When Protection Becomes Control, The Reason for the Texas Family First Guardianship Act

1

Executive Summary

The bill in a 3-5 minute read

What this proposal would change

The proposed Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act is a comprehensive guardianship reform bill for the 90th Texas Legislature. Its purpose is to keep guardianship focused on the person who needs protection while preserving family care, personal choice, property, due process, and public accountability. It does not abolish guardianship or prevent courts from acting when a person faces proven danger. It creates clearer rules for deciding who should serve, where the person may live, how changed medical evidence must be considered, how the estate may be used, and what happens when a guardian or court-appointed professional violates the law.[Proposed Act, 2026]

The bill's principal reforms are:

Prompt review when medical facts change. A new diagnosis, improvement, corrected diagnosis, medication-related change, or other documented change that calls incapacity or the scope of guardianship into question would trigger an expedited process. The court generally would appoint an investigator or guardian ad litem within five business days, hold a hearing within 21 days, consider the person's wishes and treating providers, and issue written findings after the hearing.[Proposed Act, 2026]
Qualified family considered before unrelated professionals. The bill establishes a defined order of family priority, requires a documented search for adult relatives, and gives identified relatives notice and an opportunity to participate. A family member could still be bypassed for abuse, exploitation, disqualification, serious conflict, inability to serve, or a specific risk of harm, but the court would have to support that decision with evidence and written findings.[Proposed Act, 2026]
Protection against hidden relatives and pressured waivers. Applicants would file a sworn family-information affidavit describing the relatives found, the sources consulted, and contact efforts. A waiver of family priority would have to be voluntary, sworn, notarized, filed, and disclosed to other adult relatives. A waiver obtained through coercion, fraud, concealment, or denial of reasonable access would be void.[Proposed Act, 2026]
Greater protection for safe family homes. A person could not be removed from a safe family residence merely because relatives disagree, the home is outside the county, or professional supervision would be easier elsewhere. Removal would require clear and convincing evidence of a serious risk that could not be addressed through a less restrictive measure. Emergency moves would remain available when necessary to prevent immediate harm or provide urgent medical care.[Proposed Act, 2026]
A workable path for interstate family care. The ward, the ward's attorney, an adult relative, or another interested person could request transfer to another state without waiting for the guardian's consent. The court would evaluate safety, treatment, benefits, family support, cost, property protection, and the ward's preferences, while coordinating with the receiving court so protection does not lapse.[Proposed Act, 2026]
Short-term protection before assets disappear. When specific facts show an imminent threat of exploitation, theft, an unauthorized transfer, foreclosure, repossession, or similar loss, an eligible reporter could send an emergency protection notice to a covered financial or property institution. Any provisional hold would have to be narrow, would preserve access to money for essential living expenses, and ordinarily would expire after five business days unless continued by lawful action or court order.[Proposed Act, 2026]
Estate stewardship centered on the ward. The bill requires ward property to be used for the ward's care, safety, housing, support, rehabilitation, and other direct benefit. It adds stewardship plans, detailed records, controls on nonroutine expenditures and related-party transactions, rules for caregiver compensation, and managing or reviewing estate protectors when independent oversight is needed.[Proposed Act, 2026]
Enforceable rights and protection from retaliation. The ward, family, counsel, an estate protector, an interested person, or an authorized agency could file a verified enforcement motion. Emergency allegations involving harm, isolation, retaliation, unauthorized relocation, exploitation, or loss of property would receive accelerated review. Courts could restore contact, order access to records, stop an improper move, require an accounting, remove an appointee, order repayment, deny fees, or grant other lawful relief.[Proposed Act, 2026]
Real consequences for knowing or reckless violations. Guardians and other covered court appointees could face removal, surcharge, repayment, fee forfeiture, additional bond, and referral when they knowingly or recklessly violate protected provisions, conceal relatives or property, suppress material medical information, retaliate, file materially false information, or participate in prohibited conflicts. The ward's estate generally could not be charged for costs attributable to the violation.[Proposed Act, 2026]
Public transparency without exposing the ward. The Office of Court Administration would publish searchable, downloadable, machine-readable appointment and compensation information using anonymized case identifiers. The public could examine appointment patterns, workloads, payments, reasons for bypassing family, affiliates, and final sanctions while names, addresses, medical information, account information, and other confidential details remain protected.[Proposed Act, 2026]

The balance built into the bill

The proposal is family-first, but not family-always. Relationship alone would not excuse abuse, neglect, exploitation, incapacity to serve, or a dangerous conflict. The proposal protects residential choice, but it does not require a person to remain in an unsafe home. It authorizes emergency asset protection, but not an indefinite or unsupported freeze. It requires reconsideration when medical evidence materially changes, but it does not automatically restore capacity without the evidence and findings required by law.[Proposed Act, 2026]

For a casual reader, the central change is straightforward: guardianship would remain available when necessary, but decisions that remove rights, displace family, move a person, spend the person's estate, or ignore changed medical facts would face clearer evidence requirements, faster review, written findings, stronger remedies, and greater public accountability. The detailed sections that follow explain how each protection would operate and how the proposal differs from current Texas law.

2

The Human Stakes

A concise Texas case study

The Peggy Hill guardianship dispute

Peggy Hill, an 83-year-old Dallas-area resident, became the subject of a court-ordered guardianship after a dementia diagnosis and a family dispute over her care, residence, and finances. The court placed responsibility for her personal care with a professional guardian and responsibility for her property with a financial institution. A family agreement later allowed her to spend time with relatives in Colorado, but conflict arose when she said she wanted to remain there instead of returning to Dallas.[WFAA, 2026a]

The dispute became a test of competing authority. The guardian sought enforcement of the Texas residential arrangement, while Peggy's Colorado family said they could encourage her to return but could not physically force her to travel. Court proceedings then addressed the family's compliance, Peggy's expressed preference, the practical difficulty of supervising an out-of-state placement, and the growing cost of the litigation to her estate.[WFAA, 2026b]

At the same time, Colorado physicians reportedly identified normal-pressure hydrocephalus, a condition that can produce symptoms resembling dementia, and changed Peggy's medication regimen. Her attorney sought updated evaluation, restoration review, and permission for her to remain in Colorado for treatment and recovery. The court later stayed the return orders, allowed her to remain temporarily for medical care, declined to hold her Colorado relatives in contempt, found that they had interfered with the guardianship, and considered the possibility of transferring the case to Colorado.[WFAA, 2026a][WFAA, 2026c]

What the case illustrates

The public record reviewed for this article does not establish that any judge, guardian, attorney, family member, bank, facility, or other participant committed misconduct. The case instead illustrates several policy questions that Texas law should answer clearly and promptly:

How much weight should a protected person's current wishes receive?
When should safe and willing relatives be displaced by paid professionals?
How quickly should a court reconsider guardianship when the medical evidence materially changes?
How should Texas coordinate a case when the person is safely living with family in another state?
How should the person's estate be protected from avoidable expense while those disputes are resolved?
What practical remedy is available when statutory rights are not promptly enforced?

The proposed act addresses those recurring questions through expedited medical review, family-priority procedures, safe-residence standards, interstate transfer rules, estate stewardship, enforceable deadlines, and remedies for proven violations.[Proposed Act, 2026]

3

Rights and Oversight

Rights Already on Paper

Texas law already recognizes that a person under guardianship does not automatically lose every civil right.

The Texas Ward's Bill of Rights provides that a ward retains the rights, benefits, responsibilities, and privileges granted by state and federal law unless a right has been specifically limited by a guardianship order or otherwise lawfully restricted. It recognizes rights to dignity, the most integrated living setting, consideration of personal and residential preferences, control over aspects of life not granted to the guardian, personal privacy, communication, visitation, and the ability to raise complaints about the guardianship.[Texas Estates Code Sec. 1151.351, 2025][Texas Estates Code Sec. 1151.351, 2025]

A ward may also petition for modification or termination of a guardianship and may retain qualified counsel in a restoration proceeding. Texas law therefore contains important substantive promises.[Texas Estates Code ch. 1202, 2025]

The problem is not simply the absence of rights. The problem is that a right may have little practical value when:

The person cannot obtain a prompt hearing.
The guardian controls access to information and communication.
The person cannot afford an attorney without using the estate controlled through the guardianship.
The court is not required to act within a meaningful deadline.
A medical diagnosis materially changes, but the original incapacity order continues to govern.
A family disagreement becomes the reason to appoint an outside professional.
The ward's estate pays both sides of a recurring dispute.
Violations produce no mandatory fee forfeiture, independent review, or practical remedy.
Appointment and compensation data are difficult to compare across courts and counties.

The proposed legislation does not discard the existing Bill of Rights. It supplies procedures, deadlines, burdens of proof, enforcement mechanisms, and financial consequences intended to make those rights operational.[Proposed Act, 2026]

A Statewide Oversight Problem

Peggy Hill's experience is one case. Texas oversight reports show that broader administrative weaknesses are not hypothetical.

The Office of Court Administration's Guardianship Abuse, Fraud, and Exploitation Deterrence Program reported reviewing 7,590 guardianship cases during fiscal year 2025. The report stated that 1,569 cases were out of compliance with statutory reporting requirements and described that number as "approximately 34%."[Texas OCA, 2025]

Those published numbers contain an apparent arithmetic inconsistency: 1,569 divided by 7,590 is approximately 20.7%, not 34%. The report may have used a narrower denominator that was not clearly identified in the accompanying paragraph, but the published text does not explain the discrepancy. This article therefore reports the raw numbers and the agency's percentage separately rather than treating them as mathematically consistent.[Texas OCA, 2025]

The same report stated that:

23% of reviewed cases were missing annual reports.
40% were missing annual accounts.
41% lacked required inventory filings.
474 deceased protected persons were discovered during reviews.
Approximately 10% of reviewed cases involved waived bond requirements.
4,669 active cases were identified for continuing monitoring.[Texas OCA, 2025]

Those percentages may apply to different subsets of cases depending on which filings were required. They should not be added together or treated as mutually exclusive categories.

A 2024 State Auditor's Office review found that the Office of Court Administration had established the legislatively required guardianship program and conducted reviews, but it also found that some guardianships identified during reviews were missing from the state database and that the missing information was not reported to the appropriate courts. The auditor further concluded that follow-up work could be strengthened to determine whether courts corrected identified deficiencies.[Texas State Auditor, 2024][Texas State Auditor, 2024]

These findings do not prove that every missing report involves exploitation. They do demonstrate why courts need reliable data, timely filing review, traceable responsibility, and an enforcement system that does not depend entirely on a vulnerable person discovering and litigating a problem.

National court-administration guidance reaches a similar conclusion. Effective guardianship monitoring requires comprehensive data, historical tracking, reliable review protocols, and the ability to identify warning signs involving a guardian's conduct, a protected person's well-being, and the management of assets.[NCSC, 2026][NCSC, 2026]

The Bill's Framework

The proposed act approaches guardianship reform through seven connected protections:

Table

The Bill's Framework

Seven connected protections in the proposed guardianship reform framework

Reform area	Core protection
Medical reconsideration	A documented material medical change triggers expedited judicial review.
Family-first appointment	Eligible family members receive a defined order of priority before an unrelated professional guardian.
Residential choice	A ward may remain in a safe family home unless opponents prove a qualifying danger.
Interstate transfer	The ward and family may seek transfer without waiting for the guardian's consent.
Emergency asset protection	Targeted short-term holds may protect threatened assets before a full guardianship case is filed.
Estate stewardship	Ward property must be used for the ward, documented, independently reviewed where appropriate, and protected from conflicted transactions.
Enforcement and transparency	Violations can lead to expedited hearings, fee forfeiture, removal, outside review, and searchable appointment data.

The reforms are designed to work together. Family priority without financial oversight could expose a vulnerable person to exploitation. Professional oversight without family priority could unnecessarily displace safe and willing relatives. Emergency asset protection without deadlines could freeze money needed for food or medicine. Transparency without privacy protection could expose confidential information.

The bill therefore combines family preference with eligibility standards, emergency authority with strict time limits, and public reporting with anonymization of the ward's identity.[Proposed Act, 2026]

4

Medical Review and Family Priority

Medical Facts Must Matter

A guardianship can continue for years after the findings that originally justified it. A diagnosis may change. Medication effects may be discovered. Treatment may improve a person's functioning. A condition thought to be permanent may prove reversible or manageable.

Under proposed Section 1202.158 of the Estates Code, a "material medical change" would include documented evidence that:

Calls the original incapacity finding or the scope of the guardian's authority into reasonable question.
Indicates that the original condition has improved, resolved, or was incorrectly diagnosed.
Replaces the original diagnosis with a materially different diagnosis.
Shows that a less restrictive alternative may now be feasible.[Proposed Act, 2026]

The ward could request review through an informal letter, an accessible form, or a verified motion. A treating health-care provider, family member, guardian, attorney, guardian ad litem, or other interested person could also initiate the process with appropriate supporting medical information.[Proposed Act, 2026]

Once a qualifying request is filed, the court would be required to:

Appoint an investigator or guardian ad litem within five business days unless an adequate appointment already exists.
Notify the ward, counsel, guardian, identified adult relatives, and other legally entitled persons.
Hold a hearing within 21 days.
Issue written findings within 10 days after the hearing.
Provide the ward a reasonable opportunity to participate personally or remotely.
Consider the ward's wishes, treating providers' opinions, safe family placement, available family guardians, and less restrictive alternatives.[Proposed Act, 2026]

While review is pending, the court could issue necessary protective orders. It ordinarily could not change the ward's residence, remove the ward from a safe family home, dispose of real property, approve a nonroutine expenditure, or restrict reasonable family contact without clear and convincing evidence of an immediate need to prevent substantial physical harm or substantial and irreparable financial loss.[Proposed Act, 2026]

This provision would not require a judge to restore every right whenever a diagnosis changes. It would require a prompt, evidence-based review instead of allowing the prior order to operate indefinitely without reconsideration.

In a case resembling Peggy Hill's, evidence of normal-pressure hydrocephalus, medication reduction, new specialist opinions, or improved functioning could trigger a structured review. The court would still decide capacity and the proper scope of protection, but it would have to consider the new evidence on an expedited schedule.[Proposed Act, 2026]

Family First, Not Family Always

Current Texas law gives an incapacitated person's spouse and nearest eligible relatives certain appointment preferences. When equally related family members are competing, however, the court may select the person it considers best qualified.[Texas Estates Code ch. 1104, 2025][Texas Estates Code ch. 1104, 2025]

The proposed act creates a more definite order for appointment of a guardian of the person:

The incapacitated person's spouse.
Adult children, in descending order of age.
Parents, in descending order of age.
Adult siblings, in descending order of age.
Adult grandchildren, in descending order of age.
The nearest other adult relative, with age priority among persons of equal kinship.
A qualified nonfamily appointee when no eligible and willing priority relative is available.[Proposed Act, 2026]

This is a presumption, not an unconditional entitlement.

A family member would still have to satisfy existing eligibility requirements, complete required training, swear that the person is willing and able to serve, and remain free from statutory disqualification. A court could bypass a priority relative upon clear and convincing evidence, supported by specific written findings, that the relative:

Is ineligible or unqualified.
Validly waived priority.
Has a substantiated history of abuse, neglect, exploitation, or material fiduciary misconduct.
Has an unmanageable present conflict of interest.
Presents a specific imminent and substantial risk of physical or financial harm.
Cannot be located after reasonable and documented efforts.[Proposed Act, 2026]

A possible future inheritance would not, by itself, establish a disqualifying conflict. Neither would disagreement among siblings.

When family members disagree, the court would first consider mediation, an investigator, a court visitor, a limited guardianship, divided responsibilities, or another less restrictive measure before appointing an unrelated professional solely because the family is divided.[Proposed Act, 2026]

The bill would also permit joint appointment of two or more eligible adult relatives when they consent to a defined allocation of duties and the court finds clear and convincing evidence that joint appointment is necessary to preserve safe family care or avoid an unrelated appointment.[Proposed Act, 2026]

"Family first" therefore does not mean that blood relationship excuses abuse or establishes automatic fitness. It means a court must identify, notify, evaluate, and properly disqualify available family before transferring personal control to a stranger.

No Missing Relatives

A family-priority system cannot work if relatives are never identified or notified.

The applicant for guardianship would have to file a sworn family-information affidavit identifying adult relatives discovered through reasonable inquiry. The applicant would have to consult reasonably available sources such as:

The proposed ward.
Emergency-contact records.
Existing powers of attorney.
Medical and facility records.
Known estate-planning documents.
Reasonably accessible public records.[Proposed Act, 2026]

The affidavit would document the source of the information, contact attempts, responses, unresolved locations, disputes, and allegations affecting eligibility. Newly discovered material information would have to be added within five business days.[Proposed Act, 2026]

Before appointing an unrelated professional, the court would review that affidavit, direct any additional reasonable investigation, and give identified priority relatives at least 21 days to seek appointment, object, or execute a lawful waiver.[Proposed Act, 2026]

If a priority relative was materially omitted, the court would conduct a new family-priority hearing. Only powers immediately necessary to prevent imminent and substantial harm could remain in place while that process occurred.[Proposed Act, 2026]

Knowingly concealing a relative could lead to sanctions, referral, and fee forfeiture.

Waivers Must Be Genuine

A signature on a form should not permanently remove a relative from consideration if the signature was obtained through pressure, misinformation, denied access, or an undisclosed promise.

The proposed act would require a family-priority waiver to be sworn, notarized, filed with the court, and served on other adult family members. It would have to state that the signer:

Understands the right to seek appointment.
Acts voluntarily.
Was not subjected to coercion, fraud, undue influence, threats, or promised compensation.
May recommend another eligible relative.
Retains the right to receive notice, participate, report abuse, seek removal, and request modification or termination.[Proposed Act, 2026]

A waiver procured through fraud, coercion, material concealment, or denial of reasonable access to the proposed ward would be void.

Court-appointed participants, facilities, banks, applicants, and their attorneys generally could not prepare, solicit, witness, notarize, or materially assist in obtaining a family waiver unless the family member had independent counsel or the court authorized the process after notice and hearing.[Proposed Act, 2026]

5

Home, Family, and Interstate Care

A Safe Family Home

Under existing guardianship practice, authority over a ward's residence can become one of the most consequential powers granted to a guardian. It determines where the person sleeps, receives treatment, sees family, and spends the final years of life.

The proposed legislation defines a "safe family residence" as a residence with an adult relative where the person's essential needs are met and where there is no clear and convincing evidence of an imminent and substantial risk of physical harm that cannot be prevented through a less restrictive measure.[Proposed Act, 2026]

An order granting control over physical possession or legal domicile would have to identify where the ward would live. Removal from a safe family residence would require clear and convincing evidence, stated with specific facts, that:

The home presents an imminent and substantial risk of harm that cannot be addressed through a less restrictive measure.
Removal is necessary and consistent with the ward's rights.
The proposed destination is safe and appropriate.[Proposed Act, 2026]

An emergency move without advance approval would remain possible when required to prevent immediate physical harm or provide emergency medical care. The guardian would have to file a verified report by the next business day, and the court would hold an expedited hearing if the ward was not returned.[Proposed Act, 2026]

This standard would not prevent removal from an abusive home. It would require evidence of danger rather than assumptions based on family conflict, geography, inconvenience, or a professional preference for institutional placement.

Residence by Notice

The bill also creates a procedure for a consensual safe-family residence arrangement.

When the ward wants to live with family, the relevant family caregiver agrees, the guardian of the person consents, and the home qualifies as safe, the guardian could file a notice describing:

The residence and responsible caregiver.
The care plan.
Medical and service arrangements.
The ward's expressed preference.
Arrangements for contact, monitoring, and access to records.
Any effect on benefits, insurance, or property management.[Proposed Act, 2026]

Interested parties would receive notice and five business days to file a verified objection based on specified grounds. If no qualifying objection was filed, the arrangement would become effective on the sixth business day without requiring another motion, hearing, order, or filing fee.[Proposed Act, 2026]

If an objection was filed, the objecting party-not the ward or caregiver-would bear the burden of proving by clear and convincing evidence both a statutory ground for opposition and the inadequacy of less restrictive safeguards. The court generally could not require the ward to leave the family home while the objection was pending without emergency findings.[Proposed Act, 2026]

This reverses a common practical burden. A safe family placement would no longer have to remain suspended while the family spent the ward's money proving that it should be permitted.

Interstate Families

Families no longer live within a single county or state. Adult children may live hundreds of miles from aging parents. A safe family home may be across a state boundary.

Current Texas law permits a court to transfer a guardianship to a foreign jurisdiction to which a ward has permanently moved.[Texas Estates Code ch. 1253, 2025][Texas Estates Code ch. 1253, 2025]

The proposed act makes that authority usable by more than the guardian. The ward, the ward's attorney, an adult relative, or another interested person could apply for transfer when the ward has moved or relocation is proposed. The guardian's consent would not be required.[Proposed Act, 2026]

The court would hold a hearing within 21 days when the application was filed by the ward, the ward's attorney, or an adult family member. It would consider:

Safety of the proposed residence.
Continuity of treatment and services.
Insurance and public benefits.
Protection of property.
Availability of family and community support.
Social and community ties.
The ward's present and previous preferences.
Comparative cost and restrictiveness.
Any material medical change.[Proposed Act, 2026]

Transfer would be rebuttably presumed to serve the ward's best interest when the ward was safely living with family in the other state, the receiving court was willing to accept the case, and transfer was consistent with the ward's expressed preference.[Proposed Act, 2026]

The Texas court would retain authority until the receiving court formally accepted jurisdiction. It could conduct joint or remote proceedings and impose conditions protecting care, benefits, property, records, and bond coverage.[Proposed Act, 2026]

While transfer was pending, the court ordinarily could not compel the ward's return to Texas, remove the ward from a safe family residence, or approve nonroutine spending to fight the transfer without clear and convincing findings of otherwise unavoidable physical harm or irreparable financial loss.[Proposed Act, 2026]

6

Protecting Property and the Estate

Protection Before the Estate Disappears

Guardianship proceedings often begin after suspicious transactions have already occurred. Property may be transferred, beneficiary designations altered, accounts emptied, insurance surrendered, or homes placed at risk before a court can appoint a guardian.

The proposed act creates an emergency protection notice that may be submitted before filing a guardianship case.

A relative, valid power-of-attorney agent, health-care provider, peace officer, Adult Protective Services worker, or another person with personal knowledge could notify a covered institution when specific facts provide reasonable cause to believe that a vulnerable person faces imminent risk of:

Abuse, neglect, or exploitation.
Fraud, theft, identity theft, financial abuse, or undue influence.
Misapplication or concealment of property.
Unauthorized transfer or substantial dissipation.
Foreclosure, repossession, or loss of essential assets.[Proposed Act, 2026]

A covered institution could include a bank, insurer, brokerage, title company, benefit administrator, retirement-plan administrator, or another entity controlling property or transactions covered by the legislation.[Proposed Act, 2026]

A facially sufficient notice would require the institution to assess the risk, preserve relevant records, and place a narrowly tailored provisional hold on a related transaction when reasonable cause existed. The institution could not freeze everything merely because a report had been made.[Proposed Act, 2026]

Payments necessary for food, shelter, medicine, utilities, insurance, taxes, and other essential living expenses would have to remain available.

The provisional hold would ordinarily expire after five business days unless continued through lawful agency action, the affected person's consent, or a court order. An application for continued restraint would receive a hearing within three business days, and continued restriction would require clear and convincing evidence of imminent substantial loss.[Proposed Act, 2026]

Good-faith reporters and good-faith institutional decisions would receive protection from civil liability. Knowingly or recklessly false reports could produce actual damages, attorney's fees, injunctive relief, and other legally available remedies.[Proposed Act, 2026]

The emergency notice is not a substitute for a guardianship. It is a short bridge intended to keep disputed property from disappearing while authorities assess the facts.

The Estate Belongs to the Ward

Guardians are fiduciaries. A fiduciary must place the protected person's interests above the fiduciary's own interests.[U.S. DOJ, 2018]

The proposed Chapter 1166 makes that principle more concrete through a "ward-benefit-only" standard. Ward property could be used only for the ward's health, safety, housing, care, maintenance, support, rehabilitation, education, direct benefit, and lawful administration expenses approved by the court.[Proposed Act, 2026]

The bill expressly rejects the idea that the ward's money is available simply because an expense is connected to the case. Payment would require a demonstrable benefit to the ward.

Covered estates would receive an estate stewardship plan identifying:

Property, income, public benefits, and insurance.
Debts and continuing obligations.
A 12-month care and expenditure budget.
An asset-preservation strategy.
Proposed caregiver payments.
Anticipated nonroutine transactions.[Proposed Act, 2026]

Records would have to be sufficiently detailed to identify every receipt and disbursement. Ward funds would remain separate from personal funds.

Nonroutine expenditures, related transactions, and family-care arrangements would be subject to notice, documentation, and approval standards. Related expenditures occurring within 90 days could be aggregated so that participants could not evade review by dividing one transaction into several smaller payments.[Proposed Act, 2026]

Family caregivers could receive reasonable compensation for necessary services that directly benefit the ward, but the arrangement would need to be documented. Retroactive compensation would require clear and convincing evidence that the services were necessary, beneficial, fully documented, and could not reasonably have been submitted in advance.[Proposed Act, 2026]

Estate Protectors

The bill authorizes two forms of estate protector:

A managing estate protector, who would perform the functions of a guardian of the estate.
A reviewing estate protector, who would independently examine the work of an existing guardian of the estate.[Proposed Act, 2026]

A reviewing estate protector could be used when independent oversight is needed without immediately replacing the person managing the estate. This creates an intermediate safeguard between unreviewed control and complete removal.

