HB3311 - Relating to priority of claims against a decedent's estate and to payment of the family allowance from the estate.

  89R22205 EAS-D     By: Swanson, Hayes, Leach, Dutton, et al. H.B. No. 3311     Substitute the following for H.B. No. 3311:     By:  Schofield C.S.H.B. No. 3311       A BILL TO BE ENTITLED   AN ACT   relating to priority of claims against a decedent's estate and to   payment of the family allowance from the estate.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 353.101(b), Estates Code, is amended to   read as follows:          (b)  Before the inventory, appraisement, and list of claims   of an estate are approved or, if applicable, before the affidavit in   lieu of the inventory, appraisement, and list of claims is filed,   the decedent's surviving spouse or any other person authorized to   act on behalf of the decedent's minor children or adult   incapacitated children may apply to the court to have the court fix   the family allowance by filing an application and a verified   affidavit describing:                (1)  the amount necessary for the maintenance of the   surviving spouse, the decedent's minor children, and the decedent's   adult incapacitated children for the applicable periods prescribed   by Section 353.102(a)  [ one year after the date of the decedent's   death ]; and                (2)  the surviving spouse's separate property and any   property that the decedent's minor children or adult incapacitated   children have in their own right.          SECTION 2.  Section 353.102, Estates Code, is amended to   read as follows:          Sec. 353.102.  AMOUNT AND METHOD OF PAYMENT OF FAMILY   ALLOWANCE.  (a)  The amount of the family allowance must be   sufficient for the maintenance of :                 (1)   the decedent's surviving spouse[ , minor children, ]   and adult incapacitated children for one year from the date of the   decedent's death ; and                 (2)     each minor child of the decedent until the later of   the child's:                       (A)  18th birthday; or                         (B)  graduation from high school .          (b)  The allowance must be fixed with regard to the facts or   circumstances then existing and the facts and circumstances   anticipated to exist during the applicable periods prescribed by   Subsection (a)  [ first year after the decedent's death ].          (c)  The allowance must [ may ] be paid in a lump sum [ or in   installments, as ordered by the court ].          SECTION 3.  Section 353.103, Estates Code, is amended to   read as follows:          Sec. 353.103.  ORDER FIXING FAMILY ALLOWANCE.  When a family   allowance has been fixed, the court shall enter an order that:                (1)  states the amount of the allowance; and                (2)  [ provides how the allowance shall be payable; and                [ (3) ]  directs the executor or administrator to pay the   allowance in accordance with law.          SECTION 4.  Section 355.102, Estates Code, is amended by   amending Subsections (d) and (e) and adding Subsection (d-1) to   read as follows:          (d)  Class 3 claims are composed of claims:                 (1)     for the principal amount of and accrued interest   on delinquent child support and child support arrearages that have   been:                       (A)     confirmed as a judgment or a determination of   arrearages by a court under Title 5, Family Code; or                       (B)     administratively determined as evidenced by   a certified child support payment record produced by the Title IV-D   agency, as defined by Section 101.033, Family Code, in a Title IV-D   case, as defined by Section 101.034, Family Code; and                 (2)     for the unpaid child support obligation for each   minor child of the decedent under Section 154.015, Family Code,   reduced by all but one year of the amount of any family allowance   paid for the maintenance of the child under Section 353.102(a)(2),   subject to Subsection (d-1) [ each secured claim for money under   Section 355.151(a)(1), including a tax lien, to the extent the   claim can be paid out of the proceeds of the property subject to the   mortgage or other lien.   If more than one mortgage, lien, or   security interest exists on the same property, the claims shall be   paid in order of priority of the mortgage, lien, or security   interest securing the debt ].           (d-1)     For purposes of Subsection (d), "one year"   refers to   the first year after the decedent's death.          (e)  Class 4 claims are composed of each secured claim for   money under Section 355.151(a)(1), including a tax lien, to the   extent the claim can be paid out of the proceeds of the property   subject to the mortgage or other lien.   If more than one mortgage,   lien, or security interest exists on the same property, the claims   shall be paid in order of priority of the mortgage, lien, or   security interest securing the debt [ claims:                [ (1)     for the principal amount of and accrued interest   on delinquent child support and child support arrearages that have   been:                      [ (A)     confirmed as a judgment or a determination   of arrearages by a court under Title 5, Family Code; or                      [ (B)     administratively determined as evidenced by   a certified child support payment record produced by the Title IV-D   agency, as defined by Section 101.033, Family Code, in a Title IV-D   case, as defined by Section 101.034, Family Code; and                [ (2)     for unpaid child support obligations under   Section 154.015, Family Code ].          SECTION 5.  Sections 353.101(b), 353.102, 353.103, and   355.102(d) and (e), Estates Code, as amended by this Act, and   Section 355.102(d-1), Estates Code, as added by this Act, apply   only to the estate of a decedent who dies on or after the effective   date of this Act.  The estate of a decedent who dies before the   effective date of this Act is governed by the law in effect on the   date of the decedent's death, and the former law is continued in   effect for that purpose.          SECTION 6.  This Act takes effect September 1, 2025.