80R2445 KLA-D

By: Naishtat H.B. No. 519

A BILL TO BE ENTITLED

AN ACT

relating to the creation of a trust for the management of an incapacitated person's estate.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 867(b-1), Texas Probate Code, is amended to read as follows:

(b-1) On application by an appropriate person as provided by Subsection (a-1) of this section and regardless of whether an application for guardianship has been filed on the alleged incapacitated person's behalf, a proper probate court may enter an order that creates a trust for the management of the estate of an alleged incapacitated person who does not have a guardian if the court, after a hearing, finds that:

(1) the person is an incapacitated person; and

(2) the creation of the trust is in the incapacitated person's best interests.

SECTION 2. (a) The amendment made by this Act to Section 867(b-1), Texas Probate Code, is intended to clarify, rather than change, existing law.

(b) A court in which an application for the creation of a management trust under Section 867, Texas Probate Code, is pending on the effective date of this Act and that is not a probate court, as defined by Section 601, Texas Probate Code, shall transfer the proceeding to a proper probate court, as defined by that section. When a proceeding is transferred from one court to another as provided by this subsection, all processes, writs, bonds, recognizances, or other obligations issued from the transferring court are returnable to the court to which the proceeding is transferred as if originally issued by that court. The obligees in all bonds and recognizances taken in and for a court from which a proceeding is transferred, and all witnesses summoned to appear in a court from which a proceeding is transferred, are required to appear before the court to which a proceeding is transferred as if originally required to appear before the court to which the transfer is made.

SECTION 3. This Act takes effect September 1, 2007.