Estate protectors would be subject to qualifications, conflict disclosures, record-access requirements, fiduciary obligations, and the ward-benefit-only standard. They would review stewardship plans, transactions, accountings, fees, insurance, and possible misuse or depletion.[Proposed Act, 2026]

A disagreement between an estate protector and a guardian could not suspend an essential payment for the ward. Either participant could request expedited instructions, and the court would be required to rule within five business days when delay threatened health, safety, housing, insurance, or preservation of property.[Proposed Act, 2026]

Conflicts and Related Parties

A court appointment should not become a pipeline directing the ward's money to the appointee's business partners, relatives, employers, affiliates, or repeat vendors.

The bill generally prohibits a guardian, estate protector, attorney ad litem, guardian ad litem, investigator, visitor, or other court-appointed person from knowingly participating in a transaction that produces a direct or indirect financial benefit for that person or a related party.[Proposed Act, 2026]

A qualifying transaction could proceed only after full disclosure, independent review, notice, and clear and convincing findings that the transaction was necessary, fair, no worse than prevailing market terms, and directly beneficial to the ward.[Proposed Act, 2026]

Violations could support:

Removal.
Surcharge.
Repayment.
Compensation forfeiture.
Rescission when authorized by law.
Additional bond requirements.
Referral to disciplinary or investigative authorities.[Proposed Act, 2026]

7

Enforcement and Accountability

Rights Need Remedies

The proposed act creates a verified enforcement motion that may be filed by the ward, counsel, a family member, an estate protector, another interested person, or an authorized governmental agency.

Ordinary motions would receive a hearing within 21 days. Allegations involving imminent physical harm, abuse, neglect, exploitation, unlawful isolation, retaliation, unauthorized relocation, financial abuse, or dissipation of property would receive an emergency hearing within three business days.[Proposed Act, 2026]

Available relief would include:

Temporary protection.
Restoration of communication or visitation.
Access to records.
Prevention or reversal of an unauthorized move.
Suspension or removal of a guardian.
Independent investigation.
Accounting and turnover orders.
Surcharge and repayment.
Fee denial or forfeiture.
Injunctive and declaratory relief.[Proposed Act, 2026]

The clerk could not refuse a qualifying filing because the movant was unrepresented or unable to prepay fees. A substantially prevailing movant could recover reasonable attorney's fees and costs from the violator rather than from the ward's estate, unless the court made findings that such an award would be unjust.[Proposed Act, 2026]

The legislation also prohibits retaliation for a good-faith report, complaint, or motion. Retaliation would include restricting contact, changing the ward's residence, withholding records or property, threatening adverse action, or pursuing fees and sanctions because someone invoked a protected right.[Proposed Act, 2026]

Consequences for Misconduct

The bill applies its accountability provisions broadly to guardians, temporary guardians, estate protectors, attorneys ad litem, guardians ad litem, investigators, visitors, receivers, corporate fiduciaries, court-appointed attorneys, employees, agents, contractors, and affiliates.[Proposed Act, 2026]

A person who knowingly or recklessly violates a protected provision, conceals property, suppresses material medical information, procures an unlawful waiver, conceals a relative, fails to disclose a conflict, or participates in a prohibited related-party transaction could face removal, surcharge, reimbursement, compensation forfeiture, additional bond, and referral.[Proposed Act, 2026]

Compensation attributable to a knowing or reckless violation would ordinarily have to be forfeited. The court could preserve payment only through written findings identifying services that directly benefited the ward and explaining why complete forfeiture would be manifestly unjust.[Proposed Act, 2026]

The ward's estate could not be charged for fees and costs attributable to the violation.

A ward or personal representative could also bring an action for a knowingly false material affidavit, report, account, waiver certification, or required disclosure that caused injury. Available remedies could include actual damages, necessary attorney's fees, injunctions, and exemplary damages when otherwise authorized by Texas law.[Proposed Act, 2026]

The bill does not abolish judicial immunity or waive sovereign or governmental immunity. Its civil cause of action is directed primarily at covered appointees and other persons legally responsible for their own conduct.[Proposed Act, 2026]

Review Beyond One Courtroom

A statutory deadline is ineffective if the same court accused of ignoring the deadline has exclusive control over whether anything happens next.

When a verified motion alleges that a court failed to perform a ministerial duty created by the act and the failure remains uncured for 10 days, the clerk would transmit the matter to the presiding judge of the administrative judicial region. The regional presiding judge would review it within 15 days and could assign a visiting judge or take another action authorized by law.[Proposed Act, 2026]

A party could also request a different assignment based on specific facts establishing an objectively reasonable concern about structural impartiality, including:

Undisclosed material financial relationships.
Repeated appointments and fee approvals combined with additional evidence of favoritism.
Retaliation for a protected complaint.
Another legally recognized ground for recusal, disqualification, or reassignment.[Proposed Act, 2026]

Repeated appointments alone would not automatically establish misconduct. The petition would have to present additional specific facts.

The legislation preserves existing mandamus, appellate, recusal, disqualification, and judicial-conduct procedures.

Follow the Appointments and Money

Texas already requires monthly reports identifying certain court-appointed professionals, cases, judges, compensation, payment sources, and-when compensation in a case exceeds $1,000-available billing information.[Texas Government Code ch. 36, 2025]

The proposed act strengthens that system for guardianship proceedings.

Reports would cover guardians, attorneys ad litem, guardians ad litem, mediators, evaluators, investigators, visitors, receivers, corporate fiduciaries, guardianship programs, estate protectors, other paid professionals, and affiliated vendors receiving money because of the appointment.[Proposed Act, 2026]

The Office of Court Administration would assign stable identifiers and publish searchable, downloadable, machine-readable information showing:

Appointment category.
Relationship to the ward.
Judge, court, and appointment date.
An anonymized case identifier.
Active appointments in the county and statewide.
Amounts requested, approved, and paid.
Payment source, hours, and expenses.
Whether the appointment displaced a priority family member.
The statutory reason for that departure.
Final removals, suspensions, sanctions, or fee forfeitures when disclosure is lawful.[Proposed Act, 2026]

The database could be analyzed by judge, court, county, appointee, affiliate, compensation, payment source, sanction, and date. It could not disclose the ward's name, address, birth date, medical information, financial-account information, or other confidential information.[Proposed Act, 2026]

This is not an accusation that repeated appointments are inherently corrupt. It is a way to let policymakers, journalists, researchers, families, and judicial administrators identify patterns that cannot be evaluated from isolated monthly PDF reports.

8

How the Proposal Changes Texas Law

Current Law and Proposal

Table

Current Law and Proposal

Current Texas framework compared with the proposed protections

Issue	Current framework	Proposed protection
Medical change	Restoration and modification procedures exist, but no equivalent comprehensive trigger and timetable applies to every documented material medical change.	Five-business-day investigation step, 21-day hearing, post-hearing findings, ward participation, and temporary limits on disruptive actions.
Family appointment	Spouse and nearest kin receive preferences, but equally related candidates may be treated as equally entitled.	Defined family order, mandatory search and notice, clear-and-convincing bypass findings, and no professional appointment based solely on disagreement.
Family waiver	Existing general procedures may not prevent pressured or poorly informed waivers.	Sworn and notarized waiver, mandatory disclosures, service on relatives, independent-counsel safeguard, and voidability for coercion or fraud.
Residence	Guardian may receive authority over possession and domicile, subject to the order and ward's statutory rights.	Safe-family-home standard, specific written findings, emergency reporting, and expedited review.
Interstate transfer	Texas may transfer a case when a ward permanently moves.	Standing for the ward and family, 21-day hearing, coordinated transfer, provisional residence, rebuttable presumption, and no compelled return merely to complete transfer.
Pre-court asset protection	Remedies may depend on institution-specific policies, APS action, or obtaining a court order.	Fact-specific notice, narrow five-business-day hold, essential-expense access, record preservation, agency reporting, and expedited judicial review.
Estate oversight	Inventories, accounts, annual filings, bonding, and fiduciary duties apply in existing law.	Ward-benefit-only standard, stewardship plan, independent estate protector, transaction aggregation, caregiver-payment rules, and related-party restrictions.
Rights enforcement	A ward may complain and seek judicial relief, but prompt hearing deadlines and anti-retaliation remedies are limited.	Pro se verified motion, 21-day or three-business-day hearing, written findings, anti-retaliation protection, fee shifting, and outside administrative-region review.
Appointment transparency	Monthly reporting already identifies specified appointments and compensation.	Stable identifiers, affiliate disclosure, statewide workloads, anonymized case tracking, reasons for bypassing family, sanctions, and machine-readable publication.

What the Bill Does Not Do

The proposal does not abolish guardianship. Some Texans need immediate and continuing protection because of profound incapacity, abuse, exploitation, unsafe conditions, or the absence of a trustworthy alternative.

It does not guarantee that a family member will be appointed. A relative who is unqualified, abusive, exploitative, conflicted, unwilling, or dangerous may be bypassed.

It does not force a vulnerable person to remain in an unsafe family home. A court may order removal when the required evidence establishes a qualifying risk that less restrictive safeguards cannot address.

It does not allow a family member to freeze an entire estate indefinitely through an unsupported accusation. Emergency holds are targeted, temporary, reviewable, and subject to liability for knowingly or recklessly false reports.

It does not automatically restore capacity when a diagnosis changes. It guarantees expedited consideration of the changed evidence.

It does not prevent qualified professionals from being paid for necessary work that benefits the ward. It prevents the estate from paying for knowing or reckless violations and requires greater disclosure of appointments, affiliates, workload, and compensation.

It does not decide Peggy Hill's case or establish that any person involved acted unlawfully. It establishes procedures intended to produce a more timely, transparent, family-aware, and evidence-based decision in future cases presenting similar facts.

Major Policy Questions

Could a rigid family order appoint the wrong person?

Yes, if priority were absolute. The bill avoids that result by retaining eligibility requirements and allowing bypass based on clear and convincing evidence of disqualification, substantiated misconduct, unmanageable conflict, serious danger, waiver, or inability to locate the relative.[Proposed Act, 2026]

The real change is evidentiary: the court must document why a family member was displaced instead of treating disagreement or professional convenience as sufficient.

Could relatives misuse emergency holds?

Any emergency process can be misused. The bill limits that risk by requiring specific facts, allowing institutions to reject insufficient notices, limiting a hold to related transactions, preserving essential funds, ending the hold after five business days absent further authority, and permitting damages for knowingly or recklessly false notices.[Proposed Act, 2026]

Will deadlines overburden probate courts?

The deadlines concentrate on events where delay itself can cause harm: changing medical evidence, forced relocation, isolation, exploitation, asset dissipation, and interstate transfer.

Courts already bear responsibility for protecting wards. National court guidance emphasizes that active monitoring, reliable data, prompt review, and red-flag protocols are essential to meaningful guardianship oversight.[NCSC, 2026][NCSC, 2026]

Will professionals refuse appointments?

The bill does not penalize good-faith decisions or ordinary professional disagreement. Its strongest consequences apply to knowing or reckless violations, materially false filings, concealment, prohibited conflicts, retaliation, and misuse of ward property.[Proposed Act, 2026]

Qualified professionals who document their work, disclose conflicts, follow court orders, and act for the ward's benefit remain eligible for compensation.

Does public reporting invade privacy?

The bill requires anonymized case identifiers and expressly protects names, addresses, birth dates, medical information, account information, and other confidential material.[Proposed Act, 2026]

The public would be able to follow appointments and money without exposing the identity or medical history of the person under guardianship.

9

Why This Reform Matters

Why Peggy's Case Matters

Guardianship is sometimes described as a protective legal status. For the person living under it, however, it can determine nearly every aspect of daily life: residence, medical care, family contact, finances, property, privacy, and access to the courts.

Peggy Hill's case demonstrates how those powers can collide.

A person may have a dementia diagnosis while still expressing a consistent residential preference. A family may be divided while one household provides safe daily care. A professional guardian may face genuine supervisory difficulties without the answer necessarily being forced institutional return. A later diagnosis may cast doubt on the medical assumptions underlying the original order. A court may be trying to manage competing evidence while the protected person pays the accumulating cost.

The correct policy response is not to assume that every guardian is abusive, every family is trustworthy, or every court decision is improper. It is to build a system in which no participant receives unchecked authority.

That requires:

Reliable medical reconsideration.
A meaningful preference for safe and qualified family.
Independent protection of the estate.
Enforceable residential and communication rights.
Prompt hearings.
Written findings.
Review outside the original courtroom when necessary.
Financial consequences for proven misconduct.
Publicly analyzable appointment and compensation information.
Continued judicial authority to act decisively when evidence shows real danger.

