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Texas Statutes (Last Updated: January 4, 2014) |
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PROPERTY CODE |
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Title 9. TRUSTS |
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Subtitle B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS |
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Chapter 113. ADMINISTRATION |
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Subchapter F. COMMON TRUST FUNDS |
Sec. 113.171. COMMON TRUST FUNDS
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(a) A bank or trust company qualified to act as a fiduciary in this state may establish common trust funds to provide investments to itself as a fiduciary, including as a custodian under the Texas Uniform Transfers to Minors Act (Chapter 141) or a uniform gifts or transfers to minors act of another state or to itself and others as cofiduciaries.
(b) The fiduciary or cofiduciary may place investment funds in interests in common trust funds if:
(1) the investment is not prohibited by the instrument or order creating the fiduciary relationship; and
(2) if there are cofiduciaries, the cofiduciaries consent to the investment.
(c) A common trust fund includes a fund:
(1) qualified for exemption from federal income taxation as a common trust fund and maintained exclusively for eligible fiduciary accounts; and
(2) consisting solely of assets of retirement, pension, profit sharing, stock bonus, or other employees' trusts that are exempt from federal income taxation.