84R26458 CLG-F
	By: Huffman, et al.	S.B. No. 462
	(Farrar)
	Substitute the following for S.B. No. 462:  No.

	A BILL TO BE ENTITLED
	AN ACT
	relating to authorizing a revocable deed that transfers real
	property at the transferor's death.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle C, Title 2, Estates Code, is amended by
	adding Chapter 114 to read as follows:
	CHAPTER 114. TRANSFER ON DEATH DEED
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 114.001.  SHORT TITLE. This chapter may be cited as the
	Texas Real Property Transfer on Death Act.
	Sec. 114.002.  DEFINITIONS. (a) In this chapter:
	(1)  "Beneficiary" means a person who receives real
	property under a transfer on death deed.
	(2)  "Designated beneficiary" means a person
	designated to receive real property in a transfer on death deed.
	(3)  "Joint owner with right of survivorship" or "joint
	owner" means an individual who owns real property concurrently with
	one or more other individuals with a right of survivorship. The term
	does not include a tenant in common or an owner of community
	property with or without a right of survivorship.
	(4)  "Person" has the meaning assigned by Section
	311.005, Government Code.
	(5)  "Real property" means an interest in real property
	located in this state.
	(6)  "Transfer on death deed" means a deed authorized
	under this chapter and does not refer to any other deed that
	transfers an interest in real property on the death of an
	individual.
	(7)  "Transferor" means an individual who makes a
	transfer on death deed.
	(b)  In this chapter, the terms "cancel" and "revoke" are
	synonymous.
	Sec. 114.003.  APPLICABILITY. This chapter applies to a
	transfer on death deed executed and acknowledged on or after
	September 1, 2015, by a transferor who dies on or after September 1,
	2015.
	Sec. 114.004.  NONEXCLUSIVITY. This chapter does not affect
	any method of transferring real property otherwise permitted under
	the laws of this state.
	Sec. 114.005.  UNIFORMITY OF APPLICATION AND CONSTRUCTION.
	In applying and construing this chapter, consideration must be
	given to the need to promote uniformity of the law with respect to
	the subject matter of this chapter among states that enact a law
	similar to this chapter.
	Sec. 114.006.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
	AND NATIONAL COMMERCE ACT. This chapter modifies, limits, and
	supersedes the federal Electronic Signatures in Global and National
	Commerce Act (15 U.S.C. Section 7001 et seq.), except that this
	chapter does not modify, limit, or supersede Section 101(c) of that
	Act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of
	any of the notices described in Section 103(b) of that Act (15
	U.S.C. Section 7003(b)).
	SUBCHAPTER B. AUTHORIZATION, EXECUTION, AND REVOCATION OF TRANSFER
	ON DEATH DEED
	Sec. 114.051.  TRANSFER ON DEATH DEED AUTHORIZED. An
	individual may transfer the individual's interest in real property
	to one or more beneficiaries effective at the transferor's death by
	a transfer on death deed.
	Sec. 114.052.  TRANSFER ON DEATH DEED REVOCABLE. A transfer
	on death deed is revocable regardless of whether the deed or another
	instrument contains a contrary provision.
	Sec. 114.053.  TRANSFER ON DEATH DEED NONTESTAMENTARY. A
	transfer on death deed is a nontestamentary instrument.
	Sec. 114.054.  CAPACITY OF TRANSFEROR; USE OF POWER OF
	ATTORNEY. (a)  The capacity required to make or revoke a transfer
	on death deed is the same as the capacity required to make a
	contract.
	(b)  A transfer on death deed may not be created through use
	of a power of attorney.
	Sec. 114.055.  REQUIREMENTS. To be effective, a transfer on
	death deed must:
	(1)  except as otherwise provided in Subdivision (2),
	contain the essential elements and formalities of a recordable
	deed;
	(2)  state that the transfer of an interest in real
	property to the designated beneficiary is to occur at the
	transferor's death; and
	(3)  be recorded before the transferor's death in the
	deed records in the county clerk's office of the county where the
	real property is located.
	Sec. 114.056.  NOTICE, DELIVERY, ACCEPTANCE, OR
	CONSIDERATION NOT REQUIRED. A transfer on death deed is effective
	without:
	(1)  notice or delivery to or acceptance by the
	designated beneficiary during the transferor's life; or
	(2)  consideration.
	Sec. 114.057.  REVOCATION BY CERTAIN INSTRUMENTS; EFFECT OF
	WILL OR MARRIAGE DISSOLUTION. (a) Subject to Subsections (d) and
	(e), an instrument is effective to revoke a recorded transfer on
	death deed, or any part of it, if the instrument:
	(1)  is one of the following:
	(A)  a subsequent transfer on death deed that
	revokes the preceding transfer on death deed or part of the deed
	expressly or by inconsistency; or
	(B)  except as provided by Subsection (b), an
	instrument of revocation that expressly revokes the transfer on
	death deed or part of the deed;
	(2)  is acknowledged by the transferor after the
	acknowledgment of the deed being revoked; and
	(3)  is recorded before the transferor's death in the
	deed records in the county clerk's office of the county where the
	deed being revoked is recorded.
	(b)  A will may not revoke or supersede a transfer on death
	deed.
	(c)  If a marriage between the transferor and a designated
	beneficiary is dissolved after a transfer on death deed is
	recorded, a final judgment of the court dissolving the marriage
	operates to revoke the transfer on death deed as to that designated
	beneficiary if notice of the judgment is recorded before the
	transferor's death in the deed records in the county clerk's office
	of the county where the deed is recorded, notwithstanding Section
	111.052.
	(d)  If a transfer on death deed is made by more than one
	transferor, revocation by a transferor does not affect the deed as
	to the interest of another transferor who does not make that
	revocation.
	(e)  A transfer on death deed made by joint owners with right
	of survivorship is revoked only if it is revoked by all of the
	living joint owners.
	(f)  This section does not limit the effect of an inter vivos
	transfer of the real property.
	SUBCHAPTER C.  EFFECT OF TRANSFER ON DEATH DEED; LIABILITY OF
	TRANSFERRED PROPERTY FOR CREDITORS' CLAIMS
	Sec. 114.101.  EFFECT OF TRANSFER ON DEATH DEED DURING
	TRANSFEROR'S LIFE. During a transferor's life, a transfer on death
	deed does not:
	(1)  affect an interest or right of the transferor or
	any other owner, including:
	(A)  the right to transfer or encumber the real
	property that is the subject of the deed;
	(B)  homestead rights in the real property, if
	applicable; and
	(C)  ad valorem tax exemptions, including
	exemptions for residence homestead, persons 65 years of age or
	older, persons with disabilities, and veterans;
	(2)  affect an interest or right of a transferee of the
	real property that is the subject of the deed, even if the
	transferee has actual or constructive notice of the deed;
	(3)  affect an interest or right of a secured or
	unsecured creditor or future creditor of the transferor, even if
	the creditor has actual or constructive notice of the deed;
	(4)  affect the transferor's or designated
	beneficiary's eligibility for any form of public assistance,
	subject to applicable federal law;
	(5)  constitute a transfer triggering a "due on sale"
	or similar clause;
	(6)  invoke statutory real estate notice or disclosure
	requirements;
	(7)  create a legal or equitable interest in favor of
	the designated beneficiary; or
	(8)  subject the real property to claims or process of a
	creditor of the designated beneficiary.
	Sec. 114.102.  EFFECT OF SUBSEQUENT CONVEYANCE ON TRANSFER
	ON DEATH DEED. An otherwise valid transfer on death deed is void as
	to any interest in real property that is conveyed by the transferor
	during the transferor's lifetime after the transfer on death deed
	is executed and recorded if:
	(1)  a valid instrument conveying the interest is
	recorded in the deed records in the county clerk's office of the
	same county in which the transfer on death deed is recorded; and
	(2)  the recording of the instrument occurs before the
	transferor's death.
	Sec. 114.103.  EFFECT OF TRANSFER ON DEATH DEED AT
	TRANSFEROR'S DEATH. (a) Except as otherwise provided in the
	transfer on death deed, this section, or any other statute or the
	common law of this state governing a decedent's estate, on the death
	of the transferor, the following rules apply to an interest in real
	property that is the subject of a transfer on death deed and owned
	by the transferor at death:
	(1)  if the designated beneficiary survives the
	transferor by 120 hours, the interest in the real property is
	transferred to the designated beneficiary in accordance with the
	deed;
	(2)  the interest of a designated beneficiary that
	fails to survive the transferor by 120 hours lapses,
	notwithstanding Section 111.052;
	(3)  subject to Subdivision (4), concurrent interests
	are transferred to the beneficiaries in equal and undivided shares
	with no right of survivorship; and
	(4)  notwithstanding Subdivision (2), if the
	transferor has identified two or more designated beneficiaries to
	receive concurrent interests in the real property, the share of a
	designated beneficiary who predeceases the transferor lapses and is
	subject to and passes in accordance with Subchapter D, Chapter 255,
	as if the transfer on death deed were a devise made in a will.
	(b)  If a transferor is a joint owner with right of
	survivorship who is survived by one or more other joint owners, the
	real property that is the subject of the transfer on death deed
	belongs to the surviving joint owner or owners.  If a transferor is
	a joint owner with right of survivorship who is the last surviving
	joint owner, the transfer on death deed is effective.
	(c)  If a transfer on death deed is made by two or more
	transferors who are joint owners with right of survivorship, the
	last surviving joint owner may revoke the transfer on death deed
	subject to Section 114.057.
	(d)  A transfer on death deed transfers real property without
	covenant of warranty of title even if the deed contains a contrary
	provision.
	Sec. 114.104.  TRANSFER ON DEATH DEED PROPERTY SUBJECT TO
	LIENS AND ENCUMBRANCES AT TRANSFEROR'S DEATH; CREDITORS' CLAIMS.
	(a)  Subject to Section 13.001, Property Code, a beneficiary takes
	the real property subject to all conveyances, encumbrances,
	assignments, contracts, mortgages, liens, and other interests to
	which the real property is subject at the transferor's death. For
	purposes of this subsection and Section 13.001, Property Code, the
	recording of the transfer on death deed is considered to have
	occurred at the transferor's death.
	(b)  If a personal representative has been appointed for the
	transferor's estate, an administration of the estate has been
	opened, and the real property transferring under a transfer on
	death deed is subject to a lien or security interest, including a
	deed of trust or mortgage, the personal representative shall give
	notice to the creditor of the transferor as the personal
	representative would any other secured creditor under Section
	308.053. The creditor shall then make an election under Section
	355.151 in the period prescribed by Section 355.152 to have the
	claim treated as a matured secured claim or a preferred debt and
	lien claim, and the claim is subject to the claims procedures
	prescribed by this section.
	(c)  If the secured creditor elects to have the claim treated
	as a preferred debt and lien claim, Sections 355.154 and 355.155
	apply as if the transfer on death deed were a devise made in a will,
	and the creditor may not pursue any other claims or remedies for any
	deficiency against the transferor's estate.
	(d)  If the secured creditor elects to have the claim treated
	as a matured secured claim, Section 355.153 applies as if the
	transfer on death deed were a devise made in a will, and the claim is
	subject to the procedural provisions of this title governing
	creditor claims.
	Sec. 114.105.  DISCLAIMER. A designated beneficiary may
	disclaim all or part of the designated beneficiary's interest as
	provided by Chapter 122.
	Sec. 114.106.  LIABILITY FOR CREDITOR CLAIMS; ALLOWANCES IN
	LIEU OF EXEMPT PROPERTY AND FAMILY ALLOWANCES. (a)  To the extent
	the transferor's estate is insufficient to satisfy a claim against
	the estate, expenses of administration, any estate tax owed by the
	estate, or an allowance in lieu of exempt property or family
	allowance to a surviving spouse, minor children, or incapacitated
	adult children, the personal representative may enforce that
	liability against real property transferred at the transferor's
	death by a transfer on death deed to the same extent the personal
	representative could enforce that liability if the real property
	were part of the probate estate.
	(b)  Notwithstanding Subsection (a), real property
	transferred at the transferor's death by a transfer on death deed is
	not considered property of the probate estate for any purpose,
	including for purposes of Section 531.077, Government Code.
	(c)  If a personal representative does not commence a
	proceeding to enforce a liability under Subsection (a) on or before
	the 90th day after the date the representative receives a demand for
	payment, a proceeding to enforce the liability may be brought by a
	creditor, a distributee of the estate, a surviving spouse of the
	decedent, a guardian or other appropriate person on behalf of a
	minor child or adult incapacitated child of the decedent, or any
	taxing authority.
	(d)  If more than one real property interest is transferred
	by one or more transfer on death deeds or if there are other
	nonprobate assets of the transferor that may be liable for the
	claims, expenses, and other payments specified in Subsection (a),
	the liability for those claims, expenses, and other payments may be
	apportioned among those real property interests and other assets in
	proportion to their net values at the transferor's death.
	(e)  A proceeding to enforce liability under this section
	must be commenced not later than the second anniversary of the
	transferor's death, except for any rights arising under Section
	114.104(d).
	(f)  In connection with any proceeding brought under this
	section, a court may award costs and reasonable and necessary
	attorney's fees in amounts the court considers equitable and just.
	SUBCHAPTER D. FORMS FOR TRANSFER ON DEATH DEED
	Sec. 114.151.  OPTIONAL FORM FOR TRANSFER ON DEATH DEED. The
	following form may be used to create a transfer on death deed.
	REVOCABLE TRANSFER ON DEATH DEED
	NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
	MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
	INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:
	YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
	IMPORTANT NOTICE TO OWNER: You should carefully read all the
	information included in the instructions to this form. You may want
	to consult a lawyer before using this form.
	MUST RECORD DEED: Before your death, this deed must be recorded with
	the county clerk where the property is located, or it will not be
	effective.
	MARRIED PERSONS: If you are married and want your spouse to own the
	property on your death, you must name your spouse as the primary
	beneficiary. If your spouse does not survive you, the property will
	transfer to any listed alternate beneficiary or beneficiaries on
	your death.
	1.  Owner (Transferor) Making this Deed:
	___________________________    ____________________
	Printed name                    Mailing address
	2.  Legal Description of the Property:
	___________________________________________________
	3.  Address of the Property (if any) (include county):
	___________________________________________________
	4.  Primary Beneficiary (Transferee) or Beneficiaries
	(Transferees)
	I designate the following beneficiary or beneficiaries, if
	the beneficiary survives me:
	___________________________    ____________________
	Printed name                    Mailing address
	5.  Alternate Beneficiary or Beneficiaries (Optional)
	If no primary beneficiary survives me, I designate the
	following alternate beneficiary or beneficiaries:
	___________________________    ____________________
	Printed name                    Mailing address
	6.  Transfer on Death
	At my death, I grant and convey to the primary beneficiary or
	beneficiaries my interest in the property, to have and hold
	forever. If at my death I am not survived by any primary
	beneficiary, I grant and convey to the alternate beneficiary or
	beneficiaries, if designated, my interest in the property, to have
	and hold forever. If the primary and alternate beneficiaries do not
	survive me, this transfer on death deed shall be deemed canceled by
	me.
	7.  Printed Name and Signature of Owner Making this Deed:
	___________________________    ____________________
	Printed Name                      Date
	___________________________
	Signature
	BELOW LINE FOR NOTARY ONLY
	Acknowledgment
	STATE OF ____________________
	COUNTY OF ___________________
	This instrument was acknowledged before me on the ______ day of
	______________, 20____,
	by ___________________.
	Notary Public, State of
	After recording, return to:
	(insert name and mailing address)
	________________________________
	________________________________
	INSTRUCTIONS FOR TRANSFER ON DEATH DEED
	DO NOT RECORD THESE INSTRUCTIONS
	Instructions for Completing the Form
	1.  Owner (Transferor) Making this Deed: Enter your first, middle
	(if any), and last name here, along with your mailing address.
	2.  Legal Description of the Property: Enter the formal legal
	description of the property. This information is different from the
	mailing and physical address for the property and is necessary to
	complete the form. To find this information, look on the deed you
	received when you became an owner of the property. This information
	may also be available in the office of the county clerk for the
	county where the property is located. Do NOT use your tax bill to
	find this information. If you are not absolutely sure, consult a
	lawyer.
	3.  Address of the Property: Enter the physical address of the
	property.
	4.  Primary Beneficiary or Beneficiaries: Enter the first and last
	name of each person you want to get the property when you die. If you
	are married and want your spouse to get the property when you die,
	enter your spouse's first and last name (even if you and your spouse
	own the property together).
	5.  Alternate Beneficiary or Beneficiaries: Enter the first and
	last name of each person you want to get the property if no primary
	beneficiary survives you.
	6.  Transfer on Death: No action needed.
	7.  Printed Name and Signature of Owner: Do not sign your name or
	enter the date until you are before a notary.  Include your printed
	name.
	8.  Acknowledgment: This deed must be signed before a notary. The
	notary will fill out this section of the deed.
	Sec. 114.152.  OPTIONAL FORM OF REVOCATION. The following
	form may be used to create an instrument of revocation under this
	chapter.
	CANCELLATION OF TRANSFER ON DEATH DEED
	IMPORTANT NOTICE TO OWNER: You should carefully read all the
	information included in the instructions to this form. You may want
	to consult a lawyer before using this form.
	MUST RECORD FORM: Before your death, this cancellation form must be
	recorded with the county clerk where the property is located, or it
	will not be effective. This cancellation is effective only as to the
	interests in the property of owners who sign this cancellation
	form.
	1.  Owner (Transferor) Making this Cancellation:
	______________________ ________________________
	Printed name   Mailing address
	2.  Legal Description of the Property:
	______________________________________________________
	3.  Address of the Property (if any) (include county):
	______________________________________________________
	4.  Cancellation
	I cancel all my previous transfers of this property by
	transfer on death deed.
	5.  Printed Name and Signature of Owner (Transferor) Making this
	Cancellation:
	_________________________ ________________________
	Printed Name Date
	_________________________
	Signature
	BELOW LINE FOR NOTARY ONLY
	________________________________________________________________
	Acknowledgment
	STATE OF __________________
	COUNTY OF _________________
	This instrument was acknowledged before me on the ___ day of
	__________, 20______,
	by ____________________________.
	_______________________________
	Notary Public, State of ________
	After recording, return to:
	(insert name and mailing address)
	_________________________________
	_________________________________
	INSTRUCTIONS FOR CANCELING A TRANSFER ON DEATH (TOD) DEED
	DO NOT RECORD THESE INSTRUCTIONS
	Instructions for Completing the Form
	1.  Owner (Transferor) Making this Cancellation: Enter your first,
	middle (if any), and last name here, along with your mailing
	address.
	2.  Legal Description of the Property: Enter the formal legal
	description of the property. This information is different from the
	mailing and physical address for the property and is necessary to
	complete the form. To find this information, look on the deed you
	received when you became an owner of the property. This information
	may also be available in the office of the county clerk for the
	county where the property is located. Do NOT use your tax bill to
	find this information. If you are not absolutely sure, consult a
	lawyer.
	3.  Address of the Property: Enter the physical address of the
	property.
	4.  Cancellation: No action needed.
	5.  Printed Name and Signature of Owner: Do not sign your name or
	enter the date until you are before a notary.  Include your printed
	name.
	6.  Acknowledgment: This cancellation form must be signed before a
	notary. The notary will fill out this section of the form.
	SECTION 2.  Section 22.027(b), Estates Code, is amended to
	read as follows:
	(b)  Except as otherwise provided by this code, the [The]
	definition of "person" assigned by Section 311.005, Government
	Code, does not apply to any provision in this code.
	SECTION 3.  Section 122.001(1), Estates Code, is amended to
	read as follows:
	(1)  "Beneficiary" includes a person who would have
	been entitled, if the person had not made a disclaimer, to receive
	property as a result of the death of another person:
	(A)  by inheritance;
	(B)  under a will;
	(C)  by an agreement between spouses for community
	property with a right of survivorship;
	(D)  by a joint tenancy with a right of
	survivorship;
	(E)  by a survivorship agreement, account, or
	interest in which the interest of the decedent passes to a surviving
	beneficiary;
	(F)  by an insurance, annuity, endowment,
	employment, deferred compensation, or other contract or
	arrangement; [or]
	(G)  under a pension, profit sharing, thrift,
	stock bonus, life insurance, survivor income, incentive, or other
	plan or program providing retirement, welfare, or fringe benefits
	with respect to an employee or a self-employed individual; or
	(H)  by a transfer on death deed.
	SECTION 4.  This Act takes effect September 1, 2015.