By: Paxton H.B. No. 3767
A BILL TO BE ENTITLED
AN ACT
relating to homestead property transferred to a trustee of certain
trusts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 41, Property Code, is
amended by adding Section 41.0021 to read as follows:
Sec. 41.0021. HOMESTEAD IN QUALIFYING TRUST. (a) In this
section, "qualifying trust" means an express trust:
(1) in which the instrument or court order creating
the express trust provides that a settlor or beneficiary of the
trust has the right to:
(A) revoke the trust without the consent of
another person;
(B) exercise an inter vivos general power of
appointment over the property that qualifies for the homestead
exemption; or
(C) use and occupy the residential property as
the settlor's or beneficiary's principal residence at no cost to the
settlor or beneficiary, other than payment of taxes and other costs
and expenses specified in the instrument or court order:
(i) for the life of the settlor or
beneficiary;
(ii) for the shorter of the life of the
settlor or beneficiary or a term of years specified in the
instrument or court order; or
(iii) until the date the trust is revoked or
terminated by an instrument or court order recorded in the real
property records of the county in which the property is located and
that describes the property with sufficient certainty to identify
the property; and
(2) the trustee of which acquires the property in an
instrument of title or under a court order that:
(A) describes the property with sufficient
certainty to identify the property and the interest acquired; and
(B) is recorded in the real property records of
the county in which the property is located.
(b) Property that a settlor or beneficiary occupies and uses
in a manner described by this subchapter and in which the settlor or
beneficiary owns a beneficial interest through a qualifying trust
is considered the homestead of the settlor or beneficiary under
Section 50, Article XVI, Texas Constitution, and Section 41.001.
(c) A married person who transfers property to the trustee
of a qualifying trust must comply with the requirements relating to
the joinder of the person's spouse as provided by Chapter 5, Family
Code.
(d) A trustee may sell, convey, or encumber property
transferred as described by Subsection (c) without the joinder of
either spouse unless expressly prohibited by the instrument or
court order creating the trust.
(e) This section does not affect the rights of a surviving
spouse or surviving children under Section 52, Article XVI, Texas
Constitution, or Part 3, Chapter VIII, Texas Probate Code.
SECTION 2. This Act applies only to a transfer that is
effective on or after the effective date of this Act. A transfer
that is effective before the effective date of this Act is governed
by the law as it existed immediately before the effective date of
this Act, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.