CHAPTER XI. NONTESTAMENTARY TRANSFERS

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PROBATE CODE

CHAPTER XI. NONTESTAMENTARY TRANSFERS

PART 1. MULTIPLE-PARTY ACCOUNTS

Text of article effective until January 01, 2014

Sec. 436. DEFINITIONS. In this part:

(1) "Account" means a contract of deposit of funds between a

depositor and a financial institution, and includes a checking

account, savings account, certificate of deposit, share account,

and other like arrangement.

(2) "Beneficiary" means a person named in a trust account as one

for whom a party to the account is named as trustee.

(3) "Financial institution" means an organization authorized to

do business under state or federal laws relating to financial

institutions, including, without limitation, banks and trust

companies, savings banks, building and loan associations, savings

and loan companies or associations, credit unions, and brokerage

firms that deal in the sales and purchases of stocks, bonds, and

other types of securities.

(4) "Joint account" means an account payable on request to one or

more of two or more parties whether or not there is a right of

survivorship.

(5) "Multiple-party account" means a joint account, a convenience

account, a P.O.D. account, or a trust account. It does not

include accounts established for deposit of funds of a

partnership, joint venture, or other association for business

purposes, or accounts controlled by one or more persons as the

duly authorized agent or trustee for a corporation,

unincorporated association, charitable or civic organization, or

a regular fiduciary or trust account where the relationship is

established other than by deposit agreement.

(6) "Net contribution" of a party to a joint account as of any

given time is the sum of all deposits made to that account by or

for him, less all withdrawals made by or for him which have not

been paid to or applied to the use of any other party, plus a pro

rata share of any interest or dividends included in the current

balance. The term includes, in addition, any proceeds of deposit

life insurance added to the account by reason of the death of the

party whose net contribution is in question.

(7) "Party" means a person who, by the terms of the account, has

a present right, subject to request, to payment from a

multiple-party account. A P.O.D. payee or beneficiary of a trust

account is a party only after the account becomes payable to him

by reason of his surviving the original payee or trustee. Unless

the context otherwise requires, it includes a guardian, personal

representative, or assignee, including an attaching creditor, of

a party. It also includes a person identified as a trustee of an

account for another whether or not a beneficiary is named, but it

does not include a named beneficiary unless the beneficiary has a

present right of withdrawal.

(8) "Payment" of sums on deposit includes withdrawal, payment on

check or other directive of a party, and any pledge of sums on

deposit by a party and any set-off, or reduction or other

disposition of all or part of an account pursuant to a pledge.

(9) "Proof of death" includes a certified copy of a death

certificate or the judgment or order of a court in a proceeding

where the death of a person is proved by circumstantial evidence

to the satisfaction of the court as provided by Section 72 of

this code.

(10) "P.O.D. account" means an account payable on request to one

person during lifetime and on his death to one or more P.O.D.

payees, or to one or more persons during their lifetimes and on

the death of all of them to one or more P.O.D. payees.

(11) "P.O.D. payee" means a person designated on a P.O.D. account

as one to whom the account is payable on request after the death

of one or more persons.

(12) "Request" means a proper request for withdrawal, or a check

or order for payment, which complies with all conditions of the

account, including special requirements concerning necessary

signatures and regulations of the financial institution, but if

the financial institution conditions withdrawal or payment on

advance notice, for purposes of this part the request for

withdrawal or payment is treated as immediately effective and a

notice of intent to withdraw is treated as a request for

withdrawal.

(13) "Sums on deposit" means the balance payable on a

multiple-party account including interest, dividends, and in

addition any deposit life insurance proceeds added to the account

by reason of the death of a party.

(14) "Trust account" means an account in the name of one or more

parties as trustee for one or more beneficiaries where the

relationship is established by the form of the account and the

deposit agreement with the financial institution and there is no

subject of the trust other than the sums on deposit in the

account. It is not essential that payment to the beneficiary be

mentioned in the deposit agreement. A trust account does not

include a regular trust account under a testamentary trust or a

trust agreement which has significance apart from the account, or

a fiduciary account arising from a fiduciary relation such as

attorney-client.

(15) "Withdrawal" includes payment to a third person pursuant to

check or other directive of a party.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979. Amended by Acts 1993, 73rd Leg., ch. 846, Sec. 25,

eff. Sept. 1, 1993.

Text of article effective until January 01, 2014

Sec. 437. OWNERSHIP AS BETWEEN PARTIES AND OTHERS. The

provisions of Sections 438 through 440 of this code that concern

beneficial ownership as between parties, or as between parties

and P.O.D. payees or beneficiaries of multiple-party accounts,

are relevant only to controversies between these persons and

their creditors and other successors, and have no bearing on the

power of withdrawal of these persons as determined by the terms

of account contracts.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979. Amended by Acts 1981, 67th Leg., p. 895, ch. 319,

Sec. 2, eff. Sept. 1, 1981.

