77R7552 CLG-D
By Thompson H.B. No. 1037
Substitute the following for H.B. No. 1037:
By Hartnett C.S.H.B. No. 1037
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to jurisdiction of a court over certain matters related to
1-3 the ward's estate after a ward's guardianship is settled.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 606, Texas Probate Code, is amended by
1-6 amending Subsections (e) and (f) and adding Subsection (g) to read
1-7 as follows:
1-8 (e) A court that exercises original probate jurisdiction has
1-9 the power to hear all matters incident to an estate. After a
1-10 guardianship of the estate of a ward is required to be settled as
1-11 provided by Section 745 of this chapter, the court exercising
1-12 original probate jurisdiction over the settling of the former
1-13 ward's estate has the jurisdiction to hear:
1-14 (1) an action brought by or on behalf of the former
1-15 ward against a former guardian of the ward for alleged misconduct
1-16 arising from the performance of the person's duties as guardian;
1-17 (2) an action against a former guardian of the former
1-18 ward that is brought by a surety that is called on to perform in
1-19 place of the former guardian;
1-20 (3) a claim for the payment of compensation, expenses,
1-21 and court costs and any other matter authorized under Subpart H,
1-22 Part 2, of this chapter;
1-23 (4) a matter related to an authorization made or duty
1-24 performed by a guardian under Subpart C, Part 4, of this chapter;
2-1 and
2-2 (5) any other matter related or appertaining to a
2-3 guardianship estate that a court exercising original probate
2-4 jurisdiction is specifically authorized to hear under this chapter.
2-5 (f) When a surety is called on to perform in place of a
2-6 guardian or former guardian, a court exercising original probate
2-7 jurisdiction, including jurisdiction exercised under Subsection
2-8 (e)(2) of this section, may award judgment against the guardian or
2-9 former guardian in favor of the surety of the guardian or former
2-10 guardian in the same suit[, even if the ward has died, regained
2-11 capacity, or the ward's disabilities of minority have been
2-12 removed].
2-13 (g) [(f)] A final order of a court that exercises original
2-14 probate jurisdiction is appealable to a court of appeals.
2-15 SECTION 2. Section 694G, Texas Probate Code, is amended to
2-16 read as follows:
2-17 Sec. 694G. ORDER OF COMPLETE RESTORATION OF WARD'S CAPACITY.
2-18 If the court finds that a ward is no longer an incapacitated
2-19 person, the order completely restoring the ward's capacity must
2-20 contain findings of fact and specify:
2-21 (1) the information required by Section 694J of this
2-22 code;
2-23 (2) that the ward is no longer an incapacitated
2-24 person;
2-25 (3) that there is no further need for a guardianship
2-26 of the person or estate of the ward;
2-27 (4) that the guardian is required to:
3-1 (A) immediately settle [and close] the
3-2 guardianship in accordance with [Section 745 of] this chapter
3-3 [code]; and
3-4 (B) deliver all of the remaining guardianship
3-5 estate to the ward; and
3-6 (5) that the clerk shall revoke letters of
3-7 guardianship when the guardianship is finally settled and closed.
3-8 SECTION 3. The heading to Section 745, Texas Probate Code,
3-9 is amended to read as follows:
3-10 Sec. 745. SETTLING [CLOSING] GUARDIANSHIPS OF THE ESTATE.
3-11 SECTION 4. Sections 745(a) and (d), Texas Probate Code, are
3-12 amended to read as follows:
3-13 (a) A guardianship of the estate of a ward shall be [is]
3-14 settled [and closed] when:
3-15 (1) a minor ward dies or becomes an adult by becoming
3-16 18 years of age, or by removal of disabilities of minority
3-17 according to the law of this state, or by marriage;
3-18 (2) an incapacitated ward dies, or is decreed as
3-19 provided by law to have been restored to full legal capacity;
3-20 (3) the spouse of a married ward has qualified as
3-21 survivor in community and the ward owns no separate property;
3-22 (4) the estate of a ward becomes exhausted;
3-23 (5) the foreseeable income accruing to a ward or to
3-24 his estate is so negligible that maintaining the guardianship in
3-25 force would be burdensome;
3-26 (6) all of the assets of the estate have been placed
3-27 in a management trust under Subpart N, Part 4, of this code and the
4-1 court determines that a guardianship for the ward is no longer
4-2 necessary; or
4-3 (7) the court determines for any other reason that a
4-4 guardianship for the ward is no longer necessary.
4-5 (d) In the settlement [and closing] of a guardianship, the
4-6 court may appoint an attorney ad litem to represent the interests
4-7 of the ward, and may allow the attorney reasonable compensation for
4-8 services provided by the attorney out of the ward's estate.
4-9 SECTION 5. Section 746, Texas Probate Code, is amended to
4-10 read as follows:
4-11 Sec. 746. PAYMENT OF FUNERAL EXPENSES AND OTHER DEBTS ON
4-12 DEATH OF WARD. Before [Notwithstanding Section 745 of this code,
4-13 before] the guardianship of a person or estate of a ward is closed
4-14 on the death of a ward, the guardian, subject to the approval of
4-15 the court, may make all funeral arrangements, pay for the funeral
4-16 expenses out of the estate of the deceased ward, and pay all other
4-17 debts out of the estate. If a personal representative of the
4-18 estate of a deceased ward is appointed, the court shall on the
4-19 written complaint of the personal representative cause the guardian
4-20 to be cited to appear and present a final account as provided in
4-21 Section 749 of this code.
4-22 SECTION 6. Section 747(a), Texas Probate Code, is amended to
4-23 read as follows:
4-24 (a) When the guardianship of an incapacitated person is
4-25 required to be settled [and closed] as provided by Section 745 of
4-26 this code, the guardian of the person shall deliver all property of
4-27 the ward in the possession or control of the guardian to the
5-1 emancipated ward or other person entitled to the property. If the
5-2 ward is deceased, the guardian shall deliver the property to the
5-3 personal representative of the deceased ward's estate or other
5-4 person entitled to the property.
5-5 SECTION 7. Section 749, Texas Probate Code, is amended to
5-6 read as follows:
5-7 Sec. 749. ACCOUNT FOR FINAL SETTLEMENT OF ESTATES OF WARDS.
5-8 When a guardianship of the estate is required to be settled [and
5-9 closed], the guardian shall present to the court the guardian's
5-10 verified account for final settlement. In the account it shall be
5-11 sufficient to refer to the inventory without describing each item
5-12 of property in detail and to refer to and adopt any and all
5-13 guardianship proceedings that concern sales, renting or hiring,
5-14 leasing for mineral development, or any other transaction on behalf
5-15 of the guardianship estate, including an exhibit, account, or
5-16 voucher previously filed and approved, without restating the
5-17 particular items. Each final account shall be accompanied by
5-18 proper vouchers in support of each item not already accounted for
5-19 and shall show, either by reference to any proceedings authorized
5-20 above or by statement of the facts:
5-21 (1) the property, rents, revenues, and profits
5-22 received by the guardian, and belonging to the ward, during the
5-23 term of the guardianship;
5-24 (2) the disposition made of the property, rents,
5-25 revenues, and profits;
5-26 (3) the expenses and debts against the estate that
5-27 remain unpaid, if any;
6-1 (4) the property of the estate that remains in the
6-2 hands of the guardian, if any;
6-3 (5) that the guardian has paid all required bond
6-4 premiums;
6-5 (6) the tax returns the guardian has filed during the
6-6 guardianship;
6-7 (7) the amount of taxes the ward owed during the
6-8 guardianship that the guardian has paid;
6-9 (8) a complete account of the taxes the guardian has
6-10 paid during the guardianship, including the amount of the taxes,
6-11 the date the guardian paid the taxes, and the name of the
6-12 governmental entity to which the guardian paid the taxes;
6-13 (9) a description of all current delinquencies in the
6-14 filing of tax returns and the payment of taxes and a reason for
6-15 each delinquency; and
6-16 (10) other facts as appear necessary to a full and
6-17 definite understanding of the exact condition of the guardianship.
6-18 SECTION 8. The heading to Section 752, Texas Probate Code,
6-19 is amended to read as follows:
6-20 Sec. 752. COURT ACTION; CLOSING OF GUARDIANSHIP OF WARD'S
6-21 ESTATE.
6-22 SECTION 9. The changes in law made by Sections 2 through 8
6-23 of this Act apply only to an application for the appointment of a
6-24 guardian filed on or after the effective date of this Act. An
6-25 application for the appointment of a guardian filed before the
6-26 effective date of this Act is governed by the law in effect on the
6-27 date the application was filed, and the former law is continued in
7-1 effect for that purpose.
7-2 SECTION 10. This Act takes effect September 1, 2001.