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[Estates Code] 2013 Texas Estate and Trust Legislative Update

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[Estates Code] 2013 Texas Estate and Trust Legislative Update Out With the Old [Probate Code] and In With the New [Estates Code] 2013 Texas Estate and Trust Legislative Update (Including Probate, Guardianships, Trusts, Powers of Attorney, and Other Related Matters) WILLIAM D. PARGAMAN SAUNDERS, NORVAL, PARGAMAN&ATKINS, LLP 2630 Exposition Boulevard, Suite 203 Austin, Texas 78703-1763 512.617.7328 • Fax 512-472.7790 [email protected] www.snpalaw.com blog: www.snpalaw.com/blog This version was updated August 22, 2013. Updates will be posted as warranted at: www.snpalaw.com/resources/2013legislativeupdate Or go to our Resources page and scroll down to “2013 Texas “Estate and Trust” Legislative Update.” Estate Planning Council of Central Texas August 28, 2013 © 2013, William D. Pargaman, All Rights Reserved WILLIAM D. (BILL) PARGAMAN SAUNDERS, NORVAL, PARGAMAN&ATKINS, LLP 2630 Exposition Boulevard, Suite 203 Austin, Texas 78703-1763 512-617-7328 (direct) ∞ 512-472-7790 (fax) [email protected] ∞ www.snpalaw.com Legal Experience Bill Pargaman is certified as a specialist in Estate Planning and Probate Law by the Texas Board of Legal Specialization and is a Fellow in the American College of Trust and Estate Counsel. Bill’s practice involves the preparation of wills, trusts and other estate planning documents, charitable planning, and estate administration and alternatives to administration. He advises clients on the organization and maintenance of business entities such as corporations, partnerships, and limited liability entities. Additionally, he represents clients in contested litigation involving estates, trusts and beneficiaries, and tax issues. Education • Doctor of Jurisprudence, with honors, University of Texas School of Law, 1981, Order of the Coif, Chancellors • Bachelor of Arts, Government, with high honors, University of Texas at Austin, 1978, Phi Beta Kappa Professional Licenses • Attorney at Law, Texas, 1981 Court Admissions • United States Tax Court Prior Experience • Brown McCarroll, L.L.P., 1981 – 2012 Speeches and Publications Mr. Pargaman has been a speaker, author, or course director at numerous seminars, including: • State Bar of Texas, Advanced Estate Planning and Probate Course, Estate Planning and Probate Drafting Course, Advanced Guardianship Law Course, and Practice Skills for New Lawyers • Real Estate, Probate and Trust Law Section Annual Meeting • University of Houston Law Foundation, General Practice Institute, and Wills and Probate Institute • South Texas College of Law, Wills and Probate Institute • Austin Bar Association, Estate Planning and Probate Section Annual Probate and Estate Planning Seminar • Austin Bar Association and Austin Young Lawyers Association Legal Malpractice Seminar • Houston Bar Association Probate, Trusts & Estate Section • Austin Chapter, Texas Society of Certified Public Accountants, Annual Tax Update • Texas Bankers Association, Advanced Trust Forum • Estate Planning Councils in Austin, Amarillo, Corpus Christi, Lubbock, and Tyler • Austin Association of Life Underwriters • Austin Chapter, University of Texas Medical Branch (Galveston) Alumni Association • SAGE Group, University of Texas i William D. Pargaman (cont.) Professional Memberships and Activities • American College of Trust and Estate Counsel, Fellow • State Bar of Texas • Real Estate, Probate and Trust Law Section, Member (Treasurer, 2013-2014) • Real Estate, Probate, and Trust Law Council, Member, 2004–2008 • Estate and Trust Legislative Affairs Committee, Member, 2000–Present (Chair, 2008–2013) • Trusts Committee, Member, 2000–2010 (Chair, 2004–2008) • Uniform Trust Code Study Project, Articles 7–9 & UPIA, Subcommittee Member, 2000–2003 • Texas Board of Legal Specialization (Estate Planning and Probate Law), Examiner, 1995- 1997 • Estate Planning Council of Central Texas, Member (President, 1991-1992) • Austin Bar Association, Member • Estate Planning and Probate Section, Member (Chair, 1992-1993, Board Member, 1997-1999) Honors • Listed in The Best Lawyers in America® • Listed in Texas Super Lawyers (Texas Monthly) • Listed in The Best Lawyers in Austin (Austin Monthly) Community Involvement • St. Stephen’s Episcopal School Professional Advisory Council, Past Member • City of Austin, XERISCAPE Advisory Board, Past Member • Volunteer Guardianship Program of Family Eldercare, Inc. of Austin, Past Member, Advisory Board ii Out With the Old [Probate Code] and In With the New [Estates Code] 2013 Texas Estate and Trust Legislative Update (Including Probate, Guardianships, Trusts, Powers of Attorney, and Other Related Matters) © 2013, William D. Pargaman, All Rights Reserved. TABLE OF CONTENTS 1. The Preliminaries. .............................................................................................................................................. 