Text of article effective until January 01, 2014

Sec. 438. OWNERSHIP DURING LIFETIME. (a) A joint account

belongs, during the lifetime of all parties, to the parties in

proportion to the net contributions by each to the sums on

deposit, unless there is clear and convincing evidence of a

different intent.

(b) A P.O.D. account belongs to the original payee during his

lifetime and not to the P.O.D. payee or payees. If two or more

parties are named as original payees, during their lifetimes

rights as between them are governed by Subsection (a) of this

section.

account or the deposit agreement or there is other clear and

convincing evidence of an irrevocable trust, a trust account

belongs beneficially to the trustee during his lifetime, and if

two or more parties are named as trustee on the account, during

their lifetimes beneficial rights as between them are governed by

Subsection (a) of this section. If there is an irrevocable trust,

the account belongs beneficially to the beneficiary.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 438A. CONVENIENCE ACCOUNT. (a) If an account is established

at a financial institution by one or more parties in the names of

the parties and one or more convenience signers and the terms of

the account provide that the sums on deposit are paid or

delivered to the parties or to the convenience signers "for the

convenience" of the parties, the account is a convenience

account.

(b) The making of a deposit in a convenience account does not

affect the title to the deposit.

made a gift of the deposit or of any additions or accruals to the

deposit to a convenience signer.

(d) On the death of the last surviving party, a convenience

signer shall have no right of survivorship in the account and

ownership of the account remains in the estate of the last

surviving party.

(e) If an addition is made to the account by anyone other than a

party, the addition and accruals to the addition are considered

to have been made by a party.

(f) All deposits to a convenience account and additions and

accruals to the deposits may be paid to a party or to a

convenience signer. The financial institution is completely

released from liability for a payment made from the account

before the financial institution receives notice in writing

signed by a party not to make the payment in accordance with the

terms of the account. After receipt of the notice from a party,

the financial institution may require a party to approve any

further payments from the account.

(g) If the financial institution makes a payment of the sums on

deposit in a convenience account to a convenience signer after

the death of the last surviving party and before the financial

institution has received written notice of the last surviving

party's death, the financial institution is completely released

from liability for the payment. If a financial institution makes

payment to the personal representative of the deceased last

surviving party's estate after the death of the last surviving

party and before service on the financial institution of a court

order prohibiting payment, the financial institution is released

to the extent of the payment from liability to any person

claiming a right to the funds. The receipt by the representative

to whom payment is made is a complete release and discharge of

the financial institution.

Added by Acts 1993, 73rd Leg., ch. 795, Sec. 1, eff. Aug. 30,

1993; Acts 1993, 73rd Leg., ch. 846, Sec. 27, eff. Sept. 1, 1993.

Subsecs. (a) and (c) to (g) amended by Acts 2003, 78th Leg., ch.

658, Sec. 1, eff. Sept. 1, 2003.

Sec. 438B. CONVENIENCE SIGNER ON OTHER ACCOUNTS. (a) An

account established by one or more parties at a financial

institution that is not designated as a convenience account, but

is instead designated as a single-party account or another type

of multiple-party account, may provide that the sums on deposit

may be paid or delivered to the parties or to one or more

convenience signers "for the convenience of the parties."

(b) Except as provided by Subsection (c) of this section:

(1) the provisions of Section 438A of this chapter apply to an

account described by Subsection (a) of this section, including

provisions relating to the ownership of the account during the

lifetimes and on the deaths of the parties and provisions

relating to the powers and duties of the financial institution at

which the account is established; and

(2) any other law relating to a convenience signer applies to a

convenience signer designated as provided by this section to the

extent the law applies to a convenience signer on a convenience

account.

has a convenience signer designated as provided by this section,

the convenience signer does not have a right of survivorship in

the account and the estate of the last surviving party owns the

account unless the convenience signer is also designated as a

P.O.D. payee or as a beneficiary.

Added by Acts 2009, 81st Leg., R.S., Ch.

929, Sec. 1, eff. June 19, 2009.

Text of article effective until January 01, 2014

Sec. 439. RIGHT OF SURVIVORSHIP. (a) Sums remaining on deposit

at the death of a party to a joint account belong to the

surviving party or parties against the estate of the decedent if,

by a written agreement signed by the party who dies, the interest

of such deceased party is made to survive to the surviving party

or parties. Notwithstanding any other law, an agreement is

sufficient to confer an absolute right of survivorship on parties

to a joint account under this subsection if the agreement states

in substantially the following form: "On the death of one party

to a joint account, all sums in the account on the date of the

death vest in and belong to the surviving party as his or her

separate property and estate." A survivorship agreement will not

be inferred from the mere fact that the account is a joint

account. If there are two or more surviving parties, their

respective ownerships during lifetime shall be in proportion to

their previous ownership interests under Section 438 of this code

augmented by an equal share for each survivor of any interest the

decedent may have owned in the account immediately before his

death, and the right of survivorship continues between the

surviving parties if a written agreement signed by a party who

dies so provides.

