|  | 
      
        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | 
      
        |  | relating to the family allowance, treatment of exempt property, and | 
      
        |  | an allowance in lieu of exempt property in the administration of a | 
      
        |  | decedent's estate. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | ARTICLE 1.  CHANGES TO TEXAS PROBATE CODE | 
      
        |  | SECTION 1.01.  Sections 139, 140, and 143, Texas Probate | 
      
        |  | Code, are amended to read as follows: | 
      
        |  | Sec. 139.  APPLICATION FOR ORDER OF NO ADMINISTRATION.  If | 
      
        |  | the value of the entire assets of an estate, not including homestead | 
      
        |  | and exempt property, does not exceed the amount to which the | 
      
        |  | surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children of the decedent are entitled as a family allowance, there | 
      
        |  | may be filed by or on behalf of the surviving spouse, [ or] minor | 
      
        |  | children, or adult incapacitated children an application in any | 
      
        |  | court of proper venue for administration, or, if an application for | 
      
        |  | the appointment of a personal representative has been filed but not | 
      
        |  | yet granted, then in the court where such application has been | 
      
        |  | filed, requesting the court to make a family allowance and to enter | 
      
        |  | an order that no administration shall be necessary.  The | 
      
        |  | application shall state the names of the heirs or devisees, a list | 
      
        |  | of creditors of the estate together with the amounts of the claims | 
      
        |  | so far as the same are known, and a description of all real and | 
      
        |  | personal property belonging to the estate, together with the | 
      
        |  | estimated value thereof according to the best knowledge and | 
      
        |  | information of the applicant, and the liens and encumbrances | 
      
        |  | thereon, with a prayer that the court make a family allowance and | 
      
        |  | that, if the entire assets of the estate, not including homestead | 
      
        |  | and exempt property, are thereby exhausted, the same be set aside to | 
      
        |  | the surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children, as in the case of other family allowances provided for by | 
      
        |  | this Code. | 
      
        |  | Sec. 140.  HEARING AND ORDER UPON THE APPLICATION.  Upon the | 
      
        |  | filing of an application for no administration such as that | 
      
        |  | provided for in the preceding Section, the court may hear the same | 
      
        |  | forthwith without notice, or at such time and upon such notice as | 
      
        |  | the court requires.  Upon the hearing of the application, if the | 
      
        |  | court finds that the facts contained therein are true and that the | 
      
        |  | expenses of last illness, funeral charges, and expenses of the | 
      
        |  | proceeding have been paid or secured, the court shall make a family | 
      
        |  | allowance and, if the entire assets of the estate, not including | 
      
        |  | homestead and exempt property, are thereby exhausted, shall order | 
      
        |  | that no administration be had of the estate and shall assign to the | 
      
        |  | surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children the whole of the estate, in the same manner and with the | 
      