The proposed Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act is designed around that balance.

Protection should begin before property disappears. Family should be considered before strangers are placed in control. Medical changes should trigger review. A safe home should not be disrupted without strong evidence. The ward's estate should pay for the ward's care-not finance avoidable conflict or violations of the ward's rights.

Most importantly, the person at the center of the case must remain a person-not merely a file, an estate, an appointment, or a problem for the court to administer.

Legislative Proposal

Proposed short title: Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act

Legislative session: 90th Texas Legislature, Regular Session, 2027

Primary codes affected:

Texas Estates Code, Chapters 1101, 1104, 1151, 1163, 1166, 1202, 1203, and 1253.
Texas Government Code, Chapters 36 and 155.[Proposed Act, 2026]

Principal policy objectives:

Put qualified family first while preserving safety-based disqualification.
Require prompt reconsideration when material medical facts change.
Protect safe family residences and interstate family care.
Stop imminent asset loss before lengthy litigation.
Establish independent estate stewardship.
Strengthen enforcement of the Ward's Bill of Rights.
Prevent retaliation and conflicted transactions.
Make judicial appointments and compensation more transparent.
Ensure that guardianship remains limited to what is necessary to protect the individual.

Proposed Legislation

Complete Version 5 draft for the 90th Texas Legislature

Proposed Legislation

Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act

Proposed House Bill | 90th Legislature, Regular Session | 2027

H.B. No. ____

DRAFT VERSION 5 - SEPTEMBER 22, 2026

By: ____________________

A BILL TO BE ENTITLED

AN ACT

relating to family-first appointment and succession of guardians for certain adults, emergency protection of a vulnerable person's person and property before a guardianship hearing, expedited review following a material medical change, consensual safe-family residence arrangements and interstate transfer procedures for wards, independent stewardship and protection of a ward's estate regardless of estate size, enforcement of the bill of rights for wards, reporting of guardianship appointments and compensation, and accountability of guardians and court-appointed persons.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. This Act may be cited as the Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act.

SECTION 2. Section 1101.103, Estates Code, is amended by adding Subsection (g) to read as follows:

(g) A court that creates a guardianship for an adult based in whole or in part on a letter or certificate under this section shall include in the order creating the guardianship a statement that a material change in the ward's diagnosis, prognosis, physical condition, mental functioning, or functional capacity may require expedited review under Section 1202.158.

SECTION 3. Subchapter D, Chapter 1202, Estates Code, is amended by adding Section 1202.158 to read as follows:

Sec. 1202.158. EXPEDITED REVIEW FOLLOWING MATERIAL MEDICAL CHANGE. (a) In this section, "material medical change" means a documented change in a ward's medical diagnosis, prognosis, physical condition, mental functioning, or functional capacity that:

(1) calls into reasonable question the factual basis for a finding of incapacity or the scope of authority granted to a guardian;

(2) states that the condition on which the guardianship was based has improved, resolved, was incorrectly diagnosed, or has been replaced by a different diagnosis; or

(3) indicates that a less restrictive alternative to guardianship may be feasible.

(b) A ward may request review under this section by informal letter, an accessible form, or a verified motion. The ward's attorney, an attorney ad litem, a guardian ad litem, the guardian, a person interested in the ward's welfare, or a health care provider who has examined or treated the ward may file a verified motion for expedited review. A filing that is not made by the ward must include a letter, certificate, medical record, or sworn declaration from a physician, psychologist, or advanced practice registered nurse describing the material medical change. If a ward files an informal request without supporting evidence, the court investigator, guardian ad litem, or attorney ad litem shall promptly assist the ward in obtaining available records and any letter or certificate required by Section 1202.152.

(c) Evidence from an advanced practice registered nurse is sufficient to trigger the expedited procedures under this section but does not replace a physician's or psychologist's letter or certificate required by Section 1202.152 for a final order restoring capacity or modifying the guardianship. The court may enter temporary protective relief while evidence required by Section 1202.152 is obtained.

(d) On filing of a request or motion under this section, the court shall:

(1) appoint a court investigator or guardian ad litem under Section 1202.054 not later than the fifth business day after the date the filing is made, unless an investigator or guardian ad litem has been appointed and the court finds in writing that a new appointment is unnecessary;

(2) provide notice of the filing to the ward, the ward's attorney ad litem, the guardian, each person entitled to notice under Section 1051.104, and each adult family member identified under Section 1104.1035;

(3) set a hearing not later than the 21st day after the date the filing is made; and

(4) make a written finding not later than the 10th day after the date of the hearing regarding whether the guardianship should be terminated, modified, continued, or subjected to a temporary protective limitation under Subsection (e).

(e) Pending the hearing and final order under this section, the court may enter a temporary order necessary to protect the ward. A temporary order may not:

(1) change the ward's residence;

(2) authorize removal of the ward from a safe family residence;

(3) authorize a sale, mortgage, gift, transfer, or other disposition of the ward's real property or a nonroutine expenditure from the ward's estate; or

(4) restrict reasonable in-person contact between the ward and an adult family member;

unless the court finds by clear and convincing evidence, in a written order supported by specific facts, that the action is immediately necessary to prevent substantial physical harm to the ward or substantial and irreparable loss to the ward's estate.

(f) The court shall consider the ward's current and previously expressed preferences, the opinion of the ward's treating health care providers, the availability of a willing and eligible family guardian, the safety and adequacy of the ward's proposed living arrangement, and the feasibility of a less restrictive alternative to guardianship.

(g) An expedited-review request under this section is not subject to a limitation on reapplication if the request is supported by evidence of a material medical change that was not available at the time of the most recent hearing.

(h) The court shall provide the ward a reasonable opportunity to attend the hearing in person or by remote means and to communicate the ward's wishes directly to the court, unless the court finds in writing that participation would cause substantial harm to the ward's health.

SECTION 4. Subchapter C, Chapter 1104, Estates Code, is amended by adding Section 1104.1035 to read as follows:

Sec. 1104.1035. FAMILY-FIRST APPOINTMENT AND SUCCESSION OF GUARDIAN OF PERSON. (a) In this section:

(1) "Adult family member" means an adult spouse, child, parent, sibling, grandchild, grandparent, aunt, uncle, niece, nephew, first cousin, or another adult related to the incapacitated person by blood, marriage, or adoption.

(2) "Material conflict of interest" means a present financial, legal, or personal interest that creates a substantial risk that the proposed guardian cannot act loyally in the incapacitated person's interest. Family disagreement or a potential future inheritance, without additional specific facts, is not a material conflict of interest.

(3) "Reasonable and documented efforts" means diligent efforts reasonably calculated to identify, locate, and provide notice, with each source consulted, inquiry made, address used, communication attempted, response received, and date recorded in a sworn filing.

(4) "Safe family residence" means a residence with an adult family member in which the incapacitated person's essential needs are met and for which there is no clear and convincing evidence of an imminent and substantial risk of physical harm that cannot be prevented by a less restrictive measure.

(5) "Substantiated finding" means a final conviction, final civil judgment, final administrative finding after notice and opportunity for review, or finding by a court after notice and an evidentiary hearing.

(b) This section applies to the appointment of a guardian of the person for an adult incapacitated person. This section does not limit:

(1) a valid declaration of guardian made by the incapacitated person under Subchapter E;

(2) the preference of the incapacitated person under Section 1104.002; or

(3) the appointment of a temporary guardian necessary to prevent imminent and substantial harm under Chapter 1251.

(c) Except as provided by Subsection (b), the court shall appoint a guardian of the person according to the following order of priority, if the person is eligible and willing to serve:

(1) the spouse of the incapacitated person;

(2) the adult children of the incapacitated person in descending order of age;

(3) the parents of the incapacitated person in descending order of age;

(4) the adult siblings of the incapacitated person in descending order of age;

(5) the adult grandchildren of the incapacitated person in descending order of age;

(6) the nearest living adult relative of the incapacitated person, with preference among relatives of the same degree of kinship given in descending order of age; and

(7) a qualified person appointed by the court under Section 1104.102(3).

(d) A person listed in Subsection (c) is eligible for appointment only if the person:

(1) meets the eligibility requirements otherwise imposed by this title;

(2) completes the training required by law before appointment, unless training is waived as authorized by law;

(3) files a sworn statement that the person is willing and able to serve and will comply with the duties of a guardian of the person; and

(4) is not disqualified under this title.

(e) The applicant for appointment shall file a sworn family-information affidavit identifying each adult family member known or reasonably ascertainable through reasonable inquiry of the proposed ward, emergency contacts, prior agents under powers of attorney or medical powers of attorney, reasonably available health-care and facility records, known estate-planning documents, and reasonably accessible public records. The affidavit must state each person's relationship and last known contact information, describe the source of the information, document every contact effort, identify any person whose location remains unknown, and disclose any known dispute or allegation affecting eligibility.

(f) The applicant shall supplement the affidavit not later than the fifth business day after discovering material additional information. A knowing and material omission or concealment is grounds for fee forfeiture, sanctions, referral to an appropriate authority, and any other remedy authorized by law.

(g) Before appointing a person under Subsection (c)(7), the court shall review the affidavit, direct any additional reasonable inquiry necessary to identify, locate, and notify each adult family member listed in Subsection (c)(1)-(6), and allow each notified family member not less than 21 days after service or actual notice to:

(1) file an application for appointment;

(2) file a written waiver under Section 1104.1036; or

(3) state an objection to the appointment of another proposed guardian.

(h) If a priority family member was materially omitted from the affidavit or notice process, the court shall promptly provide notice and conduct a new family-priority hearing. The court may preserve only powers immediately necessary to prevent imminent and substantial harm until the hearing is completed.

(i) A court may bypass a person with priority under Subsection (c) only if the court finds by clear and convincing evidence, stated with specific facts in a written order, that the person:

(1) is not eligible or qualified to serve;

(2) has filed a valid waiver under Section 1104.1036;

(3) is subject to a substantiated finding that the person committed abuse, neglect, exploitation, or a material breach of fiduciary duty against the incapacitated person or another vulnerable person;

(4) has a presently existing material conflict of interest that cannot be eliminated by a limited guardianship, bond, court supervision, appointment of a separate guardian of the estate, or another less restrictive protective measure, or has engaged in specific conduct that creates an imminent and substantial risk of physical or financial harm to the incapacitated person; or

(5) cannot be located after reasonable and documented efforts.

(j) The existence of disagreement among family members, standing alone, does not constitute a basis to bypass the priority order in Subsection (c) or appoint a professional guardian. A court shall first consider mediation, appointment of a court visitor or investigator, limited guardianship, or another less restrictive alternative reasonably available to resolve the disagreement.

(k) If a person with priority under Subsection (c) authorizes in a signed and notarized writing another eligible family member to serve as guardian of the person, the court may appoint the authorized family member if the court finds that the appointment is in the incapacitated person's best interest. The authorization must be filed with the court and provided to all persons entitled to notice under this section.

(l) Nothing in this section authorizes a guardian of the person to exercise powers over the ward's estate except as otherwise provided by this title and expressly authorized by court order.

SECTION 5. Chapter 1104, Estates Code, is amended by adding Section 1104.1036 to read as follows:

Sec. 1104.1036. WAIVER OF PRIORITY TO SERVE AS GUARDIAN OF PERSON. (a) A person with priority under Section 1104.1035 may waive the person's priority only by filing a sworn waiver with the court.

(b) The waiver must:

(1) identify the incapacitated person and the guardianship proceeding;

(2) state that the person understands the right to seek appointment under Section 1104.1035;

(3) state that the waiver is voluntary and is not the result of coercion, fraud, undue influence, a threat, a promise of compensation, or denial of access to the incapacitated person;

(4) state whether the person recommends another eligible family member for appointment;

(5) be signed before a notary public or other officer authorized to administer an oath;

(6) state that the waiver does not waive the person's right to receive notice, participate as an interested person, seek removal of a guardian for cause, report suspected abuse or exploitation, or petition for modification or termination of the guardianship; and

(7) be accompanied by a certification of service on each adult family member entitled to notice under Section 1104.1035.

(c) A waiver is void if procured by fraud, coercion, undue influence, material misrepresentation, concealment of a material fact, or denial of reasonable access to the incapacitated person. A person alleging that a waiver is void may file a verified motion, and the court shall set the motion for hearing not later than the 21st day after the date the motion is filed.

(d) A court-appointed guardian, temporary guardian, attorney ad litem, guardian ad litem, court investigator, court visitor, attorney representing a proposed guardian, nursing facility, financial institution, or person seeking appointment may not prepare, solicit, witness, notarize, or materially assist in obtaining a waiver from a family member unless the family member is represented by independent counsel or the court authorizes the process in a written order after notice and hearing.

