S.B. No. 1940 introduces a new chapter in the Estates Code, specifically Chapter 116, which establishes a legal framework for the beneficiary designation of manufactured homes classified as personal property. This chapter allows owners to designate one or more beneficiaries to whom their interest in the manufactured home will transfer upon their death. The bill outlines definitions for key terms such as "beneficiary designation," "designated beneficiary," and "joint owner with right of survivorship." It also specifies that the beneficiary designation is revocable, does not require the consent of designated beneficiaries, and is effective without notice or acceptance during the owner's lifetime. Additionally, it clarifies that a will cannot revoke or supersede a beneficiary designation.

The bill further details the implications of beneficiary designations, including the conditions under which a designated beneficiary may disclaim their interest and the effects of joint ownership on beneficiary designations. It also addresses the transfer of ownership to beneficiaries and the necessary procedures for submitting applications to the relevant department following the owner's death. The bill amends existing legal definitions to include beneficiary designations for manufactured homes and establishes that these designations are treated similarly to transfers of real property under existing laws. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Subchapter E, Chapter , Occupations Code 116, Estates Code 122)
Senate Committee Report: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Subchapter E, Chapter , Occupations Code 116, Estates Code 122)
Engrossed: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Subchapter E, Chapter , Occupations Code 116, Estates Code 122)
House Committee Report: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Subchapter E, Chapter , Occupations Code 116, Estates Code 122)
Enrolled: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Subchapter E, Chapter , Occupations Code 116, Estates Code 122)