(b) If the account is a P.O.D. account and there is a written

agreement signed by the original payee or payees, on the death of

the original payee or on the death of the survivor of two or more

original payees, any sums remaining on deposit belong to the

P.O.D. payee or payees if surviving, or to the survivor of them

if one or more P.O.D. payees die before the original payee. If

two or more P.O.D. payees survive, there is no right of

survivorship in event of death of a P.O.D. payee thereafter

unless the terms of the account or deposit agreement expressly

provide for survivorship between them.

agreement signed by the trustee or trustees, on death of the

trustee or the survivor of two or more trustees, any sums

remaining on deposit belong to the person or persons named as

beneficiaries, if surviving, or to the survivor of them if one or

more beneficiaries die before the trustee dies. If two or more

beneficiaries survive, there is no right of survivorship in event

of death of any beneficiary thereafter unless the terms of the

account or deposit agreement expressly provide for survivorship

between them.

(d) In other cases, the death of any party to a multiple-party

account has no effect on beneficial ownership of the account

other than to transfer the rights of the decedent as part of his

estate.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979. Amended by Acts 1987, 70th Leg., ch. 297, Sec. 1,

eff. Aug. 31, 1987; Acts 1993, 73rd Leg., ch. 846, Sec. 26, eff.

Sept. 1, 1993.

Text of section as repealed by Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10 effective January 1, 2014

Sec. 439A. UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT FORM.

Text of subsection as amended by Acts 2009, 81st Leg., R.S., Ch.

929, Sec. 2

(a) A contract of deposit that contains provisions substantially

the same as in the form provided by Subsection (b) of this

section establishes the type of account selected by a party. The

provisions of this part of Chapter XI of this code govern an

account selected under the form. A contract of deposit that does

not contain provisions substantially the same as in the form

provided by Subsection (b) of this section is governed by the

provisions of this chapter applicable to the account that most

nearly conforms to the depositor's intent.

(b) A financial institution may use the following form to

establish the type of account selected by a party:

UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION FORM

NOTICE: The type of account you select may determine how

property passes on your death. Your will may not control the

disposition of funds held in some of the following accounts. You

may choose to designate one or more convenience signers on an

account, even if the account is not a convenience account. A

designated convenience signer may make transactions on your

behalf during your lifetime, but does not own the account during

your lifetime. The designated convenience signer owns the

account on your death only if the convenience signer is also

designated as a P.O.D. payee or trust account beneficiary.

Select one of the following accounts by placing your initials

next to the account selected:

___ (1) SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON DEATH)

DESIGNATION. The party to the account owns the account. On the

death of the party, ownership of the account passes as a part of

the party's estate under the party's will or by intestacy.

Enter the name of the party:

______________________________

Enter the name(s) of the convenience signer(s), if you want one

or more convenience signers on this account:

______________________________

___ (2) SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON DEATH)

DESIGNATION. The party to the account owns the account. On the

death of the party, ownership of the account passes to the P.O.D.

beneficiaries of the account. The account is not a part of the

party's estate.

Enter the name of the party:

______________________________

Enter the name or names of the P.O.D. beneficiaries:

______________________________

Enter the name(s) of the convenience signer(s), if you want one

or more convenience signers on this account:

______________________________

___ (3) MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP.

The parties to the account own the account in proportion to the

parties' net contributions to the account. The financial

institution may pay any sum in the account to a party at any

time. On the death of a party, the party's ownership of the

account passes as a part of the party's estate under the party's

will or by intestacy.

Enter the names of the parties:

______________________________

Enter the name(s) of the convenience signer(s), if you want one

or more convenience signers on this account:

______________________________

___ (4) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP. The

parties to the account own the account in proportion to the

parties' net contributions to the account. The financial

institution may pay any sum in the account to a party at any

time. On the death of a party, the party's ownership of the

account passes to the surviving parties.

Enter the names of the parties:

______________________________

Enter the name(s) of the convenience signer(s), if you want one

or more convenience signers on this account:

______________________________

___ (5) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND

P.O.D. (PAYABLE ON DEATH) DESIGNATION. The parties to the

account own the account in proportion to the parties' net

contributions to the account. The financial institution may pay

any sum in the account to a party at any time. On the death of

the last surviving party, the ownership of the account passes to

the P.O.D. beneficiaries.

