Relating to the value of property that may be transferred to a custodian or other person for the benefit of a minor under certain circumstances.
Impact
The bill's changes are intended to encourage more significant support for minors by enabling higher asset transfers without court involvement, providing a more flexible and practical framework for property management for minors. By raising the value limits, the bill could enhance financial planning opportunities for families, allowing them to secure more resources for their children proactively. This simplification may result in fewer court interactions, benefitting both families and the judicial system by reducing potential backlogs associated with custodial asset disputes.
Summary
House Bill 2705 amends the Texas Property Code by altering the allowable value of property that can be transferred to a custodian on behalf of a minor. The legislation updates the maximum value for such transfers from $10,000 to $25,000 under certain conditions. Additionally, it adjusts the threshold for property direct transfer to an adult family member or a trust company from $15,000 to $25,000, thus reflecting updated financial standards and potentially easing the process of transferring assets meant for minors. The bill aims to streamline custodial transfers in contexts where it can be beneficial to minors, promoting their financial welfare.
Contention
Debates around HB2705 could center on how the new higher thresholds might lead to unintended consequences, such as family disputes over larger sums or the potential for mismanagement of funds intended for minors. Critics may argue that increasing these limits could reduce the protective oversight that is crucial when managing assets for children. Supporters, on the other hand, advocate for the flexibility that enhances families’ ability to plan for their children's futures, positing that it reflects contemporary financial realities.
Last_action
The bill took effect on September 1, 2015, indicating that discussions surrounding its implications would likely continue as families begin to engage with these new provisions.
Identical
Relating to the value of property that may be transferred to a custodian or other person for the benefit of a minor under certain circumstances.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the waiver under certain circumstances of the late-correction penalty if an appraisal roll is changed as a result of the filing of a motion with the appraisal review board to correct an error that resulted in an incorrect appraised value for an owner's property.