1 1.1 Introduction and Scope. ........................................................................................................................ 1 1.2 See Attachment 1 for the Rest of the Preliminaries. ............................................................................. 1 1.3 CMA Disclaimer. .................................................................................................................................. 1 2. The New Estates Code. ...................................................................................................................................... 1 2.1 January 1, 2014. .................................................................................................................................... 1 2.2 See Attachment 2 for More Background on the Estates Code. ............................................................. 1 3. The REPTL Bills. ............................................................................................................................................... 1 3.1 The Original REPTL Legislative Package. ........................................................................................... 1 3.2 The “Main” REPTL Bills. ..................................................................................................................... 1 (a) The Decedents’ Estates Bill. .................................................................................................... 1 (b) The Trusts Bill. ........................................................................................................................ 2 3.3 The “Small” REPTL Bills. .................................................................................................................... 2 (a) The Title Insurance Bill. .......................................................................................................... 2 (b) The Medical Power of Attorney Bill. ....................................................................................... 2 (c) The Exempt Property Bill. ....................................................................................................... 2 3.4 Consolidation Into the REPTL Bills. .................................................................................................... 2 4. Decedents’ Estates. ............................................................................................................................................ 2 4.1 The REPTL Decedents’ Estates Bill. .................................................................................................... 2 (a) No More References to “Written” Wills. ................................................................................. 2 (b) No Unsworn Declarations for Self-Proving Affidavits (Sec. 21.005). .................................... 2 (c) Heirship Changes. .................................................................................................................... 2 (i) Inheritance Rights of “Intended” Parents (Secs. 201.051 and 201.052). .................... 2 (ii) No Statute of Limitations for Determinations of Heirship (Sec. 202.0025). .............. 2 (iii) Initiation of Heirship Proceedings (Secs. 202.004(2)). ............................................... 2 (iv) Ad Litems in Heirships (Sec. 202.009). ...................................................................... 2 (v) Waiver of Citation for Minor in Heirships (Sec. 202.056). ........................................ 2 (vi) No Heirship Determination Until Affidavit or Certificate of Notice Filed (Sec. 202.057). ............................................................................................................ 3 (vii) Heirship Testimony Reduced to Writing (Sec. 202.151). ........................................... 3 (d) Heirship Claims of Biological Children (Secs. 204.151 and 204.152). ................................... 3 (e) Void Orders Restricting New Wills (Sec. 253.001). ................................................................ 3 (f) Addresses in Application for Letters (Sec. 256.052). .............................................................. 3 Drafting Tip ............................................................................................................................. 3 (g) Foreign Self-Proving Affidavits (Sec. 256.152). ..................................................................... 3 (h) Proof of Will by Deposition (Secs. 256.153 and 256.154). ..................................................... 3 (i) Proof of Application for Issuance of Letters (Sec. 301.155). .................................................. 3 (j) Time for Taking Oath and Giving Bond (Secs. 305.002-305.004). ......................................... 3 iii
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