        |  | same effect as provided in this Code for the making of family | 
      
        |  | allowances to the surviving spouse, [ and] minor children, and adult | 
      
        |  | incapacitated children. | 
      
        |  | Sec. 143.  SUMMARY PROCEEDINGS FOR SMALL ESTATES AFTER | 
      
        |  | PERSONAL REPRESENTATIVE APPOINTED.  Whenever, after the inventory, | 
      
        |  | appraisement, and list of claims has been filed by a personal | 
      
        |  | representative, it is established that the estate of a decedent, | 
      
        |  | exclusive of the homestead and exempt property and family allowance | 
      
        |  | to the surviving spouse, [ and] minor children, and adult | 
      
        |  | incapacitated children, does not exceed the amount sufficient to | 
      
        |  | pay the claims of Classes One to Four, inclusive, as claims are | 
      
        |  | hereinafter classified, the personal representative shall, upon | 
      
        |  | order of the court, pay the claims in the order provided and to the | 
      
        |  | extent permitted by the assets of the estate subject to the payment | 
      
        |  | of such claims, and thereafter present the personal | 
      
        |  | representative's [ his] account with an application for the | 
      
        |  | settlement and allowance thereof.  Thereupon the court, with or | 
      
        |  | without notice, may adjust, correct, settle, allow or disallow such | 
      
        |  | account, and, if the account is settled and allowed, may decree | 
      
        |  | final distribution, discharge the personal representative, and | 
      
        |  | close the administration. | 
      
        |  | SECTION 1.02.  Sections 271(a) and (b), Texas Probate Code, | 
      
        |  | are amended to read as follows: | 
      
        |  | (a)  Unless an affidavit is filed under Subsection (b) of | 
      
        |  | this section, immediately after the inventory, appraisement, and | 
      
        |  | list of claims have been approved, the court shall, by order, set | 
      
        |  | apart: | 
      
        |  | (1)  the homestead for the use and benefit of the | 
      
        |  | surviving spouse and minor children; and | 
      
        |  | (2)  all other property of the estate that is exempt | 
      
        |  | from execution or forced sale by the constitution and laws of this | 
      
        |  | state for the use and benefit of the surviving spouse, [ and] minor | 
      
        |  | children, [ and] unmarried adult children remaining with the family | 
      
        |  | of the deceased, and each other adult child who is incapacitated. | 
      
        |  | (b)  Before the approval of the inventory, appraisement, and | 
      
        |  | list of claims: | 
      
        |  | (1)  a surviving spouse or any person who is authorized | 
      
        |  | to act on behalf of minor children of the deceased may apply to the | 
      
        |  | court to have exempt property, including the homestead, set aside | 
      
        |  | by filing an application and a verified affidavit listing all of the | 
      
        |  | property that the applicant claims is exempt; and | 
      
        |  | (2)  any unmarried adult child [ children] remaining | 
      
        |  | with the family of the deceased, any other adult child who is | 
      
        |  | incapacitated, or a person who is authorized to act on behalf of the | 
      
        |  | adult incapacitated child may apply to the court to have all exempt | 
      
        |  | property other than the homestead set aside by filing an | 
      
        |  | application and a verified affidavit listing all of the other | 
      
        |  | property that the applicant claims is exempt. | 
      
        |  | SECTION 1.03.  Sections 272, 273, 274, 275, 276, 286, 287, | 
      
        |  | 288, 290, 291, and 292, Texas Probate Code, are amended to read as | 
      
        |  | follows: | 
      
        |  | Sec. 272.  TO WHOM DELIVERED.  The exempt property set apart | 
      
        |  | to the surviving spouse and children shall be delivered by the | 
      
        |  | executor or administrator without delay as follows:  (a) If there | 
      
        |  | be a surviving spouse and no children, or if the children, including | 
      
        |  | any adult incapacitated children, be the children of the surviving | 
      
        |  | spouse, the whole of such property shall be delivered to the | 
      
        |  | surviving spouse.  (b) If there be children and no surviving | 
      
        |  | spouse, such property, except the homestead, shall be delivered to | 
      
        |  | the guardian of each of those [ such] children who is a minor, to | 
      
        |  | each of those children who is of lawful age and not incapacitated, | 
      
        |  | and to the guardian of each of those children who is an | 
      
        |  | incapacitated adult or to another appropriate person, as determined | 
      
        |  | by the court, on behalf of the adult incapacitated child if there is | 
      
        |  | no guardian [ if they be of lawful age, or to their guardian if they  | 
      
        |  | be minors].  (c) If there be children of the deceased of whom the | 
      
        |  | surviving spouse is not the parent, the share of such children in | 
      
        |  | such exempted property, except the homestead, shall be delivered to | 
      
        |  | the guardian of each of those [ such] children who is a minor, to | 
      
        |  | each of those children who is of lawful age and not incapacitated, | 
      
        |  | and to the guardian of each of those children who is an | 
      
        |  | incapacitated adult or to another appropriate person, as determined | 
      
        |  | by the court, on behalf of the adult incapacitated child if there is | 
      
        |  | no guardian [ if they be of lawful age, or to their guardian, if they  | 
      
        |  | be minors].  (d) In all cases, the homestead shall be delivered to | 
      
        |  | the surviving spouse, if there be one, and if there be no surviving | 
      
        |  | spouse, to the guardian of the minor children. | 
      
        |  | Sec. 273.  ALLOWANCE IN LIEU OF EXEMPT PROPERTY.  In case | 
      
        |  | there should not be among the effects of the deceased all or any of | 
      