(e) The Office of Court Administration of the Texas Judicial System shall develop a standard waiver form that courts shall make available without charge in paper and electronic formats.

SECTION 6. Section 1104.102, Estates Code, is amended to read as follows:

Sec. 1104.102. APPOINTMENT PREFERENCES. (a) If the court finds that two or more eligible persons are equally entitled to be appointed guardian of an incapacitated person:

(1) the incapacitated person's spouse is entitled to the guardianship in preference to any other person, if the spouse is one of the eligible persons;

(2) subject to Section 1104.1035, the eligible person nearest of kin to the incapacitated person is entitled to the guardianship, if the incapacitated person's spouse is not one of the eligible persons; or

(3) the court shall appoint the eligible person who is best qualified to serve as guardian if:

(A) the persons entitled to serve under Subdivisions (1) and (2) refuse to serve;

(B) two or more persons entitled to serve under Subdivision (2) are related in the same degree of kinship to the incapacitated person; or

(C) neither the incapacitated person's spouse nor a person related to the incapacitated person is an eligible person.

(b) For purposes of Subsection (a)(2) and Section 1104.1035, adult children and other relatives of the same degree of kinship are not equally entitled until the court has applied the order of priority under Section 1104.1035.

SECTION 7. Subtitle E, Title 3, Estates Code, is amended by adding Chapter 1166 to read as follows:

CHAPTER 1166. FAMILY GUARDIAN ESTATE STEWARDSHIP AND INDEPENDENT PROTECTION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1166.001. DEFINITIONS. In this chapter:

(1) "Affiliate" means a person or entity that directly or indirectly controls, is controlled by, is under common control with, employs, is employed by, shares compensation with, or has a material financial relationship with another person or entity.

(2) "Covered governmental agency" means the Department of Family and Protective Services, a law-enforcement agency, a prosecuting attorney, the Office of Court Administration of the Texas Judicial System, the Judicial Branch Certification Commission, or another governmental entity authorized by law to investigate or remedy abuse, neglect, exploitation, fiduciary misconduct, or a violation of a protected guardianship provision.

(3) "Covered institution" means:

(A) a financial institution, as defined by Section 281.001, Finance Code;

(B) a dealer or investment adviser subject to Subchapter H, Chapter 4004, Government Code;

(C) an insurer, health maintenance organization, insurance agent, or other person regulated by the Texas Department of Insurance that holds, administers, pays, or services a policy, contract, claim, annuity, retirement product, or other benefit belonging to a vulnerable person; or

(D) to the extent not preempted by federal law, a retirement-plan administrator, pension administrator, broker-dealer, investment custodian, or other person that holds or administers money, securities, benefits, or property of a vulnerable person.

(4) "Direct benefit to the ward" means a reasonably necessary, documented, and proportionate benefit to the ward's health, safety, housing, care, maintenance, support, rehabilitation, education, property preservation, legal rights, or expressed preferences that is not principally for another person's convenience or enrichment.

(5) "Emergency protection notice" means a notice made under Section 1166.011 alleging an emergency risk of abuse, neglect, exploitation, financial abuse, or dissipation of a vulnerable person's assets.

(6) "Financial-responsibility background check" means a review, conducted in compliance with applicable federal and state law, of final civil judgments, fiduciary removals, bankruptcies, liens, professional discipline, and other adjudicated matters materially relevant to the person's ability to safeguard a ward's estate.

(7) "Managing estate protector" means a qualified person appointed as guardian of the estate who possesses or controls ward property and performs the management duties of this chapter.

(8) "Material financial relationship" means a direct or indirect ownership interest, compensation arrangement, referral arrangement, shared business interest, creditor-debtor relationship, or other economic relationship that would cause a reasonable person to question the person's ability to act impartially or solely for the ward's benefit.

(9) "Nonroutine expenditure" means an expenditure or related series of expenditures from the ward's estate that:

(A) is not included in a court-approved allowance, estate stewardship plan, or budget;

(B) exceeds the lesser of $2,500 or two percent of the ward's nonexempt liquid estate during any 90-day period; or

(C) involves the sale, mortgage, lease for a term longer than one year, transfer, gift, or encumbrance of real property or another major asset of the ward.

(10) "Protected guardianship provision" means this chapter or Section 1101.151(d), 1101.152(d), 1104.1035, 1104.1036, 1151.051(c-1) or (c-2), 1151.053, 1151.351, 1151.352, 1202.158, 1203.051(a-1), 1203.1035, or a provision of Subchapter A, Chapter 1253, added or amended by the Act enacting this chapter.

(11) "Qualified person" means an individual or entity eligible to serve as guardian of the estate under this title who meets the qualifications of Section 1166.052 and has no disqualifying conflict of interest.

(12) "Reviewing estate protector" means a qualified, disinterested person appointed to review, investigate, report, object, and seek relief regarding management of a ward's estate but who does not possess, manage, invest, receive, or disburse ward property.

(13) "Safe family residence" has the meaning assigned by Section 1104.1035.

(14) "Substantial and irreparable loss" means a loss that is imminent, material in relation to the ward's needs or estate, and not reasonably remediable by restitution, bond, insurance, or other relief.

(15) "Vulnerable person" has the meaning assigned by Section 281.001, Finance Code, and includes a minor for whom a guardianship application has been filed or a guardian of the estate has been appointed.

SUBCHAPTER B. PRE-COURT EMERGENCY PROTECTION OF PERSON AND PROPERTY

Sec. 1166.011. EMERGENCY PROTECTION NOTICE; GOOD-FAITH REPORT. (a) An adult family member, a person with a valid durable power of attorney, a health care provider, a peace officer, an adult protective services worker, or another person with personal knowledge may make an emergency protection notice if the person has reasonable cause, supported by specific facts, to believe that a vulnerable person is at imminent risk of:

(1) abuse, neglect, or exploitation;

(2) financial abuse, financial exploitation, fraud, undue influence, identity theft, theft, or misapplication of property; or

(3) substantial dissipation, unauthorized transfer, foreclosure, repossession, loss, or concealment of property or funds.

(b) An emergency protection notice may be made orally by telephone or electronically to a covered institution, a local law-enforcement agency, or the Department of Family and Protective Services. A covered institution shall maintain a telephone number or electronic method for receiving notices during the institution's ordinary operating hours.

(c) A notice under this section must, to the extent known, state:

(1) the vulnerable person's name, address, age or date of birth, and relationship to the reporting person;

(2) the covered institution, account, policy, benefit, or asset reasonably believed to be at risk;

(3) the specific facts creating reasonable cause to believe an imminent risk exists;

(4) the reporting person's contact information; and

(5) whether law enforcement or the department has been contacted.

(d) A person who makes a notice in good faith under this section is immune from civil liability for making the notice. A person injured by a notice made with knowledge that the notice was materially false or with reckless disregard for its truth may bring an action against the reporting person for actual damages, reasonable attorney's fees, injunctive relief, and exemplary damages as authorized by Chapter 41, Civil Practice and Remedies Code. The action must be brought not later than the second anniversary of the date the claimant discovered or reasonably should have discovered the false notice.

Sec. 1166.012. IMMEDIATE ACTION BY COVERED INSTITUTION; NOTICE; REVIEW. (a) On receipt of a facially sufficient emergency protection notice, a covered institution shall promptly assess the notice. If the institution has reasonable cause to believe that a transaction or requested change is related to the reported risk, the institution shall:

(1) preserve relevant account, policy, transaction, communication, access-log, beneficiary-designation, and ownership records;

(2) place a provisional protective hold only on a transaction, change, or disbursement reasonably related to the reported risk;

(3) preserve payments and access reasonably necessary for the vulnerable person's food, shelter, medical care, insurance coverage, utilities, essential housing, lawful tax obligations, and other essential living expenses; and

(4) not later than the next business day, report the suspected exploitation to each agency required by applicable law.

(b) A covered institution may decline to place or continue a hold if the notice is facially insufficient, unsupported by specific facts, unrelated to property held or administered by the institution, or contradicted by reliable information. The institution shall document its decision and does not incur liability for a good-faith decision under this subsection.

(c) Unless the institution reasonably suspects that a person is engaged in the reported exploitation or disclosure is prohibited by law or would compromise an investigation, the institution shall provide prompt written or electronic notice of a hold to:

(1) the vulnerable person;

(2) each joint owner or other person authorized to transact business on the affected account or property;

(3) an agent acting under a known valid power of attorney; and

(4) the reporting person.

(d) The notice under Subsection (c) must identify the general category of transaction affected, state the date the hold began and will expire unless lawfully extended, describe how to request release of essential funds or review of the hold, and provide contact information for the institution and the agencies to which the report was made. The notice may omit information that would identify a confidential reporter or compromise an investigation.

(e) A provisional protective hold expires at the end of the fifth business day after the date the hold is placed unless:

(1) the institution has independent authority to continue the hold under Chapter 281, Finance Code, Subchapter H, Chapter 4004, Government Code, federal law, or another applicable law;

(2) an authorized governmental agency requests continuation as authorized by applicable law; or

(3) a court enters an order continuing, modifying, or terminating the hold.

(f) Filing a guardianship application or other protective proceeding does not by itself extend a hold. A person seeking continuation beyond the fifth business day must obtain lawful agency action or a court order. On a verified application to continue, modify, or terminate a hold, the court shall hold a hearing not later than the third business day after filing and may continue the hold only on clear and convincing evidence that the affected transaction presents an imminent risk of substantial and irreparable loss and that the order is narrowly tailored. An initial order may not exceed 20 days but may be renewed after notice and hearing.

(g) At any time, the vulnerable person or another person whose property or authority is affected may request release of essential funds from the institution or file a verified application for judicial review. The institution shall decide an essential-funds request not later than the next business day and shall document the basis for a denial.

(h) A covered institution acting in good faith under this section is immune from civil liability for a good-faith hold, refusal to hold, release, notice, report, or payment of essential expenses. This immunity does not apply to gross negligence, bad faith, or willful misconduct.

(i) This section does not require an institution to determine legal incapacity, adjudicate a family dispute, change ownership or beneficiary rights, violate a contractual obligation unrelated to the reported risk, or take action prohibited by federal law. Federal law controls to the extent of a conflict.

Sec. 1166.013. COORDINATION WITH LAW ENFORCEMENT AND PROTECTIVE SERVICES. (a) A peace officer, adult protective services worker, or other authorized governmental investigator who receives an emergency protection notice shall, consistent with the officer's or worker's authority, promptly assess the alleged risk and may request that a covered institution maintain or expand a protective hold only as authorized by applicable law.

(b) On a lawful request by an authorized governmental agency, a covered institution shall maintain a hold for the period and on the terms authorized by Chapter 281, Finance Code, Subchapter H, Chapter 4004, Government Code, federal law, or another applicable law.

(c) An emergency protection notice does not authorize a reporting person to take possession of the vulnerable person's funds, property, account credentials, identification documents, medication, or residence. A reporting person may take only reasonable actions necessary to protect the vulnerable person from immediate physical harm and must promptly coordinate with law enforcement or protective services.

Sec. 1166.014. PRE-COURT FAMILY PROTECTION PLAN. (a) If a family member makes an emergency protection notice and reasonably believes that a guardianship of the person or estate may be needed, the family member may prepare a temporary family protection plan identifying:

(1) the vulnerable person's immediate residence, medical needs, and known care needs;

(2) the adult family members identified under Section 1104.1035 and the efforts made to contact them;

(3) the identity and location of known assets, income, insurance, benefits, debts, and recurring payments;

(4) the emergency steps taken to preserve the vulnerable person's health, safety, housing, insurance, benefits, and property; and

(5) the family member willing to seek appointment under Section 1104.1035.

(b) A plan under this section does not create a guardianship, transfer authority over the vulnerable person or property, or excuse the filing of a guardianship application if court authority is required. The plan may be submitted to a court, peace officer, adult protective services worker, or covered institution as evidence of the family member's good-faith effort to preserve the vulnerable person's person and property.

SUBCHAPTER C. APPOINTMENT, QUALIFICATIONS, AND DUTIES OF ESTATE PROTECTOR

Sec. 1166.051. APPOINTMENT; ROLE. (a) The substantive protections, accounting requirements, expenditure standards, conflict-of-interest prohibitions, enforcement remedies, and rights created by this chapter apply to each adult ward and the ward's estate regardless of size or value.

(b) The court shall appoint a managing estate protector if a guardian of the estate is required and independent management is necessary to protect the ward. A managing estate protector must be appointed and qualified as guardian of the estate and is subject to every duty, bond, accounting, certification, and removal requirement applicable to a guardian of the estate.

(c) The court shall appoint a reviewing estate protector if:

(1) the guardian of the person and guardian of the estate are different persons and independent review is necessary;

(2) the court finds, on its own motion or on a verified motion of the ward or an interested person, that independent review is necessary to protect the ward's estate; or

(3) the ward, the ward's attorney, or an adult family member requests appointment and the court does not find by clear and convincing evidence, stated in a written order, that the probable cost would materially impair the ward's ability to obtain necessary care, housing, food, medicine, insurance, or other support and that no qualified unpaid or publicly funded reviewer is available.

(d) A person may not simultaneously serve as guardian of the estate and reviewing estate protector. If cost precludes a separate appointment, the court shall assign the reviewing duties to a court investigator, court visitor, auditor, guardianship program, or other disinterested person whose service does not diminish the ward's estate. The court may tailor reporting frequency to the nature and value of the estate but may not waive a substantive protection of this chapter.

(e) The court may appoint a managing or reviewing estate protector for a minor who has property requiring protection.

(f) The court shall apply the family-priority process in Section 1104.1035, to the extent practicable, in selecting an eligible family member. If no eligible and willing family member is available, the court may appoint a qualified independent person or entity.

(g) The guardian of the person, the guardian's attorney, a person employed by the guardian, a person with a direct or indirect financial interest in managing, investing, selling, purchasing, insuring, or providing services paid from the ward's property, and a person who prepared or solicited a waiver under Section 1104.1036 may not serve as reviewing estate protector.

Sec. 1166.052. QUALIFICATIONS. (a) An individual serving as a managing or reviewing estate protector must:

(1) be at least 21 years of age and legally competent;

(2) be a resident of this state or designate a resident agent for service of process in this state;

(3) complete required guardianship, fiduciary, ethics, financial-recordkeeping, benefits, insurance, exploitation-recognition, and conflict-of-interest training;

(4) consent to a criminal-history and financial-responsibility background check;

(5) file a sworn disclosure of all actual or potential conflicts of interest before appointment and annually thereafter;

(6) post a bond if appointed managing estate protector; and

(7) meet all other eligibility requirements applicable to the assigned role.

(b) A person is not qualified if the person:

(1) has been convicted of, or received deferred adjudication for, an offense involving fraud, theft, exploitation, financial abuse, breach of fiduciary duty, money laundering, violence against a vulnerable person, or a substantially similar offense;

(2) is subject to a substantiated finding, as defined by Section 1104.1035, of abuse, neglect, exploitation, or financial exploitation of a child, elderly person, or person with a disability;

(3) is subject to a final unsatisfied civil judgment involving fraud, theft, financial exploitation, or breach of fiduciary duty;

(4) has an undisclosed or unapproved direct or indirect financial interest in a transaction involving the ward's estate; or

(5) is otherwise disqualified under this title.

(c) For an estate with more than $250,000 in assets other than the ward's homestead, a managing estate protector must be an eligible family member who demonstrates sufficient financial competence and obtains approved professional assistance, or an independent person or entity with demonstrable fiduciary estate-management experience.

Sec. 1166.053. ESTATE STEWARDSHIP PLAN; ACCESS TO RECORDS. (a) Not later than the 60th day after appointment, the managing estate protector, or the guardian of the estate subject to review, shall file a proposed estate stewardship plan identifying the ward's property, income, benefits, insurance, liabilities, 12-month budget, asset-preservation strategy, proposed caregiver payments, and anticipated nonroutine transactions.

(b) The court shall approve, modify, or reject the plan after notice to the guardian of the person, ward's attorney ad litem, reviewing estate protector, interested persons requesting notice, and adult family members identified under Section 1104.1035. The plan must be reviewed annually and amended on a material change.

(c) A reviewing estate protector is entitled, without further court order and subject to lawful privacy safeguards, to inspect and copy records reasonably necessary to perform the appointment, including account statements, inventories, receipts, contracts, tax filings, insurance records, benefit records, medical billing records, fee applications, and transaction documents.

(d) A guardian, covered institution, service provider, court-appointed person, and person possessing a record described by Subsection (c) shall provide the record not later than the 10th business day after receiving a written request. A person may redact information unrelated to the ward or seek a protective order. The court shall hear a dispute under this subsection not later than the 10th day after a verified motion is filed.

(e) A reviewing estate protector shall protect confidential information, may use it only for the ward's benefit and the proceeding, and may disclose it only as authorized by law or court order.

Sec. 1166.054. DUTIES AND POWERS. (a) A managing estate protector shall perform every duty of a guardian of the estate and shall administer the approved estate stewardship plan, pursue income and benefits, preserve appropriate insurance, coordinate funds for care, maintain complete records, and report apparent misuse, depletion, conflict, abuse, exploitation, or noncompliance.

(b) A reviewing estate protector shall independently review budgets, accounts, fees, benefits, insurance, related-party transactions, and major expenditures; compare expenditures with the plan and the ward-benefit-only standard; report material concerns; object to improper fees or transactions; request an accounting or audit; and file a verified motion for emergency or other relief.

(c) A reviewing estate protector may not possess, manage, invest, receive, or disburse ward property and is not a guardian of the estate solely by reason of the appointment.

(d) A disagreement between a reviewing estate protector and guardian does not suspend an essential payment for the ward. Either person may seek expedited instructions, and the court shall rule not later than the fifth business day if delay threatens health, safety, housing, insurance, or preservation of property.

(e) Compensation must be reasonable, proportionate to the estate and work performed, and approved after itemized application and notice. The court shall prefer a qualified unpaid family member, public resource, or limited-scope review when necessary to avoid impairing the ward's essential support.

SUBCHAPTER D. AUTHORIZED, RESTRICTED, AND PROHIBITED USES OF WARD PROPERTY

Sec. 1166.101. WARD-BENEFIT-ONLY STANDARD. (a) Money and property of a ward's estate, including all income and benefits received by or for the ward, may be used only for the ward's health, safety, housing, care, maintenance, support, rehabilitation, education, direct benefit, and lawful expenses of administration approved by the court.

(b) Subject to the estate stewardship plan and applicable court orders, authorized uses include reasonable and documented expenditures for:

(1) housing, utilities, food, clothing, furnishings, household supplies, transportation, communication, and personal-care needs of the ward;

(2) medical, dental, vision, behavioral-health, rehabilitation, prescription, durable-medical-equipment, home-health, nursing, therapy, and care-coordination expenses;

(3) premiums, deductibles, copayments, and other reasonable costs necessary to preserve or use health, long-term-care, disability, Medicare, Medicaid, homeowners, automobile, liability, and other insurance coverage or public benefits available to the ward;

(4) accessibility, mobility, safety, security, monitoring, bedroom, bathroom, and home modifications reasonably necessary because of the ward's condition;

(5) reasonable caregiving, respite, supervision, housekeeping, meal, transportation, and other support services directly benefiting the ward;

(6) reasonable, documented household expenses attributable to the ward when the ward resides in a family guardian's home, including a proportionate share of rent or mortgage interest, utilities, food, maintenance, and household services;

(7) reasonable travel, lodging, mileage, and incidental expenses necessary to obtain medical care, visit family, maintain the ward's relationships, or support an approved residence arrangement;

(8) reasonable recreation, faith-community participation, communications access, and social, cultural, and personal activities consistent with the ward's known preferences and needs;

(9) taxes, debt payments, property maintenance, investment management, accounting, legal services, insurance, storage, appraisal, and other expenses reasonably necessary to preserve the ward's property or income; and

(10) documented reimbursement to a family caregiver for reasonable and necessary expenses paid for the ward, and prospective caregiver compensation only under a written agreement or court-approved payment plan.

(c) Money or property of a ward's estate may not be used for:

(1) the personal debt, mortgage principal, rent, tuition, credit-card debt, luxury purchase, vacation, business expense, or other personal expense of a guardian, estate protector, relative, or other person;

(2) a gift, loan, advance, donation, transfer, or payment to or for the benefit of a guardian, estate protector, family member, friend, business, charity, political candidate, political committee, or political organization, except as expressly authorized by court order on findings required by Section 1166.104;

(3) a change in the ward's will, trust, beneficiary designation, payable-on-death designation, transfer-on-death designation, retirement beneficiary, annuity beneficiary, or other estate-planning designation unless expressly authorized by another law and a court order supported by specific written findings;

(4) speculative trading, margin transactions, cryptocurrency purchases, private placements, commingling with another person's funds, or another investment inconsistent with the approved estate stewardship plan;

(5) payment for legal, professional, or fiduciary services that do not directly benefit the ward or the ward's estate; or

(6) payment intended to isolate the ward from family members, friends, advocates, or other persons entitled to contact with the ward.

Sec. 1166.102. NONROUTINE EXPENDITURES AND FAMILY-CARE ARRANGEMENTS. (a) Transactions shall be aggregated for purposes of this section if they serve the same or a related purpose, involve the same payee or an affiliate, occur within a 90-day period, form part of a common plan, or are structured to avoid notice, documentation, or approval.

(b) A court may not approve a nonroutine expenditure unless:

(1) the guardian of the estate or managing estate protector files a verified application describing the purpose, amount, payee, supporting documentation, and expected direct benefit to the ward;

(2) at least 14 days' notice is provided to the guardian of the person, the ward's attorney ad litem, each interested person who has requested notice, and the adult family members identified under Section 1104.1035;

(3) the reviewing estate protector files a recommendation, if one is appointed; and

(4) the court makes written findings that the expenditure is reasonable, necessary, consistent with the ward's known preferences when practicable, and directly beneficial to the ward.

(c) A court may waive the notice period under Subsection (b)(2) only on written findings of an immediate and substantial threat to the ward's health, safety, essential housing, insurance coverage, or property. The court shall set a prompt post-expenditure review hearing.

(d) A family-caregiver compensation arrangement must:

(1) be in writing;

(2) identify the services, rate, schedule, method of recordkeeping, and duration of the arrangement;

(3) be prospectively approved by the court after notice and review by the reviewing estate protector, if one is appointed; and

(4) provide compensation consistent with reasonable market rates for comparable services, accounting for the actual care provided.

(e) A court may not approve retroactive family-caregiver compensation except on clear and convincing evidence that the services were necessary, directly benefited the ward, were fully documented, and could not reasonably have been submitted for prospective approval.

Sec. 1166.103. SEPARATE ACCOUNTING; RECEIPTS; NOTICE. (a) A guardian of the estate or managing estate protector who receives or spends money belonging to the ward shall maintain ward funds separate from personal funds and maintain records sufficient to identify every receipt and disbursement.

(b) A disbursement or related series of disbursements exceeding $250 must be supported by an invoice, receipt, contract, or comparable record and identified in the annual account or annual report required by this title.

(c) Transactions shall be aggregated under Section 1166.102(a) for purposes of the documentation threshold in Subsection (b).

(d) The court shall ensure that each managing or reviewing estate protector, the guardian of the person, ward's attorney ad litem, and each interested person who has requested notice receives a copy of:

(1) each inventory, appraisement, and list of claims;

(2) each annual account and annual report;

(3) each application to sell, mortgage, lease, transfer, gift, or otherwise dispose of a major asset;

(4) each application for compensation, reimbursement, allowance, or attorney's fees paid from the ward's estate; and

(5) each order approving a nonroutine expenditure or related-party transaction.

Sec. 1166.104. PROHIBITED RELATED-PARTY TRANSACTIONS. (a) A guardian, managing or reviewing estate protector, attorney ad litem, guardian ad litem, court investigator, court visitor, or other court-appointed person may not knowingly participate in a transaction involving the ward's estate that provides a direct or indirect financial benefit to that person or to a business, family member, employer, partner, or affiliate of that person unless:

(1) the material relationship and financial interest are disclosed in a sworn filing;

(2) all adult interested persons receive notice;

(3) the court holds a hearing; and

(4) the court finds by clear and convincing evidence, in a written order, that the transaction is necessary, fair, at or better than prevailing market terms, and directly beneficial to the ward.

(b) A transaction entered into in violation of this section is grounds for removal, surcharge, denial or forfeiture of compensation, rescission to the extent authorized by law, and any other remedy authorized by law.

SUBCHAPTER E. ACCOUNTABILITY AND ENFORCEMENT

Sec. 1166.151. COVERED COURT-APPOINTED PERSONS. In this subchapter, "covered court-appointed person" means a guardian, temporary guardian, managing or reviewing estate protector, attorney ad litem, guardian ad litem, court investigator, court visitor, receiver, court-appointed attorney, corporate fiduciary, or an employee, agent, contractor, or affiliate acting on behalf of one of those persons in a guardianship proceeding.

Sec. 1166.152. REQUIRED PERFORMANCE; FEE FORFEITURE; REMOVAL. (a) A covered court-appointed person shall comply with each protected guardianship provision and all other applicable duties.

(b) A covered court-appointed person who knowingly or recklessly violates a protected guardianship provision, misuses or conceals ward property, suppresses material medical information, procures an unlawful waiver, conceals a family member, fails to disclose a conflict, or participates in a prohibited related-party transaction is subject to removal, surcharge, reimbursement, denial or forfeiture of compensation, additional bond, referral, and any other remedy authorized by law.

