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that the beneficiary designation is revocable, does not require the consent of designated beneficiaries, and cannot be superseded by a will. Additionally, it clarifies that a designated beneficiary may disclaim their interest in the home.

The bill further details the implications of beneficiary designations during the owner's life and at the time of death, including the requirement that designated beneficiaries must survive the owner by 120 hours to inherit the home. It also addresses joint ownership scenarios, stating that all joint owners must agree to the beneficiary designation. Furthermore, the bill amends existing legal definitions to include beneficiary designations for manufactured homes and establishes procedures for the transfer of ownership to beneficiaries after the owner's death. 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 (Estates Code 122, Subchapter E, Chapter , Occupations Code 116)
Senate Committee Report: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Estates Code 122, Subchapter E, Chapter , Occupations Code 116)
Engrossed: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Estates Code 122, Subchapter E, Chapter , Occupations Code 116)
House Committee Report: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Estates Code 122, Subchapter E, Chapter , Occupations Code 116)
Enrolled: Estates Code 122.001, Subchapter E, Chapter , Occupations Code 116.001 (Estates Code 122, Subchapter E, Chapter , Occupations Code 116)