By:  Paxton (Senate Sponsor - Averitt)                            H.B. No. 3240
	(In the Senate - Received from the House April 18, 2005; 
April 19, 2005, read first time and referred to Committee on 
Jurisprudence; May 5, 2005, reported favorably by the following 
vote:  Yeas 6, Nays 0; May 5, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the exemption from ad valorem taxation of a residence 
homestead held in a court-ordered trust.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.13(j)(3), Tax Code, is amended to 
read as follows:    
		(3)  "Qualifying trust" means a trust:                                        
			(A)  in which the agreement, [or] will, or court 
order creating the trust provides that the trustor of the trust or 
the beneficiary of the trust if created by court order has the right 
to use and occupy as the trustor's or beneficiary's principal 
residence residential property rent free and without charge except 
for taxes and other costs and expenses specified in the instrument 
or court order:
				(i)  for life;                                                              
				(ii)  for the lesser of life or a term of 
years; or                       
				(iii)  until the date the trust is revoked or 
terminated by an instrument or court order that describes the 
property with sufficient certainty to identify it and is recorded 
in the real property records of the county in which the property is 
located; and
			(B)  that acquires the property in an instrument 
of title or under a court order that:
				(i)  describes the property with sufficient 
certainty to identify it and the interest acquired;
				(ii)  is recorded in the real property 
records of the county in which the property is located; and
				(iii)  in the case of a trust that is not 
created by court order, is executed by the trustor or the personal 
representative of the trustor.
	SECTION 2.  This Act takes effect January 1, 2006, and 
applies only to a tax year that begins on or after that date.



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