S. B. No. 887

TRANSFERS AFTER SEPTEMBER 1, 1995, TO EXISTING TUGMA ACCCOUNTS

Effective Date: September 1, 1997

AN ACT

relating to the transfer of certain property to a custodian under the Uniform Transfers to Minors Act.

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

SECTION 1.  Section 22, Chapter 141, Property Code (Section 141.022, Vernon's Texas Property Code), is amended to read as follows:

Sec. 22.  APPLICABILITY. Except as provided by Section 25, this [This] chapter applies to a transfer within the scope of Section 3 made after September 1, 1995, if:

(1)  the transfer purports to have been made under the Texas Uniform Gifts to Minors Act; or

(2)  the instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this chapter is necessary to validate the transfer.

SECTION 2.  Chapter 141, Property Code (Section 141.001 et seq., Vernon's Texas Property Code), is amended by adding Section 25 to read as follows:

Sec. 25.  ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN EXISTENCE BEFORE EFFECTIVE DATE OF ACT. (a)  This section applies only to a transfer within the scope of Section 3 made after September 1, 1995, to a custodian of a custodianship established before September 1, 1995, under the Texas Uniform Gifts to Minors Act.

(b)  This chapter does not prevent a person from making additional transfers to a custodianship described by Subsection (a). On the direction of the transferor or custodian, custodial property that is transferred to the custodianship shall be commingled with the custodial property of the custodianship established under the Texas Uniform Gifts to Minors Act. The additional transfers to the custodianship shall be administered and distributed on termination of the custodianship, as prescribed by this chapter, except that for purposes of Section 21, the custodian shall transfer the custodial property to:

(1)  the beneficiary on the date the beneficiary attains 18 years of age or an earlier date as prescribed by Section 21; or

(2)  the beneficiary's estate if the individual dies before the date prescribed by Subdivision (1).

SECTION 3.  This Act takes effect September 1, 1997, and applies only to transfers made under Chapter 141, Property Code, as amended by this Act, on or after September 1, 1995. A transfer made before September 1, 1995, is governed by the law in effect on the date on which the transfer was made, and the former law is continued in effect for that purpose.

SECTION 4.  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 revised May 8, 1997.