Texas 2025 - 89th Regular

Texas House Bill HB3395 Compare Versions

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11 89R5255 KFF-D
22 By: VanDeaver H.B. No. 3395
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to authorizing a beneficiary designation that transfers a
1010 manufactured home classified as personal property at the owner's
1111 death.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Subtitle C, Title 2, Estates Code, is amended by
1414 adding Chapter 116 to read as follows:
1515 CHAPTER 116. BENEFICIARY DESIGNATION FOR CERTAIN MANUFACTURED
1616 HOMES
1717 Sec. 116.001. DEFINITIONS. In this chapter:
1818 (1) "Beneficiary designation" means the designation
1919 by an owner of a manufactured home of a beneficiary of the home as
2020 provided by Section 1201.2135, Occupations Code.
2121 (2) "Designated beneficiary" means a person
2222 designated as a beneficiary of an owner's interest in a
2323 manufactured home under Section 1201.2135, Occupations Code.
2424 (3) "Joint owner with right of survivorship" or "joint
2525 owner" means a person who owns a manufactured home concurrently
2626 with one or more other persons with a right of survivorship. The
2727 term does not include an owner of community property with or without
2828 a right of survivorship.
2929 (4) "Manufactured home" has the meaning assigned by
3030 Section 1201.003, Occupations Code.
3131 (5) "Person" has the meaning assigned by Section
3232 311.005, Government Code.
3333 Sec. 116.002. APPLICABILITY. This chapter applies only to
3434 a manufactured home classified as personal property under Section
3535 2.001, Property Code.
3636 Sec. 116.003. BENEFICIARY DESIGNATION AUTHORIZED. (a) An
3737 owner of a manufactured home may transfer the owner's interest in
3838 the home to a sole beneficiary effective on the owner's death by
3939 designating a beneficiary as provided by Section 1201.2135,
4040 Occupations Code.
4141 (b) A beneficiary designation is:
4242 (1) subject to Section 116.004(b), revocable and may
4343 be changed at any time without the consent of the designated
4444 beneficiary as provided by Section 1201.2135, Occupations Code;
4545 (2) a nontestamentary instrument; and
4646 (3) effective without:
4747 (A) notice or delivery to or acceptance by the
4848 designated beneficiary during the owner's life; or
4949 (B) consideration.
5050 (c) A will may not revoke or supersede a beneficiary
5151 designation, regardless of when the will is made.
5252 (d) A designated beneficiary may disclaim the designated
5353 beneficiary's interest in the manufactured home as provided by
5454 Chapter 240, Property Code.
5555 Sec. 116.004. JOINT OWNERSHIP. (a) If a manufactured home
5656 that is the subject of a beneficiary designation is owned by joint
5757 owners with right of survivorship, the beneficiary designation must
5858 be made by all of the joint owners.
5959 (b) A beneficiary designation made by joint owners with
6060 right of survivorship:
6161 (1) may be revoked or changed as provided by Section
6262 1201.2135, Occupations Code, only if it is revoked or changed by all
6363 of the joint owners; and
6464 (2) may be revoked or changed by the last surviving
6565 joint owner as provided by Section 1201.2135, Occupations Code.
6666 Sec. 116.005. EFFECT OF BENEFICIARY DESIGNATION DURING
6767 OWNER'S LIFE. During a manufactured home owner's life, a
6868 beneficiary designation does not:
6969 (1) affect an interest or right of the owner or owners
7070 making the designation, including the right to transfer or
7171 encumber the home that is the subject of the designation;
7272 (2) create a legal or equitable interest in favor of
7373 the designated beneficiary in the home that is the subject of the
7474 designation, even if the beneficiary has actual or constructive
7575 notice of the designation;
7676 (3) affect an interest or right of a secured or
7777 unsecured creditor or future creditor of the owner or owners making
7878 the designation, even if the creditor has actual or constructive
7979 notice of the designation; or
8080 (4) affect an owner's or the designated beneficiary's
8181 eligibility for any form of public assistance, subject to
8282 applicable federal law.
8383 Sec. 116.006. EFFECT OF BENEFICIARY DESIGNATION AT OWNER'S
8484 OR LAST SURVIVING OWNER'S DEATH. (a) On the death of the owner of a
8585 manufactured home that is the subject of a beneficiary designation,
8686 the following rules apply to an interest in the home:
8787 (1) if the designated beneficiary survives the owner
8888 making the designation by 120 hours, the interest in the home is
8989 transferred to the designated beneficiary; and
9090 (2) if the designated beneficiary fails to survive the
9191 owner making the designation by 120 hours, the share of the
9292 designated beneficiary lapses, notwithstanding Section 111.052,
9393 and is subject to and passes in accordance with Subchapter D,
9494 Chapter 255, as if the beneficiary designation were a devise made in
9595 a will.
