Bill > SB1940

This bill creates a new legal mechanism for owners of manufactured homes classified as personal property to designate beneficiaries who will automatically receive ownership of the home upon the owner's death. Under the new law, an owner can transfer their manufactured home to one or more beneficiaries by submitting an application with the state department, specifying the beneficiaries' legal names on the statement of ownership. The beneficiary designation is revocable, does not create any legal interest for the beneficiary during the owner's lifetime, and does not affect the owner's ability to sell or encumber the home. To complete the transfer, beneficiaries must submit an application with proof of the owner's death within 365 days, or the designation becomes void. The bill also ensures that the transfer occurs only if the designated beneficiary survives the owner by at least 120 hours and that the home passes subject to any existing liens or encumbrances. Additionally, the bill amends related sections of the Estates Code to recognize manufactured home beneficiary designations as a valid method of property transfer, similar to transfer methods like joint tenancy or transfer on death deeds. The new law will take effect on September 1, 2025.

Justice

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1940