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  H.B. No. 2271
 
 
 
 
AN ACT
  relating to decedents' estates and certain posthumous gifts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 22.004(a), Estates Code, is amended to
  read as follows:
         (a)  "Child" includes an adopted child, regardless of
  whether the adoption occurred through:
               (1)  an existing or former statutory procedure; or
               (2)  an equitable adoption or acts of estoppel.
         SECTION 2.  Section 33.001, Estates Code, is amended to read
  as follows:
         Sec. 33.001.  PROBATE OF WILLS AND GRANTING OF LETTERS
  TESTAMENTARY AND OF ADMINISTRATION. (a) Venue for a probate
  proceeding to admit a will to probate or for the granting of letters
  testamentary or of administration is:
               (1)  in the county in which the decedent resided, if the
  decedent had a domicile or fixed place of residence in this state;
  or
               (2)  with respect to a decedent who did not have a
  domicile or fixed place of residence in this state:
                     (A)  if the decedent died in this state, in the
  county in which:
                           (i)  the decedent's principal estate was
  located at the time of the decedent's death; or
                           (ii)  the decedent died; or
                     (B)  if the decedent died outside of this state:
                           (i)  in any county in this state in which the
  decedent's nearest of kin reside; or
                           (ii)  if there is no next of kin of the
  decedent in this state, in the county in which the decedent's
  principal estate was located at the time of the decedent's death.
         (b)  For purposes of this section:
               (1)  the decedent's next of kin:
                     (A)  is the decedent's surviving spouse, or if
  there is no surviving spouse, other relatives of the decedent
  within the third degree by consanguinity; and
                     (B)  includes a person who legally adopted the
  decedent or has been legally adopted by the decedent and that
  person's descendants; and
               (2)  the decedent's nearest of kin is determined in
  accordance with order of descent, with the decedent's next of kin
  who is nearest in order of descent first, and so on.
         SECTION 3.  Sections 112.103(a) and (b), Estates Code, are
  amended to read as follows:
         (a)  The deceased spouse's signature to an agreement that is
  the subject of an application under Section 112.101 may be proved
  by:
               (1)  the sworn testimony of one witness taken in open
  court;
               (2)  the affidavit of one witness; or
               (3)  the written or oral deposition of one witness
  taken in accordance with Section 51.203 or the Texas Rules of Civil
  Procedure [the same manner and under the same rules as depositions
  in other civil actions].
         (b)  If the surviving spouse is competent to make an oath,
  the surviving spouse's signature to the agreement may be proved by:
               (1)  the sworn testimony of the surviving spouse taken
  in open court;
               (2)  the surviving spouse's affidavit; or
               (3)  the written or oral deposition of the surviving
  spouse taken in accordance with Section 51.203 or the Texas Rules of
  Civil Procedure [the same manner and under the same rules as
  depositions in other civil actions].
         SECTION 4.  Sections 113.252(a), (b), and (c), Estates Code,
  are amended to read as follows:
         (a)  A multiple-party account is not effective against:
               (1)  an estate of a deceased party to transfer to a
  survivor:
                     (A)  amounts equal to the amounts of estate taxes
  and expenses charged under Subchapter A, Chapter 124, to the
  deceased party, P.O.D. payee, or beneficiary of the account; or
                     (B)  if other assets of the estate are
  insufficient, amounts needed to pay debts, other taxes, and
  expenses of administration, including statutory allowances to the
  surviving spouse and minor children[, if other assets of the estate
  are insufficient]; or
               (2)  the claim of a secured creditor who has a lien on
  the account.
         (b)  A party, P.O.D. payee, or beneficiary who receives
  payment from a multiple-party account or causes a payment to be made
  to another person from a multiple-party account after the death of a
  deceased party is liable to account to the deceased party's
  personal representative for amounts the deceased party owned
  beneficially immediately before the party's death to the extent
  necessary to discharge the claims, expenses, and charges described
  by Subsection (a) [that remain unpaid after application of the
  deceased party's estate]. The party, P.O.D. payee, or beneficiary
  is not liable in an amount greater than the amount the party, P.O.D.
  payee, or beneficiary received or caused to be paid to another
  person from the multiple-party account after the deceased party's
  death.
         (c)  Any [A] proceeding by the personal representative of a
  deceased party to assert liability under Subsection (b)[:
               [(1) may only be commenced if the personal
  representative receives a written demand by a surviving spouse, a
  creditor, or one acting for a minor child of the deceased party; and
               [(2)] must be commenced on or before the second
  anniversary of the death of the deceased party.
         SECTION 5.  Section 123.052(a), Estates Code, is amended to
  read as follows:
         (a)  The dissolution of the marriage revokes a provision in a
  trust instrument that was executed by a divorced individual as
  settlor before the divorced individual's marriage was dissolved and
  that:
               (1)  is a revocable disposition or appointment of
  property made to the divorced individual's former spouse or any
  relative of the former spouse who is not a relative of the divorced
  individual;
               (2)  revocably confers a general or special power of
  appointment on the divorced individual's former spouse or any
  relative of the former spouse who is not a relative of the divorced
  individual; or
               (3)  revocably nominates the divorced individual's
  former spouse or any relative of the former spouse who is not a
  relative of the divorced individual to serve:
                     (A)  as a personal representative, trustee,
  conservator, agent, or guardian; or
                     (B)  in another fiduciary or representative
  capacity.
         SECTION 6.  Subchapter B, Chapter 123, Estates Code, is
  amended by adding Section 123.056 to read as follows:
         Sec. 123.056.  CERTAIN TRUSTS WITH DIVORCED INDIVIDUALS AS
  JOINT SETTLORS. (a)  This section applies only to a trust created
  under a trust instrument that:
               (1)  was executed by two married individuals as
  settlors whose marriage to each other is subsequently dissolved;
  and
               (2)  includes a provision described by Section
  123.052(a).
         (b)  On the death of one of the divorced individuals who is a
  settlor of a trust to which this section applies, the trustee shall
  divide the trust into two trusts, each of which shall be composed of
  the property attributable to the contributions of only one of the
  divorced individuals.
         (c)  An action authorized in a trust instrument described by
  Subsection (a) that requires the actions of both divorced
  individuals may be taken with respect to a trust established in
  accordance with Subsection (b) from the surviving divorced
  individual's contributions solely by that divorced individual.
         (d)  The provisions of this subchapter apply independently
  to each trust established in accordance with Subsection (b) as if
  the divorced individual from whose contributions the trust was
  established had been the only settlor to execute the trust
  instrument described by Subsection (a).
         (e)  This section does not apply if one of the following
  provides otherwise:
               (1)  a court order;
               (2)  the express terms of a trust instrument executed
  by the two divorced individuals before their marriage was
  dissolved; or
               (3)  an express provision of a contract relating to the
  division of the marital estate entered into between the two
  divorced individuals before, during, or after their marriage.
         SECTION 7.  Section 123.151, Estates Code, is amended by
  amending Subsections (a) and (b) and adding Subsections (c-1) and
  (d-1) to read as follows:
         (a)  In this section:
               (1)  "Beneficiary," "multiple-party account," "party," 
  "P.O.D. account," and "P.O.D. payee" have the meanings assigned by
  Chapter 113.
               (2)  "Public retirement system" has the meaning
  assigned by Section 802.001, Government Code.
               (3)  "Relative" has the meaning assigned by Section
  123.051.
               (4)  "Survivorship agreement" means an agreement
  described by Section 113.151.
         (b)  If[, after] a decedent established [designates a spouse
  or a relative of a spouse who is not a relative of the decedent as a
  P.O.D. payee or beneficiary, including alternative P.O.D. payee or
  beneficiary, on] a P.O.D. account or other multiple-party account
  and[,] the decedent's marriage was later [is] dissolved by divorce,
  annulment, or a declaration that the marriage is void, any payable
  on request after death [the] designation provision or provision of
  a survivorship agreement with respect to that account in favor of
  the decedent's former spouse or a relative of the former spouse who
  is not a relative of the decedent [on the account] is not effective
  as to that [the former] spouse or [the former spouse's] relative
  unless:
               (1)  the court decree dissolving the marriage:
                     (A)  designates the former spouse or the former
  spouse's relative as the P.O.D. payee or beneficiary; or
                     (B)  reaffirms the survivorship agreement or the
  relevant provision of the survivorship agreement in favor of the
  former spouse or the former spouse's relative;
               (2)  after the marriage was dissolved, the decedent:
                     (A)  redesignated the former spouse or the former
  spouse's relative as the P.O.D payee or beneficiary; or
                     (B)  reaffirmed the survivorship agreement in
  writing [after the marriage was dissolved]; or
               (3)  the former spouse or the former spouse's relative
  is designated to receive, or under the survivorship agreement would
  receive, the proceeds or benefits in trust for, on behalf of, or for
  the benefit of a child or dependent of either the decedent or the
  former spouse.
