By Thompson H.B. No. 1126
75R5106 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sale or distribution of the property of minors and
1-3 certain wards.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 887(a) and (e), Texas Probate Code, are
1-6 amended to read as follows:
1-7 (a) When a resident person who is a minor or other
1-8 incapacitated person, or the former ward of a guardianship
1-9 terminated under Subpart C, Part 4, of this code, who are referred
1-10 to in this section as "creditor," are without a legal guardian of
1-11 the person's estate, and the person is entitled to money in an
1-12 amount that is $50,000 [$25,000] or less, the right to which is
1-13 liquidated and is uncontested in any pending lawsuit, the debtor
1-14 may pay the money to the county clerk of the county in which the
1-15 creditor resides to the account of the creditor, giving the
1-16 creditor's name, the creditor's social security identification
1-17 number, the nature of the creditor's disability, and, if the
1-18 creditor is a minor, the minor's age, and the creditor's
1-19 post-office address. The receipt for the money signed by the clerk
1-20 is binding on the creditor as of the date of receipt and to the
1-21 extent of the payment. The clerk, by letter mailed to the address
1-22 given by the debtor, shall apprise the creditor of the fact that
1-23 the deposit was made. On receipt of the payment by the clerk, the
1-24 clerk shall call the receipt of the payment to the court's
2-1 attention and shall invest the money as authorized under this
2-2 chapter pursuant to court order in the name and for the account of
2-3 the minor or other person entitled to the money. Any increase,
2-4 dividend, or income from an investment made under this section
2-5 shall be credited to the account of the minor or other person
2-6 entitled to the investment. Any money that is deposited under the
2-7 terms of this section that has not been paid out shall be subject
2-8 to the provisions of this chapter not later than October 1, 1993.
2-9 (e) When a nonresident minor, a nonresident person who is
2-10 adjudged by a court of competent jurisdiction to be incapacitated,
2-11 or the former ward of a guardianship terminated under Subpart C,
2-12 Part 4, of this code who has no legal guardian qualified in this
2-13 state is entitled to money in an amount that is not more than
2-14 $50,000 [$25,000] owing as a result of transactions within this
2-15 state, the right to which is liquidated and is uncontested in any
2-16 pending lawsuit in this state, the debtor in this state may pay the
2-17 money to the guardian of the creditor who is duly qualified in the
2-18 domiciliary jurisdiction or to the county clerk of any county in
2-19 this state in which real property owned by the nonresident person
2-20 is located. If the person is not known to own any real property in
2-21 any county in this state the debtor has the right to pay the money
2-22 to the county clerk of the county of this state in which the debtor
2-23 resides. In either case, the debtor's payment to the clerk is for
2-24 the use and benefit and for the account of the nonresident
2-25 creditor. The receipt for the payment signed by the clerk that
2-26 recites the name of the creditor and the post office address of the
2-27 creditor, if known, is binding on the creditor as of the date and
3-1 to the extent of the payment. The clerk shall handle the money
3-2 paid to the clerk by the debtor in the same manner as provided for
3-3 cases of payments to the accounts of residents of this state under
3-4 Subsections (a)-(d) of this section. All applicable provisions of
3-5 Subsections (a)-(d) of this section apply to the handling and
3-6 disposition of money or any increase, dividend, or income paid to
3-7 the clerk for the use, benefit, and account of the nonresident
3-8 creditor.
3-9 SECTION 2. Section 889(a), Texas Probate Code, is amended to
3-10 read as follows:
3-11 (a) When the value of the minor's interest in real or
3-12 personal property in an estate does not exceed $50,000 [$25,000], a
3-13 natural or adoptive parent, or the managing conservator, of a minor
3-14 who is not a ward may apply to the court for an order to sell the
3-15 real or personal property of a minor in an estate without being
3-16 appointed guardian. A minor may not disaffirm a sale of property
3-17 pursuant to a court order under this section.
3-18 SECTION 3. The heading of Subpart F, Part 5, Chapter XIII,
3-19 Texas Probate Code, is amended to read as follows:
3-20 SUBPART F. SALE OF PROPERTY OF MINORS AND
3-21 CERTAIN WARDS [MINOR]
3-22 SECTION 4. Subpart F, Part 5, Chapter XIII, Texas Probate
3-23 Code, is amended by adding Section 890 to read as follows:
3-24 Sec. 890. SALE OF PROPERTY OF WARD WITHOUT GUARDIANSHIP OF
3-25 THE ESTATE. (a) This section applies only to a ward who has a
3-26 guardian of the person but does not have a guardian of the estate.
3-27 (b) When a ward has an interest in real or personal property
4-1 in an estate that does not exceed $50,000, the guardian may apply
4-2 under oath to the court for an order to sell the ward's interest in
4-3 the property without being appointed guardian of the estate. A
4-4 ward may not disaffirm a sale of property pursuant to a court order
4-5 under this section.
4-6 (c) Venue for an application under this section is the same
4-7 as venue for an application for the appointment of a guardian for
4-8 the ward. The application must contain the same information
4-9 required by Section 889(b) of this code.
4-10 (d) On receipt of the application, the court shall set the
4-11 application for hearing at a date not earlier than five days from
4-12 the date of the filing of the application. If the court considers
4-13 it necessary, the court may cause citation to be issued.
4-14 (e) The procedures and evidentiary requirements for a
4-15 hearing of an application filed under this section are the same as
4-16 the procedures and evidentiary requirements for a hearing of an
4-17 application filed under Section 889 of this code.
4-18 (f) When the court enters the order of sale, the purchaser
4-19 of the property shall pay the proceeds of the sale belonging to the
4-20 ward into the court registry.
4-21 (g) Nothing in this section prevents the proceeds deposited
4-22 in the court registry from being withdrawn as prescribed by Section
4-23 887 of this code.
4-24 SECTION 5. This Act takes effect September 1, 1997.
4-25 SECTION 6. The importance of this legislation and the
4-26 crowded condition of the calendars in both houses create an
4-27 emergency and an imperative public necessity that the
5-1 constitutional rule requiring bills to be read on three several
5-2 days in each house be suspended, and this rule is hereby suspended.
5-3 COMMITTEE AMENDMENT NO. 1
5-4 Amend House Bill No. 1126 as follows:
5-5 On page 3, line 11 between the word "the" and the word
5-6 "value", insert the word "net".
5-7 On page 4, line 1 delete the word "that" and substitute in
5-8 lieu thereof the following: and the net value of the interest.
5-9 Hartnett
5-10 COMMITTEE AMENDMENT NO. 2
5-11 Amend H.B. No. 1126 as follows:
5-12 (1) On page 3, line 9, strike "Section 889(a), Texas Probate
5-13 Code, is" and substitute "Sections 889(a) and (b), Texas Probate
5-14 Code, are".
5-15 (2) On page 3, between lines 17 and 18, insert the
5-16 following:
5-17 (b) The parent shall apply to the court under oath for the
5-18 sale of the property. Venue for the application under this section
5-19 is the same as venue for an application for the appointment of a
5-20 guardian for a minor. The application must contain:
5-21 (1) a legal description of the real property and a
5-22 description that identifies the personal property;
5-23 (2) the name and social security number, if any, of
5-24 the minor and the minor's interest in the property;
5-25 (3) the name of the purchaser;
5-26 (4) a statement that the sale of the minor's interest
5-27 in the property is for cash; and (5) a
6-1 statement that all funds received by the parent shall be used for
6-2 the use and benefit of the minor.
6-3 75R5834 BEM-D Hartnett