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A BILL TO BE ENTITLED
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AN ACT
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relating to priority of claims against a decedent's estate and to |
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payment of the family allowance from the estate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 353.101(b), Estates Code, is amended to |
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read as follows: |
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(b) Before the inventory, appraisement, and list of claims |
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of an estate are approved or, if applicable, before the affidavit in |
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lieu of the inventory, appraisement, and list of claims is filed, |
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the decedent's surviving spouse or any other person authorized to |
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act on behalf of the decedent's minor children or adult |
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incapacitated children may apply to the court to have the court fix |
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the family allowance by filing an application and a verified |
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affidavit describing: |
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(1) the amount necessary for the maintenance of the |
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surviving spouse, the decedent's minor children, and the decedent's |
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adult incapacitated children for the applicable periods prescribed |
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by Section 353.102(a) [one year after the date of the decedent's |
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death]; and |
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(2) the surviving spouse's separate property and any |
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property that the decedent's minor children or adult incapacitated |
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children have in their own right. |
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SECTION 2. Section 353.102, Estates Code, is amended to |
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read as follows: |
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Sec. 353.102. AMOUNT AND METHOD OF PAYMENT OF FAMILY |
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ALLOWANCE. (a) The amount of the family allowance must be |
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sufficient for the maintenance of: |
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(1) the decedent's surviving spouse[, minor children,] |
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and adult incapacitated children for one year from the date of the |
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decedent's death; and |
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(2) each minor child of the decedent until the later of |
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the child's: |
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(A) 18th birthday; or |
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(B) graduation from high school. |
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(b) The allowance must be fixed with regard to the facts or |
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circumstances then existing and the facts and circumstances |
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anticipated to exist during the applicable periods prescribed by |
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Subsection (a) [first year after the decedent's death]. |
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(c) The allowance must [may] be paid in a lump sum [or in |
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installments, as ordered by the court]. |
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SECTION 3. Section 353.103, Estates Code, is amended to |
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read as follows: |
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Sec. 353.103. ORDER FIXING FAMILY ALLOWANCE. When a family |
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allowance has been fixed, the court shall enter an order that: |
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(1) states the amount of the allowance; and |
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(2) [provides how the allowance shall be payable; and |
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[(3)] directs the executor or administrator to pay the |
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allowance in accordance with law. |
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SECTION 4. Section 355.102, Estates Code, is amended by |
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amending Subsections (d) and (e) and adding Subsection (d-1) to |
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read as follows: |
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(d) Class 3 claims are composed of claims: |
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(1) for the principal amount of and accrued interest |
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on delinquent child support and child support arrearages that have |
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been: |
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(A) confirmed as a judgment or a determination of |
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arrearages by a court under Title 5, Family Code; or |
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(B) administratively determined as evidenced by |
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a certified child support payment record produced by the Title IV-D |
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agency, as defined by Section 101.033, Family Code, in a Title IV-D |
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case, as defined by Section 101.034, Family Code; and |
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(2) for the unpaid child support obligation for each |
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minor child of the decedent under Section 154.015, Family Code, |
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reduced by all but one year of the amount of any family allowance |
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paid for the maintenance of the child under Section 353.102(a)(2), |
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subject to Subsection (d-1) [each secured claim for money under |
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Section 355.151(a)(1), including a tax lien, to the extent the |
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claim can be paid out of the proceeds of the property subject to the |
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mortgage or other lien. If more than one mortgage, lien, or |
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security interest exists on the same property, the claims shall be |
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paid in order of priority of the mortgage, lien, or security |
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interest securing the debt]. |
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(d-1) For purposes of Subsection (d), "one year" refers to |
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the first year after the decedent's death. |
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(e) Class 4 claims are composed of each secured claim for |
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money under Section 355.151(a)(1), including a tax lien, to the |
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extent the claim can be paid out of the proceeds of the property |
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subject to the mortgage or other lien. If more than one mortgage, |
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lien, or security interest exists on the same property, the claims |
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shall be paid in order of priority of the mortgage, lien, or |
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security interest securing the debt [claims: |
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[(1) for the principal amount of and accrued interest |
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on delinquent child support and child support arrearages that have |
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been: |
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[(A) confirmed as a judgment or a determination |
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of arrearages by a court under Title 5, Family Code; or |
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[(B) administratively determined as evidenced by |
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a certified child support payment record produced by the Title IV-D |
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agency, as defined by Section 101.033, Family Code, in a Title IV-D |
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case, as defined by Section 101.034, Family Code; and |
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[(2) for unpaid child support obligations under |
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Section 154.015, Family Code]. |
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SECTION 5. Sections 353.101(b), 353.102, 353.103, and |
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355.102(d) and (e), Estates Code, as amended by this Act, and |
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Section 355.102(d-1), Estates Code, as added by this Act, apply |
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only to the estate of a decedent who dies on or after the effective |
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date of this Act. The estate of a decedent who dies before the |
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effective date of this Act is governed by the law in effect on the |
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date of the decedent's death, and the former law is continued in |
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effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2025. |