(c) The court shall order forfeiture of compensation attributable to a knowing or reckless violation unless written findings identify services that directly benefited the ward and establish that complete forfeiture would be manifestly unjust.

(d) Conduct described by Subsection (b) constitutes cause for removal under Chapter 1203. A remedy under this section is cumulative of Sections 1155.151 and 1155.152 and Chapter 1203. The ward's estate may not pay compensation, costs, or attorney's fees attributable to the violation. The violator and any liable surety are responsible to the extent provided by law.

(e) A ward or the ward's personal representative may bring an action against a covered court-appointed person who knowingly files a materially false affidavit, report, account, waiver certification, or disclosure required by a protected guardianship provision and whose conduct proximately causes injury to the ward or the ward's estate. The claimant may recover actual damages, reasonable and necessary attorney's fees, declaratory or injunctive relief, and exemplary damages as authorized by Chapter 41, Civil Practice and Remedies Code. An employer, principal, or affiliate is liable only for the person's own knowing participation, authorization, ratification, or independent legal responsibility. The action must be brought not later than the fourth anniversary of the date the claimant discovered or reasonably should have discovered the conduct. Venue lies in the county of the guardianship or as otherwise provided by law. This subsection does not waive judicial immunity, sovereign immunity, governmental immunity, or another immunity not expressly waived.

Sec. 1166.153. VERIFIED MOTION TO ENFORCE PROTECTIONS; HEARING; REMEDIES. (a) The ward, the ward's attorney, an attorney ad litem, guardian ad litem, managing or reviewing estate protector, adult family member, interested person, or covered governmental agency may file a verified motion alleging a violation of a protected guardianship provision.

(b) The court shall set the motion for hearing not later than the 21st day after filing. If the motion alleges imminent physical harm, abuse, neglect, exploitation, unlawful isolation, retaliation, unauthorized relocation, financial abuse, or dissipation of property, the court shall hold an emergency hearing not later than the third business day after filing.

(c) The court may grant declaratory, injunctive, protective, accounting, turnover, surcharge, fee-forfeiture, removal, or other relief authorized by law. A court's failure to perform a ministerial duty imposed by a protected guardianship provision is reviewable by mandamus.

(d) A court may not assess costs, fees, sanctions, or a visitation restriction against a person solely because the person made a good-faith report or filed a good-faith motion.

(e) A movant may file a statement of inability to afford payment of court costs under Rule 145, Texas Rules of Civil Procedure. The clerk may not refuse or delay filing because a fee has not been paid. If the movant substantially prevails, the court shall award reasonable and necessary attorney's fees and costs against the person who committed the violation unless written findings establish that the award would be unjust. An award may not be paid from the ward's estate.

(f) The remedies provided by this section are cumulative.

Sec. 1166.154. REVIEW BY PRESIDING JUDGE; PROTECTIVE ASSIGNMENT. (a) If a verified motion alleges that a court has failed to perform a ministerial duty imposed by a protected guardianship provision and the court has not cured the failure within 10 days, the clerk shall transmit the motion and relevant docket information to the presiding judge of the administrative judicial region. The presiding judge shall review the matter not later than the 15th day after receipt and may assign a visiting judge or take another action authorized by law.

(b) A party may file with the regional presiding judge a verified petition requesting assignment of a different judge if specific facts establish an objectively reasonable question concerning structural impartiality arising from:

(1) an undisclosed material financial relationship involving the judge, a court-appointed person, or an affiliate;

(2) repeated appointments, referrals, or fee approvals involving a challenged appointee that, together with additional specific facts, indicate favoritism or a closed appointment network;

(3) retaliation for a protected report, complaint, or motion; or

(4) another ground for recusal, disqualification, or assignment authorized by law.

(c) A petition under Subsection (b) must identify the facts, the requested relief, and any prior recusal motion. It does not automatically stay the case. The regional presiding judge shall rule or refer the petition under applicable law not later than the 21st day after receipt and may assign another judge when authorized by Chapter 74, Government Code, or other law. This section does not itself create jurisdiction in another county or alter constitutional disqualification standards.

(d) This section does not limit mandamus, appellate relief, recusal or disqualification procedures, or a complaint to the State Commission on Judicial Conduct.

SECTION 8. Section 1104.001(b), Estates Code, is amended by adding Subdivision (5) to read as follows:

(5) two or more adult family members who have priority under Section 1104.1035, if each person is otherwise eligible, each consents in a sworn writing to the joint appointment and to an allocation of duties stated in the order, and the court finds by clear and convincing evidence that the joint appointment is necessary to preserve safe family care or avoid appointment of a person who is not a family member. Disagreement among family members, standing alone, is not a basis to deny an appointment under this subdivision.

SECTION 9. Sections 1101.151 and 1101.152, Estates Code, are amended by adding Subsection (d) to Section 1101.151 and Subsection (d) to Section 1101.152 to read as follows:

(d) An order under this section that grants a guardian the right to have physical possession of a ward or to establish the ward's legal domicile must identify the residence in which the ward will live on the date of the order and may authorize removal of the ward from a safe family residence only if the court finds by clear and convincing evidence, stated with specific facts in the order, that:

(1) remaining in the residence presents an imminent and substantial risk of physical harm to the ward;

(2) the harm cannot be prevented by a less restrictive alternative, additional services, a protective order, removal of an alleged perpetrator, or appointment of an eligible family guardian; and

(3) the proposed residence is the least restrictive, most integrated setting that is safe and consistent with the ward's current and previously expressed preferences.

(d) An order under this section that grants a guardian the right to have physical possession of a ward or to establish the ward's legal domicile must identify the residence in which the ward will live on the date of the order and may authorize removal of the ward from a safe family residence only if the court makes the findings required by Section 1101.151(d).

SECTION 10. Section 1151.051, Estates Code, is amended by adding Subsections (c-1) and (c-2) to read as follows:

(c-1) Except as provided by Section 1151.053, the right described by Subsection (c)(1) is subject to Sections 1101.151(d), 1101.152(d), 1151.351, and 1202.158. A guardian may not change the ward's residence from a safe family residence, remove the ward from this state, or use an order authorizing physical possession to obtain the ward's removal unless the change or removal is expressly authorized by a written order containing the findings required by Section 1101.151(d).

(c-2) An emergency change of residence without a prior order is permitted only when necessary to prevent immediate physical harm or provide emergency medical care. The guardian shall file a verified report not later than the next business day stating the specific emergency facts, the ward's location, and why no less restrictive action was sufficient. The court shall hold a hearing not later than the third business day after the report is filed if the ward is not returned to the prior residence.

SECTION 11. Subchapter B, Chapter 1151, Estates Code, is amended by adding Section 1151.053 to read as follows:

Sec. 1151.053. CONSENSUAL SAFE-FAMILY RESIDENCE ARRANGEMENT. (a) In this section, "safe family residence" has the meaning assigned by Section 1104.1035.

(b) Notwithstanding Section 1151.051(c-1) or another provision requiring prior court authorization for a residence change or removal from this state, a guardian of the person may establish or continue the ward's residence with an adult family member in this state or another state without a hearing or prior court order if:

(1) the ward expresses a current preference to reside in the residence or, if the ward cannot communicate a current preference, the arrangement is consistent with the ward's reliably ascertainable previously expressed preference;

(2) the guardian of the person agrees to the arrangement;

(3) the residence is a safe family residence;

(4) a reasonable plan exists for the ward's housing, food, medical care, medication, transportation, supervision, personal care, insurance, public benefits, communication, and other essential needs;

(5) the guardian gives the notice required by Subsection (c); and

(6) a verified objection satisfying Subsection (f) is not timely filed.

(c) The guardian of the person shall file with the court and serve a notice of consensual safe-family residence arrangement on the ward, the ward's attorney, each guardian, each managing or reviewing estate protector, each adult family member identified under Section 1104.1035, and each interested person who has requested notice. The notice must state:

(1) the ward's current and previously expressed residential preferences and the manner in which the current preference was obtained;

(2) the address and identity of the adult family member responsible for day-to-day care;

(3) whether the arrangement is temporary, recurring, or expected to be permanent;

(4) the material terms of the care and support plan described by Subsection (b)(4), including the identity and contact information of treating health care providers to the extent disclosure is authorized by law;

(5) the anticipated care budget and requested payments or reimbursements from the ward's estate;

(6) that the guardian of the estate or managing estate protector has received the care budget and supporting information; and

(7) that an objection must comply with Subsection (f) and be filed not later than the fifth business day after service.

(d) Except as provided by Subsection (e), the guardian may implement or continue the arrangement on the sixth business day after service if no verified objection satisfying Subsection (f) is filed. The arrangement becomes effective by operation of law, without a hearing or further court order. The clerk shall accept the notice for filing and may not require a motion, application, hearing, order, or filing fee as a condition of effectiveness.

(e) The guardian may implement or continue the arrangement immediately on filing and service of the notice if a physician, psychologist, or advanced practice registered nurse who has examined or treated the ward provides a written recommendation that the arrangement is necessary or advisable for continuity of treatment, recovery, avoidance of a medically inadvisable transfer, or the ward's physical or mental well-being. A timely objection does not require the ward's return to the prior residence before the hearing required by Subsection (g).

(f) A person served under Subsection (c) may object only by filing a verified objection that states specific facts establishing probable cause to believe that:

(1) the arrangement presents an imminent and substantial risk of physical harm to the ward that cannot be prevented by a less restrictive condition;

(2) the care plan does not make reasonable provision for an essential need of the ward;

(3) the ward's stated preference resulted from fraud, coercion, exploitation, or undue influence;

(4) the arrangement involves material financial exploitation of the ward; or

(5) a proposed expenditure would cause substantial and irreparable loss to the ward's estate and the loss cannot be prevented by budgeting, accounting, bond, limitation of the disputed expenditure, or another less restrictive financial safeguard.

(g) A disagreement concerning the preferred state, city, facility, caregiver, administrative convenience, or comparative cost, standing alone, does not constitute a sufficient objection. A guardian of the estate, managing estate protector, or reviewing estate protector acting solely in that capacity may object only on a ground provided by Subsection (f)(4) or (5) and does not have authority to select or veto the ward's residence solely by reason of authority over or review of the estate.

(h) If a verified objection satisfying Subsection (f) is timely filed, the court shall hold a hearing not later than the fifth business day after filing. The objecting person has the burden to prove by clear and convincing evidence a ground under Subsection (f) and that a less restrictive condition will not adequately protect the ward or the estate. Pending the hearing and ruling, the court may not require the ward to leave or return from the safe family residence unless the court makes written findings, supported by clear and convincing evidence, that immediate action is necessary to prevent imminent and substantial physical harm.

(i) The court shall dismiss an objection that does not satisfy Subsection (f). If an objection concerns only a disputed expenditure, the court shall preserve the residence arrangement and resolve the expenditure under Chapter 1166, including by approving undisputed essential expenses and imposing accounting or payment conditions. A financial dispute does not authorize removal of the ward from the residence unless the requirements of Section 1101.151(d) are independently satisfied.

(j) The guardian of the person shall monitor the arrangement and file an amended notice not later than the fifth business day after learning of a material change in the residence, responsible caregiver, essential care plan, or ward's expressed preference. The arrangement does not limit the ward's rights under Section 1151.351 or the authority of the court to act on proof of abuse, neglect, exploitation, or imminent and substantial physical harm.

(k) Residence under this section in another state does not by itself transfer guardianship jurisdiction or terminate the Texas guardianship. The guardian shall continue required reports and supervision in this state until transfer or termination. If the arrangement is expected to be permanent, the guardian shall file an application under Chapter 1253 not later than the 60th day after the arrangement takes effect, unless the court extends the period for good cause. The ward is not required to return to this state while jurisdictional transfer is considered.

SECTION 12. Subchapter H, Chapter 1151, Estates Code, is amended by adding Section 1151.352 to read as follows:

Sec. 1151.352. EXPEDITED ENFORCEMENT OF RIGHTS; ANTI-RETALIATION. (a) The ward, a person chosen by the ward, an adult family member, or a person interested in the ward's welfare may file a verified motion alleging a violation of a right protected by Section 1151.351.

(b) The clerk shall accept the motion without requiring representation by counsel. The court shall set a hearing not later than the 14th day after filing or, if the motion alleges retaliation, unlawful isolation, an unauthorized residence change, denial of necessary care, or imminent harm, not later than the third business day after filing.

(c) The court may issue temporary protective relief, restore contact or visitation, order access to records, prevent or reverse an unauthorized residence change, suspend a power of the guardian, order an independent investigation, require an accounting, remove a guardian, or grant other relief necessary to enforce Section 1151.351.

