Texas Estates Code 1161.104 – Procedure for Investing in Insurance or Annuities
(a) Before the guardian of the estate may invest in life, term, or endowment insurance policies, in annuity contracts, or in both, the guardian must first apply to the court for an order that authorizes the investment.
(b) The application must include a report that shows:
(1) in detail the estate’s financial condition on the date the application is filed;
(2) the name and address of the authorized life insurance company from which the insurance policy or annuity contract is to be purchased and that:
(A) the company is licensed by the Texas Department of Insurance to transact that business in this state on the date the application is filed; or
(B) the policy or contract is administered by the Department of Veterans Affairs;
(3) a statement of:
(A) the face amount and plan of the insurance policy sought to be purchased; and
(B) the amount, frequency, and duration of the annuity payments to be provided by the annuity contract sought to be purchased;
(4) a statement of the amount, frequency, and duration of the premiums required by the insurance policy or annuity contract; and
(5) a statement of the cash value of the insurance policy or annuity contract at the policy’s or contract’s anniversary nearest the ward‘s 21st birthday, assuming that all premiums to the anniversary are paid and that there is no indebtedness against the policy or contract incurred in accordance with its terms.
Terms Used In Texas Estates Code 1161.104
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Court: means and includes:
(1) a county court in the exercise of its probate jurisdiction;
(2) a court created by statute and authorized to exercise original probate jurisdiction; and
(3) a district court exercising original probate jurisdiction in a contested matter. See Texas Estates Code 22.007 - Estate: means a decedent's property, as that property:
(1) exists originally and as the property changes in form by sale, reinvestment, or otherwise;
(2) is augmented by any accretions and other additions to the property, including any property to be distributed to the decedent's representative by the trustee of a trust that terminates on the decedent's death, and substitutions for the property; and
(3) is diminished by any decreases in or distributions from the property. See Texas Estates Code 22.012 - Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Ward: means a person for whom a guardian has been appointed. See Texas Estates Code 22.033
(c) If satisfied by the application and the evidence presented at the hearing that it is in the ward’s interests to grant the application, the court shall enter an order granting the application.