H.B. No. 3767
 
 
 
 
AN ACT
  relating to homestead property transferred to a trustee of certain
  trusts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 41, Property Code, is
  amended by adding Section 41.0021 to read as follows:
         Sec. 41.0021.  HOMESTEAD IN QUALIFYING TRUST. (a)  In this
  section, "qualifying trust" means an express trust:
               (1)  in which the instrument or court order creating
  the express trust provides that a settlor or beneficiary of the
  trust has the right to:
                     (A)  revoke the trust without the consent of
  another person;
                     (B)  exercise an inter vivos general power of
  appointment over the property that qualifies for the homestead
  exemption; or
                     (C)  use and occupy the residential property as
  the settlor's or beneficiary's principal residence at no cost to the
  settlor or beneficiary, other than payment of taxes and other costs
  and expenses specified in the instrument or court order:
                           (i)  for the life of the settlor or
  beneficiary;
                           (ii)  for the shorter of the life of the
  settlor or beneficiary or a term of years specified in the
  instrument or court order; or
                           (iii)  until the date the trust is revoked or
  terminated by an instrument or court order recorded in the real
  property records of the county in which the property is located and
  that describes the property with sufficient certainty to identify
  the property; and
               (2)  the trustee of which acquires the property in an
  instrument of title or under a court order that:
                     (A)  describes the property with sufficient
  certainty to identify the property and the interest acquired; and
                     (B)  is recorded in the real property records of
  the county in which the property is located.
         (b)  Property that a settlor or beneficiary occupies and uses
  in a manner described by this subchapter and in which the settlor or
  beneficiary owns a beneficial interest through a qualifying trust
  is considered the homestead of the settlor or beneficiary under
  Section 50, Article XVI, Texas Constitution, and Section 41.001.
         (c)  A married person who transfers property to the trustee
  of a qualifying trust must comply with the requirements relating to
  the joinder of the person's spouse as provided by Chapter 5, Family
  Code.
         (d)  A trustee may sell, convey, or encumber property
  transferred as described by Subsection (c) without the joinder of
  either spouse unless expressly prohibited by the instrument or
  court order creating the trust.
         (e)  This section does not affect the rights of a surviving
  spouse or surviving children under Section 52, Article XVI, Texas
  Constitution, or Part 3, Chapter VIII, Texas Probate Code.
         SECTION 2.  This Act applies only to a transfer that is
  effective on or after the effective date of this Act. A transfer
  that is effective before the effective date of this Act is governed
  by the law as it existed immediately before the effective date of
  this Act, and that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3767 was passed by the House on May 5,
  2009, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3767 was passed by the Senate on May
  27, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor