PMWJ S.B. 997 75(R)BILL ANALYSIS JUDICIAL AFFAIRS S.B. 997 By: Harris (Thompson) 4-16-97 Committee Report (Unamended) BACKGROUND The Real Estate, Probate and Trust Law section of the State Bar of Texas has identified several provisions of the Texas Probate Code that are in need of revision. Currently, the Probate Code requires that social security numbers be provided for many applications, the practice of which the public has grown increasingly wary. Currently, the Probate Code does not grant guardians the authority to abandon worthless holdings or to support a ward's spouse or dependents. In addition, those provisions of the code regarding Guardianship Trusts require clarification as to those eligible to apply to the court for the creation of a trust. Finally, several nonsubstantive changes are necessary as a result of amendments made by the 74th Legislature. The Real Estate, Probate and Trust Law Section of the State Bar has recommended changes to the guardianship portion of the Probate Code that will benefit guardians, wards, their spouses and heirs. PURPOSE S.B. 997 removes the requirement for the provision of social security numbers in certain proceedings, clarifies the authority of guardians to conduct certain transactions, clarifies who may apply for the creation of a guardian trust, and restores the procedure for designation of a guardian to that which was in effect prior to 1995. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1 amends Section 609(c) by making nonsubstantive changes to conform this section with renumbering changes to the Family Code. SECTION 2 amends Section 633(d), Texas Probate Code, to add persons designated to be guardians of the proposed ward to the class of persons entitled to receive the notice of filing of a guardianship action. Subsec. (f) is amended to make nonsubstantive changes to conform to the amended Subsec. (d). SECTION 3 adds new Subsec. (e) to Section 671, Probate Code, to authorize the court to request an applicant or court-appointed fiduciary to produce information identifying an applicant, guardian or ward. It also requires the court to maintain the information required and prohibits the information from being filed with the clerk. SECTION 4 amends Section 677A(a), Texas Probate Code, to restore the procedure for the written declaration for the designation of a guardian for a minor to those provisions which were in effect before inadvertent changes were made during the 74th Legislature. SECTION 5 amends Section 682, Texas Probate Code, by deleting Subsection (3) and renumbering subsections (4)-(17). Subsection (3) required that the social security number of the proposed guardian and ward be included in all applications for the appointment of a guardian. SECTION 6 amends Section 774(a), Probate Code, to authorize the guardian to take certain action in the "best interest of the estate," instead of in the "interest of the estate." New Subdivision (6) authorizes the guardian to abandon worthless or burdensome property. SECTION 7 adds new Section 776A to Part 4F, Chapter XIII, Texas Probate Code, as follows: Sec. 776A. SUMS ALLOWABLE FOR EDUCATION AND MAINTENANCE OF WARD. Subsec. (a) allows courts to authorize expenditures from a ward's estate for the education and support of the ward's spouse and/or dependents. Subsec. (b) sets forth considerations (factors) for the expenditure of funds on behalf of the ward's spouse and/or dependent from the corpus of the estate. Subsec. (c) requires notice of such proposed expenditures to all interested parties. SECTION 8 amends Section 783(a), Probate Code, to require representatives of the estate to send notice to the comptroller if the ward, rather than decedent, remitted or should have remitted taxes administered by the comptroller. SECTION 9 amends Section 865, Probate Code, by amending Subsection (a) and adding Subsection (e), to provide that on application of the guardian of the estate or any interested party and after the posting of notice, rather than notice to all interested persons and to other persons as directed by the court, the court is authorized to take certain actions. Authorizes the court to authorize guardians to make gifts of the ward's property to or for the benefit of the ward's spouse, descendant, or other person related to the ward by blood or marriage, rather than the ward's heirs at law, or a devisee under the ward's last validly executed will, trust, or other beneficial instrument if the instrument exists. Requires a person who makes an application to the court to mail notice of the application to certain persons. Makes a conforming change. SECTION 10 authorizes a court to modify a guardianship in effect on September 1, 1997, to conform to this Act. SECTION 11. Application of act. SECTION 12. Effective date. SECTION 13. Emergency clause.