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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of community property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 155, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 155. NO NECESSITY FOR ADMINISTRATION OF COMMUNITY |
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PROPERTY. When a husband or wife dies intestate and the community |
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property passes to the survivor, no administration thereon[,
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community or otherwise,] shall be necessary. Nothing in this part |
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of this chapter prohibits the administration of community property |
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under other provisions of this code relating to the administration |
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of an estate. |
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SECTION 2. Section 156, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 156. LIABILITY OF COMMUNITY PROPERTY FOR DEBTS. The |
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community property subject to the sole or joint management, |
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control, and disposition of a spouse during marriage continues to |
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be subject to the liabilities of that spouse upon death. In |
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addition, the interest that the deceased spouse owned in any other |
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nonexempt community property passes to his or her heirs or devisees |
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charged with the debts which were enforceable against such deceased |
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spouse prior to his or her death. The surviving spouse [In the
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administration of community estates, the survivor] or personal |
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representative shall keep a separate, distinct account of all |
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community debts allowed or paid in the administration and |
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settlement of such estate. |
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SECTION 3. Section 160(a), Texas Probate Code, is amended |
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to read as follows: |
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(a) When no one has qualified as executor or administrator |
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of the estate of a deceased spouse, the surviving spouse, whether |
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the husband or wife, as the surviving partner of the marital |
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partnership[, without qualifying as community administrator as
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hereinafter provided,] has power to sue and be sued for the recovery |
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of community property; to sell, mortgage, lease, and otherwise |
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dispose of community property for the purpose of paying community |
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debts; to collect claims due to the community estate; and has such |
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other powers as shall be necessary to preserve the community |
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property, discharge community obligations, and wind up community |
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affairs. |
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SECTION 4. Section 168, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 168. ACCOUNTING BY SURVIVOR. The survivor[, whether
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qualified as community administrator or not,] shall keep a fair and |
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full account and statement of all community debts and expenses paid |
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by him, and of the disposition made of the community property; and, |
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upon final partition of such estate, shall deliver to the heirs, |
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devisees or legatees of the deceased spouse their interest in such |
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estate, and the increase and profits of the same, after deducting |
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therefrom the proportion of the community debts chargeable thereto, |
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unavoidable losses, necessary and reasonable expenses, and a |
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reasonable commission for the management of the same. The [Neither
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the] survivor may not [nor his bondsmen shall] be liable for losses |
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sustained by the estate, except when the survivor has been guilty of |
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gross negligence or bad faith. |
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SECTION 5. Section 176, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 176. REMARRIAGE OF SURVIVING SPOUSE. The remarriage |
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of a surviving spouse shall not terminate the surviving spouse's |
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[powers or liabilities as a qualified community administrator or
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administratrix; nor shall it terminate his or her] powers as a |
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surviving partner. |
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SECTION 6. Section 177, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 177. DISTRIBUTION OF POWERS AMONG PERSONAL |
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REPRESENTATIVES AND SURVIVING SPOUSE. [(a) When Community
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Administrator Has Qualified. The qualified community administrator
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is entitled to administer the entire community estate, including
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the part which was by law under the management of the deceased
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spouse during the continuance of the marriage.
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[(b)When No Community Administrator Has Qualified.] When a |
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personal representative of the estate of a deceased spouse has duly |
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qualified, the personal representative is authorized to |
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administer, not only the separate property of the deceased spouse, |
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but also the community property which was by law under the |
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management of the deceased spouse during the continuance of the |
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marriage and all of the community property that was by law under the |
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joint control of the spouses during the continuance of the |
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marriage. The surviving spouse, as surviving partner of the |
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marital partnership, is entitled to retain possession and control |
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of all community property which was legally under the sole |
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management of the surviving spouse during the continuance of the |
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marriage and to exercise over that property all the powers |
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elsewhere in this part of this code authorized to be exercised by |
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the surviving spouse when there is no administration pending on the |
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estate of the deceased spouse. The surviving spouse may by written |
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instrument filed with the clerk waive any right to exercise powers |
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as community survivor, and in such event the personal |
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representative of the deceased spouse shall be authorized to |
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administer upon the entire community estate. |
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SECTION 7. The following laws are repealed: |
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(1) Section 151(e), Texas Probate Code; and |
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(2) Sections 161, 162, 163, 164, 165, 166, 167, 169, |
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170, 171, 172, 173, 174, and 175, Texas Probate Code. |
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SECTION 8. The changes in law made by this Act to Part 5, |
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Chapter VI, Texas Probate Code, apply only to the estate of a |
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decedent who dies on or after the effective date of this Act. The |
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estate of a decedent who dies before the effective date of this Act |
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is governed by the law in effect on the date of the decedent's |
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death, and the former law is continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2007. |