SRC-JBJ S.B. 1640 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1640
By: Bernsen
Jurisprudence
5/18/2001
Enrolled


DIGEST AND PURPOSE 

Under Texas law, an individual is not allowed to establish a beneficiary to
a mutual fund account so that it will transfer to this beneficiary upon the
mutual fund holder's death.  S.B. 1640 amends the Texas Probate Code by
adding mutual funds to the list of accounts with financial institutions
that may be transferred to a designated beneficiary upon an account
holder's death. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 450(a), Texas Probate Code, to add mutual fund
accounts to the list of contracts, gifts, conveyances, and trusts deemed to
be nontestamentary, and to provide that this code does not invalidate the
instrument or any of certain provisions. 

SECTION 2.  Provides that the changes in law made by this Act to Section
450(a), Texas Probate Code, applies to a provision for the payment or
transfer of a person's interest in a mutual fund account on the person's
death, regardless of when the provision was executed or the account was
established. 

SECTION 3.  Effective date: upon passage or September 1, 2001.