Texas Senate Bill SB1940

Texas 2025 - 89th Regular

• Filed: 3/5/25
• Out of Senate Committee: 4/14/25
• Voted on by Senate: 4/24/25
• Out of House Committee: 5/16/25
• Voted on by House: 5/23/25
• Governor Action: 6/20/25

Caption

Relating to authorizing a beneficiary designation that transfers a manufactured home classified as personal property at the owner's death.

Impact

The implementation of SB1940 would modify how ownership of manufactured homes is legally transferred at death, which could substantially simplify estate planning for owners. The bill stipulates that a beneficiary designation is a nontestamentary instrument, meaning it does not require a will to effectuate the transfer. This could reduce legal complications and disputes over estate distributions since the designation can be changed at any time prior to the owner's death without requiring the consent of the beneficiaries, offering flexibility for homeowners.

Summary

SB1940 aims to authorize a new beneficiary designation process that allows owners of manufactured homes, classified as personal property, to designate one or more beneficiaries. This transfer of ownership would take effect upon the owner's death, streamlining the process for passing property to designated heirs. This legislative change introduces a significant amendment to the Estates Code by adding a new chapter aimed specifically at enabling smoother transitions of ownership for manufactured homes, which are often subject to different laws compared to traditional real estate.

Sentiment

The overall sentiment surrounding SB1940 appears to be positive among supporters who assert that it will provide an easier and more straightforward mechanism for the transfer of manufactured homes upon death. Proponents argue that this will help reduce legal fees and expedite the process, benefiting families and individuals who own these types of properties. However, potential concerns were raised about ensuring that owners are fully informed about the implications of designating beneficiaries without comprehensive legal guidance.

Contention

Notable points of contention involve the specifics of how the bill interacts with existing laws regarding joint ownership and creditor claims. There is apprehension about the potential oversight in protecting creditors' rights, as the transfer to a designated beneficiary could complicate future claims against the estate of the deceased. Additionally, the requirement that the beneficiaries survive the owner by 120 hours to inherit could lead to disputes among heirs if not clearly communicated. Advocates for the bill emphasize the need to balance ease of property transfer with necessary safeguards for creditors and estate management.

Texas Constitutional Statutes Affected

Occupations Code

• Chapter 1. General Provisions
  • Section: New Section
  • Section: New Section
  • Section: New Section

• Chapter 1201. Manufactured Housing
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section