Texas Property Code 114.063 – General Right to Reimbursement
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(a) A trustee may discharge or reimburse himself from trust principal or income or partly from both for:
(1) advances made for the convenience, benefit, or protection of the trust or its property;
(2) expenses incurred while administering or protecting the trust or because of the trustee’s holding or owning any of the trust property; and
(3) expenses incurred for any action taken under § 113.025.
(b) The trustee has a lien against trust property to secure reimbursement under Subsection (a).
Terms Used In Texas Property Code 114.063
- Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A potential trustee is entitled to reimbursement from trust principal or income or partly from both for reasonable expenses incurred for any action taken under § 113.025(a) if:
(1) a court orders reimbursement or the potential trustee has entered into a written agreement providing for reimbursement with the personal representative of the estate, the trustee of the trust, the settlor, the settlor’s attorney-in-fact, the settlor’s personal representative, or the person or entity designated in the trust instrument or will to appoint a trustee; and
(2) the potential trustee has been appointed trustee under the terms of the trust instrument or will or has received a written request to accept the trust from the settlor, the settlor’s attorney-in-fact, the settlor’s personal representative, or the person or entity designated in the trust instrument or will to appoint a trustee.