1 | 1 | | 89R5255 KFF-D |
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2 | 2 | | By: VanDeaver H.B. No. 3395 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to authorizing a beneficiary designation that transfers a |
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10 | 10 | | manufactured home classified as personal property at the owner's |
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11 | 11 | | death. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Subtitle C, Title 2, Estates Code, is amended by |
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14 | 14 | | adding Chapter 116 to read as follows: |
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15 | 15 | | CHAPTER 116. BENEFICIARY DESIGNATION FOR CERTAIN MANUFACTURED |
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16 | 16 | | HOMES |
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17 | 17 | | Sec. 116.001. DEFINITIONS. In this chapter: |
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18 | 18 | | (1) "Beneficiary designation" means the designation |
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19 | 19 | | by an owner of a manufactured home of a beneficiary of the home as |
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20 | 20 | | provided by Section 1201.2135, Occupations Code. |
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21 | 21 | | (2) "Designated beneficiary" means a person |
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22 | 22 | | designated as a beneficiary of an owner's interest in a |
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23 | 23 | | manufactured home under Section 1201.2135, Occupations Code. |
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24 | 24 | | (3) "Joint owner with right of survivorship" or "joint |
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25 | 25 | | owner" means a person who owns a manufactured home concurrently |
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26 | 26 | | with one or more other persons with a right of survivorship. The |
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27 | 27 | | term does not include an owner of community property with or without |
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28 | 28 | | a right of survivorship. |
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29 | 29 | | (4) "Manufactured home" has the meaning assigned by |
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30 | 30 | | Section 1201.003, Occupations Code. |
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31 | 31 | | (5) "Person" has the meaning assigned by Section |
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32 | 32 | | 311.005, Government Code. |
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33 | 33 | | Sec. 116.002. APPLICABILITY. This chapter applies only to |
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34 | 34 | | a manufactured home classified as personal property under Section |
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35 | 35 | | 2.001, Property Code. |
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36 | 36 | | Sec. 116.003. BENEFICIARY DESIGNATION AUTHORIZED. (a) An |
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37 | 37 | | owner of a manufactured home may transfer the owner's interest in |
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38 | 38 | | the home to a sole beneficiary effective on the owner's death by |
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39 | 39 | | designating a beneficiary as provided by Section 1201.2135, |
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40 | 40 | | Occupations Code. |
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41 | 41 | | (b) A beneficiary designation is: |
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42 | 42 | | (1) subject to Section 116.004(b), revocable and may |
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43 | 43 | | be changed at any time without the consent of the designated |
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44 | 44 | | beneficiary as provided by Section 1201.2135, Occupations Code; |
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45 | 45 | | (2) a nontestamentary instrument; and |
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46 | 46 | | (3) effective without: |
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47 | 47 | | (A) notice or delivery to or acceptance by the |
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48 | 48 | | designated beneficiary during the owner's life; or |
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49 | 49 | | (B) consideration. |
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50 | 50 | | (c) A will may not revoke or supersede a beneficiary |
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51 | 51 | | designation, regardless of when the will is made. |
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52 | 52 | | (d) A designated beneficiary may disclaim the designated |
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53 | 53 | | beneficiary's interest in the manufactured home as provided by |
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54 | 54 | | Chapter 240, Property Code. |
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55 | 55 | | Sec. 116.004. JOINT OWNERSHIP. (a) If a manufactured home |
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56 | 56 | | that is the subject of a beneficiary designation is owned by joint |
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57 | 57 | | owners with right of survivorship, the beneficiary designation must |
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58 | 58 | | be made by all of the joint owners. |
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59 | 59 | | (b) A beneficiary designation made by joint owners with |
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60 | 60 | | right of survivorship: |
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61 | 61 | | (1) may be revoked or changed as provided by Section |
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62 | 62 | | 1201.2135, Occupations Code, only if it is revoked or changed by all |
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63 | 63 | | of the joint owners; and |
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64 | 64 | | (2) may be revoked or changed by the last surviving |
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65 | 65 | | joint owner as provided by Section 1201.2135, Occupations Code. |
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66 | 66 | | Sec. 116.005. EFFECT OF BENEFICIARY DESIGNATION DURING |
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67 | 67 | | OWNER'S LIFE. During a manufactured home owner's life, a |
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68 | 68 | | beneficiary designation does not: |
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69 | 69 | | (1) affect an interest or right of the owner or owners |
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70 | 70 | | making the designation, including the right to transfer or |
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71 | 71 | | encumber the home that is the subject of the designation; |
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72 | 72 | | (2) create a legal or equitable interest in favor of |
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73 | 73 | | the designated beneficiary in the home that is the subject of the |
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74 | 74 | | designation, even if the beneficiary has actual or constructive |
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75 | 75 | | notice of the designation; |
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76 | 76 | | (3) affect an interest or right of a secured or |
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77 | 77 | | unsecured creditor or future creditor of the owner or owners making |
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78 | 78 | | the designation, even if the creditor has actual or constructive |
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79 | 79 | | notice of the designation; or |
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80 | 80 | | (4) affect an owner's or the designated beneficiary's |
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81 | 81 | | eligibility for any form of public assistance, subject to |
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82 | 82 | | applicable federal law. |
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83 | 83 | | Sec. 116.006. EFFECT OF BENEFICIARY DESIGNATION AT OWNER'S |
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84 | 84 | | OR LAST SURVIVING OWNER'S DEATH. (a) On the death of the owner of a |
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85 | 85 | | manufactured home that is the subject of a beneficiary designation, |
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86 | 86 | | the following rules apply to an interest in the home: |
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87 | 87 | | (1) if the designated beneficiary survives the owner |
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88 | 88 | | making the designation by 120 hours, the interest in the home is |
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89 | 89 | | transferred to the designated beneficiary; and |
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90 | 90 | | (2) if the designated beneficiary fails to survive the |
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91 | 91 | | owner making the designation by 120 hours, the share of the |
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92 | 92 | | designated beneficiary lapses, notwithstanding Section 111.052, |
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93 | 93 | | and is subject to and passes in accordance with Subchapter D, |
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94 | 94 | | Chapter 255, as if the beneficiary designation were a devise made in |
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95 | 95 | | a will. |
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96 | 96 | | (b) If an owner is a joint owner with right of survivorship |
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97 | 97 | | who is survived by one or more other joint owners, the manufactured |
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98 | 98 | | home that is the subject of the beneficiary designation belongs to |
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99 | 99 | | the surviving joint owner or owners. If an owner is a joint owner |
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100 | 100 | | with right of survivorship who is the last surviving joint owner, |
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101 | 101 | | the beneficiary designation is effective. |
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102 | 102 | | (c) A designated beneficiary takes the manufactured home |
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103 | 103 | | subject to all encumbrances, assignments, contracts, liens, and |
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104 | 104 | | other interests to which the home is subject at the owner's or last |
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105 | 105 | | surviving owner's death, as applicable. The transfer to the |
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106 | 106 | | designated beneficiary does not affect the ability of a lienholder |
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107 | 107 | | to pursue an existing means of debt collection permitted under the |
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108 | 108 | | laws of this state. |
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109 | 109 | | Sec. 116.007. CREDITOR CLAIMS; ALLOWANCES IN LIEU OF EXEMPT |
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110 | 110 | | PROPERTY AND FAMILY ALLOWANCES. Sections 114.104(b), (c), and (d) |
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111 | 111 | | and Section 114.106 apply to a transfer of an owner's interest in a |
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112 | 112 | | manufactured home by a beneficiary designation in the same manner |
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113 | 113 | | and to the same extent as a transfer of real property under a |
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114 | 114 | | transfer on death deed under Chapter 114. |
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115 | 115 | | SECTION 2. Section 122.001(1), Estates Code, is amended to |
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116 | 116 | | read as follows: |
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117 | 117 | | (1) "Beneficiary" includes a person who would have |
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118 | 118 | | been entitled, if the person had not made a disclaimer, to receive |
