By Bernsen S.B. No. 1640 77R2720 KLA-D A BILL TO BE ENTITLED 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. Section 450(a), Texas Probate Code, is amended to 1-6 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 2-1 (3) that any property which is the subject of the 2-2 instrument shall pass to a person designated by the decedent in 2-3 either the instrument or a separate writing, including a will, 2-4 executed at the same time as the instrument or subsequently. 2-5 SECTION 2. The change in law made by this Act to Section 2-6 450(a), Texas Probate Code, applies to a provision for the payment 2-7 or transfer of a person's interest in a mutual fund account on the 2-8 person's death, regardless of when the provision was executed or 2-9 the account was established. 2-10 SECTION 3. This Act takes effect immediately if it receives 2-11 a vote of two-thirds of all the members elected to each house, as 2-12 provided by Section 39, Article III, Texas Constitution. If this 2-13 Act does not receive the vote necessary for immediate effect, this 2-14 Act takes effect September 1, 2001.