Section 712.0357 - Nature of Total Return Distributions(a) A distribution from a total return fund is considered a distribution of all income of the fund that reasonably apportions the total return of the fund, and may not be considered a fundamental departure from applicable state law.(b) Unless the trust instrument provides otherwise, the trustee of a total return fund shall treat a distribution as first being made from the following sources in order of priority: (1) from net accounting income;(2) from ordinary accounting income not allocable to net accounting income;(3) from net realized short-term capital gains;(4) from net realized long-term capital gains; and(5) from the principal of the fund.Tex. Health and Safety Code § 712.0357
Added by Acts 2017, Texas Acts of the 85th Leg. - Regular Session, ch. 1051,Sec. 1, eff. 9/1/2017.