Enter the names of the parties:

______________________________

Enter the name or names of the P.O.D. beneficiaries:

______________________________

Enter the name(s) of the convenience signer(s), if you want one

or more convenience signers on this account:

______________________________

___ (6) CONVENIENCE ACCOUNT. The parties to the account own the

account. One or more convenience signers to the account may make

account transactions for a party. A convenience signer does not

own the account. On the death of the last surviving party,

ownership of the account passes as a part of the last surviving

party's estate under the last surviving party's will or by

intestacy. The financial institution may pay funds in the

account to a convenience signer before the financial institution

receives notice of the death of the last surviving party. The

payment to a convenience signer does not affect the parties'

ownership of the account.

Enter the names of the parties:

______________________________

Enter the name(s) of the convenience signer(s):

______________________________

___ (7) TRUST ACCOUNT. The parties named as trustees to the

account own the account in proportion to the parties' net

contributions to the account. A trustee may withdraw funds from

the account. A beneficiary may not withdraw funds from the

account before all trustees are deceased. On the death of the

last surviving trustee, the ownership of the account passes to

the beneficiary. The trust account is not a part of a trustee's

estate and does not pass under the trustee's will or by

intestacy, unless the trustee survives all of the beneficiaries

and all other trustees.

Enter the name or names of the trustees:

______________________________

Enter the name or names of the beneficiaries:

______________________________

Enter the name(s) of the convenience signer(s), if you want one

or more convenience signers on this account:

______________________________

disclosed the information provided in this section if the

financial institution uses the form set forth in Subsection (b)

of this section. If a financial institution varies the format of

the form set forth in Subsection (b) of this section, then such

financial institution may make disclosures in the account

agreement or in any other form which adequately discloses the

information provided in this section.

(d) A financial institution may combine any of the provisions and

vary the format of the selections form and notices described in

Subsection (b) of this section provided that the customer

receives adequate disclosure of the ownership rights and there is

appropriate indication of the names of the parties. This may be

accomplished in a universal account form with options listed for

selection and additional disclosures provided in the account

agreement, or in any other manner which adequately discloses the

information provided in this section.

Added by Acts 1993, 73rd Leg., ch. 795, Sec. 2, eff. Aug. 30,

1993.

Subsec. (b) amended by Acts 2003, 78th Leg., ch. 658, Sec. 2,

eff. Sept. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

680, Sec. 10(a), eff. January 1, 2014.

Acts 2009, 81st Leg., R.S., Ch.

929, Sec. 2, eff. June 19, 2009.

Text of article effective until January 01, 2014

Sec. 440. EFFECT OF WRITTEN NOTICE TO FINANCIAL INSTITUTION. The

provisions of Section 439 of this code as to rights of

survivorship are determined by the form of the account at the

death of a party. Notwithstanding any other provision of the law,

this form may be altered by written order given by a party to the

financial institution to change the form of the account or to

stop or vary payment under the terms of the account. The order or

request must be signed by a party, received by the financial

institution during the party's lifetime, and not countermanded by

other written order of the same party during his lifetime.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 441. ACCOUNTS AND TRANSFERS NONTESTAMENTARY. Transfers

resulting from the application of Section 439 of this code are

effective by reason of the account contracts involved and this

statute and are not to be considered as testamentary or subject

to the testamentary provisions of this code.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 442. RIGHTS OF CREDITORS; PLEDGE OF ACCOUNT. No

multiple-party account will be effective against an estate of a

deceased party to transfer to a survivor sums needed to pay

debts, taxes, and expenses of administration, including statutory

allowances to the surviving spouse and minor children, if other

assets of the estate are insufficient. No multiple-party account

will be effective against the claim of a secured creditor who has

a lien on the account. A party to a multiple-party account may

pledge the account or otherwise create a security interest in the

account without the joinder of, as appropriate, a P.O.D. payee, a

beneficiary, a convenience signer, or any other party to a joint

account, regardless of whether there is a right of survivorship.

A convenience signer may not pledge or otherwise create a

security interest in an account. Not later than the 30th day

after the date on which a security interest on a multiple-party

account is perfected, a secured creditor that is a financial

institution the accounts of which are insured by the Federal

Deposit Insurance Corporation shall provide written notice of the

pledge of the account to any other party to the account who did

not create the security interest. The notice must be sent by

certified mail to any other party at the last address the party

provided to the depository bank and is not required to be

provided to a P.O.D. payee, a beneficiary, or a convenience

signer. A party, P.O.D. payee, or beneficiary who receives

payment from a multiple-party account after the death of a

deceased party shall be liable to account to the deceased party's

personal representative for amounts the decedent owned

beneficially immediately before his death to the extent necessary

to discharge the claims and charges mentioned above remaining

unpaid after application of the decedent's estate, but is not

liable in an amount greater than the amount that the party,

P.O.D. payee, or beneficiary received from the multiple-party

account. No proceeding to assert this liability shall be

commenced unless the personal representative has received a

written demand by a surviving spouse, a creditor, or one acting

for a minor child of the decedent, and no proceeding shall be

commenced later than two years following the death of the

decedent. Sums recovered by the personal representative shall be

administered as part of the decedent's estate. This section shall

not affect the right of a financial institution to make payment

on multiple-party accounts according to the terms thereof, or

make it liable to the estate of a deceased party unless before

payment the institution received written notice from the personal

representative stating the sums needed to pay debts, taxes,

claims, and expenses of administration.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Amended by Acts 2003, 78th Leg., ch. 564, Sec. 1, eff. Sept. 1,

2003.

Text of article effective until January 01, 2014

Sec. 443. PROTECTION OF FINANCIAL INSTITUTIONS. Sections 444

through 449 of this code govern the liability of financial

institutions that make payments as provided in this chapter and

the set-off rights of the institutions.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 444. PAYMENT ON SIGNATURE OF ONE PARTY. Financial

institutions may enter into multiple-party accounts to the same

extent that they may enter into single-party accounts. A

multiple-party account may be paid, on request, to any one or

more of the parties. A financial institution shall not be

required to inquire as to the source of funds received for

deposit to a multiple-party account, or to inquire as to the

proposed application of any sum withdrawn from an account, for

purposes of establishing net contributions.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 445. PAYMENT OF JOINT ACCOUNT AFTER DEATH OR DISABILITY.

Any sums in a joint account may be paid, on request, to any party

without regard to whether any other party is incapacitated or

deceased at the time the payment is demanded, but payment may not

be made to the personal representative or heirs of a deceased

party unless proofs of death are presented to the financial

institution showing that the decedent was the last surviving

party or unless there is no right of survivorship under Section

439 of this code. A financial institution that pays a sum from a

joint account to a surviving party to that account pursuant to a

written agreement under Section 439(a) of this code is not liable

to an heir, devisee, or beneficiary of the decedent's estate.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979. Amended by Acts 1987, 70th Leg., ch. 297, Sec. 2,

eff. Aug. 31, 1987.

Text of article effective until January 01, 2014

Sec. 446. PAYMENT OF P.O.D. ACCOUNT. A P.O.D. account may be

paid, on request, to any original party to the account. Payment

may be made, on request, to the P.O.D. payee or to the personal

representative or heirs of a deceased P.O.D. payee upon

presentation to the financial institution of proof of death

showing that the P.O.D. payee survived all persons named as

original payees. Payment may be made to the personal

representative or heirs of a deceased original payee if proof of

death is presented to the financial institution showing that his

decedent was the survivor of all other persons named on the

account either as an original payee or as P.O.D. payee.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 447. PAYMENT OF TRUST ACCOUNT. A trust account may be paid,

on request, to any trustee. Unless the financial institution has

received written notice that the beneficiary has a vested

interest not dependent upon his surviving the trustee, payment

may be made to the personal representative or heirs of a deceased

trustee if proof of death is presented to the financial

institution showing that his decedent was the survivor of all

other persons named on the account either as trustee or

beneficiary. Payment may be made, on request, to the beneficiary

upon presentation to the financial institution of proof of death

showing that the beneficiary or beneficiaries survived all

persons named as trustees.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 448. DISCHARGE FROM CLAIMS. Payment made as provided by

Section 444, 445, 446, or 447 of this code discharges the

financial institution from all claims for amounts so paid whether

or not the payment is consistent with the beneficial ownership of

the account as between parties, P.O.D. payees, or beneficiaries,

or their successors. The protection here given does not extend to

payments made after a financial institution has received written

notice from any party able to request present payment to the

effect that withdrawals in accordance with the terms of the

account should not be permitted. Unless the notice is withdrawn

by the person giving it, the successor of any deceased party must

concur in any demand for withdrawal if the financial institution

is to be protected under this section. No other notice or any

other information shown to have been available to a financial

institution shall affect its right to the protection provided

here. The protection here provided shall have no bearing on the

rights of parties in disputes between themselves or their

successors concerning the beneficial ownership of funds in, or

withdrawn from, multiple-party accounts.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

Text of article effective until January 01, 2014

Sec. 449. SET-OFF TO FINANCIAL INSTITUTION. Without qualifying

any other statutory right to set-off or lien and subject to any

contractual provision, if a party to a multiple-party account is

indebted to a financial institution, the financial institution

has a right to set-off against the account in which the party has

or had immediately before his death a present right of

withdrawal. The amount of the account subject to set-off is that

proportion to which the debtor is, or was immediately before his

death, beneficially entitled, and in the absence of proof of net

contributions, to an equal share with all parties having present

rights of withdrawal.