        |  | the specific articles exempted from execution or forced sale by the | 
      
        |  | Constitution and laws of this state, the court shall make a | 
      
        |  | reasonable allowance in lieu thereof, to be paid to such surviving | 
      
        |  | spouse and children, or such of them as there are, as hereinafter | 
      
        |  | provided.  The allowance in lieu of a homestead shall in no case | 
      
        |  | exceed $15,000 and the allowance for other exempted property shall | 
      
        |  | in no case exceed $5,000, exclusive of the allowance for the support | 
      
        |  | of the surviving spouse, [ and] minor children, and adult | 
      
        |  | incapacitated children which is hereinafter provided for. | 
      
        |  | Sec. 274.  HOW ALLOWANCE PAID.  The allowance made in lieu of | 
      
        |  | any of the exempted property shall be paid either in money out of | 
      
        |  | the funds of the estate that come to the hands of the executor or | 
      
        |  | administrator, or in any property of the deceased that such | 
      
        |  | surviving spouse, [ or] children who are [, if they be] of lawful | 
      
        |  | age, guardian of children who are [ or their guardian if they be] | 
      
        |  | minors, or guardian of each adult incapacitated child or other | 
      
        |  | appropriate person, as determined by the court, on behalf of the | 
      
        |  | adult incapacitated child if there is no guardian, shall choose to | 
      
        |  | take at the appraisement, or a part thereof, or both, as they shall | 
      
        |  | select; provided, however, that property specifically bequeathed | 
      
        |  | or devised to another may be so taken, or may be sold to raise funds | 
      
        |  | for the allowance as hereinafter provided, only if the other | 
      
        |  | available property shall be insufficient to provide the allowance. | 
      
        |  | Sec. 275.  TO WHOM ALLOWANCE PAID.  The allowance in lieu of | 
      
        |  | exempt property shall be paid by the executor or administrator, as | 
      
        |  | follows:  (a)  If there be a surviving spouse and no children, or if | 
      
        |  | all the children, including any adult incapacitated children, be | 
      
        |  | the children of the surviving spouse, the whole shall be paid to | 
      
        |  | such surviving spouse. | 
      
        |  | (b)  If there be children and no surviving spouse, the whole | 
      
        |  | shall be [ paid to and] equally divided among them and each of their | 
      
        |  | shares shall be paid as follows: | 
      
        |  | (1)  if the child is [ they be] of lawful age and not | 
      
        |  | incapacitated, to the child; | 
      
        |  | (2)  [ , but] if the child is a minor, [any of such  | 
      
        |  | children are minors, their shares shall be paid] to the child's | 
      
        |  | [ their] guardian; or | 
      
        |  | (3)  if the child is an incapacitated adult, to the | 
      
        |  | adult incapacitated child's guardian or another appropriate | 
      
        |  | person, as determined by the court, on behalf of the adult | 
      
        |  | incapacitated child if there is no guardian [ guardians]. | 
      
        |  | (c)  If there be a surviving spouse, and children of the | 
      
        |  | deceased, some of whom are not children of the surviving spouse, the | 
      
        |  | surviving spouse shall receive one-half of the whole, plus the | 
      
        |  | shares of the children of whom the survivor is the parent, and the | 
      
        |  | remaining shares shall be paid with respect to each of the children | 
      
        |  | of whom the survivor is not the parent as follows: | 
      
        |  | (1)  if the child is an adult who is not incapacitated, | 
      
        |  | to the child; | 
      
        |  | (2)  if the child is a minor [ or, if they are minors], | 
      
        |  | to the child's [ their] guardian; or | 
      
        |  | (3)  if the child is an incapacitated adult, to the | 
      
        |  | adult incapacitated child's guardian or another appropriate | 
      
        |  | person, as determined by the court, on behalf of the adult | 
      
        |  | incapacitated child if there is no guardian. | 
      
        |  | Sec. 276.  SALE TO RAISE ALLOWANCE.  If there be no property | 
      
        |  | of the deceased that such surviving spouse or children are willing | 
      
        |  | to take for such allowance, or not a sufficiency, and there be no | 
      
        |  | funds, or not sufficient funds, of the estate in the hands of such | 
      
        |  | executor or administrator to pay such allowance, or any part | 
      
        |  | thereof, the court, on the application in writing of such surviving | 
      
        |  | spouse and children, or of a person authorized to represent any of | 
      
        |  | those children, shall order a sale of so much of the estate for cash | 
      
        |  | as will be sufficient to raise the amount of such allowance, or a | 
      
        |  | part thereof, as the case requires. | 
      
        |  | Sec. 286.  FAMILY ALLOWANCE TO SURVIVING SPOUSES, [ AND] | 
      
        |  | MINORS, AND ADULT INCAPACITATED CHILDREN.  (a)  Unless an affidavit | 
      
        |  | is filed under Subsection (b) of this section, immediately after | 
      
        |  | the inventory, appraisement, and list of claims have been approved, | 
      
        |  | the court shall fix a family allowance for the support of the | 
      
        |  | surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children of the deceased. | 
      
        |  | (b)  Before the approval of the inventory, appraisement, and | 
      
        |  | list of claims, a surviving spouse or any person who is authorized | 
      
        |  | to act on behalf of minor children or adult incapacitated children | 
      
        |  | of the deceased may apply to the court to have the court fix the | 
      
        |  | family allowance by filing an application and a verified affidavit | 
      
        |  | describing the amount necessary for the maintenance of the | 
      
        |  | surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children for one year after the date of the death of the decedent | 
      
        |  | and describing the spouse's separate property and any property that | 
      
        |  | minor children or adult incapacitated children have in their own | 
      
        |  | right.  The applicant bears the burden of proof by a preponderance | 
      
        |  | of the evidence at any hearing on the application.  The court shall | 
      
        |  | fix a family allowance for the support of the surviving spouse, | 
      
        |  | [ and] minor children, and adult incapacitated children of the | 
      
        |  | deceased. | 
      
        |  | Sec. 287.  AMOUNT OF FAMILY ALLOWANCE.  Such allowance shall | 
      
        |  | be of an amount sufficient for the maintenance of such surviving | 
      
        |  | spouse, [ and] minor children, and adult incapacitated children for | 
      
        |  | one year from the time of the death of the testator or intestate. | 
      
        |  | The allowance shall be fixed with regard to the facts or | 
      
        |  | circumstances then existing and those anticipated to exist during | 
      
        |  | the first year after such death.  The allowance may be paid either | 
      
        |  | in a lump sum or in installments, as the court shall order. | 
      
        |  | Sec. 288.  WHEN FAMILY ALLOWANCE NOT MADE.  No such allowance | 
      
        |  | shall be made for the surviving spouse when the survivor has | 
      
        |  | separate property adequate to the survivor's maintenance; nor shall | 
      
        |  | such allowance be made for the minor children or adult | 
      
        |  | incapacitated children when they have property in their own right | 
      
        |  | adequate to their maintenance. | 
      
        |  | Sec. 290.  FAMILY ALLOWANCE PREFERRED.  The family allowance | 
      
        |  | made for the support of the surviving spouse, [ and] minor children, | 
      
        |  | and adult incapacitated children of the deceased shall be paid in | 
      
        |  | preference to all other debts or charges against the estate, except | 
      
        |  | Class 1 claims. | 
      
        |  | Sec. 291.  TO WHOM FAMILY ALLOWANCE PAID.  The executor or | 
      
        |  | administrator shall apportion and pay the family allowance: | 
      
        |  | (a)  To the surviving spouse, if there be one, for the use of | 
      
        |  | the survivor and the minor children and adult incapacitated | 
      
        |  | children, if such children be the survivor's. | 
      
        |  | (b)  If the surviving spouse is not the parent of such minor | 
      
        |  | children and adult incapacitated children, or of some of them, the | 
      
        |  | portion of such allowance necessary for the support of such minor | 
      
        |  | child or children of which the survivor is not the parent shall be | 
      
        |  | paid to the guardian or guardians of such child or children who are | 
      
        |  | minors, and to the guardian of each adult incapacitated child or | 
      
        |  | another appropriate person, as determined by the court, on behalf | 
      
        |  | of the adult incapacitated child if there is no guardian. | 
      
        |  | (c)  If there be no surviving spouse, the allowance to the | 
      
        |  | minor child or children shall be paid to the guardian or guardians | 
      
        |  | of such minor child or children, and the allowance to each adult | 
      
        |  | incapacitated child shall be paid to the guardian of the adult | 
      
        |  | incapacitated child or another appropriate person, as determined by | 
      
        |  | the court, on behalf of the adult incapacitated child if there is no | 
      
        |  | guardian. | 
      
        |  | (d)  If there be a surviving spouse and no minor child or | 
      
        |  | adult incapacitated child [ children], the entire allowance shall be | 
      
        |  | paid to the surviving spouse. | 
      
        |  | Sec. 292.  MAY TAKE PROPERTY FOR FAMILY ALLOWANCE.  The | 
      
        |  | surviving spouse, [ or] the guardian of the minor children, or the | 
      
        |  | guardian of an adult incapacitated child or another appropriate | 
      
        |  | person, as determined by the court, on behalf of the adult | 
      
        |  | incapacitated child if there is no guardian, as the case may be, | 
      
        |  | shall have the right to take in payment of such allowance, or any | 
      
        |  | part thereof, any of the personal property of the estate at its | 
      
        |  | appraised value as shown by the appraisement; provided, however, | 
      
        |  | that property specifically devised or bequeathed to another may be | 
      
        |  | so taken, or may be sold to raise funds for the allowance as | 
      
        |  | hereinafter provided, only if the other available property shall be | 
      
        |  | insufficient to provide the allowance. | 
      
        |  | SECTION 1.04.  The changes in law made by this article apply | 
      
        |  | only to the estate of a decedent who dies on or after the effective | 
      
        |  | date of this Act.  The estate of a decedent who dies before the | 
      
        |  | effective date of this Act is governed by the law in effect on the | 
      
        |  | date of the decedent's death, and the former law is continued in | 
      
        |  | effect for that purpose. | 
      
        |  | ARTICLE 2.  CHANGES TO ESTATES CODE | 
      
        |  | SECTION 2.01.  Sections 353.051(a) and (b), Estates Code, as | 
      
        |  | effective January 1, 2014, are amended to read as follows: | 
      
        |  | (a)  Unless an application and verified affidavit are filed | 
      
        |  | as provided by Subsection (b), immediately after the inventory, | 
      
        |  | appraisement, and list of claims of an estate are approved, the | 
      
        |  | court by order shall set aside: | 
      
        |  | (1)  the homestead for the use and benefit of the | 
      
        |  | decedent's surviving spouse and minor children; and | 
      
        |  | (2)  all other estate property that is exempt from | 
      
        |  | execution or forced sale by the constitution and laws of this state | 
      
        |  | for the use and benefit of the decedent's: | 
      
        |  | (A)  surviving spouse and minor children; [ and] | 
      
        |  | (B)  unmarried adult children remaining with the | 
      
        |  | decedent's family; and | 
      
        |  | (C)  each other adult child who is incapacitated. | 
      
        |  | (b)  Before the inventory, appraisement, and list of claims | 
      
        |  | of an estate are approved: | 
      
        |  | (1)  the decedent's surviving spouse or any other | 
      
        |  | person authorized to act on behalf of the decedent's minor children | 
      
        |  | may apply to the court to have exempt property, including the | 
      
        |  | homestead, set aside by filing an application and a verified | 
      
        |  | affidavit listing all property that the applicant claims is exempt; | 
      
        |  | and | 
      
        |  | (2)  any of the decedent's unmarried adult children | 
      
        |  | remaining with the decedent's family, any other adult child of the | 
      
        |  | decedent who is incapacitated, or a person who is authorized to act | 
      
        |  | on behalf of the adult incapacitated child may apply to the court to | 
      
        |  | have all exempt property, other than the homestead, set aside by | 
      
        |  | filing an application and a verified affidavit listing all | 
      
        |  | property, other than the homestead, that the applicant claims is | 
      
        |  | exempt. | 
      
        |  | SECTION 2.02.  Sections 353.052(b), (c), and (d), Estates | 
      
        |  | Code, as effective January 1, 2014, are amended to read as follows: | 
      
        |  | (b)  If there is a surviving spouse and there are no children | 
      
        |  | of the decedent, or if all the children, including any adult | 
      
        |  | incapacitated children, of the decedent are also the children of | 
      
        |  | the surviving spouse, the executor or administrator shall deliver | 
      
        |  | all exempt property to the surviving spouse. | 
      
        |  | (c)  If there is a surviving spouse and there are children of | 
      
        |  | the decedent who are not also children of the surviving spouse, the | 
      
        |  | executor or administrator shall deliver the share of those children | 
      
        |  | in exempt property, other than the homestead, to: | 
      
        |  | (1)  the children, if the children are of legal age; | 
      
        |  | [ or] | 
      
        |  | (2)  the children's guardian, if the children are | 
      
        |  | minors; or | 
      
        |  | (3)  the guardian of each of the children who is an | 
      
        |  | incapacitated adult, or to another appropriate person, as | 
      
        |  | determined by the court, on behalf of the adult incapacitated child | 
      
        |  | if there is no guardian. | 
      
        |  | (d)  If there is no surviving spouse and there are children | 
      
        |  | of the decedent, the executor or administrator shall deliver exempt | 
      
        |  | property, other than the homestead, to: | 
      
        |  | (1)  the children, if the children are of legal age; | 
      
        |  | [ or] | 
      
        |  | (2)  the children's guardian, if the children are | 
      
        |  | minors; or | 
      
        |  | (3)  the guardian of each of the children who is an | 
      
        |  | incapacitated adult, or to another appropriate person, as | 
      
        |  | determined by the court, on behalf of the adult incapacitated child | 
      
        |  | if there is no guardian. | 
      
        |  | SECTION 2.03.  Section 353.053(b), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (b)  The allowance in lieu of a homestead may not exceed | 
      
        |  | $15,000, and the allowance in lieu of other exempt property may not | 
      
        |  | exceed $5,000, excluding the family allowance for the support of | 
      
        |  | the surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children provided by Subchapter C. | 
      
        |  | SECTION 2.04.  Sections 353.054(b), (c), and (d), Estates | 
      
        |  | Code, as effective January 1, 2014, are amended to read as follows: | 
      
        |  | (b)  If there is a surviving spouse and there are no children | 
      
        |  | of the decedent, or if all the children, including any adult | 
      
        |  | incapacitated children, of the decedent are also the children of | 
      
        |  | the surviving spouse, the executor or administrator shall pay the | 
      
        |  | entire allowance to the surviving spouse. | 
      
        |  | (c)  If there is a surviving spouse and there are children of | 
      
        |  | the decedent who are not also children of the surviving spouse, the | 
      
        |  | executor or administrator shall pay the surviving spouse one-half | 
      
        |  | of the entire allowance plus the shares of the decedent's children | 
      
        |  | of whom the surviving spouse is the parent.  The remaining shares | 
      
        |  | must be paid to: | 
      
        |  | (1)  the decedent's adult children of whom the | 
      
        |  | surviving spouse is not a parent and who are not incapacitated; [ or] | 
      
        |  | (2)  the guardian of the children of whom the surviving | 
      
        |  | spouse is not a parent and who [ described by Subdivision (1), if  | 
      
        |  | those children] are minors; or | 
      
        |  | (3)  the guardian or another appropriate person, as | 
      
        |  | determined by the court, if there is no guardian, of each child who | 
      
        |  | is an incapacitated adult. | 
      
        |  | (d)  If there is no surviving spouse and there are children | 
      
        |  | of the decedent, the executor or administrator shall divide the | 
      
        |  | entire allowance equally among the children and pay the children's | 
      
        |  | shares to: | 
      
        |  | (1)  each of those [ the] children who are adults and who | 
      
        |  | are not incapacitated; | 
      
        |  | (2)  the guardian of each [ , if the children are of  | 
      
        |  | legal age, or, if any] of those [the] children who are minors; or | 
      
        |  | (3)  the guardian or another appropriate person, as | 
      
        |  | determined by the court, if there is no guardian, of each of those | 
      
        |  | children who is an incapacitated adult[ , pay the minor children's  | 
      
        |  | shares to the guardian of the minor children]. | 
      
        |  | SECTION 2.05.  Section 353.055(a), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (a)  An allowance in lieu of any exempt property shall be | 
      
        |  | paid in the manner selected by the decedent's surviving spouse or | 
      
        |  | children of legal age, or by the guardian of the decedent's minor | 
      
        |  | children, or by the guardian of each adult incapacitated child or | 
      
        |  | other appropriate person, as determined by the court, if there is no | 
      
        |  | guardian, as follows: | 
      
        |  | (1)  in money out of estate funds that come into the | 
      
        |  | executor's or administrator's possession; | 
      
        |  | (2)  in any of the decedent's property or a part of the | 
      
        |  | property chosen by those individuals at the appraisement; or | 
      
        |  | (3)  part in money described by Subdivision (1) and | 
      
        |  | part in property described by Subdivision (2). | 
      
        |  | SECTION 2.06.  Section 353.056(a), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (a)  On the written application of the decedent's surviving | 
      
        |  | spouse and children, or of a person authorized to represent any of | 
      
        |  | those children, the court shall order the sale of estate property | 
      
        |  | for cash in an amount that will be sufficient to raise the amount of | 
      
        |  | the allowance provided under Section 353.053 or a portion of that | 
      
        |  | amount, as necessary, if: | 
      
        |  | (1)  the decedent had no property that the surviving | 
      
        |  | spouse or children are willing to take for the allowance or the | 
      
        |  | decedent had insufficient property; and | 
      
        |  | (2)  there are not sufficient estate funds in the | 
      
        |  | executor's or administrator's possession to pay the amount of the | 
      
        |  | allowance or a portion of that amount, as applicable. | 
      
        |  | SECTION 2.07.  Section 353.101, Estates Code, as effective | 
      
        |  | January 1, 2014, is amended to read as follows: | 
      
        |  | Sec. 353.101.  FAMILY ALLOWANCE.  (a)  Unless an application | 
      
        |  | and verified affidavit are filed as provided by Subsection (b), | 
      
        |  | immediately after the inventory, appraisement, and list of claims | 
      
        |  | of an estate are approved, the court shall fix a family allowance | 
      
        |  | for the support of the decedent's surviving spouse, [ and] minor | 
      
        |  | children, and adult incapacitated children. | 
      
        |  | (b)  Before the inventory, appraisement, and list of claims | 
      
        |  | of an estate are approved, the decedent's surviving spouse or any | 
      
        |  | other person authorized to act on behalf of the decedent's minor | 
      
        |  | children or adult incapacitated children may apply to the court to | 
      
        |  | have the court fix the family allowance by filing an application and | 
      
        |  | a verified affidavit describing: | 
      
        |  | (1)  the amount necessary for the maintenance of the | 
      
        |  | surviving spouse, [ and] the decedent's minor children, and the | 
      
        |  | decedent's adult incapacitated children for one year after the date | 
      
        |  | of the decedent's death; and | 
      
        |  | (2)  the surviving spouse's separate property and any | 
      
        |  | property that the decedent's minor children or adult incapacitated | 
      
        |  | children have in their own right. | 
      
        |  | (c)  At a hearing on an application filed under Subsection | 
      
        |  | (b), the applicant has the burden of proof by a preponderance of the | 
      
        |  | evidence.  The court shall fix a family allowance for the support | 
      
        |  | of the decedent's surviving spouse, [ and] minor children, and adult | 
      
        |  | incapacitated children. | 
      
        |  | (d)  A family allowance may not be made for: | 
      
        |  | (1)  the decedent's surviving spouse, if the surviving | 
      
        |  | spouse has separate property adequate for the surviving spouse's | 
      
        |  | maintenance; [ or] | 
      
        |  | (2)  the decedent's minor children, if the minor | 
      
        |  | children have property in their own right adequate for the | 
      
        |  | children's maintenance; or | 
      
        |  | (3)  any of the decedent's adult incapacitated | 
      
        |  | children, if the adult incapacitated child has property in the | 
      
        |  | person's own right adequate for the person's maintenance. | 
      
        |  | SECTION 2.08.  Section 353.102(a), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (a)  The amount of the family allowance must be sufficient | 
      
