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A BILL TO BE ENTITLED
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AN ACT
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relating to a beneficiary designation that transfers a motor |
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vehicle to one or more beneficiaries at the owner's death. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 115.002(a) and (b), Estates Code, are |
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amended to read as follows: |
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(a) An owner of a motor vehicle may transfer the owner's |
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interest in the motor vehicle to one or more beneficiaries [a sole |
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beneficiary] effective on the owner's death by designating each [a] |
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beneficiary as provided by Section 501.0315, Transportation Code. |
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(b) A beneficiary designation is: |
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(1) subject to Section 115.003(b), revocable and may |
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be changed at any time without the consent of the designated |
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beneficiaries [beneficiary] as provided by Section 501.0315, |
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Transportation Code; |
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(2) a nontestamentary instrument; and |
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(3) effective without: |
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(A) notice or delivery to or acceptance by the |
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designated beneficiaries [beneficiary] during the owner's life; or |
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(B) consideration. |
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SECTION 2. Section 115.004, Estates Code, is amended to |
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read as follows: |
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Sec. 115.004. EFFECT OF BENEFICIARY DESIGNATION DURING |
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OWNER'S LIFE. During a motor vehicle owner's life, a beneficiary |
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designation does not: |
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(1) affect an interest or right of the owner or owners |
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making the designation, including the right to transfer or encumber |
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the motor vehicle that is the subject of the designation; |
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(2) create a legal or equitable interest in favor of a |
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[the] designated beneficiary in the motor vehicle that is the |
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subject of the designation, even if the beneficiary has actual or |
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constructive notice of the designation; |
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(3) affect an interest or right of a secured or |
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unsecured creditor or future creditor of the owner or owners making |
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the designation, even if the creditor has actual or constructive |
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notice of the designation; or |
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(4) affect an owner's or any [the] designated |
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beneficiary's eligibility for any form of public assistance, |
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subject to applicable federal law. |
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SECTION 3. Section 115.005, Estates Code, is amended to |
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read as follows: |
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Sec. 115.005. EFFECT OF BENEFICIARY DESIGNATION AT OWNER'S |
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OR LAST SURVIVING OWNER'S DEATH. (a) On the death of the owner of a |
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motor vehicle that is the subject of a beneficiary designation, the |
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following rules apply to an interest in the motor vehicle: |
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(1) if any [the] designated beneficiary survives the |
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owner making the designation by 120 hours, the interest in the motor |
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vehicle is transferred to each surviving [the] designated |
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beneficiary; and |
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(2) if each [the] designated beneficiary fails to |
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survive the owner making the designation by 120 hours, the share of |
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each [the] designated beneficiary lapses, notwithstanding Section |
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111.052, and is subject to and passes in accordance with Subchapter |
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D, Chapter 255, as if each [the] beneficiary designation were a |
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devise made in a will. |
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(b) If an owner is a joint owner with right of survivorship |
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who is survived by one or more other joint owners, the motor vehicle |
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that is the subject of a [the] beneficiary designation belongs to |
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the surviving joint owner or owners. If an owner is a joint owner |
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with right of survivorship who is the last surviving joint owner, |
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the beneficiary designation is effective. |
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(c) A designated beneficiary takes the motor vehicle |
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subject to all encumbrances, assignments, contracts, liens, and |
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other interests to which the vehicle is subject at the owner's or |
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last surviving owner's death, as applicable. The transfer to one or |
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more [the] designated beneficiaries [beneficiary] does not affect |
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the ability of a lienholder to pursue an existing means of debt |
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collection permitted under the laws of this state. |
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SECTION 4. Sections 501.0315(a), (b), and (c), |
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Transportation Code, are amended to read as follows: |
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(a) The owner of a motor vehicle may designate one or more |
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beneficiaries [a sole beneficiary] to whom the owner's interest in |
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the vehicle transfers on the owner's death as provided by Chapter |
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115, Estates Code, by submitting an application for title under |
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Section 501.023 with the designation. To be effective, the |
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designation must state that the transfer of an interest in the |
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vehicle to one or more [the] designated beneficiaries [beneficiary] |
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is to occur at the transferor's death. |
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(b) The legal name of each [a] beneficiary designated under |
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this section must be included on the title. |
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(c) The department shall transfer title of a motor vehicle |
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to the beneficiary or beneficiaries, as applicable, [a beneficiary] |
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designated under this section for the vehicle if the sole |
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beneficiary submits or all beneficiaries jointly submit, as |
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applicable: |
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(1) an application for title under Section 501.023 not |
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later than the 180th day after the date of the owner's death or, if |
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the vehicle is owned by joint owners, the last surviving owner's |
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death, as applicable; and |
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(2) satisfactory proof of the death of the owner or |
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owners, as applicable. |
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SECTION 5. This Act takes effect September 1, 2025. |