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119 | 119 | | property as a result of the death of another person: |
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120 | 120 | | (A) by inheritance; |
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121 | 121 | | (B) under a will; |
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122 | 122 | | (C) by an agreement between spouses for community |
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123 | 123 | | property with a right of survivorship; |
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124 | 124 | | (D) by a joint tenancy with a right of |
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125 | 125 | | survivorship; |
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126 | 126 | | (E) by a survivorship agreement, account, or |
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127 | 127 | | interest in which the interest of the decedent passes to a surviving |
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128 | 128 | | beneficiary; |
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129 | 129 | | (F) by an insurance, annuity, endowment, |
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130 | 130 | | employment, deferred compensation, or other contract or |
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131 | 131 | | arrangement; |
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132 | 132 | | (G) under a pension, profit sharing, thrift, |
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133 | 133 | | stock bonus, life insurance, survivor income, incentive, or other |
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134 | 134 | | plan or program providing retirement, welfare, or fringe benefits |
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135 | 135 | | with respect to an employee or a self-employed individual; |
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136 | 136 | | (H) by a transfer on death deed; [or] |
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137 | 137 | | (I) by a beneficiary designation, as defined by |
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138 | 138 | | Section 115.001, made for a motor vehicle; or |
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139 | 139 | | (J) by a beneficiary designation, as defined by |
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140 | 140 | | Section 116.001, made for a manufactured home. |
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141 | 141 | | SECTION 3. Subchapter E, Chapter 1201, Occupations Code, is |
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142 | 142 | | amended by adding Section 1201.2135 to read as follows: |
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143 | 143 | | Sec. 1201.2135. BENEFICIARY DESIGNATION. (a) The owner of |
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144 | 144 | | a manufactured home may designate a sole beneficiary to whom the |
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145 | 145 | | owner's interest in the home transfers on the owner's death as |
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146 | 146 | | provided by Chapter 116, Estates Code, by submitting an application |
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147 | 147 | | for the issuance of a new statement of ownership under Section |
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148 | 148 | | 1201.206 with the designation. To be effective, the designation |
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149 | 149 | | must state that the transfer of an interest in the home to the |
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150 | 150 | | designated beneficiary is to occur at the transferor's death. |
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151 | 151 | | (b) The legal name of a beneficiary designated under this |
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152 | 152 | | section must be included on the statement of ownership. |
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153 | 153 | | (c) The department shall transfer ownership of a |
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154 | 154 | | manufactured home to a beneficiary designated under this section |
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155 | 155 | | for the home if the beneficiary submits: |
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156 | 156 | | (1) an application for the issuance of a statement of |
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157 | 157 | | ownership under Section 1201.206 not later than the 180th day after |
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158 | 158 | | the date of the owner's death or, if the home is owned by joint |
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159 | 159 | | owners, the last surviving owner's death, as applicable; and |
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160 | 160 | | (2) satisfactory proof of the death of the owner or |
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161 | 161 | | owners, as applicable. |
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162 | 162 | | (d) A beneficiary designation may be changed or revoked by |
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163 | 163 | | submitting a new application for the issuance of a statement of |
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164 | 164 | | ownership under Section 1201.206. |
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165 | 165 | | (e) A beneficiary designation or a change or revocation of a |
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166 | 166 | | beneficiary designation made on an application for the issuance of |
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167 | 167 | | a statement of ownership for a manufactured home that has not been |
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168 | 168 | | submitted to the department before the death of a home's owner or |
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169 | 169 | | owners who made, changed, or revoked the designation, as |
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170 | 170 | | applicable, is invalid. |
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171 | 171 | | (f) The department may adopt rules to administer this |
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172 | 172 | | section. |
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173 | 173 | | SECTION 4. This Act takes effect September 1, 2025. |
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