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Texas Probate Code - Section 450. Provisions For Payment Or Transfer At Death

Legal Research Home > Texas Laws > Probate Code > Texas Probate Code - Section 450. Provisions For Payment Or Transfer At Death

§ 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.
	(c)  In this section:                                                          
	(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. § 401 (1986));
	(B)  a pension trust under Chapter 111, Property Code;  and                    
	(C)  an employer-sponsored benefit plan or program, or any 
other retirement savings arrangement, including a pension plan 
created under Section 3, Employee Retirement Income Security Act of 
1974 (29 U.S.C.A. § 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. § 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. § 
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. § 408 (1986)).

Added by Acts 1979, 66th Leg., p. 1756, ch. 713, § 31, eff. Aug. 
27, 1979.  Amended by Acts 1987, 70th Leg., ch. 94, § 1, 2, eff. 
Aug. 31, 1987;  Acts 1997, 75th Leg., ch. 1302, § 14, eff. Sept. 
1, 1997;  Acts 2001, 77th Leg., ch. 284, § 1, eff. May 22, 2001.

PART 3. COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP

Last modified: August 11, 2007