1-1 By: Thompson (Senate Sponsor - Brown) H.B. No. 898
1-2 (In the Senate - Received from the House April 9, 2001;
1-3 April 9, 2001, read first time and referred to Committee on
1-4 Jurisprudence; April 24, 2001, reported favorably by the following
1-5 vote: Yeas 7, Nays 0; April 24, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the administration of certain property of incapacitated
1-9 persons, wards, and former wards.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 745(c), Texas Probate Code, is amended to
1-12 read as follows:
1-13 (c) When the estate of a minor ward consists only of cash or
1-14 cash equivalents in an amount of $100,000 [$25,000] or less, the
1-15 guardianship of the estate may be terminated and the assets paid to
1-16 the county clerk of the county in which the guardianship proceeding
1-17 is pending, and the clerk shall manage the funds as provided by
1-18 Section 887 of this code.
1-19 SECTION 2. Sections 887(a) and (e), Texas Probate Code, are
1-20 amended to read as follows:
1-21 (a) When a resident person who is a minor or other
1-22 incapacitated person, or the former ward of a guardianship
1-23 terminated under Subpart C, Part 4, of this code, who are referred
1-24 to in this section as "creditor," are without a legal guardian of
1-25 the person's estate, and the person is entitled to money in an
1-26 amount that is $100,000 [$50,000] or less, the right to which is
1-27 liquidated and is uncontested in any pending lawsuit, the debtor
1-28 may pay the money to the county clerk of the county in which the
1-29 creditor resides to the account of the creditor, giving the
1-30 creditor's name, the creditor's social security identification
1-31 number, the nature of the creditor's disability, and, if the
1-32 creditor is a minor, the minor's age, and the creditor's
1-33 post-office address. The receipt for the money signed by the clerk
1-34 is binding on the creditor as of the date of receipt and to the
1-35 extent of the payment. The clerk, by letter mailed to the address
1-36 given by the debtor, shall apprise the creditor of the fact that
1-37 the deposit was made. On receipt of the payment by the clerk, the
1-38 clerk shall call the receipt of the payment to the court's
1-39 attention and shall invest the money as authorized under this
1-40 chapter pursuant to court order in the name and for the account of
1-41 the minor or other person entitled to the money. Any increase,
1-42 dividend, or income from an investment made under this section
1-43 shall be credited to the account of the minor or other person
1-44 entitled to the investment. Any money that is deposited under the
1-45 terms of this section that has not been paid out shall be subject
1-46 to the provisions of this chapter not later than October 1, 1993.
1-47 (e) When a nonresident minor, a nonresident person who is
1-48 adjudged by a court of competent jurisdiction to be incapacitated,
1-49 or the former ward of a guardianship terminated under Subpart C,
1-50 Part 4, of this code who has no legal guardian qualified in this
1-51 state is entitled to money in an amount that is not more than
1-52 $100,000 [$50,000] owing as a result of transactions within this
1-53 state, the right to which is liquidated and is uncontested in any
1-54 pending lawsuit in this state, the debtor in this state may pay the
1-55 money to the guardian of the creditor who is duly qualified in the
1-56 domiciliary jurisdiction or to the county clerk of any county in
1-57 this state in which real property owned by the nonresident person
1-58 is located. If the person is not known to own any real property in
1-59 any county in this state the debtor has the right to pay the money
1-60 to the county clerk of the county of this state in which the debtor
1-61 resides. In either case, the debtor's payment to the clerk is for
1-62 the use and benefit and for the account of the nonresident
1-63 creditor. The receipt for the payment signed by the clerk that
1-64 recites the name of the creditor and the post office address of the
2-1 creditor, if known, is binding on the creditor as of the date and
2-2 to the extent of the payment. The clerk shall handle the money
2-3 paid to the clerk by the debtor in the same manner as provided for
2-4 cases of payments to the accounts of residents of this state under
2-5 Subsections (a)-(d) of this section. All applicable provisions of
2-6 Subsections (a)-(d) of this section apply to the handling and
2-7 disposition of money or any increase, dividend, or income paid to
2-8 the clerk for the use, benefit, and account of the nonresident
2-9 creditor.
2-10 SECTION 3. Section 889(a), Texas Probate Code, is amended to
2-11 read as follows:
2-12 (a) When a minor has an interest in real or personal
2-13 property and the net value of the [minor's] interest [in real or
2-14 personal property in an estate] does not exceed $100,000 [$50,000],
2-15 a natural or adoptive parent, or the managing conservator, of a
2-16 minor who is not a ward may apply to the court for an order to sell
2-17 the minor's interest in the [real or personal] property [of a minor
2-18 in an estate] without being appointed guardian. A minor may not
2-19 disaffirm a sale of property pursuant to a court order under this
2-20 section.
2-21 SECTION 4. Section 890(b), Texas Probate Code, is amended to
2-22 read as follows:
2-23 (b) When a ward has an interest in real or personal property
2-24 in an estate and the net value of the interest does not exceed
2-25 $100,000 [$50,000], the guardian may apply under oath to the court
2-26 for an order to sell the ward's interest in the property without
2-27 being appointed guardian of the estate. A ward may not disaffirm a
2-28 sale of property pursuant to a court order under this section.
2-29 SECTION 5. The changes in law made by Sections 1 and 4 of
2-30 this Act apply only to an application for the appointment of a
2-31 guardian that is filed on or after the effective date of this Act.
2-32 An application for the appointment of a guardian that is filed
2-33 before the effective date of this Act is governed by the law in
2-34 effect on the date the application was filed, and the former law is
2-35 continued in effect for that purpose.
2-36 SECTION 6. The changes in law made by Section 3 of this Act
2-37 apply only to an application for the sale of an interest in
2-38 property of a minor filed on or after the effective date of this
2-39 Act. An application for the sale of an interest in property of a
2-40 minor that is filed before the effective date of this Act is
2-41 governed by the law in effect on the date the application was
2-42 filed, and the former law is continued in effect for that purpose.
2-43 SECTION 7. This Act takes effect September 1, 2001.
2-44 * * * * *