By: Huffman S.B. No. 869     A BILL TO BE ENTITLED   AN ACT   relating to authorizing a beneficiary designation that transfers a   motor vehicle at the owner's death.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 2, Estates Code, is amended by   adding Chapter 115 to read as follows:   CHAPTER 115. BENEFICIARY DESIGNATION FOR MOTOR VEHICLES          Sec. 115.001.  DEFINITIONS. In this chapter:                (1)  "Beneficiary designation" means the designation   by an owner of a motor vehicle of a beneficiary of the vehicle as   provided by Section 501.0315, Transportation Code.                (2)  "Designated beneficiary" means a person   designated as a beneficiary of an owner's interest in a motor   vehicle under Section 501.0315, Transportation Code.                (3)  "Joint owner with right of survivorship" or "joint   owner" means a person who owns a motor vehicle concurrently with one   or more other persons with a right of survivorship.  The term does   not include an owner of community property with or without a right   of survivorship.                (4)  "Motor vehicle" has the meaning assigned by   Section 501.002, Transportation Code.                (5)  "Person" has the meaning assigned by Section   311.005, Government Code.          Sec. 115.002.  BENEFICIARY DESIGNATION AUTHORIZED. (a)  An   owner of a motor vehicle may transfer the owner's interest in the   motor vehicle to a sole beneficiary effective on the owner's death   by designating a beneficiary as provided by Section 501.0315,   Transportation Code.          (b)  A beneficiary designation is:                (1)  subject to Section 115.003(b), revocable and may   be changed at any time without the consent of the designated   beneficiary as provided by Section 501.0315, Transportation Code;                (2)  a nontestamentary instrument; and                (3)  effective without:                      (A)  notice or delivery to or acceptance by the   designated beneficiary during the owner's life; or                      (B)  consideration.          (c)  A will may not revoke or supersede a beneficiary   designation, regardless of when the will is made.          (d)  A designated beneficiary may disclaim the designated   beneficiary's interest in the motor vehicle as provided by Chapter   240, Property Code.          Sec. 115.003.  JOINT OWNERSHIP. (a)  If a motor vehicle   that is the subject of a beneficiary designation is owned by joint   owners with right of survivorship, the beneficiary designation must   be made by all of the joint owners.          (b)  A beneficiary designation made by joint owners with   right of survivorship:                (1)  may be revoked or changed as provided by Section   501.0315, Transportation Code, only if it is revoked or changed by   all of the joint owners; and                (2)  may be revoked or changed by the last surviving   joint owner as provided by Section 501.0315, Transportation Code.          Sec. 115.004.  EFFECT OF BENEFICIARY DESIGNATION DURING   OWNER'S LIFE. During a motor vehicle owner's life, a beneficiary   designation does not:                (1)  affect an interest or right of the owner or owners   making the designation, including the right to transfer or   encumber the motor vehicle that is the subject of the designation;                (2)  create a legal or equitable interest in favor of   the designated beneficiary in the motor vehicle that is the subject   of the designation, even if the beneficiary has actual or   constructive notice of the designation;                (3)  affect an interest or right of a secured or   unsecured creditor or future creditor of the owner or owners making   the designation, even if the creditor has actual or constructive   notice of the designation; or                (4)  affect an owner's or the designated beneficiary's   eligibility for any form of public assistance, subject to   applicable federal law.          Sec. 115.005.  EFFECT OF BENEFICIARY DESIGNATION AT OWNER'S   OR LAST SURVIVING OWNER'S DEATH. (a)  On the death of the owner of   a motor vehicle that is the subject of a beneficiary designation,   the following rules apply to an interest in the motor vehicle:                (1)  if the designated beneficiary survives the owner   making the designation by 120 hours, the interest in the motor   vehicle is transferred to the designated beneficiary; and                (2)  if the designated beneficiary fails to survive the   owner making the designation by 120 hours, the share of the   designated beneficiary lapses, notwithstanding Section 111.052,   and is subject to and passes in accordance with Subchapter D,   Chapter 255, as if the beneficiary designation were a devise made in   a will.          (b)  If an owner is a joint owner with right of survivorship   who is survived by one or more other joint owners, the motor vehicle   that is the subject of the beneficiary designation belongs to the   surviving joint owner or owners.  If an owner is a joint owner with   right of survivorship who is the last surviving joint owner, the   beneficiary designation is effective.          (c)  A designated beneficiary takes the motor vehicle   subject to all encumbrances, assignments, contracts, liens, and   other interests to which the vehicle is subject at the owner's or   last surviving owner's death, as applicable.  The transfer to the   designated beneficiary does not affect the ability of a lienholder   to pursue an existing means of debt collection permitted under the   laws of this state.          Sec. 115.006.  CREDITOR CLAIMS; ALLOWANCES IN LIEU OF EXEMPT   PROPERTY AND FAMILY ALLOWANCES.  Sections 114.104(b), (c), and (d)   and Section 114.106 apply to a transfer of an owner's interest in a   motor vehicle by a beneficiary designation in the same manner and to   the same extent as a transfer of real property under a transfer on   death deed under Chapter 114.          SECTION 2.  Section 122.001(1), Estates Code, is amended to   read as follows:                (1)  "Beneficiary" includes a person who would have   been entitled, if the person had not made a disclaimer, to receive   property as a result of the death of another person:                      (A)  by inheritance;                      (B)  under a will;                      (C)  by an agreement between spouses for community   property with a right of survivorship;                      (D)  by a joint tenancy with a right of   survivorship;                      (E)  by a survivorship agreement, account, or   interest in which the interest of the decedent passes to a surviving   beneficiary;                      (F)  by an insurance, annuity, endowment,   employment, deferred compensation, or other contract or   arrangement;                      (G)  under a pension, profit sharing, thrift,   stock bonus, life insurance, survivor income, incentive, or other   plan or program providing retirement, welfare, or fringe benefits   with respect to an employee or a self-employed individual; [or]                      (H)  by a transfer on death deed; or                      (I)  by a beneficiary designation as defined by   Section 115.001.          SECTION 3.  Subchapter B, Chapter 501, Transportation Code,   is amended by adding Section 501.0315 to read as follows:          Sec. 501.0315.  BENEFICIARY DESIGNATION. (a)   The owner of   a motor vehicle may designate a sole beneficiary to whom the owner's   interest in the vehicle transfers on the owner's death as provided   by Chapter 115, Estates Code, by submitting an application for   title under Section 501.023 with the designation.  To be effective,   the designation must state that the transfer of an interest in the   vehicle to the designated beneficiary is to occur at the   transferor's death.          (b)  The legal name of a beneficiary designated under this   section must be included on the title.          (c)  The department shall transfer title of a motor vehicle   to a beneficiary designated under this section for the vehicle if   the beneficiary submits:                (1)  an application for title under Section 501.023 not   later than the 180th day after the date of the owner's death or, if   the vehicle is owned by joint owners, the last surviving owner's   death, as applicable; and                (2)  satisfactory proof of the death of the owner or   owners, as applicable.          (d)  A beneficiary designation may be changed or revoked by   submitting a new application for title under Section 501.023.          (e)  A beneficiary designation or a change or revocation of a   beneficiary designation made on an application for title of a motor   vehicle that has not been submitted to the department before the   death of a vehicle's owner or owners who made, changed, or revoked   the designation, as applicable, is invalid.          (f)  The department may adopt rules to administer this   section.          SECTION 4.  This Act takes effect September 1, 2017.