1-1 AN ACT 1-2 relating to a provision for the payment or transfer of a person's 1-3 interest in a mutual fund account on the person's death. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subsection (a), Section 450, Texas Probate Code, 1-6 is amended to read as follows: 1-7 (a) Any of the following provisions in an insurance policy, 1-8 contract of employment, bond, mortgage, promissory note, deposit 1-9 agreement, employees' trust, retirement account, deferred 1-10 compensation arrangement, custodial agreement, pension plan, trust 1-11 agreement, conveyance of real or personal property, securities, 1-12 accounts with financial institutions as defined in Part 1 of this 1-13 chapter, mutual fund account, or any other written instrument 1-14 effective as a contract, gift, conveyance, or trust is deemed to be 1-15 nontestamentary, and this code does not invalidate the instrument 1-16 or any provision: 1-17 (1) that money or other benefits theretofore due to, 1-18 controlled, or owned by a decedent shall be paid after his death to 1-19 a person designated by the decedent in either the instrument or a 1-20 separate writing, including a will, executed at the same time as 1-21 the instrument or subsequently; 1-22 (2) that any money due or to become due under the 1-23 instrument shall cease to be payable in event of the death of the 1-24 promisee or the promissor before payment or demand; or 1-25 (3) that any property which is the subject of the 2-1 instrument shall pass to a person designated by the decedent in 2-2 either the instrument or a separate writing, including a will, 2-3 executed at the same time as the instrument or subsequently. 2-4 SECTION 2. The change in law made by this Act to Subsection 2-5 (a), Section 450, Texas Probate Code, applies to a provision for 2-6 the payment or transfer of a person's interest in a mutual fund 2-7 account on the person's death, regardless of when the provision was 2-8 executed or the account was established. 2-9 SECTION 3. This Act takes effect immediately if it receives 2-10 a vote of two-thirds of all the members elected to each house, as 2-11 provided by Section 39, Article III, Texas Constitution. If this 2-12 Act does not receive the vote necessary for immediate effect, this 2-13 Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1640 passed the Senate on April 20, 2001, by the following vote: Yeas 30, Nays 0, one present, not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1640 passed the House on May 8, 2001, by the following vote: Yeas 147, Nays 0, two present, not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor