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�	H.B.�No.�3767

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�	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.
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�	______________________________	______________________________
�	���President of the Senate	Speaker of the House�����
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�	�������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.
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�	______________________________
�	Chief Clerk of the House���
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�	�������I certify that H.B. No. 3767 was passed by the Senate on May
�	27, 2009, by the following vote:��Yeas 31, Nays 0.
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�	______________________________
�	Secretary of the Senate����
�	APPROVED:��_____________________
�	�������������������Date����������
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�	����������_____________________
�	�����������������Governor�������