By Naishtat H.B. No. 2189
75R1468 BEM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain reports and accounts submitted by guardians or
1-3 personal representatives of estates.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 399(a) and (c), Texas Probate Code, are
1-6 amended to read as follows:
1-7 (a) Estates of Decedents Being Administered Under Order of
1-8 Court. The personal representative of the estate of a decedent
1-9 being administered under order of court shall, upon the expiration
1-10 of twelve (12) months from the date of qualification and receipt of
1-11 letters, return to the court an exhibit in writing under oath
1-12 setting forth a list of all claims against the estate that were
1-13 presented to him within the period covered by the account,
1-14 specifying which have been allowed by him, which have been paid,
1-15 which have been rejected and the date when rejected, which have
1-16 been sued upon, and the condition of the suit, and show:
1-17 (1) All property that has come to his knowledge or
1-18 into his possession not previously listed or inventoried as
1-19 property of the estate.
1-20 (2) Any changes in the property of the estate which
1-21 have not been previously reported.
1-22 (3) A complete account of receipts and disbursements
1-23 for the period covered by the account, and the source and nature
1-24 thereof, with receipts of principal and income to be shown
2-1 separately.
2-2 (4) A complete, accurate and detailed description of
2-3 the property being administered, the condition of the property and
2-4 the use being made thereof, and, if rented, the terms upon and the
2-5 price for which rented.
2-6 (5) The cash balance on hand and the name and location
2-7 of the depository wherein such balance is kept; also, any other
2-8 sums of cash in savings accounts or other form, deposited subject
2-9 to court order, and the name and location of the depository
2-10 thereof.
2-11 (6) A detailed description of personal property of the
2-12 estate, which shall, with respect to bonds, notes, and other
2-13 securities, include the names of obligor and obligee, or if payable
2-14 to bearer, so state; the date of issue and maturity; the rate of
2-15 interest; serial or other identifying numbers; in what manner the
2-16 property is secured; and other data necessary to identify the same
2-17 fully, and how and where held for safekeeping.
2-18 (7) A statement that, during the period covered by the
2-19 account, all tax returns due have been filed and that all taxes due
2-20 and owing have been paid and a complete account of the amount of
2-21 the taxes, the date the taxes were paid, and the governmental
2-22 entity to which the taxes were paid.
2-23 (8) If any tax return due to be filed or any taxes due
2-24 to be paid are delinquent on the filing of the account, a
2-25 description of the delinquency and the reasons for the delinquency.
2-26 (9) A statement that the personal representative has
2-27 paid all the required bond premiums for the accounting period.
3-1 (c) Supporting Vouchers, etc., Attached to Accounts.
3-2 Annexed to all annual accounts of representatives of estates shall
3-3 be:
3-4 (1) Proper vouchers for each item of credit claimed in
3-5 the account, or, in the absence of such voucher, the item must be
3-6 supported by evidence satisfactory to the court. Original vouchers
3-7 may, upon application, be returned to the representative after
3-8 approval of his account.
3-9 (2) An official letter from the bank or other
3-10 depository in which the money on hand of the estate is deposited,
3-11 showing the amounts in general or special deposits.
3-12 (3) Proof of the existence and possession of
3-13 securities owned by the estate, or shown by the accounting, as well
3-14 as other assets held by a depository subject to orders of the court
3-15 and proof that all required bond premiums have been paid, the proof
3-16 to be by one of the following means:
3-17 a. By an official letter from the bank or other
3-18 depository wherein said securities or other assets are held for
3-19 safekeeping; provided, that if such depository is the
3-20 representative, the official letter shall be signed by a
3-21 representative of such depository other than the one verifying the
3-22 account; or
3-23 b. By a certificate of an authorized
3-24 representative of the corporation which is surety on the
3-25 representative's bonds; or
3-26 c. By a certificate of the clerk or a deputy
3-27 clerk of a court of record in this State; or
4-1 d. By an affidavit of any other reputable person
4-2 designated by the court upon request of the representative or other
4-3 interested party.
4-4 Such certificate or affidavit shall be to the effect that the
4-5 affiant has examined the assets exhibited to him by the
4-6 representative as assets of the estate in which the accounting is
4-7 made, and shall describe the assets by reference to the account or
4-8 otherwise sufficiently to identify those so exhibited, and shall
4-9 state the time when and the place where exhibited. In lieu of
4-10 using a certificate or an affidavit, the representative may exhibit
4-11 the securities to the judge of the court who shall endorse on the
4-12 account, or include in his order with respect thereto, a statement
4-13 that the securities shown therein as on hand were in fact exhibited
4-14 to him, and that those so exhibited were the same as those shown in
4-15 the account, or note any variance. If the securities are exhibited
4-16 at any place other than where deposited for safekeeping, it shall
4-17 be at the expense and risk of the representative. The court may
4-18 require additional evidence as to the existence and custody of such
4-19 securities and other personal property as in his discretion he
4-20 shall deem proper; and may require the representative to exhibit
4-21 them to the court, or any person designated by him, at any time at
4-22 the place where held for safekeeping.
