HBA-JLV C.S.H.B. 898 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 898
By: Thompson
Judicial Affairs
3/23/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law provides that in order for a guardian to sell property on
behalf of a ward, the guardian must apply to the court for the authority to
sell the property.  Also, the court may only close and settle a
guardianship if the cash assets are $25,000 or less, and any debts may only
be received or paid if the amount of a debtor's or creditor's interest does
not exceed $50,000.  These limitations on guardianship prove to be
burdensome to the guardian, as well as the ward.  The law governing
guardianship procedure in Texas involves multiple steps, and therefore,
some also consider the process expensive.  In 1993, the legislature
expedited the procedure for wards with a relatively small interest.  An
increase in the maximum value of the ward's interest to $100,000 and the
ability of a court to terminate a guardianship of an estate for up to
$100,000 may allow the expedited process to be used more frequently.
C.S.H.B. 898 relates to the administration of certain property of
incapacitated persons, wards, and former wards. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 898 amends the Texas Probate Code to increase from $50,000 to
$100,000 the  maximum value of real or personal property that a natural or
adoptive parent or the managing conservator is authorized to sell on behalf
of the minor. The bill increases, from $25,000 to $100,000, the maximum
amount of cash or cash equivalent remaining in the estate of a minor in
order to terminate the guardianship of the estate. The bill increases, from
$50,000 to $100,000, the maximum amount of money a creditor without a
guardianship is entitled to receive.  The bill also increases, from $50,000
to $100,000, the maximum amount of money a nonresident minor, a nonresident
person who is incapacitated, or a former ward of a terminated guardianship
owing as a result of transactions within this state is  entitled to
receive.  The bill increases from $50,000 to $100,000 the maximum value of
a ward's net interest that a guardian is authorized to sell without being
appointed guardian of the estate. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 898 modifies the original bill by making changes to reflect the
increase of the maximum amount of: 

_cash or cash equivalent remaining in the estate of a minor in order to
terminate the guardianship of the estate; 

_money a creditor without a guardianship is entitled to receive; and 
 
_money a nonresident minor, a nonresident person who is incapacitated, or a
former ward of a terminated guardianship is entitled to receive. 

C.S.H.B. 898 also increases the and the maximum value of a ward's net
interest a guardian is authorized to sell without being appointed guardian
of the estate.