9696 (b) If an owner is a joint owner with right of survivorship
9797 who is survived by one or more other joint owners, the manufactured
9898 home that is the subject of the beneficiary designation belongs to
9999 the surviving joint owner or owners. If an owner is a joint owner
100100 with right of survivorship who is the last surviving joint owner,
101101 the beneficiary designation is effective.
102102 (c) A designated beneficiary takes the manufactured home
103103 subject to all encumbrances, assignments, contracts, liens, and
104104 other interests to which the home is subject at the owner's or last
105105 surviving owner's death, as applicable. The transfer to the
106106 designated beneficiary does not affect the ability of a lienholder
107107 to pursue an existing means of debt collection permitted under the
108108 laws of this state.
109109 Sec. 116.007. CREDITOR CLAIMS; ALLOWANCES IN LIEU OF EXEMPT
110110 PROPERTY AND FAMILY ALLOWANCES. Sections 114.104(b), (c), and (d)
111111 and Section 114.106 apply to a transfer of an owner's interest in a
112112 manufactured home by a beneficiary designation in the same manner
113113 and to the same extent as a transfer of real property under a
114114 transfer on death deed under Chapter 114.
115115 SECTION 2. Section 122.001(1), Estates Code, is amended to
116116 read as follows:
117117 (1) "Beneficiary" includes a person who would have
118118 been entitled, if the person had not made a disclaimer, to receive
119119 property as a result of the death of another person:
120120 (A) by inheritance;
121121 (B) under a will;
122122 (C) by an agreement between spouses for community
123123 property with a right of survivorship;
124124 (D) by a joint tenancy with a right of
125125 survivorship;
126126 (E) by a survivorship agreement, account, or
127127 interest in which the interest of the decedent passes to a surviving
128128 beneficiary;
129129 (F) by an insurance, annuity, endowment,
130130 employment, deferred compensation, or other contract or
131131 arrangement;
132132 (G) under a pension, profit sharing, thrift,
133133 stock bonus, life insurance, survivor income, incentive, or other
134134 plan or program providing retirement, welfare, or fringe benefits
135135 with respect to an employee or a self-employed individual;
136136 (H) by a transfer on death deed; [or]
137137 (I) by a beneficiary designation, as defined by
138138 Section 115.001, made for a motor vehicle; or
139139 (J) by a beneficiary designation, as defined by
140140 Section 116.001, made for a manufactured home.
141141 SECTION 3. Subchapter E, Chapter 1201, Occupations Code, is
142142 amended by adding Section 1201.2135 to read as follows:
143143 Sec. 1201.2135. BENEFICIARY DESIGNATION. (a) The owner of
144144 a manufactured home may designate a sole beneficiary to whom the
145145 owner's interest in the home transfers on the owner's death as
146146 provided by Chapter 116, Estates Code, by submitting an application
147147 for the issuance of a new statement of ownership under Section
148148 1201.206 with the designation. To be effective, the designation
149149 must state that the transfer of an interest in the home to the
150150 designated beneficiary is to occur at the transferor's death.
151151 (b) The legal name of a beneficiary designated under this
152152 section must be included on the statement of ownership.
153153 (c) The department shall transfer ownership of a
154154 manufactured home to a beneficiary designated under this section
155155 for the home if the beneficiary submits:
156156 (1) an application for the issuance of a statement of
157157 ownership under Section 1201.206 not later than the 180th day after
158158 the date of the owner's death or, if the home is owned by joint
159159 owners, the last surviving owner's death, as applicable; and
160160 (2) satisfactory proof of the death of the owner or
161161 owners, as applicable.
162162 (d) A beneficiary designation may be changed or revoked by
163163 submitting a new application for the issuance of a statement of
164164 ownership under Section 1201.206.
165165 (e) A beneficiary designation or a change or revocation of a
166166 beneficiary designation made on an application for the issuance of
167167 a statement of ownership for a manufactured home that has not been
168168 submitted to the department before the death of a home's owner or
169169 owners who made, changed, or revoked the designation, as
170170 applicable, is invalid.
171171 (f) The department may adopt rules to administer this
172172 section.
173173 SECTION 4. This Act takes effect September 1, 2025.