By Thompson H.B. No. 1883
77R1866 MTB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to limitations on certain powers exercised by an attorney
1-3 in fact or agent with respect to an elderly principal under a
1-4 durable power of attorney.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter XII, Texas Probate Code, is amended by
1-7 adding Sections 483A, 483B, and 483C to read as follows:
1-8 Sec. 483A. BOND OR COURT APPROVAL REQUIRED TO PERFORM
1-9 CERTAIN PROPERTY-RELATED TRANSACTIONS FOR ELDERLY PRINCIPALS. (a)
1-10 Unless otherwise authorized by the durable power of attorney as
1-11 prescribed by Section 483B of this code, an attorney in fact or
1-12 agent acting under a durable power of attorney for a principal who
1-13 is 55 years of age or older on the date of the transaction may not
1-14 sell, lease, or otherwise transfer the principal's interest in
1-15 property with a reasonable market value of $15,000 or more but less
1-16 than $50,000, unless:
1-17 (1) the attorney in fact or agent files with the clerk
1-18 of a court in which the principal resides a surety bond in the
1-19 amount of $50,000 payable to the court; or
1-20 (2) a court in the county in which the principal
1-21 resides approves the transaction.
1-22 (b) Unless otherwise authorized by the durable power of
1-23 attorney as prescribed by Section 483B of this code, an attorney in
1-24 fact or agent acting under a durable power of attorney for a
2-1 principal who is 55 years of age or older on the date of the
2-2 transaction may not sell, lease, or otherwise transfer the
2-3 principal's interest in property with a reasonable market value of
2-4 $50,000 or more unless a court in the county in which the principal
2-5 resides approves the transaction.
2-6 (c) Before approving a transaction under this section, a
2-7 court may require an independent appraisal of the property to
2-8 establish the property's value.
2-9 (d) On the court's own motion or on the motion of a person
2-10 interested in the principal's welfare, a court in the county in
2-11 which the principal resides, after notice and hearing, may revoke a
2-12 durable power of attorney if the court determines by a
2-13 preponderance of the evidence that:
2-14 (1) the attorney in fact or agent designated by the
2-15 principal under the instrument violated this section; and
2-16 (2) revocation of the instrument would be in the best
2-17 interests of the principal.
2-18 Sec. 483B. AUTHORIZATION TO PERFORM CERTAIN TRANSACTIONS OF
2-19 ELDERLY PRINCIPAL WITHOUT BOND REQUIREMENT OR PRIOR COURT APPROVAL.
2-20 A person who executes a durable power of attorney that confers
2-21 authority with respect to the person's property may empower the
2-22 attorney in fact or agent designated under the instrument to act
2-23 with respect to all or part of the property without the requirement
2-24 of a bond or court approval under Section 483A of this code if the
2-25 durable power of attorney contains a clear statement to that
2-26 effect.
2-27 Sec. 483C. EFFECTIVE DATE OF CERTAIN TRANSACTIONS. (a) This
3-1 section applies only to an agreement entered into by an attorney in
3-2 fact or agent acting under a durable power of attorney for a
3-3 principal who is 55 years of age or older on the date of the
3-4 agreement.
3-5 (b) An agreement to sell, lease, or otherwise transfer the
3-6 principal's interest in property with a reasonable market value of
3-7 more than $15,000 does not take effect until midnight of the third
3-8 business day after the date on which the attorney in fact or agent
3-9 signs the agreement.
3-10 SECTION 2. This Act takes effect September 1, 2001, and
3-11 applies only to a durable power of attorney, including a statutory
3-12 durable power of attorney, executed on or after that date. A
3-13 durable power of attorney executed before that date is governed by
3-14 the law in effect on the date the durable power of attorney was
3-15 executed, and the former law is continued in effect for that
3-16 purpose.