89R16197 EAS-D     By: Wilson H.B. No. 5137       A BILL TO BE ENTITLED   AN ACT   relating to a beneficiary designation that transfers a motor   vehicle to one or more beneficiaries at the owner's death.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 115.002(a) and (b), Estates Code, are   amended to read as follows:          (a)  An owner of a motor vehicle may transfer the owner's   interest in the motor vehicle to one or more beneficiaries [a sole   beneficiary] effective on the owner's death by designating each [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   beneficiaries [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 beneficiaries [beneficiary] during the owner's life; or                      (B)  consideration.          SECTION 2.  Section 115.004, Estates Code, is amended to   read as follows:          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 a   [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 any [the] designated   beneficiary's eligibility for any form of public assistance,   subject to applicable federal law.          SECTION 3.  Section 115.005, Estates Code, is amended to   read as follows:          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 any [the] designated beneficiary survives the   owner making the designation by 120 hours, the interest in the motor   vehicle is transferred to each surviving [the] designated   beneficiary; and                (2)  if each [the] designated beneficiary fails to   survive the owner making the designation by 120 hours, the share of   each [the] designated beneficiary lapses, notwithstanding Section   111.052, and is subject to and passes in accordance with Subchapter   D, Chapter 255, as if each [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 a [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 one or   more [the] designated beneficiaries [beneficiary] does not affect   the ability of a lienholder to pursue an existing means of debt   collection permitted under the laws of this state.          SECTION 4.  Sections 501.0315(a), (b), and (c),   Transportation Code, are amended to read as follows:          (a)  The owner of a motor vehicle may designate one or more   beneficiaries [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 one or more [the] designated beneficiaries [beneficiary]   is to occur at the transferor's death.          (b)  The legal name of each [a] beneficiary designated under   this section must be included on the title.          (c)  The department shall transfer title of a motor vehicle   to the beneficiary or beneficiaries, as applicable, [a beneficiary]   designated under this section for the vehicle if the sole   beneficiary submits or all beneficiaries jointly submit, as   applicable:                (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.          SECTION 5.  This Act takes effect September 1, 2025.