H.B. No. 1126

MANAGEMENT OF UP TO $50,000 WITHOUT GUARDIANSHIP

Effective Date: September 1, 1997

AN ACT

relating to the sale or distribution of the property of minors and certain wards.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1.  Sections 887(a) and (e), Texas Probate Code, are amended to read as follows:

(a)  When a resident person who is a minor or other incapacitated person, or the former ward of a guardianship terminated under Subpart C, Part 4, of this code, who are referred to in this section as "creditor," are without a legal guardian of the person's estate, and the person is entitled to money in an amount that is $50,000 [$25,000] or less, the right to which is liquidated and is uncontested in any pending lawsuit, the debtor may pay the money to the county clerk of the county in which the creditor resides to the account of the creditor, giving the creditor's name, the creditor's social security identification number, the nature of the creditor's disability, and, if the creditor is a minor, the minor's age, and the creditor's post-office address. The receipt for the money signed by the clerk is binding on the creditor as of the date of receipt and to the extent of the payment. The clerk, by letter mailed to the address given by the debtor, shall apprise the creditor of the fact that the deposit was made. On receipt of the payment by the clerk, the clerk shall call the receipt of the payment to the court's attention and shall invest the money as authorized under this chapter pursuant to court order in the name and for the account of the minor or other person entitled to the money. Any increase, dividend, or income from an investment made under this section shall be credited to the account of the minor or other person entitled to the investment. Any money that is deposited under the terms of this section that has not been paid out shall be subject to the provisions of this chapter not later than October 1, 1993.

(e)  When a nonresident minor, a nonresident person who is adjudged by a court of competent jurisdiction to be incapacitated, or the former ward of a guardianship terminated under Subpart C, Part 4, of this code who has no legal guardian qualified in this state is entitled to money in an amount that is not more than $50,000 [$25,000] owing as a result of transactions within this state, the right to which is liquidated and is uncontested in any pending lawsuit in this state, the debtor in this state may pay the money to the guardian of the creditor who is duly qualified in the domiciliary jurisdiction or to the county clerk of any county in this state in which real property owned by the nonresident person is located. If the person is not known to own any real property in any county in this state the debtor has the right to pay the money to the county clerk of the county of this state in which the debtor resides. In either case, the debtor's payment to the clerk is for the use and benefit and for the account of the nonresident creditor. The receipt for the payment signed by the clerk that recites the name of the creditor and the post office address of the creditor, if known, is binding on the creditor as of the date and to the extent of the payment. The clerk shall handle the money paid to the clerk by the debtor in the same manner as provided for cases of payments to the accounts of residents of this state under Subsections (a)-(d) of this section. All applicable provisions of Subsections (a)-(d) of this section apply to the handling and disposition of money or any increase, dividend, or income paid to the clerk for the use, benefit, and account of the nonresident creditor.

SECTION 2.  Section 889(a), Texas Probate Code, is amended to read as follows:

(a)  When the net value of the minor's interest in real or personal property in an estate does not exceed $50,000 [$25,000], a natural or adoptive parent, or the managing conservator, of a minor who is not a ward may apply to the court for an order to sell the real or personal property of a minor in an estate without being appointed guardian. A minor may not disaffirm a sale of property pursuant to a court order under this section.

SECTION 3.  The heading of Subpart F, Part 5, Chapter XIII, Texas Probate Code, is amended to read as follows:

SUBPART F.  SALE OF PROPERTY OF MINORS AND

CERTAIN WARDS [MINOR]

SECTION 4.  Subpart F, Part 5, Chapter XIII, Texas Probate Code, is amended by adding Section 890 to read as follows:

Sec. 890.  SALE OF PROPERTY OF WARD WITHOUT GUARDIANSHIP OF THE ESTATE. (a)  This section applies only to a ward who has a guardian of the person but does not have a guardian of the estate.

(b)  When a ward has an interest in real or personal property in an estate and the net value of the interest does not exceed $50,000, the guardian may apply under oath to the court for an order to sell the ward's interest in the property without being appointed guardian of the estate. A ward may not disaffirm a sale of property pursuant to a court order under this section.

(c)  Venue for an application under this section is the same as venue for an application for the appointment of a guardian for the ward. The application must contain the same information required by Section 889(b) of this code.

(d)  On receipt of the application, the court shall set the application for hearing at a date not earlier than five days from the date of the filing of the application. If the court considers it necessary, the court may cause citation to be issued.

(e)  The procedures and evidentiary requirements for a hearing of an application filed under this section are the same as the procedures and evidentiary requirements for a hearing of an application filed under Section 889 of this code.

(f)  When the court enters the order of sale, the purchaser of the property shall pay the proceeds of the sale belonging to the ward into the court registry.

(g)  Nothing in this section prevents the proceeds deposited in the court registry from being withdrawn as prescribed by Section 887 of this code.

SECTION 5.  This Act takes effect September 1, 1997.

SECTION 6.  The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.


Courtesy of Glenn M. Karisch, Ikard & Golden, P. C., Austin, Texas. This page was last modified on May 12, 1997.