4-23 SECTION 2. Section 405, Texas Probate Code, as amended by
4-24 Chapters 712 and 957, Acts of the 73rd Legislature, Regular
4-25 Session, 1993, is amended to read as follows:
4-26 Sec. 405. ACCOUNT FOR FINAL SETTLEMENT OF ESTATES OF
4-27 DECEDENTS [AND PERSONS AND ESTATES OF WARDS]. When administration
5-1 of the estate of a decedent[, or guardianship of person or estate,
5-2 or of the person and estate of a ward,] is to be settled and
5-3 closed, the personal representative of such estate [or of such
5-4 ward] shall present to the court his verified account for final
5-5 settlement. In such account it shall be sufficient to refer to the
5-6 inventory without describing each item of property in detail, and
5-7 to refer to and adopt any and all proceedings had in the
5-8 administration [or guardianship, as the case may be,] concerning
5-9 sales, renting or hiring, leasing for mineral development, or any
5-10 other transactions on behalf of the estate [or of the ward, as the
5-11 case may be,] including exhibits, accounts, and vouchers previously
5-12 filed and approved, without restating the particular items thereof.
5-13 Each final account, however, shall be accompanied by proper
5-14 vouchers in support of each item thereof not already accounted for
5-15 and shall show, either by reference to any proceedings authorized
5-16 above or by statement of the facts:
5-17 [(a) As to Estates of Decedents.]
5-18 1. The property belonging to the estate which has come
5-19 into the hands of the executor or administrator.
5-20 2. The disposition that has been made of such
5-21 property.
5-22 3. The debts that have been paid.
5-23 4. The debts and expenses, if any, still owing by the
5-24 estate.
5-25 5. The property of the estate, if any, still remaining
5-26 on hand.
5-27 6. The persons entitled to receive such estate, their
6-1 relationship to the decedent, and their residence, if known, and
6-2 whether adults or minors, and, if minors, the names of their
6-3 guardians, if any.
6-4 7. All advancements or payments that have been made,
6-5 if any, by the executor or administrator from such estate to any
6-6 such person.
6-7 8. The tax returns due that have been filed and the
6-8 taxes due and owing that have been paid and a complete account of
6-9 the amount of taxes, the date the taxes were paid, and the
6-10 governmental entity to which the taxes were paid.
6-11 9. If any tax return due to be filed or any taxes due
6-12 to be paid are delinquent on the filing of the account, a
6-13 description of the delinquency and the reasons for the delinquency.
6-14 10. The personal representative has paid all required
6-15 bond premiums.
6-16 [(b) As to Estates of Wards.]
6-17 [1. The property, rents, revenues, and profits
6-18 received by the guardian, and belonging to his ward, during his
6-19 guardianship.]
6-20 [2. The disposition made of such property, rents,
6-21 revenues, and profits.]
6-22 [3. The expenses and debts, if any, against the estate
6-23 remaining unpaid.]
6-24 [4. The tax returns due that have been filed and the
6-25 taxes due and owing that have been paid and a complete account of
6-26 the amount of taxes, the date the taxes were paid, and the
6-27 governmental entity to which the taxes were paid.]
7-1 [5. If any tax return due to be filed or any taxes due
7-2 to be paid are delinquent on the filing of the account of taxes
7-3 paid, a description of the delinquency and the reasons for the
7-4 delinquency.]
7-5 [6. The property of the estate remaining in the hands
7-6 of such guardian, if any.]
7-7 [7. Such other facts as appear necessary to a full and
7-8 definite understanding of the exact condition of the guardianship.]