         (c-1)  If the provision of a survivorship agreement is not
  effective under Subsection (b), for purposes of determining the
  disposition of the decedent's interest in the account, the former
  spouse or former spouse's relative who would have received the
  decedent's interest if the provision were effective is treated as
  if that spouse or relative predeceased the decedent.
         (d-1)  A financial institution is not liable for payment of
  an account to a former spouse or the former spouse's relative as a
  party to the account, notwithstanding the fact that a designation
  or provision of a survivorship agreement in favor of that person is
  not effective under Subsection (b).
         SECTION 8.  Section 124.001(3), Estates Code, is amended to
  read as follows:
               (3)  "Estate tax" means any estate, inheritance, or
  death tax levied or assessed on the property of a decedent's estate
  because of the death of a person and imposed by federal, state,
  local, or foreign law, including the federal estate tax and the
  inheritance tax imposed by former Chapter 211, Tax Code, and
  including interest and penalties imposed in addition to those
  taxes.  The term does not include a tax imposed under Section 2601
  or 2701(d)(1)(A), Internal Revenue Code of 1986 (26 U.S.C. Section
  2601 or 2701(d)).
         SECTION 9.  Section 201.054, Estates Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  For purposes of this section, "adopted child" means a
  child:
               (1)  adopted through an existing or former statutory
  procedure; or
               (2)  considered by a court to be equitably adopted or
  adopted by acts of estoppel.
         SECTION 10.  The heading to Section 202.052, Estates Code,
  is amended to read as follows:
         Sec. 202.052.  SERVICE OF CITATION BY PUBLICATION [WHEN
  RECIPIENT'S NAME OR ADDRESS IS NOT ASCERTAINABLE].
         SECTION 11.  Section 202.057(a), Estates Code, is amended to
  read as follows:
         (a)  A person who files an application under Section 202.005
  shall file with the court:
               (1)  a copy of any citation required by this subchapter
  and the proof of delivery of service of the citation; and
               (2)  an affidavit sworn to by the applicant or a
  certificate signed by the applicant's attorney stating:
                     (A)  that the citation was served as required by
  this subchapter;
                     (B)  the name of each person to whom the citation
  was served, if the person's name is not shown on the proof of
  delivery; and
                     (C)  if service of citation is waived under
  Section 202.056:
                           (i)  the name of each person who waived
  citation under that section; and
                           (ii)  if citation is waived under Section
  202.056(b)(1), the name of the distributee and the representative
  capacity of the person who waived citation required to be served on
  the distributee [Section 202.056].
         SECTION 12.  Section 205.001, Estates Code, is amended to
  read as follows:
         Sec. 205.001.  ENTITLEMENT TO ESTATE WITHOUT APPOINTMENT OF
  PERSONAL REPRESENTATIVE. The distributees of the estate of a
  decedent who dies intestate are entitled to the decedent's estate
  without waiting for the appointment of a personal representative of
  the estate to the extent the estate assets, excluding homestead and
  exempt property, exceed the known liabilities of the estate,
  excluding any liabilities secured by homestead and exempt property,
  if:
               (1)  30 days have elapsed since the date of the
  decedent's death;
               (2)  no petition for the appointment of a personal
  representative is pending or has been granted;
               (3)  the value of the estate assets on the date of the
  affidavit described by Subdivision (4), excluding homestead and
  exempt property, does not exceed $75,000 [$50,000];
               (4)  an affidavit that meets the requirements of
  Section 205.002 is filed with the clerk of the court that has
  jurisdiction and venue of the estate;
               (5)  the judge approves the affidavit as provided by
  Section 205.003; and
               (6)  the distributees comply with Section 205.004.
         SECTION 13.  Section 251.001, Estates Code, is amended to
  read as follows:
         Sec. 251.001.  WHO MAY EXECUTE WILL. Under the rules and
  limitations prescribed by law, a person of sound mind has the right
  and power to make a [last] will [and testament] if, at the time the
  will is made, the person:
               (1)  is 18 years of age or older;
               (2)  is or has been married; or
               (3)  is a member of the armed forces of the United
  States, an auxiliary of the armed forces of the United States, or
  the United States Maritime Service.
         SECTION 14.  Section 251.002, Estates Code, is amended to
  read as follows:
         Sec. 251.002.  INTERESTS THAT MAY PASS BY WILL;
  DISINHERITANCE. (a) Subject to limitations prescribed by law, a
  person competent to make a [last] will [and testament] may devise
  under the will [and testament] all the estate, right, title, and
  interest in property the person has at the time of the person's
  death.
         (b)  A person who makes a [last] will [and testament] may:
               (1)  disinherit an heir; and
               (2)  direct the disposition of property or an interest
  passing under the will or by intestacy.
         SECTION 15.  Section 251.051, Estates Code, is amended to
  read as follows:
         Sec. 251.051.  WRITTEN, SIGNED, AND ATTESTED. Except as
  otherwise provided by law, a [last] will [and testament] must be:
               (1)  in writing;
               (2)  signed by:
                     (A)  the testator in person; or
                     (B)  another person on behalf of the testator:
                           (i)  in the testator's presence; and
                           (ii)  under the testator's direction; and
               (3)  attested by two or more credible witnesses who are
  at least 14 years of age and who subscribe their names to the will in
  their own handwriting in the testator's presence.
         SECTION 16.  Section 251.103, Estates Code, is amended to
  read as follows:
         Sec. 251.103.  PERIOD FOR MAKING ATTESTED WILLS SELF-PROVED.
  A will [or testament] that meets the requirements of Section
  251.051 may be made self-proved at:
               (1)  the time of the execution of the will [or
  testament]; or
               (2)  a later date during the lifetime of the testator
  and the witnesses.
         SECTION 17.  Sections 251.104(c), (d), and (e), Estates
  Code, are amended to read as follows:
         (c)  The self-proving affidavit shall be attached or annexed
  to the will [or testament].
         (d)  An affidavit that is in substantial compliance with the
  form of the affidavit provided by Subsection (e), that is
  subscribed and acknowledged by the testator, and that is subscribed
  and sworn to by the attesting witnesses is sufficient to self-prove
  the will. No other affidavit or certificate of a testator is
  required to self-prove a will [or testament] other than the
  affidavit provided by Subsection (e).
         (e)  The form and content of the self-proving affidavit must
  be substantially as follows:
         THE STATE OF TEXAS
         COUNTY OF ________________
         Before me, the undersigned authority, on this day personally
  appeared _____________, _____________, and _____________, known to
  me to be the testator and the witnesses, respectively, whose names
  are subscribed to the annexed or foregoing instrument in their
  respective capacities, and, all of said persons being by me duly
  sworn, the said _____________, testator, declared to me and to the
  said witnesses in my presence that said instrument is [his/her]
  [last] will [and testament], and that [he/she] had willingly made
  and executed it as [his/her] free act and deed; and the said
  witnesses, each on [his/her] oath stated to me, in the presence and
  hearing of the said testator, that the said testator had declared to
  them that said instrument is [his/her] [last] will [and testament],
  and that [he/she] executed same as such and wanted each of them to
  sign it as a witness; and upon their oaths each witness stated
  further that they did sign the same as witnesses in the presence of
  the said testator and at [his/her] request; that [he/she] was at
  that time eighteen years of age or over (or being under such age,
  was or had been lawfully married, or was then a member of the armed
  forces of the United States, or an auxiliary of the armed forces of
  the United States, or the United States Maritime Service) and was of
  sound mind; and that each of said witnesses was then at least
  fourteen years of age.
         _______________
         Testator       
         _______________
         Witness        
         _______________
         Witness        
         Subscribed and sworn to before me by the said ____________,
  testator, and by the said ________________ and _______________,
  witnesses, this ______ day of ________________ A.D.
  ________________.
  (SEAL)
  (Signed)  ______________________________
  (Official Capacity of Officer)
         SECTION 18.  Section 251.107, Estates Code, is amended to
  read as follows:
         Sec. 251.107.  SELF-PROVED HOLOGRAPHIC WILL.
  Notwithstanding any other provision of this subchapter, a will
  written wholly in the testator's handwriting may be made
  self-proved at any time during the testator's lifetime by the
  attachment or annexation to the will of an affidavit by the testator
  to the effect that:
               (1)  the instrument is the testator's [last] will;
               (2)  the testator was 18 years of age or older at the
  time the will was executed or, if the testator was younger than 18
  years of age, that the testator:
                     (A)  was or had been married; or
                     (B)  was a member of the armed forces of the United
  States, an auxiliary of the armed forces of the United States, or
  the United States Maritime Service at the time the will was
  executed;
               (3)  the testator was of sound mind; and
               (4)  the testator has not revoked the will.
         SECTION 19.  Section 252.152, Estates Code, is amended to
  read as follows:
         Sec. 252.152.  PRIOR DEPOSITED WILL IN RELATION TO LATER
  WILL. A will that is not deposited as provided by Subchapter A
  shall be admitted to probate on proof that the will is the last will
  [and testament] of the testator, notwithstanding the fact that the
  testator has a prior will that has been deposited in accordance with
  Subchapter A.
         SECTION 20.  Section 255.151, Estates Code, is amended to
  read as follows:
         Sec. 255.151.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies unless the testator's [last] will [and testament] provides
  otherwise. For example, a devise in the testator's will stating "to
  my surviving children" or "to such of my children as shall survive
  me" prevents the application of Sections 255.153 and 255.154.
         SECTION 21.  Section 255.401, Estates Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  A right to take as a member under a class gift does not
  accrue to any person unless the person is born before, or is in
  gestation at, the time of [the testator's] death of the person by
  which the class is measured and survives that person by [for] at
  least 120 hours.
         (a-1)  For purposes of this section, a [A] person is:
               (1)  considered to be in gestation [at the time of the
  testator's death] if insemination or implantation occurs at or
  before the time of [the testator's] death of the person by which the
  class is measured; and
               (2)  presumed to be in gestation at the time of death of
  the person by which the class is measured [the testator's death] if
  the person was born before the 301st day after the date of the
  person's [testator's] death.
         SECTION 22.  Section 255.451, Estates Code, is amended by
  amending Subsection (a) and adding Subsections (a-1) and (c) to
  read as follows:
         (a)  Subject to the requirements of this section, on [On] the
  petition of a personal representative, a court may order that the
  terms of the will be modified or reformed, that the personal
  representative be directed or permitted to perform acts that are
  not authorized or that are prohibited by the terms of the will, or
  that the personal representative be prohibited from performing acts
  that are required by the terms of the will, if:
               (1)  modification of administrative, nondispositive
  terms of the will is necessary or appropriate to prevent waste or
  impairment of the estate's administration;
               (2)  the order is necessary or appropriate to achieve
  the testator's tax objectives or to qualify a distributee for
  government benefits and is not contrary to the testator's intent;
  or
               (3)  the order is necessary to correct a scrivener's
  error in the terms of the will, even if unambiguous, to conform with
  the testator's intent.
         (a-1)  A personal representative seeking to modify or reform
  a will under this section must file a petition on or before the
  fourth anniversary of the date the will was admitted to probate.
         (c)  Chapter 123, Property Code, applies to a proceeding
  under Subsection (a) that involves a charitable trust.
         SECTION 23.  Section 256.003(b), Estates Code, is amended to
  read as follows:
         (b)  Except as provided by Section 501.006 with respect to a
  foreign will, letters testamentary may not be issued if a will is
  admitted to probate after the fourth anniversary of the testator's
  death unless it is shown that the application for probate was filed
  on or before the fourth anniversary of the testator's death.
         SECTION 24.  Section 257.051(a), Estates Code, is amended to
  read as follows:
         (a)  An application for the probate of a will as a muniment of
  title must state and aver the following to the extent each is known
  to the applicant or can, with reasonable diligence, be ascertained
  by the applicant:
               (1)  each applicant's name and domicile;
               (2)  the testator's name, domicile, and, if known, age,
  on the date of the testator's death;
               (3)  the fact, date, and place of the testator's death;
               (4)  facts showing that the court with which the
  application is filed has venue;
               (5)  that the testator owned property, including a
  statement generally describing the property and the property's
  probable value;
               (6)  the date of the will;
               (7)  the name, state of residence, and physical address
  where service can be had of the executor named in the will;
               (8)  the name of each subscribing witness to the will,
  if any;
               (9)  whether one or more children born to or adopted by
  the testator after the testator executed the will survived the
  testator and, if so, the name of each of those children;
               (10)  that the testator's estate does not owe an unpaid
  debt, other than any debt secured by a lien on real estate, or that
  for another reason there is no necessity for administration of the
  estate;
               (11)  whether a marriage of the testator was ever
  dissolved after the will was made and, if so, when and from whom;
  and
               (12)  whether the state, a governmental agency of the
  state, or a charitable organization is named in the will as a
  devisee.
         SECTION 25.  Section 257.054, Estates Code, is amended to
  read as follows:
         Sec. 257.054.  PROOF REQUIRED. An applicant for the probate
  of a will as a muniment of title must prove to the court's
  satisfaction that:
               (1)  the testator is dead;
               (2)  four years have not elapsed since the date of the
  testator's death and before the application;
               (3)  the court has jurisdiction and venue over the
  estate;
               (4)  citation has been served and returned in the
  manner and for the period required by this title;
               (5)  the testator's estate does not owe an unpaid debt,
  other than any debt secured by a lien on real estate, or that for
  another reason there is no necessity for administration of the
  estate;
               (6)  the testator did not revoke the will; and
               (7)  if the will is not self-proved in the manner
  provided by this title, the testator:
                     (A)  executed the will with the formalities and
  solemnities and under the circumstances required by law to make the
  will valid; and
                     (B)  at the time of executing the will was of sound
  mind and:
                           (i)  was 18 years of age or older;
                           (ii)  was or had been married; or
                           (iii)  was a member of the armed forces of
  the United States, an auxiliary of the armed forces of the United
  States, or the United States Maritime Service.
         SECTION 26.  Section 305.108, Estates Code, is amended to
  read as follows:
         Sec. 305.108.  FORM OF BOND. The following form, or a form
  with the same substance, may be used for the bond of a personal
  representative:
         The State of Texas
         County of ________
         Know all persons by these presents that we, _______ (insert
  name of each principal), as principal, and _______ (insert name of
  each surety), as sureties, are held and firmly bound unto the judge
  of ____________ (insert reference to appropriate judge), and that
  judge's successors in office, in the sum of _____ dollars,
  conditioned that the above bound principal or principals, appointed
  as _______ (insert "executor of the [last] will [and testament],"
  "administrator with the will annexed of the estate," "administrator
  of the estate," or "temporary administrator of the estate," as
  applicable) of _______ (insert name of decedent), deceased, shall
  well and truly perform all of the duties required of the principal
  or principals by law under that appointment.
         SECTION 27.  Sections 308.051(a) and (c), Estates Code, are
  amended to read as follows:
         (a)  Within one month after receiving letters testamentary
  or of administration, a personal representative of an estate shall
  provide notice requiring each person who has a claim against the
  estate to present the claim within the period prescribed by law by:
               (1)  having the notice published in a newspaper of
  general circulation [printed] in the county in which the letters
  were issued; and
               (2)  if the decedent remitted or should have remitted
  taxes administered by the comptroller, sending the notice to the
  comptroller by certified or registered mail.
         (c)  If there is no [a] newspaper of general circulation [is
  not printed] in the county in which the letters testamentary or of
  administration were issued, the notice must be posted and the
  return made and filed as otherwise required by this title.
         SECTION 28.  Section 310.006, Estates Code, is amended to
  read as follows:
         Sec. 310.006.  FREQUENCY AND METHOD OF DETERMINING INTERESTS
  IN CERTAIN ESTATE ASSETS. Except as required by Sections 2055 and
  2056, Internal Revenue Code of 1986 (26 U.S.C. Sections 2055 and
  2056), the frequency and method of determining the distributees'
  [beneficiaries'] respective interests in the undistributed assets
  of an estate are in the sole and absolute discretion of the executor
  of the estate. The executor may consider all relevant factors,
  including administrative convenience and expense and the interests
  of the various distributees [beneficiaries] of the estate, to reach
  a fair and equitable result among distributees [beneficiaries].
         SECTION 29.  Section 359.001(a), Estates Code, is amended to
  read as follows:
         (a)  Not later than the 60th day after [On] the first
  anniversary of [expiration of 12 months from] the date a personal
  representative qualifies and receives letters testamentary or of
  administration to administer a decedent's estate under court order,
  unless the court authorizes an extension, the representative shall
  file with the court an account consisting of a written exhibit made
  under oath that lists all claims against the estate presented to the
  representative during the 12-month period following the
  representative's qualification and receipt of letters [covered by
  the account]. The exhibit must specify:
               (1)  the claims allowed by the representative;
               (2)  the claims paid by the representative;
               (3)  the claims rejected by the representative and the
  date the claims were rejected; and
               (4)  the claims for which a lawsuit has been filed and
  the status of that lawsuit.
         SECTION 30.  Section 359.002(a), Estates Code, is amended to
  read as follows:
         (a)  Not later than the 60th day after each anniversary of
  the date a personal representative of the estate of a decedent
  qualifies and receives letters testamentary or of administration to
  administer the decedent's estate under court order, unless the
  court authorizes an extension, the [Each personal] representative
  [of the estate of a decedent] shall [continue to] file an annual
  account conforming to the essential requirements of Section 359.001
  regarding changes in the estate assets occurring during the
  12-month period after [since] the date the most recent previous
  account was filed.
         SECTION 31.  Section 362.005(b), Estates Code, is amended to
  read as follows:
         (b)  Citation issued under Subsection (a) must:
               (1)  contain:
                     (A)  a statement that an account for final
  settlement has been presented;
                     (B)  the time and place the court will consider
  the account; and
                     (C)  a statement requiring the person cited to
  appear and contest the account, if the person wishes to contest the
  account; and
               (2)  be given to each heir or distributee [beneficiary]
  of the decedent by certified mail, return receipt requested, unless
  the court by written order directs another method of service to be
  given.
         SECTION 32.  Section 401.006, Estates Code, is amended to
  read as follows:
         Sec. 401.006.  GRANTING POWER OF SALE BY AGREEMENT. In a
  situation in which a decedent does not have a will, or a decedent's
  will does not contain language authorizing the personal
  representative to sell property or contains language that is not
  sufficient to grant the representative that authority, the court
  may include in an order appointing an independent executor any
  general or specific authority regarding the power of the
  independent executor to sell property that may be consented to by
  the distributees [beneficiaries] who are to receive any interest in
  the property in the application for independent administration or
  for the appointment of an independent executor or in their consents
  to the independent administration or to the appointment of an
  independent executor. The independent executor, in such event, may
  sell the property under the authority granted in the court order
  without the further consent of those distributees [beneficiaries].
         SECTION 33.  Chapter 405, Estates Code, is amended by adding
  Section 405.0015 to read as follows:
         Sec. 405.0015.  DISTRIBUTIONS GENERALLY. Unless the will,
  if any, or a court order provides otherwise, an independent
  executor may, in distributing property not specifically devised
  that the independent executor is authorized to sell:
               (1)  make distributions in divided or undivided
  interests;
               (2)  allocate particular assets in proportionate or
  disproportionate shares;
               (3)  value the estate property for the purposes of
  acting under Subdivision (1) or (2); and
               (4)  adjust the distribution, division, or termination
  for resulting differences in valuation.
         SECTION 34.  Sections 405.003(b) and (d), Estates Code, are
  amended to read as follows:
         (b)  On the filing of an action under this section, each
  distributee [beneficiary] of the estate shall be personally served
  with citation, except for a distributee [beneficiary] who has
  waived the issuance and service of citation.
         (d)  On or before filing an action under this section, the
  independent executor must distribute to the distributees
  [beneficiaries] of the estate any of the remaining assets or
  property of the estate that remains in the independent executor's
  possession after all of the estate's debts have been paid, except
  for a reasonable reserve of assets that the independent executor
  may retain in a fiduciary capacity pending court approval of the
  final account. The court may review the amount of assets on reserve
  and may order the independent executor to make further
  distributions under this section.
         SECTION 35.  Section 456.003, Estates Code, is amended to
  read as follows:
         Sec. 456.003.  DUTY OF ELIGIBLE INSTITUTIONS. Not later
  than the seventh business day [Within a reasonable time] after the
  date an eligible institution receives [receiving] a copy of a
  written agreement under Section 456.002(a) or a statement from a
  personal representative under Section 456.002(b) and instructions
  from the lawyer identified in the agreement or statement, as
  applicable, regarding how to disburse the funds or close a trust or
  escrow account, the [an] eligible institution shall disburse the
  funds and close the account in compliance with the instructions.
         SECTION 36.  Chapter 456, Estates Code, is amended by adding
  Section 456.0045 to read as follows:
         Sec. 456.0045.  PRIVATE CAUSE OF ACTION. (a)  If an eligible
  institution violates Section 456.003, a person aggrieved by the
  violation may bring an action against the eligible institution to:
               (1)  obtain declaratory or injunctive relief to enforce
  the section; and
               (2)  recover damages to the same extent the person
  would be entitled to damages had the eligible institution acted in
  the same manner with respect to the deceased lawyer before the
  lawyer's death.
         (b)  A person who prevails in an action under this section
  may recover court costs and reasonable attorney's fees. 
         SECTION 37.  Subchapter A, Chapter 112, Property Code, is
  amended by adding Section 112.011 to read as follows:
         Sec. 112.011.  POSTHUMOUS CLASS GIFTS MEMBERSHIP. (a) A
  right to take as a member under a class gift does not accrue to any
  person unless the person is born before, or is in gestation at, the
  time of death of the person by which the class is measured and
  survives that person by at least 120 hours.
         (b)  For purposes of Subsection (a), a person is:
               (1)  considered to be in gestation if insemination or
  implantation occurs at or before the time of death of the person by
  which the class is measured; and
               (2)  presumed to be in gestation at the time of death of
  the person by which the class is measured if the person was born
  before the 301st day after the date of the person's death.