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979.

PART 2. PROVISIONS RELATING TO EFFECT OF DEATH

Text of article effective until January 01, 2014

Sec. 450. PROVISIONS FOR PAYMENT OR TRANSFER AT DEATH. (a) Any

of the following provisions in an insurance policy, contract of

employment, bond, mortgage, promissory note, deposit agreement,

employees' trust, retirement account, deferred compensation

arrangement, custodial agreement, pension plan, trust agreement,

conveyance of real or personal property, securities, accounts

with financial institutions as defined in Part 1 of this chapter,

mutual fund account, or any other written instrument effective as

a contract, gift, conveyance, or trust is deemed to be

nontestamentary, and this code does not invalidate the instrument

or any provision:

(1) that money or other benefits theretofore due to, controlled,

or owned by a decedent shall be paid after his death to a person

designated by the decedent in either the instrument or a separate

writing, including a will, executed at the same time as the

instrument or subsequently;

(2) that any money due or to become due under the instrument

shall cease to be payable in event of the death of the promisee

or the promissor before payment or demand; or

(3) that any property which is the subject of the instrument

shall pass to a person designated by the decedent in either the

instrument or a separate writing, including a will, executed at

the same time as the instrument or subsequently.

(b) Nothing in this section limits the rights of creditors under

other laws of this state.

(1) "Employees' trust" means:

(A) a trust that forms a part of a stock-bonus, pension, or

profit-sharing plan under Section 401, Internal Revenue Code of

1954 (26 U.S.C.A. Sec. 401 (1986));

(B) a pension trust under Chapter 111, Property Code; and

retirement savings arrangement, including a pension plan created

under Section 3, Employee Retirement Income Security Act of 1974

(29 U.S.C.A. Sec. 1002 (1986)), regardless of whether the plan,

program, or arrangement is funded through a trust.

(2) "Individual retirement account" means a trust, custodial

arrangement, or annuity under Section 408(a) or (b), Internal

Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).

(3) "Retirement account" means a retirement-annuity contract, an

individual retirement account, a simplified employee pension, or

any other retirement savings arrangement.

(4) "Retirement-annuity contract" means an annuity contract under

Section 403, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 403

(1986)).

(5) "Simplified employee pension" means a trust, custodial

arrangement, or annuity under Section 408, Internal Revenue Code

of 1954 (26 U.S.C.A. Sec. 408 (1986)).

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, Sec. 31, eff.

Aug. 27, 1979. Amended by Acts 1987, 70th Leg., ch. 94, Sec. 1,

2, eff. Aug. 31, 1987; Acts 1997, 75th Leg., ch. 1302, Sec. 14,

eff; Sept. 1, 1997; Acts 2001, 77th Leg., ch. 284, Sec. 1, eff.

May 22, 2001.

PART 3. COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP

Text of article effective until January 01, 2014

Sec. 451. RIGHT OF SURVIVORSHIP. At any time, spouses may agree

between themselves that all or part of their community property,

then existing or to be acquired, becomes the property of the

surviving spouse on the death of a spouse.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 452. FORMALITIES. An agreement between spouses creating a

right of survivorship in community property must be in writing

and signed by both spouses. If an agreement in writing is signed

by both spouses, the agreement shall be sufficient to create a

right of survivorship in the community property described in the

agreement if it includes any of the following phrases:

(1) "with right of survivorship";

(2) "will become the property of the survivor";

(3) "will vest in and belong to the surviving spouse"; or

(4) "shall pass to the surviving spouse."

An agreement that otherwise meets the requirements of this part,

however, shall be effective without including any of those

phrases.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 453. OWNERSHIP AND MANAGEMENT DURING MARRIAGE. Property

subject to an agreement between spouses creating a right of

survivorship in community property remains community property

during the marriage of the spouses. Such an agreement does not

affect the rights of the spouses concerning management, control,

and disposition of the property subject to the agreement unless

the agreement provides otherwise.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 454. TRANSFERS NONTESTAMENTARY. Transfers at death

resulting from agreements made in accordance with this part of

this code are effective by reason of the agreement involved and

are not testamentary transfers. Such transfers are not subject to

the provisions of this code applicable to testamentary transfers

except as expressly provided otherwise in this code.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 455. REVOCATION. An agreement between spouses made in

accordance with this part of this code may be revoked in

accordance with the terms of the agreement. If the agreement does

not provide a method for revocation, the agreement may be revoked

by a written instrument signed by both spouses or by a written

instrument signed by one spouse and delivered to the other

spouse. The agreement may be revoked with respect to specific

property subject to the agreement by the disposition of such

property by one or both of the spouses if such disposition is not

inconsistent with specific terms of the agreement and applicable

law.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 456. PROOF OF AGREEMENT. (a) Application for Adjudication.

An agreement between spouses creating a right of survivorship in

community property that satisfies the requirements of this part

is effective without an adjudication. After the death of a

spouse, however, the surviving spouse or the personal

representative of the surviving spouse may apply to the court for

an order stating that the agreement satisfies the requirements of

this code and is effective to create a right of survivorship in

community property. The original agreement shall be filed with

the application for an adjudication. An application for an

adjudication under this section must include:

(1) the name and domicile of the surviving spouse;

(2) the name and former domicile of the decedent and the fact,

time, and place of death;

(3) facts establishing venue in the court; and

(4) the social security number of the decedent, if known.

(b) Proof Required. An applicant for an adjudication under this

section must prove to the satisfaction of the court:

(1) that the spouse whose community property interest is at issue

is dead;

(2) that the court has jurisdiction and venue;

(3) that the agreement was executed with the formalities required

by law;

(4) that the agreement was not revoked; and

(5) that citation has been served and returned in the manner and

for the length of time required by this code.

agreement may be proved by the sworn testimony of one witness

taken in open court, by the affidavit of one witness, or by the

deposition of one witness, either written or oral, taken in the

same manner and under the same rules as depositions in other

civil actions. If the surviving spouse is competent to make an

oath, the surviving spouse's signature to the agreement may be

proved by the sworn testimony of the surviving spouse taken in

open court, by the affidavit of the surviving spouse, or by the

deposition of the surviving spouse either written or oral, taken

in the same manner and under the same rules as depositions in

other civil actions. If the surviving spouse is not competent to

make an oath, the surviving spouse's signature to the agreement

may be proved in the manner provided above for the proof of the

deceased spouse's signature.

(d) Venue. An application for an adjudication under this section

must be filed in the county of proper venue for administration of

the deceased spouse's estate.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 457. ACTION OF COURT ON AGREEMENT. On completion of a

hearing on an application under Section 456 of this code, if the

court is satisfied that the requisite proof has been made, an

order adjudging the agreement valid shall be entered. Certified

copies of the agreement and order may be recorded in other

counties and may be used in evidence, as the original might be,

on the trial of the same matter in any other court, on appeal or

otherwise.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 458. EFFECT OF ORDER. An agreement between spouses creating

a right of survivorship in community property that satisfies the

requirements of this code is effective and enforceable without an

adjudication. If an order adjudging such an agreement valid is

obtained, however, the order shall constitute sufficient

authority to all persons owing money, having custody of any

property, or acting as registrar or transfer agent of any

evidence of interest, indebtedness, property, or right, that is

subject to the provisions of the agreement, and to persons

purchasing from or otherwise dealing with the surviving spouse

for payment or transfer to the surviving spouse, and the

surviving spouse may enforce his or her right to such payment or

transfer.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 459. CUSTODY OF ADJUDICATED AGREEMENTS. An original

agreement creating a right of survivorship in community property

that has been adjudicated together with the order adjudging it

valid shall be deposited in the office of the county clerk of the

county in which it was adjudicated and shall remain there, except

during such time when it may be removed for inspection to another

place on order of the court where adjudicated. If the court

orders an original agreement to be removed to another place for

inspection, the person removing the original agreement shall give

a receipt therefor, and the clerk of the court shall make and

retain a copy of the original agreement.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 460. PROTECTION OF PERSONS OR ENTITIES ACTING WITHOUT

KNOWLEDGE OR NOTICE. (a) Personal Representatives. If the

personal representative of a decedent's estate has no actual

knowledge of the existence of an agreement creating a right of

survivorship in community property in the decedent's surviving

spouse, the personal representative shall not be liable to the

surviving spouse or to any person claiming from the surviving

spouse for selling, exchanging, distributing, or otherwise

disposing of the property or an interest therein.

(b) Purchaser without Notice of Survivorship Agreement.

(1) If any person or entity purchases real or personal property

from a person claiming from a decedent more than six months after

the date of the decedent's death, for value, and without notice

of the existence of an agreement creating a right of survivorship

in the property in the decedent's surviving spouse, the purchaser

shall have good title to the interest which the person claiming

from the decedent would have had in the absence of the agreement,

as against the claims of the surviving spouse or any person

claiming from the surviving spouse.

(2) If any person or entity purchases real or personal property

from the personal representative of a decedent's estate, for

value, and without notice of the existence of an agreement

creating a right of survivorship in the property in the

decedent's surviving spouse, the purchaser shall have good title

to the interest which the personal representative would have had

the power to convey in the absence of the agreement, as against

the claims of the surviving spouse or any person claiming from

the surviving spouse.