7-9 SECTION 3. Section 743(b), Texas Probate Code, is amended to
7-10 read as follows:
7-11 (b) The guardian of the person, whether or not there is a
7-12 separate guardian of the estate, shall submit to the court an
7-13 annual report by sworn affidavit that contains the following
7-14 information:
7-15 (1) the guardian's current name, address, and phone
7-16 number;
7-17 (2) the ward's current:
7-18 (A) name, address, and phone number; and
7-19 (B) age and date of birth;
7-20 (3) the type of home in which the ward resides,
7-21 described as the ward's own; a nursing, guardian's, foster, or
7-22 boarding home; a relative's home, and the ward's relationship to
7-23 the relative; a hospital or medical facility; or other type of
7-24 residence;
7-25 (4) the length of time the ward has resided in the
7-26 present home and, if there has been a change in the ward's
7-27 residence in the past year, the reason for the change;
8-1 (5) the date the guardian most recently saw the ward,
8-2 and how frequently the guardian has seen the ward in the past year;
8-3 (6) a statement indicating whether or not the guardian
8-4 has possession or control of the ward's estate;
8-5 (7) the following statements concerning the ward's
8-6 health during the past year:
8-7 (A) whether the ward's mental health has
8-8 improved, deteriorated, or remained unchanged, and a description if
8-9 there has been a change; and
8-10 (B) whether the ward's physical health has
8-11 improved, deteriorated, or remained unchanged, and a description if
8-12 there has been a change;
8-13 (8) a statement concerning whether or not the ward has
8-14 regular medical care, and the ward's treatment or evaluation by any
8-15 of the following persons during the last year, including the name
8-16 of that person, and the treatment involved:
8-17 (A) a physician;
8-18 (B) a psychiatrist, psychologist, or other
8-19 mental health care provider;
8-20 (C) a dentist;
8-21 (D) a social or other caseworker; or
8-22 (E) another individual who provided treatment;
8-23 (9) a description of the ward's activities during the
8-24 past year, including recreational, educational, social, and
8-25 occupational activities, or if no activities are available or if
8-26 the ward is unable or has refused to participate in them, a
8-27 statement to that effect;
9-1 (10) the guardian's evaluation of the ward's living
9-2 arrangements as excellent, average, or below average, including an
9-3 explanation if the conditions are below average;
9-4 (11) the guardian's evaluation of whether the ward is
9-5 content or unhappy with the ward's living arrangements;
9-6 (12) the guardian's evaluation of unmet needs of the
9-7 ward;
9-8 (13) a statement of whether or not the guardian's
9-9 power should be increased, decreased, or unaltered, including an
9-10 explanation if a change is recommended;
9-11 (14) a statement that the guardian has paid the bond
9-12 premium for the next reporting period; and
9-13 (15) [(14)] any additional information the guardian
9-14 desires to share with the court regarding the ward.
9-15 SECTION 4. Section 749, Texas Probate Code, is amended to
9-16 read as follows:
9-17 Sec. 749. ACCOUNT FOR FINAL SETTLEMENT OF ESTATES OF WARDS.
9-18 When a guardianship of the estate is settled and closed, the
9-19 guardian shall present to the court the guardian's verified account
9-20 for final settlement. In the account it shall be sufficient to
9-21 refer to the inventory without describing each item of property in
9-22 detail and to refer to and adopt any and all guardianship
9-23 proceedings that concern sales, renting or hiring, leasing for
9-24 mineral development, or any other transaction on behalf of the
9-25 guardianship estate, including an exhibit, account, or voucher
9-26 previously filed and approved, without restating the particular
9-27 items. Each final account shall be accompanied by proper vouchers
10-1 in support of each item not already accounted for and shall show,
10-2 either by reference to any proceedings authorized above or by
10-3 statement of the facts:
10-4 (1) the property, rents, revenues, and profits
10-5 received by the guardian, and belonging to the ward, during the
10-6 term of the guardianship;
10-7 (2) the disposition made of the property, rents,
10-8 revenues, and profits;
10-9 (3) the expenses and debts against the estate that
10-10 remain unpaid, if any;
10-11 (4) the property of the estate that remains in the
10-12 hands of the guardian, if any;
10-13 (5) that the guardian has paid all required bond
10-14 premiums;
10-15 (6) the tax returns the guardian has filed during the
10-16 guardianship;
10-17 (7) the amount of taxes the ward owed during the
10-18 guardianship that the guardian has paid;
10-19 (8) a complete account of the taxes the guardian has
10-20 paid during the guardianship, including the amount of the taxes,
10-21 the date the guardian paid the taxes, and the name of the
10-22 governmental entity to which the guardian paid the taxes;
10-23 (9) a description of all current delinquencies in the
10-24 filing of tax returns and the payment of taxes and a reason for
10-25 each delinquency; and
10-26 (10) [(5)] other facts as appear necessary to a full
10-27 and definite understanding of the exact condition of the
11-1 guardianship.
11-2 SECTION 5. This Act takes effect September 1, 1997, and
11-3 applies only to an account or report filed on or after that date.
11-4 An account or report filed before the effective date of this Act is
11-5 governed by the law applicable on the date the account or report
11-6 was filed, and that law is continued in effect for that purpose.
11-7 SECTION 6. The importance of this legislation and the
11-8 crowded condition of the calendars in both houses create an
11-9 emergency and an imperative public necessity that the
11-10 constitutional rule requiring bills to be read on three several
11-11 days in each house be suspended, and this rule is hereby suspended.
11-12 COMMITTEE AMENDMENT NO. 1
11-13 Amend H.B. 2189 as follows:
11-14 (1) On page 3, line 15 strike "and proof that all required
11-15 bond premiums have been paid".
11-16 Hartnett