         (c)  A provision in the trust instrument that is contrary to
  this section prevails over this section.
         SECTION 38.  Sections 303.003 and 362.010, Estates Code, are
  repealed.
         SECTION 39.  Section 33.001, Estates Code, as amended by
  this Act, applies only to an application for the probate of a will
  or for the granting of letters testamentary or of administration of
  a decedent's estate that is filed on or after the effective date of
  this Act.  An application for the probate of a will or the granting
  of letters filed before that date is governed by the law in effect
  on the date the application was filed, and the former law is
  continued in effect for that purpose.
         SECTION 40.  Section 112.103, Estates Code, as amended by
  this Act, applies only to a proceeding under Subchapter C, Chapter
  112, Estates Code, commenced on or after the effective date of this
  Act.  A proceeding under that subchapter commenced before that date
  is governed by the law in effect on the date the proceeding was
  commenced, and the former law is continued in effect for that
  purpose.
         SECTION 41.  Section 113.252(c), Estates Code, as amended by
  this Act, applies to a proceeding commenced before, on, or after the
  effective date of this Act, regardless of the date of the decedent's
  death.
         SECTION 42.  Section 123.056, Estates Code, as added by this
  Act, applies to a trust created before, on, or after the effective
  date of this Act with respect to which the marriage of the settlors
  is dissolved on or after that date.
         SECTION 43.  Sections 123.151(a) and (b), Estates Code, as
  amended by this Act, and Section 123.151(c-1), as added by this Act,
  apply only to a multiple-party account for which the marriage of a
  party to the account is dissolved on or after the effective date of
  this Act.
         SECTION 44.  Section 123.151(d-1), Estates Code, as added by
  this Act, and Section 456.0045, Estates Code, as added by this Act,
  apply only to a cause of action that accrues on or after the
  effective date of this Act. A cause of action that accrued before
  the effective date of this Act is governed by the law applicable to
  the cause of action immediately before the effective date of this
  Act, and that law is continued in effect for that purpose.
         SECTION 45.  Section 202.057, Estates Code, as amended by
  this Act, applies only to an application for a proceeding to declare
  heirship that is filed on or after the effective date of this Act.  
  An application for a proceeding to declare heirship filed before
  that date is governed by the law in effect on the date the
  application was filed, and the former law is continued in effect for
  that purpose.
         SECTION 46.  Section 205.001, Estates Code, as amended by
  this Act, applies to a small estate administration commenced on or
  after the effective date of this Act, regardless of the date of the
  decedent's death.
         SECTION 47.  Section 255.401, Estates Code, as amended by
  this Act, and Section 112.011, Property Code, as added by this Act,
  apply to the estate of a decedent who dies before, on, or after the
  effective date of this Act.
         SECTION 48.  Section 255.451, Estates Code, as amended by
  this Act, applies only to a petition filed on or after the effective
  date of this Act. A petition filed before that date is governed by
  the law in effect on the date the petition was filed, and the former
  law is continued in effect for that purpose.
         SECTION 49.  Sections 256.003(b), 257.051(a), and 257.054,
  Estates Code, as amended by this Act, apply only to an application
  for the probate of a will or administration of a decedent's estate
  that is filed on or after the effective date of this Act.  An
  application for the probate of a will or administration of a
  decedent's estate filed before that date is governed by the law in
  effect on the date the application was filed, and the former law is
  continued in effect for that purpose.
         SECTION 50.  Sections 359.001(a) and 359.002(a), Estates
  Code, as amended by this Act, apply to an account filed on or after
  the effective date of this Act, regardless of whether the personal
  representative was appointed before, on, or after that date.
         SECTION 51.  Section 405.0015, Estates Code, as added by
  this Act, applies to the administration of the estate of a decedent
  that is pending or commenced on or after the effective date of this
  Act.
         SECTION 52.  This Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2271 was passed by the House on April
  27, 2017, by the following vote:  Yeas 144, Nays 0, 3 present, not
  voting, and that the House adopted H.C.R. No. 158 authorizing
  certain corrections in H.B. No. 2271 on May 28, 2017, by the
  following vote: Yeas 143, Nays 0, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2271 was passed by the Senate on May
  19, 2017, by the following vote:  Yeas 31, Nays 0, and that the
  Senate adopted H.C.R. No. 158 authorizing certain corrections in
  H.B. No. 2271 on May 28, 2017, by the following vote: Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor