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A BILL TO BE ENTITLED
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AN ACT
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relating to homestead property transferred to a trustee of certain |
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trusts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 41, Property Code, is |
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amended by adding Section 41.0021 to read as follows: |
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Sec. 41.0021. HOMESTEAD IN QUALIFYING TRUST. (a) In this |
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section, "qualifying trust" means an express trust: |
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(1) in which the instrument or court order creating |
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the express trust provides that a settlor or beneficiary of the |
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trust has the right to: |
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(A) revoke the trust without the consent of |
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another person; |
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(B) exercise an inter vivos general power of |
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appointment over the property that qualifies for the homestead |
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exemption; or |
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(C) use and occupy the residential property as |
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the settlor's or beneficiary's principal residence at no cost to the |
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settlor or beneficiary, other than payment of taxes and other costs |
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and expenses specified in the instrument or court order: |
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(i) for the life of the settlor or |
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beneficiary; |
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(ii) for the shorter of the life of the |
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settlor or beneficiary or a term of years specified in the |
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instrument or court order; or |
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(iii) until the date the trust is revoked or |
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terminated by an instrument or court order recorded in the real |
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property records of the county in which the property is located and |
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that describes the property with sufficient certainty to identify |
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the property; and |
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(2) the trustee of which acquires the property in an |
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instrument of title or under a court order that: |
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(A) describes the property with sufficient |
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certainty to identify the property and the interest acquired; and |
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(B) is recorded in the real property records of |
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the county in which the property is located. |
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(b) Property that a settlor or beneficiary occupies and uses |
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in a manner described by this subchapter and in which the settlor or |
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beneficiary owns a beneficial interest through a qualifying trust |
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is considered the homestead of the settlor or beneficiary under |
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Section 50, Article XVI, Texas Constitution, and Section 41.001. |
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(c) A married person who transfers property to the trustee |
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of a qualifying trust must comply with the requirements relating to |
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the joinder of the person's spouse as provided by Chapter 5, Family |
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Code. |
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(d) A trustee may sell, convey, or encumber property |
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transferred as described by Subsection (c) without the joinder of |
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either spouse unless expressly prohibited by the instrument or |
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court order creating the trust. |
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(e) This section does not affect the rights of a surviving |
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spouse or surviving children under Section 52, Article XVI, Texas |
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Constitution, or Part 3, Chapter VIII, Texas Probate Code. |
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SECTION 2. This Act applies only to a transfer that is |
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effective on or after the effective date of this Act. A transfer |
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that is effective before the effective date of this Act is governed |
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by the law as it existed immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |