (b) and (c) and by Chapter 116, Property Code.
(b) Income from property devised to a specific devisee shall be distributed to the devisee after reduction for:
(1) property taxes;
(2) other taxes, including taxes imposed on income that accrues during the period of administration and that is payable to the devisee;
(3) ordinary repairs;
(4) insurance premiums;
(5) interest accrued after the testator’s death; and
(6) other expenses of management and operation of the property.
Terms Used In Texas Estates Code 310.004
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Decedent: A deceased person.
- Devisee: includes a legatee. See Texas Estates Code 22.009
- Estate: means a decedent's property, as that property:
(1) exists originally and as the property changes in form by sale, reinvestment, or otherwise;
(2) is augmented by any accretions and other additions to the property, including any property to be distributed to the decedent's representative by the trustee of a trust that terminates on the decedent's death, and substitutions for the property; and
(3) is diminished by any decreases in or distributions from the property. See Texas Estates Code 22.012 - Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Property: means real and personal property. See Texas Government Code 311.005
- Testator: A male person who leaves a will at death.
- Trustee: A person or institution holding and administering property in trust.
(c) 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.