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


Senate Research Center   S.B. 1640
77R2720 KLA-DBy: Bernsen
Jurisprudence
4/4/2001
As Filed


DIGEST AND PURPOSE 

Under current 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.  As proposed, 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.