        |  | for the maintenance of the decedent's surviving spouse, [ and] minor | 
      
        |  | children, and adult incapacitated children for one year from the | 
      
        |  | date of the decedent's death. | 
      
        |  | SECTION 2.09.  Section 353.104, Estates Code, as effective | 
      
        |  | January 1, 2014, is amended to read as follows: | 
      
        |  | Sec. 353.104.  PREFERENCE OF FAMILY ALLOWANCE.  The family | 
      
        |  | allowance made for the support of the decedent's surviving spouse, | 
      
        |  | [ and] minor children, and adult incapacitated children shall be | 
      
        |  | paid in preference to all other debts of or charges against the | 
      
        |  | estate, other than Class 1 claims. | 
      
        |  | SECTION 2.10.  Sections 353.105(b), (c), (d), and (e), | 
      
        |  | Estates Code, as effective January 1, 2014, are amended to read as | 
      
        |  | follows: | 
      
        |  | (b)  If there is a surviving spouse and there are no minor | 
      
        |  | children or adult incapacitated children of the decedent, the | 
      
        |  | executor or administrator shall pay the entire family allowance to | 
      
        |  | the surviving spouse. | 
      
        |  | (c)  If there is a surviving spouse and all of the minor | 
      
        |  | children and adult incapacitated children of the decedent are also | 
      
        |  | the children of the surviving spouse, the executor or administrator | 
      
        |  | shall pay the entire family allowance to the surviving spouse for | 
      
        |  | use by the surviving spouse, [ and] the decedent's minor children, | 
      
        |  | and adult incapacitated children. | 
      
        |  | (d)  If there is a surviving spouse and some or all of the | 
      
        |  | minor children or adult incapacitated children of the decedent are | 
      
        |  | not also children of the surviving spouse, the executor or | 
      
        |  | administrator shall pay: | 
      
        |  | (1)  the portion of the entire family allowance | 
      
        |  | necessary for the support of those minor children to the guardian of | 
      
        |  | those children; and | 
      
        |  | (2)  the portion of the entire family allowance | 
      
        |  | necessary for the support of each of those adult incapacitated | 
      
        |  | children to the guardian of the adult incapacitated child or | 
      
        |  | another appropriate person, as determined by the court, on behalf | 
      
        |  | of the adult incapacitated child if there is no guardian. | 
      
        |  | (e)  If there is no surviving spouse and there are minor | 
      
        |  | children or adult incapacitated children of the decedent, the | 
      
        |  | executor or administrator shall pay the family allowance: | 
      
        |  | (1)  for the minor children, to the guardian of those | 
      
        |  | children; and | 
      
        |  | (2)  for each adult incapacitated child, to the | 
      
        |  | guardian of the adult incapacitated child or another appropriate | 
      
        |  | person, as determined by the court, on behalf of the adult | 
      
        |  | incapacitated child if there is no guardian. | 
      
        |  | SECTION 2.11.  The heading to Section 353.106, Estates Code, | 
      
        |  | as effective January 1, 2014, is amended to read as follows: | 
      
        |  | Sec. 353.106.  SURVIVING SPOUSE, [ OR] MINOR CHILDREN, OR | 
      
        |  | ADULT INCAPACITATED CHILDREN MAY TAKE PERSONAL PROPERTY FOR FAMILY | 
      
        |  | ALLOWANCE. | 
      
        |  | SECTION 2.12.  Section 353.106(a), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (a)  A decedent's surviving spouse, [ or] the guardian of the | 
      
        |  | decedent's minor children, or the guardian of an adult | 
      
        |  | incapacitated child of the decedent or another appropriate person, | 
      
        |  | as determined by the court, on behalf of the adult incapacitated | 
      
        |  | child if there is no guardian, as applicable, is entitled to take, | 
      
        |  | at the property's appraised value as shown by the appraisement, any | 
      
        |  | of the estate's personal property in full or partial payment of the | 
      
        |  | family allowance. | 
      
        |  | SECTION 2.13.  Section 353.107(a), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (a)  The court shall, as soon as the inventory, appraisement, | 
      
        |  | and list of claims are returned and approved, order the sale of | 
      
        |  | estate property for cash in an amount that will be sufficient to | 
      
        |  | raise the amount of the family allowance, or a portion of that | 
      
        |  | amount, as necessary, if: | 
      
        |  | (1)  the decedent had no personal property that the | 
      
        |  | surviving spouse, [ or] the guardian of the decedent's minor | 
      
        |  | children, or the guardian of the decedent's adult incapacitated | 
      
        |  | child or other appropriate person acting on behalf of the adult | 
      
        |  | incapacitated child is willing to take for the family allowance, or | 
      
        |  | the decedent had insufficient personal property; and | 
      
        |  | (2)  there are not sufficient estate funds in the | 
      
        |  | executor's or administrator's possession to pay the amount of the | 
      
        |  | family allowance or a portion of that amount, as applicable. | 
      
        |  | SECTION 2.14.  Section 354.001(a), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (a)  If, after a personal representative of an estate has | 
      
        |  | filed the inventory, appraisement, and list of claims as required | 
      
        |  | by Chapter 309, it is established that the decedent's estate, | 
      
        |  | excluding any homestead, exempt property, and family allowance to | 
      
        |  | the decedent's surviving spouse, [ and] minor children, and adult | 
      
        |  | incapacitated children, does not exceed the amount sufficient to | 
      
        |  | pay the claims against the estate classified as Classes 1 through 4 | 
      
        |  | under Section 355.102, the representative shall: | 
      
        |  | (1)  on order of the court, pay those claims in the | 
      
        |  | order provided and to the extent permitted by the assets of the | 
      
        |  | estate subject to the payment of those claims; and | 
      
        |  | (2)  after paying the claims in accordance with | 
      
        |  | Subdivision (1), present to the court the representative's account | 
      
        |  | with an application for the settlement and allowance of the | 
      
        |  | account. | 
      
        |  | SECTION 2.15.  Sections 451.001(a) and (d), Estates Code, as | 
      
        |  | effective January 1, 2014, are amended to read as follows: | 
      
        |  | (a)  If the value of the entire assets of an estate, | 
      
        |  | excluding homestead and exempt property, does not exceed the amount | 
      
        |  | to which the surviving spouse, [ and] minor children, and adult | 
      
        |  | incapacitated children of the decedent are entitled as a family | 
      
        |  | allowance, an application may be filed by or on behalf of the | 
      
        |  | surviving spouse, [ or] minor children, or adult incapacitated | 
      
        |  | children requesting a court to make a family allowance and to enter | 
      
        |  | an order that no administration of the decedent's estate is | 
      
        |  | necessary. | 
      
        |  | (d)  The application must also include a prayer that the | 
      
        |  | court make a family allowance and that, if the family allowance | 
      
        |  | exhausts the entire assets of the estate, excluding homestead and | 
      
        |  | exempt property, the entire assets of the estate be set aside to the | 
      
        |  | surviving spouse, [ and] minor children, and adult incapacitated | 
      
        |  | children, as with other family allowances provided for by | 
      
        |  | Subchapter C, Chapter 353. | 
      
        |  | SECTION 2.16.  Section 451.002(b), Estates Code, as | 
      
        |  | effective January 1, 2014, is amended to read as follows: | 
      
        |  | (b)  On the hearing of the application, if the court finds | 
      
        |  | that the facts contained in the application are true and that the | 
      
        |  | expenses of last illness, funeral charges, and expenses of the | 
      
        |  | proceeding have been paid or secured, the court shall: | 
      
        |  | (1)  make a family allowance; and | 
      
        |  | (2)  if the entire assets of the estate, excluding | 
      
        |  | homestead and exempt property, are exhausted by the family | 
      
        |  | allowance made under Subdivision (1): | 
      
        |  | (A)  assign to the surviving spouse, [ and] minor | 
      
        |  | children, and adult incapacitated children the entire estate in the | 
      
        |  | same manner and with the same effect as provided in Subchapter C, | 
      
        |  | Chapter 353, for the making of a family allowance to the surviving | 
      
        |  | spouse, [ and] minor children, and adult incapacitated children; and | 
      
        |  | (B)  order that there shall be no administration | 
      
        |  | of the estate. | 
      
        |  | SECTION 2.17.  The changes in law made to Sections 139, 140, | 
      
        |  | 143, 271(a) and (b), 272, 273, 274, 275, 276, 286, 287, 288, 290, | 
      
        |  | 291, and 292, Texas Probate Code, by Article 1 of this Act are | 
      
        |  | repealed. | 
      
        |  | SECTION 2.18.  This article takes effect January 1, 2014. | 
      
        |  | ARTICLE 3.  EFFECTIVE DATE | 
      
        |  | SECTION 3.01.  Except as otherwise provided by this Act, | 
      
        |  | this Act takes effect September 1, 2011. | 
      
        |  |  | 
      
        |  | * * * * * |