HB 3395 seeks to simplify the transfer of ownership for manufactured homes classified as personal property upon the death of the owner. It creates a new legal framework under the Texas Estates Code (Chapter 116) that allows individuals to designate a beneficiary to receive their interest in such a manufactured home through a “beneficiary designation,” bypassing the probate process.
The bill defines key terms such as “designated beneficiary,” “joint owner with right of survivorship,” and “manufactured home,” and specifies that this process applies only to homes classified as personal property (not real property). Under this mechanism, an owner may file a revocable beneficiary designation as outlined in the Occupations Code §1201.2135, which becomes effective upon the owner's death, assuming the designated beneficiary survives the owner by at least 120 hours. If multiple joint owners exist, all must agree to the designation, and it can only be revoked or altered by all living joint owners.
During the lifetime of the owner, the designation does not affect the owner’s property rights, nor does it create any legal interest for the beneficiary. Upon death, the transfer of ownership takes effect without the need for a will, probate, or acceptance by the beneficiary. However, the transferred property remains subject to all existing debts, liens, and encumbrances.
The purpose of this bill is to provide a straightforward, cost-effective means for low- and moderate-income Texans, many of whom own manufactured homes, to transfer property upon death in a manner consistent with transfer-on-death deeds for real estate, thereby reducing legal complexity and preserving family assets.
The Committee Substitute version of HB 3395 introduces several substantive improvements and clarifications to the originally filed bill. Most notably, while the original version limited owners of manufactured homes to designating only a sole beneficiary, the substitute expands this right to allow designation of multiple beneficiaries. This change aligns the proposed process more closely with Texas’s existing estate planning tools, such as transfer-on-death deeds for real property, and offers manufactured homeowners greater flexibility in managing their estates.
The substitute also strengthens the bill’s legal structure by refining definitions and statutory references for clarity and consistency. It maintains the original bill’s non-probate transfer mechanism but enhances procedural transparency, particularly in cases involving joint owners. For example, the Committee Substitute more clearly outlines how joint owners must act together to designate or change a beneficiary and how the last surviving joint owner may act alone to make modifications.
In addition, the substitute version makes creditor protections more explicit. It confirms that the manufactured home passes to the designated beneficiary subject to any outstanding encumbrances or liens and incorporates existing provisions from the Estates Code that govern how creditors may assert claims against non-probate transfers. These clarifications help ensure the bill balances the rights of heirs with those of creditors, and reduces potential confusion or legal disputes after an owner's death.
Finally, the Committee Substitute reflects technical and stylistic improvements consistent with legislative drafting standards. It polishes administrative provisions—such as those involving deadlines for submitting documentation to the Department of Housing and Community Affairs—and better articulates the process for changing or revoking a beneficiary designation. Collectively, these changes enhance the bill’s clarity, fairness, and practical enforceability.