Agreement. If any person or entity purchases real or personal

property from a decedent's surviving spouse more than six months

after the date of the decedent's death, for value, and:

(1) with respect to real or personal property, the purchaser has

received an original or certified copy of an agreement purporting

to create a right of survivorship in such property in the

decedent's surviving spouse, purportedly signed by the decedent

and the surviving spouse; or

(2) with respect to real property, an agreement purporting to

create a right of survivorship in such property in the decedent's

surviving spouse, purportedly signed by the decedent and the

surviving spouse, is properly recorded in a county in which a

part of the property is located; and the purchaser has no notice

that the agreement was revoked, the purchaser shall have good

title to the interest which the surviving spouse would have had

in the absence of a revocation of the agreement, as against the

claims of the personal representative of the decedent's estate

and all persons claiming from the decedent or the personal

representative of the decedent's estate.

(d) Debtors, Transfer Agents, and Other Persons Acting without

Notice of Survivorship Agreement. If any person or entity owing

money to a decedent or having custody of any property or acting

as registrar or transfer agent of any evidence of interest,

indebtedness, property, or right which was owned by a decedent

prior to death has no actual knowledge of an agreement creating a

right of survivorship in such property in the decedent's

surviving spouse, that person or entity may pay or transfer such

property to the personal representative of the decedent's estate

or to the heirs, legatees, or devisees of the decedent's estate

if no administration is pending on the estate, and the person or

entity shall be discharged from all claims for amounts or

property so paid or transferred.

(e) Debtors, Transfer Agents, and Persons Acting without Notice

of Revocation of Survivorship Agreement. If any person or entity

owing money to a decedent or having custody of any property or

acting as registrar or transfer agent of any evidence of

interest, indebtedness, property, or right which was owned by a

decedent prior to death is presented with the original or a

certified copy of an agreement creating a right of survivorship

in such property in the decedent's surviving spouse, purportedly

signed by the decedent and the decedent's surviving spouse and if

such person or entity has no actual knowledge that the agreement

was revoked, that person or entity may pay or transfer such

property to the decedent's surviving spouse and shall be

discharged from all claims for amounts or property so paid or

transferred.

(f) Definitions. Under this section:

(1) a person or entity has "actual knowledge" of an agreement

creating a right of survivorship in community property or of the

revocation of such an agreement only if the person or entity has

received written notice or has received the original or a

certified copy of the agreement or revoking instrument;

(2) a person or entity has "notice" of an agreement creating a

right of survivorship in community property or the revocation of

such an agreement if the person or entity has actual knowledge of

the agreement or revocation or, with respect to real property, if

the agreement or revoking instrument is properly recorded in the

county in which the real property is located; and

(3) a "certified copy" is a copy of an official record or of a

document authorized by law to be recorded or filed and actually

recorded or filed in a public office, certified as correct in

accordance with the provisions of Rule 902 of the Texas Rules of

Civil Evidence.

(g) Other Cases. Except as expressly provided in this section,

the provisions of this section do not affect the rights of a

surviving spouse or person claiming from the surviving spouse in

disputes with persons claiming from a decedent or the successors

of any of them concerning a beneficial interest in property or

the proceeds therefrom, subject to a right of survivorship

pursuant to an agreement that satisfies the requirements of this

code.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 461. RIGHTS OF CREDITORS. The provisions of Part 1 of this

chapter govern the rights of creditors in multiple-party

accounts, as defined by Section 436 of Part 1. Except as

expressly provided above in this section, the community property

subject to the sole or joint management, control, and disposition

of a spouse during marriage continues to be subject to the

liabilities of that spouse upon death without regard to a right

of survivorship in the decedent's surviving spouse under an

agreement made in accordance with the provisions of this part.

The surviving spouse shall be liable to account to the deceased

spouse's personal representative for the property received by the

surviving spouse pursuant to a right of survivorship to the

extent necessary to discharge such liabilities. No proceeding to

assert such a liability shall be commenced unless the personal

representative has received a written demand by a creditor, and

no proceeding shall be commenced later than two years following

the death of the decedent. Property recovered by the personal

representative shall be administered as part of the decedent's

estate. This section does not affect the protection given to

persons and entities under Section 460 of this code unless,

before payment or transfer to the surviving spouse, the person or

entity received a written notice from the decedent's personal

representative stating the amount needed to satisfy the

decedent's liabilities.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

Text of article effective until January 01, 2014

Sec. 462. COORDINATION WITH PART 1 OF CHAPTER XI. The provisions

of Part 1 of this chapter apply to multiple-party accounts held

by spouses with a right of survivorship to the extent that such

provisions are not inconsistent with the provisions of this part.

Added by Acts 1989, 71st Leg., ch. 655, Sec. 2, eff. Aug. 28,

1989.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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