1-1 By: Thompson (Senate Sponsor - Harris) H.B. No. 1126
1-2 (In the Senate - Received from the House April 21, 1997;
1-3 April 22, 1997, read first time and referred to Committee on
1-4 Jurisprudence; May 6, 1997, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; May 6, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the sale or distribution of the property of minors and
1-9 certain wards.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 887(a) and (e), Texas Probate Code, are
1-12 amended to read as follows:
1-13 (a) When a resident person who is a minor or other
1-14 incapacitated person, or the former ward of a guardianship
1-15 terminated under Subpart C, Part 4, of this code, who are referred
1-16 to in this section as "creditor," are without a legal guardian of
1-17 the person's estate, and the person is entitled to money in an
1-18 amount that is $50,000 [$25,000] or less, the right to which is
1-19 liquidated and is uncontested in any pending lawsuit, the debtor
1-20 may pay the money to the county clerk of the county in which the
1-21 creditor resides to the account of the creditor, giving the
1-22 creditor's name, the creditor's social security identification
1-23 number, the nature of the creditor's disability, and, if the
1-24 creditor is a minor, the minor's age, and the creditor's
1-25 post-office address. The receipt for the money signed by the clerk
1-26 is binding on the creditor as of the date of receipt and to the
1-27 extent of the payment. The clerk, by letter mailed to the address
1-28 given by the debtor, shall apprise the creditor of the fact that
1-29 the deposit was made. On receipt of the payment by the clerk, the
1-30 clerk shall call the receipt of the payment to the court's
1-31 attention and shall invest the money as authorized under this
1-32 chapter pursuant to court order in the name and for the account of
1-33 the minor or other person entitled to the money. Any increase,
1-34 dividend, or income from an investment made under this section
1-35 shall be credited to the account of the minor or other person
1-36 entitled to the investment. Any money that is deposited under the
1-37 terms of this section that has not been paid out shall be subject
1-38 to the provisions of this chapter not later than October 1, 1993.
1-39 (e) When a nonresident minor, a nonresident person who is
1-40 adjudged by a court of competent jurisdiction to be incapacitated,
1-41 or the former ward of a guardianship terminated under Subpart C,
1-42 Part 4, of this code who has no legal guardian qualified in this
1-43 state is entitled to money in an amount that is not more than
1-44 $50,000 [$25,000] owing as a result of transactions within this
1-45 state, the right to which is liquidated and is uncontested in any
1-46 pending lawsuit in this state, the debtor in this state may pay the
1-47 money to the guardian of the creditor who is duly qualified in the
1-48 domiciliary jurisdiction or to the county clerk of any county in
1-49 this state in which real property owned by the nonresident person
1-50 is located. If the person is not known to own any real property in
1-51 any county in this state the debtor has the right to pay the money
1-52 to the county clerk of the county of this state in which the debtor
1-53 resides. In either case, the debtor's payment to the clerk is for
1-54 the use and benefit and for the account of the nonresident
1-55 creditor. The receipt for the payment signed by the clerk that
1-56 recites the name of the creditor and the post office address of the
1-57 creditor, if known, is binding on the creditor as of the date and
1-58 to the extent of the payment. The clerk shall handle the money
1-59 paid to the clerk by the debtor in the same manner as provided for
1-60 cases of payments to the accounts of residents of this state under
1-61 Subsections (a)-(d) of this section. All applicable provisions of
1-62 Subsections (a)-(d) of this section apply to the handling and
1-63 disposition of money or any increase, dividend, or income paid to
1-64 the clerk for the use, benefit, and account of the nonresident
2-1 creditor.
2-2 SECTION 2. Section 889(a), Texas Probate Code, is amended to
2-3 read as follows:
2-4 (a) When the net value of the minor's interest in real or
2-5 personal property in an estate does not exceed $50,000 [$25,000], a
2-6 natural or adoptive parent, or the managing conservator, of a minor
2-7 who is not a ward may apply to the court for an order to sell the
2-8 real or personal property of a minor in an estate without being
2-9 appointed guardian. A minor may not disaffirm a sale of property
2-10 pursuant to a court order under this section.
2-11 SECTION 3. The heading of Subpart F, Part 5, Chapter XIII,
2-12 Texas Probate Code, is amended to read as follows:
2-13 SUBPART F. SALE OF PROPERTY OF MINORS AND
2-14 CERTAIN WARDS [MINOR]
2-15 SECTION 4. Subpart F, Part 5, Chapter XIII, Texas Probate
2-16 Code, is amended by adding Section 890 to read as follows:
2-17 Sec. 890. SALE OF PROPERTY OF WARD WITHOUT GUARDIANSHIP OF
2-18 THE ESTATE. (a) This section applies only to a ward who has a
2-19 guardian of the person but does not have a guardian of the estate.
2-20 (b) When a ward has an interest in real or personal property
2-21 in an estate and the net value of the interest does not exceed
2-22 $50,000, the guardian may apply under oath to the court for an
2-23 order to sell the ward's interest in the property without being
2-24 appointed guardian of the estate. A ward may not disaffirm a sale
2-25 of property pursuant to a court order under this section.
2-26 (c) Venue for an application under this section is the same
2-27 as venue for an application for the appointment of a guardian for
2-28 the ward. The application must contain the same information
2-29 required by Section 889(b) of this code.
2-30 (d) On receipt of the application, the court shall set the
2-31 application for hearing at a date not earlier than five days from
2-32 the date of the filing of the application. If the court considers
2-33 it necessary, the court may cause citation to be issued.
2-34 (e) The procedures and evidentiary requirements for a
2-35 hearing of an application filed under this section are the same as
2-36 the procedures and evidentiary requirements for a hearing of an
2-37 application filed under Section 889 of this code.
2-38 (f) When the court enters the order of sale, the purchaser
2-39 of the property shall pay the proceeds of the sale belonging to the
2-40 ward into the court registry.
2-41 (g) Nothing in this section prevents the proceeds deposited
2-42 in the court registry from being withdrawn as prescribed by Section
2-43 887 of this code.
2-44 SECTION 5. This Act takes effect September 1, 1997.
2-45 SECTION 6. The importance of this legislation and the
2-46 crowded condition of the calendars in both houses create an
2-47 emergency and an imperative public necessity that the
2-48 constitutional rule requiring bills to be read on three several
2-49 days in each house be suspended, and this rule is hereby suspended.
2-50 * * * * *