1-1     By:  Thompson (Senate Sponsor - Harris)               H.B. No. 1037
 1-2           (In the Senate - Received from the House April 2, 2001;
 1-3     April 3, 2001, read first time and referred to Committee on
 1-4     Jurisprudence; May 10, 2001, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to jurisdiction of a court over certain matters related to
 1-9     the ward's estate after a ward's guardianship is settled.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Section 606, Texas Probate Code, is amended by
1-12     amending Subsections (e) and (f) and adding Subsection (g) to read
1-13     as follows:
1-14           (e)  A court that exercises original probate jurisdiction has
1-15     the power to hear all matters incident to an estate.  After a
1-16     guardianship of the estate of a ward is required to be settled as
1-17     provided by Section 745 of this chapter, the court exercising
1-18     original probate jurisdiction over the settling of the former
1-19     ward's estate has the jurisdiction to hear:
1-20                 (1)  an action brought by or on behalf of the former
1-21     ward against a former guardian of the ward for alleged misconduct
1-22     arising from the performance of the person's duties as guardian;
1-23                 (2)  an action against a former guardian of the former
1-24     ward that is brought by a surety that is called on to perform in
1-25     place of the former guardian;
1-26                 (3)  a claim for the payment of compensation, expenses,
1-27     and court costs and any other matter authorized under Subpart H,
1-28     Part 2, of this chapter;
1-29                 (4)  a matter related to an authorization made or duty
1-30     performed by a guardian under Subpart C, Part 4, of this chapter;
1-31     and
1-32                 (5)  any other matter related or appertaining to a
1-33     guardianship estate that a court exercising original probate
1-34     jurisdiction is specifically authorized to hear under this chapter.
1-35           (f)  When a surety is called on to perform in place of a
1-36     guardian or former guardian, a court exercising original probate
1-37     jurisdiction, including jurisdiction exercised under Subsection
1-38     (e)(2) of this section, may award judgment against the guardian or
1-39     former guardian in favor of the surety of the guardian or former
1-40     guardian in the same suit[, even if the ward has died, regained
1-41     capacity, or the ward's disabilities of minority have been
1-42     removed].
1-43           (g) [(f)]  A final order of a court that exercises original
1-44     probate jurisdiction is appealable to a court of appeals.
1-45           SECTION 2.  Section 694G, Texas Probate Code, is amended to
1-46     read as follows:
1-47           Sec. 694G.  ORDER OF COMPLETE RESTORATION OF WARD'S CAPACITY.
1-48     If the court finds that a ward is no longer an incapacitated
1-49     person, the order completely restoring the ward's capacity must
1-50     contain findings of fact and specify:
1-51                 (1)  the information required by Section 694J of this
1-52     code;
1-53                 (2)  that the ward is no longer an incapacitated
1-54     person;
1-55                 (3)  that there is no further need for a guardianship
1-56     of the person or estate of the ward;
1-57                 (4)  that the guardian is required to:
1-58                       (A)  immediately settle [and close] the
1-59     guardianship in accordance with [Section 745 of] this chapter
1-60     [code]; and
1-61                       (B)  deliver all of the remaining guardianship
1-62     estate to the ward; and
1-63                 (5)  that the clerk shall revoke letters of
1-64     guardianship when the guardianship is finally settled and closed.
 2-1           SECTION 3.  The heading to Section 745, Texas Probate Code,
 2-2     is amended to read as follows:
 2-3           Sec. 745.  SETTLING [CLOSING] GUARDIANSHIPS OF THE ESTATE.
 2-4           SECTION 4.  Sections 745(a) and (d), Texas Probate Code, are
 2-5     amended to read as follows:
 2-6           (a)  A guardianship of the estate of a ward shall be [is]
 2-7     settled [and closed] when:
 2-8                 (1)  a minor ward dies or becomes an adult by becoming
 2-9     18 years of age, or by removal of disabilities of minority
2-10     according to the law of this state, or by marriage;
2-11                 (2)  an incapacitated ward dies, or is decreed as
2-12     provided by law to have been restored to full legal capacity;
2-13                 (3)  the spouse of a married ward has qualified as
2-14     survivor in community and the ward owns no separate property;
2-15                 (4)  the estate of a ward becomes exhausted;
2-16                 (5)  the foreseeable income accruing to a ward or to
2-17     his estate is so negligible that maintaining the guardianship in
2-18     force would be burdensome;
2-19                 (6)  all of the assets of the estate have been placed
2-20     in a management trust under Subpart N, Part 4, of this code and the
2-21     court determines that a guardianship for the ward is no longer
2-22     necessary; or
2-23                 (7)  the court determines for any other reason that a
2-24     guardianship for the ward is no longer necessary.
2-25           (d)  In the settlement [and closing] of a guardianship, the
2-26     court may appoint an attorney ad litem to represent the interests
2-27     of the ward, and may allow the attorney reasonable compensation for
2-28     services provided by the attorney out of the ward's estate.
2-29           SECTION 5.  Section 746, Texas Probate Code, is amended to
2-30     read as follows:
2-31           Sec. 746.  PAYMENT OF FUNERAL EXPENSES AND OTHER DEBTS ON
2-32     DEATH OF WARD.  Before [Notwithstanding Section 745 of this code,
2-33     before] the guardianship of a person or estate of a ward is closed
2-34     on the death of a ward, the guardian, subject to the approval of
2-35     the court, may make all funeral arrangements, pay for the funeral
2-36     expenses out of the estate of the deceased ward, and pay all other
2-37     debts out of the estate.  If a personal representative of the
2-38     estate of a deceased ward is appointed, the court shall on the
2-39     written complaint of the personal representative cause the guardian
2-40     to be cited to appear and present a final account as provided in
2-41     Section 749 of this code.
2-42           SECTION 6.  Section 747(a), Texas Probate Code, is amended to
2-43     read as follows:
2-44           (a)  When the guardianship of an incapacitated person is
2-45     required to be settled [and closed] as provided by Section 745 of
2-46     this code, the guardian of the person shall deliver all property of
2-47     the ward in the possession or control of the guardian to the
2-48     emancipated ward or other person entitled to the property.  If the
2-49     ward is deceased, the guardian shall deliver the property to the
2-50     personal representative of the deceased ward's estate or other
2-51     person entitled to the property.
2-52           SECTION 7.  Section 749, Texas Probate Code, is amended to
2-53     read as follows:
2-54           Sec. 749.  ACCOUNT FOR FINAL SETTLEMENT OF ESTATES OF WARDS.
2-55     When a guardianship of the estate is required to be settled [and
2-56     closed], the guardian shall present to the court the guardian's
2-57     verified account for final settlement.  In the account it shall be
2-58     sufficient to refer to the inventory without describing each item
2-59     of property in detail and to refer to and adopt any and all
2-60     guardianship proceedings that concern sales, renting or hiring,
2-61     leasing for mineral development, or any other transaction on behalf
2-62     of the guardianship estate, including an exhibit, account, or
2-63     voucher previously filed and approved, without restating the
2-64     particular items.  Each final account shall be accompanied by
2-65     proper vouchers in support of each item not already accounted for
2-66     and shall show, either by reference to any proceedings authorized
2-67     above or by statement of the facts:
2-68                 (1)  the property, rents, revenues, and profits
2-69     received by the guardian, and belonging to the ward, during the
 3-1     term of the guardianship;
 3-2                 (2)  the disposition made of the property, rents,
 3-3     revenues, and profits;
 3-4                 (3)  the expenses and debts against the estate that
 3-5     remain unpaid, if any;
 3-6                 (4)  the property of the estate that remains in the
 3-7     hands of the guardian, if any;
 3-8                 (5)  that the guardian has paid all required bond
 3-9     premiums;
3-10                 (6)  the tax returns the guardian has filed during the
3-11     guardianship;
3-12                 (7)  the amount of taxes the ward owed during the
3-13     guardianship that the guardian has paid;
3-14                 (8)  a complete account of the taxes the guardian has
3-15     paid during the guardianship, including the amount of the taxes,
3-16     the date the guardian paid the taxes, and the name of the
3-17     governmental entity to which the guardian paid the taxes;
3-18                 (9)  a description of all current delinquencies in the
3-19     filing of tax returns and the payment of taxes and a reason for
3-20     each delinquency; and
3-21                 (10)  other facts as appear necessary to a full and
3-22     definite understanding of the exact condition of the guardianship.
3-23           SECTION 8.  The heading to Section 752, Texas Probate Code,
3-24     is amended to read as follows:
3-25           Sec. 752.  COURT ACTION; CLOSING OF GUARDIANSHIP OF WARD'S
3-26     ESTATE.
3-27           SECTION 9.  The changes in law made by Sections 2 through 8
3-28     of this Act apply only to an application for the appointment of a
3-29     guardian filed on or after the effective date of this Act.  An
3-30     application for the appointment of a guardian filed before the
3-31     effective date of this Act is governed by the law in effect on the
3-32     date the application was filed, and the former law is continued in
3-33     effect for that purpose.
3-34           SECTION 10.  This Act takes effect September 1, 2001.
3-35                                  * * * * *