77R9986 MTB-D
By Thompson H.B. No. 898
Substitute the following for H.B. No. 898:
By Hinojosa C.S.H.B. No. 898
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of certain property of incapacitated
1-3 persons, wards, and former wards.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 745(c), Texas Probate Code, is amended to
1-6 read as follows:
1-7 (c) When the estate of a minor ward consists only of cash or
1-8 cash equivalents in an amount of $100,000 [$25,000] or less, the
1-9 guardianship of the estate may be terminated and the assets paid to
1-10 the county clerk of the county in which the guardianship proceeding
1-11 is pending, and the clerk shall manage the funds as provided by
1-12 Section 887 of this code.
1-13 SECTION 2. Sections 887(a) and (e), Texas Probate Code, are
1-14 amended to read as follows:
1-15 (a) When a resident person who is a minor or other
1-16 incapacitated person, or the former ward of a guardianship
1-17 terminated under Subpart C, Part 4, of this code, who are referred
1-18 to in this section as "creditor," are without a legal guardian of
1-19 the person's estate, and the person is entitled to money in an
1-20 amount that is $100,000 [$50,000] or less, the right to which is
1-21 liquidated and is uncontested in any pending lawsuit, the debtor
1-22 may pay the money to the county clerk of the county in which the
1-23 creditor resides to the account of the creditor, giving the
1-24 creditor's name, the creditor's social security identification
2-1 number, the nature of the creditor's disability, and, if the
2-2 creditor is a minor, the minor's age, and the creditor's
2-3 post-office address. The receipt for the money signed by the clerk
2-4 is binding on the creditor as of the date of receipt and to the
2-5 extent of the payment. The clerk, by letter mailed to the address
2-6 given by the debtor, shall apprise the creditor of the fact that
2-7 the deposit was made. On receipt of the payment by the clerk, the
2-8 clerk shall call the receipt of the payment to the court's
2-9 attention and shall invest the money as authorized under this
2-10 chapter pursuant to court order in the name and for the account of
2-11 the minor or other person entitled to the money. Any increase,
2-12 dividend, or income from an investment made under this section
2-13 shall be credited to the account of the minor or other person
2-14 entitled to the investment. Any money that is deposited under the
2-15 terms of this section that has not been paid out shall be subject
2-16 to the provisions of this chapter not later than October 1, 1993.
2-17 (e) When a nonresident minor, a nonresident person who is
2-18 adjudged by a court of competent jurisdiction to be incapacitated,
2-19 or the former ward of a guardianship terminated under Subpart C,
2-20 Part 4, of this code who has no legal guardian qualified in this
2-21 state is entitled to money in an amount that is not more than
2-22 $100,000 [$50,000] owing as a result of transactions within this
2-23 state, the right to which is liquidated and is uncontested in any
2-24 pending lawsuit in this state, the debtor in this state may pay the
2-25 money to the guardian of the creditor who is duly qualified in the
2-26 domiciliary jurisdiction or to the county clerk of any county in
2-27 this state in which real property owned by the nonresident person
3-1 is located. If the person is not known to own any real property in
3-2 any county in this state the debtor has the right to pay the money
3-3 to the county clerk of the county of this state in which the debtor
3-4 resides. In either case, the debtor's payment to the clerk is for
3-5 the use and benefit and for the account of the nonresident
3-6 creditor. The receipt for the payment signed by the clerk that
3-7 recites the name of the creditor and the post office address of the
3-8 creditor, if known, is binding on the creditor as of the date and
3-9 to the extent of the payment. The clerk shall handle the money
3-10 paid to the clerk by the debtor in the same manner as provided for
3-11 cases of payments to the accounts of residents of this state under
3-12 Subsections (a)-(d) of this section. All applicable provisions of
3-13 Subsections (a)-(d) of this section apply to the handling and
3-14 disposition of money or any increase, dividend, or income paid to
3-15 the clerk for the use, benefit, and account of the nonresident
3-16 creditor.
3-17 SECTION 3. Section 889(a), Texas Probate Code, is amended to
3-18 read as follows:
3-19 (a) When a minor has an interest in real or personal
3-20 property and the net value of the [minor's] interest [in real or
3-21 personal property in an estate] does not exceed $100,000 [$50,000],
3-22 a natural or adoptive parent, or the managing conservator, of a
3-23 minor who is not a ward may apply to the court for an order to sell
3-24 the minor's interest in the [real or personal] property [of a minor
3-25 in an estate] without being appointed guardian. A minor may not
3-26 disaffirm a sale of property pursuant to a court order under this
3-27 section.
4-1 SECTION 4. Section 890(b), Texas Probate Code, is amended to
4-2 read as follows:
4-3 (b) When a ward has an interest in real or personal property
4-4 in an estate and the net value of the interest does not exceed
4-5 $100,000 [$50,000], the guardian may apply under oath to the court
4-6 for an order to sell the ward's interest in the property without
4-7 being appointed guardian of the estate. A ward may not disaffirm a
4-8 sale of property pursuant to a court order under this section.
4-9 SECTION 5. The changes in law made by Sections 1 and 4 of
4-10 this Act apply only to an application for the appointment of a
4-11 guardian that is filed on or after the effective date of this Act.
4-12 An application for the appointment of a guardian that is filed
4-13 before the effective date of this Act is governed by the law in
4-14 effect on the date the application was filed, and the former law is
4-15 continued in effect for that purpose.
4-16 SECTION 6. The changes in law made by Section 3 of this Act
4-17 apply only to an application for the sale of an interest in
4-18 property of a minor filed on or after the effective date of this
4-19 Act. An application for the sale of an interest in property of a
4-20 minor that is filed before the effective date of this Act is
4-21 governed by the law in effect on the date the application was
4-22 filed, and the former law is continued in effect for that purpose.
4-23 SECTION 7. This Act takes effect September 1, 2001.