Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

SB 1940 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 SB 1940 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.

Author

Bryan Hughes

Sponsor

Gary Vandeaver

Contact the Author

Sen. Bryan Hughes

Capitol Phone:

(512) 463-0101

Capitol Office:

CAP 3E8

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal implications of SB 1940 are minimal. The bill is not expected to have a significant fiscal impact on the state. The administrative duties associated with implementing the new beneficiary designation process, such as processing applications for ownership changes submitted to the Texas Department of Housing and Community Affairs (TDHCA), can be handled using the agency’s existing resources. This suggests that the volume of new filings or system modifications required will not necessitate additional appropriations or staffing increases.

Similarly, there are no significant anticipated costs for local governments. Since the bill involves state-level registration of manufactured homes and bypasses the traditional probate process handled by local courts, it may actually reduce burdens on local probate systems over time. However, any savings at the local level would likely be marginal and indirect, arising from a modest decrease in probate case volume involving manufactured homes.

In sum, while the bill introduces a new legal mechanism for transferring title to manufactured homes upon death, the infrastructure to support this process already exists within the TDHCA. Therefore, implementation costs are expected to be low and manageable within current operational frameworks, resulting in no meaningful fiscal impact at either the state or local level.

Vote Recommendation Notes

Texas Policy Research recommends that lawmakers vote YES on SB 1940 due to its strong alignment with core liberty principles and its practical, efficient approach to estate planning for manufactured homeowners. The bill introduces a streamlined, voluntary process that allows individuals to designate one or more beneficiaries for manufactured homes classified as personal property. This mechanism reduces the legal and financial burdens associated with probate, empowering homeowners, particularly those of modest means, with greater control over how their property is transferred at death.

Crucially, the bill does not grow the size or scope of government. It leverages the existing structure of the Texas Department of Housing and Community Affairs (TDHCA), which is already responsible for overseeing manufactured home ownership records. The rulemaking authority granted to TDHCA is narrowly defined and limited to the administrative implementation of the new transfer process. As confirmed by the Legislative Budget Board, the bill has no significant fiscal impact and requires no new funding or staffing, ensuring it imposes no additional burden on taxpayers.

In addition, the legislation does not impose new regulations or mandates on individuals or businesses. Participation in the beneficiary designation process is entirely optional. The requirements for designation—such as deadlines, documentation, and submission procedures—are consistent with existing property transfer protocols and do not create undue administrative burdens.

Overall, SB 1940 advances property rights, simplifies estate planning, reduces court involvement, and respects taxpayer resources. It is a well-structured policy improvement that deserves broad support. Texas Policy Research recommends that lawmakers vote YES on SB 1940.

Individual Liberty: The bill enhances individual liberty by giving homeowners the freedom to decide who will inherit their manufactured home, without needing a will or going through the probate court. It empowers individuals to plan their estate on their own terms, respecting their autonomy and right to manage personal property.
Personal Responsibility: By allowing people to designate beneficiaries in advance, the bill encourages proactive estate planning. It places the responsibility on the homeowner to make clear decisions about what happens to their property after death, reducing ambiguity and conflict for families later on.
Free Enterprise: The bill does not interfere with business activity or market competition. However, by reducing probate-related legal expenses, it may indirectly ease costs on low-income homeowners and make transferring property simpler, which could have minor downstream benefits in housing markets.
Private Property Rights: The bill reinforces the principle that property owners have the right to control what happens to their assets. It treats manufactured homes with the same respect and flexibility as other personal property, like vehicles or bank accounts, strengthening the protections for property ownership and inheritance.
Limited Government: By creating a non-court method of transferring property, the bill reduces the government’s role in personal estate matters. It decreases dependence on the probate system and avoids unnecessary legal and bureaucratic procedures, thereby shrinking the government’s footprint in what should be private family decisions.

Related Legislation

HB 3395 (Same As)

View Bill Text and Status