(d) A guardian or covered court-appointed person, as defined by Section 1166.151, may not retaliate against the ward or another person for making a good-faith complaint, report, or motion. Retaliation includes restricting communication or visitation, changing the ward's residence, withholding information or property, seeking fees or sanctions, or threatening adverse action because of protected activity.

(e) The court shall protect the ward's expressed preferences and safety and shall use the least restrictive remedy sufficient to cure the violation. The court shall make written findings on each material allegation.

(f) Section 1166.153(d)-(f) applies to a motion under this section.

SECTION 13. Section 1203.051, Estates Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows:

(a-1) In addition to the grounds provided by Subsection (a), the court shall remove or immediately suspend the powers of a guardian who intentionally exploits or converts ward property, intentionally retaliates against or unlawfully isolates the ward, or intentionally removes the ward from a safe family residence without legal authority. The court may remove or suspend a guardian who knowingly or recklessly violates Section 1101.151(d), 1101.152(d), 1104.1035, 1104.1036, 1151.051(c-1) or (c-2), 1151.053, 1151.351, 1151.352, 1166.152, or 1202.158. For purposes of Section 1203.056, a verified motion supported by specific facts showing an imminent risk of physical harm, exploitation, substantial dissipation of property, unlawful isolation, retaliation, or unauthorized removal from a safe family residence constitutes sworn evidence requiring prompt review.

(b) In a proceeding to remove a guardian under Subsection (a)(6) or (7) or Subsection (a-1), the court shall appoint a guardian ad litem as provided by Subchapter B, Chapter 1054, and an attorney ad litem. The attorney ad litem has the duties prescribed by Section 1054.004. The court may appoint the same person as guardian ad litem and attorney ad litem only if no conflict exists between the interests to be represented. A person appointed after an allegation of abuse, neglect, exploitation, financial misconduct, or retaliation may not have represented, been employed by, shared an office with, or had a material financial relationship during the preceding five years with the guardian, the guardian's attorney, or a person whose conduct is a subject of the proceeding.

SECTION 14. Subchapter C, Chapter 1203, Estates Code, is amended by adding Section 1203.1035 to read as follows:

Sec. 1203.1035. EXPEDITED FAMILY-FIRST SUCCESSOR; PRESERVATION AND TURNOVER. (a) On the death, resignation, incapacity, suspension, or removal of a guardian of the person, the court shall apply Section 1104.1035 anew and shall give the next willing and eligible family member in the order of priority the first opportunity to seek appointment.

(b) If immediate protection is necessary, the court may appoint a temporary successor with only the powers necessary to prevent imminent and substantial harm. A person who is not a family member may serve only until the family-priority hearing, which must be held not later than the 14th day after appointment.

(c) Not later than 48 hours after receiving notice of the event described by Subsection (a), the former guardian, the guardian's personal representative, employer, contractor, facility, financial institution, and each other person possessing property or records of the ward shall preserve the property and records and may not destroy, alter, conceal, transfer, or dissipate them.

(d) Not later than the fifth business day after a successor qualifies or as otherwise ordered by the court, each person described by Subsection (c) shall deliver the ward's property and records to the successor, estate protector, or court registry. The outgoing guardian or representative shall file a final account within 30 days. If removal involved abuse, neglect, exploitation, or financial misconduct, the estate protector or another disinterested qualified person shall audit the account and report possible surcharge, turnover, bond, restitution, fee-forfeiture, or referral remedies.

SECTION 15. Section 1253.001, Estates Code, is amended to read as follows:

Sec. 1253.001. APPLICATION TO TRANSFER GUARDIANSHIP TO FOREIGN JURISDICTION. (a) On application of the guardian or on the court's own motion, a court that has jurisdiction over the guardianship may transfer the guardianship to a court in a foreign jurisdiction to which the ward has permanently moved.

(b) The ward, the ward's attorney, an adult family member, or a person interested in the ward's welfare may file an application for transfer if the ward has moved to the foreign jurisdiction or relocation there is proposed and transfer may facilitate family care, access to supports and services, or the ward's expressed residential preference. The application may be filed without the guardian's consent.

(c) An application under Subsection (b) may request provisional authorization for the ward to reside in a safe and appropriate residence in the foreign jurisdiction while acceptance and final transfer are coordinated. Provisional relocation does not transfer jurisdiction or terminate the Texas guardianship. A ward residing in another state under Section 1151.053 is not required to obtain provisional authorization under this subsection as a condition of residing there, and the transfer proceeding shall formalize jurisdiction rather than require the ward's physical return to this state.

SECTION 16. Section 1253.002, Estates Code, is amended to read as follows:

Sec. 1253.002. NOTICE OF APPLICATION. Notice of an application to transfer a guardianship under this subchapter shall be:

(1) served personally on the ward;

(2) given to the foreign court to which transfer is proposed;

(3) served on each guardian, the ward's attorney, and each adult family member identified under Section 1104.1035; and

(4) provided in a manner accessible to the ward.

SECTION 17. Section 1253.003, Estates Code, is amended by amending Subsections (a)-(c) and adding Subsections (d)-(j) to read as follows:

Sec. 1253.003. DETERMINATION REGARDING TRANSFER OF GUARDIANSHIP. (a) On the court's own motion or on the motion of the ward or any interested person, the court shall hold a hearing to consider an application under this subchapter. If the application is filed by the ward, the ward's attorney, or an adult family member, the hearing must be held not later than the 21st day after filing.

(b) The court shall transfer the guardianship if the court determines that transfer is in the ward's best interest and the foreign court accepts the guardianship. The final transfer order must be contingent on acceptance in the foreign jurisdiction and may include conditions needed for continuity of care, benefits, property management, bond, records, and judicial supervision.

(c) The court shall coordinate with the foreign court to facilitate orderly transfer, determine whether the foreign court will accept the guardianship, transmit necessary records, and resolve provisional arrangements. The court may conduct a joint or remote hearing with the foreign court.

(d) In addition to all requirements imposed by existing law, the court shall consider:

(1) the safety and adequacy of the proposed residence;

(2) continuity of medical care, services, insurance, and public benefits;

(3) arrangements for management and protection of the ward's property;

(4) availability of family care and community supports;

(5) the ward's social and community ties and current and previously expressed preferences;

(6) the comparative cost and restrictiveness of each arrangement; and

(7) any material medical change.

(e) There is a rebuttable presumption that transfer is in the ward's best interest if the ward is safely residing with family in the foreign jurisdiction, the foreign court indicates willingness to accept, and transfer is consistent with the ward's current or previously expressed preference. Opposition by the guardian, family disagreement, or the fact that the guardianship originated in this state, standing alone, does not rebut the presumption.

(f) Before the foreign court accepts jurisdiction, the Texas court may conditionally approve transfer and provisionally authorize residence in the foreign jurisdiction if the court finds that the residence is safe, appropriate, and consistent with the ward's preference and that arrangements exist for care, benefits, and protection of property. The Texas court retains jurisdiction and supervisory authority until final acceptance.

(g) The court may deny or defer final transfer if the foreign court refuses or has not yet accepted jurisdiction, transfer is legally impossible, or a required arrangement for care or property protection is not reasonably available. A denial on the merits after the foreign court indicates willingness to accept must be supported by clear and convincing evidence and specific written findings that transfer would expose the ward to an imminent and substantial risk of physical harm or substantial and irreparable financial loss that cannot be prevented by conditions imposed by either court.

(h) While an application is pending, the court may not compel the ward's return to this state, remove the ward from a safe family residence, or authorize a nonroutine expenditure to oppose transfer unless the court makes the findings required by Subsection (g). This subsection does not prevent emergency medical care or an order narrowly tailored to prevent immediate physical harm.

(i) The ward has the right to participate and communicate the ward's preference directly to the court in person or by remote means.

(j) The clerk shall promptly transmit the record and communications necessary to coordinate the transfer.

SECTION 18. Subchapter A, Chapter 1253, Estates Code, is amended by adding Section 1253.004 to read as follows:

Sec. 1253.004. COSTS; COUNSEL; EXPEDITED RELIEF. (a) The clerk may not refuse an application under Section 1253.001(b) because a filing fee has not been paid. A person unable to afford costs may file a statement under Rule 145, Texas Rules of Civil Procedure.

(b) The ward is entitled to representation by an attorney ad litem independent of the guardian and any person opposing transfer. The county shall pay the cost to the extent required by Section 1155.151 if the estate is insufficient.

(c) A person may seek mandamus or other expedited appellate relief from failure to hold the hearing or make the findings required by this subchapter.

SECTION 19. Section 36.004, Government Code, is amended by amending Subsections (a) and (c) and adding Subsection (a-1) to read as follows:

Sec. 36.004. REPORT ON APPOINTMENTS. (a) In addition to a report required by other state law or rule, the clerk of each court in this state shall prepare a monthly report on each court appointment of an attorney ad litem, guardian ad litem, guardian, mediator, competency evaluator, managing or reviewing estate protector, court investigator, court visitor, receiver, corporate fiduciary, guardianship program, or other paid fiduciary or professional, and each affiliated vendor paid because of the appointment. The report must include the information otherwise required by this section for each category of appointee, without regard to whether compensation exceeds a stated amount.

(a-1) For an appointment in a guardianship proceeding, the report must state:

(1) the appointee's category and relationship, if any, to the ward;

(2) the stable identifier assigned by the Office of Court Administration, and each assumed name, controlling person, and disclosed affiliate;

(3) the judge, court, appointment date, and an anonymized case identifier that does not disclose the ward's identity;

(4) the number of active appointments held by the appointee in the county and statewide, calculated by the Office of Court Administration from submitted data;

(5) each amount requested, approved, and paid to the appointee or an affiliate, the payment source, hours billed, and expenses;

(6) whether the appointment departed from the family-priority order under Section 1104.1035, Estates Code, and the statutory ground for departure; and

(7) any removal, suspension, sanction, fee forfeiture, or final substantiated violation associated with the appointment, to the extent disclosure is permitted by law.

(c) The Office of Court Administration of the Texas Judicial System shall prescribe the reporting format; assign stable identifiers; calculate appointment totals; and post the information in a searchable, downloadable, machine-readable format permitting analysis by judge, court, county, appointee, affiliate, appointment category, compensation, payment source, sanction, and date. The office shall protect a ward's name, address, date of birth, medical information, financial-account information, and other confidential information.

SECTION 20. Section 155.155, Government Code, is amended by adding Subsection (d) to read as follows:

(d) Notwithstanding another provision of this section, the Judicial Branch Certification Commission may provide the Office of Court Administration and a court or clerk the nonconfidential registration information necessary to administer Section 36.004 and Chapter 1166, Estates Code. The office may publish aggregate or case-linked appointment and compensation information required by Section 36.004 but may not publish a ward's name, address, date of birth, medical information, financial-account information, or other information made confidential by law.

SECTION 21. Section 1163.001, Estates Code, is amended by adding Subsection (d) to read as follows:

(d) In addition to the requirements of this section, an annual account filed for a ward to whom Chapter 1166 applies must include a statement signed under oath that each expenditure was made for a purpose authorized by Section 1166.101 and must be served on each managing or reviewing estate protector and the guardian of the person not later than the fifth business day after filing.

SECTION 22. Chapter 281, Finance Code, is amended by adding Section 281.0045 to read as follows:

Sec. 281.0045. PROVISIONAL HOLD ON EMERGENCY PROTECTION NOTICE. (a) A financial institution that receives an emergency protection notice under Section 1166.011, Estates Code, shall comply with Section 1166.012, Estates Code.

(b) A financial institution that acts in good faith under this section or Section 1166.012, Estates Code, is entitled to the immunity provided by Section 1166.012, Estates Code, in addition to any other immunity provided by law.

(c) This section does not limit a financial institution's duty or authority under this chapter.

SECTION 23. Subchapter I, Chapter 4004, Government Code, is amended by adding Section 4004.3555 to read as follows:

Sec. 4004.3555. PROVISIONAL HOLD ON EMERGENCY PROTECTION NOTICE. (a) A dealer or investment adviser that receives an emergency protection notice under Section 1166.011, Estates Code, shall comply with Section 1166.012, Estates Code, to the extent consistent with federal law and the rules of the securities commissioner.

(b) A dealer or investment adviser that acts in good faith under this section or Section 1166.012, Estates Code, is entitled to the immunity provided by Section 1166.012, Estates Code, in addition to any other immunity provided by law.

(c) This section does not limit a dealer's or investment adviser's duty or authority under this chapter.

SECTION 24. Subtitle C, Title 5, Insurance Code, is amended by adding Chapter 567 to read as follows:

CHAPTER 567. EMERGENCY PROTECTION OF CERTAIN INSURANCE AND ANNUITY INTERESTS

Sec. 567.001. APPLICABILITY. This chapter applies to an insurer, health maintenance organization, insurance agent, or other person regulated by the Texas Department of Insurance that holds, administers, pays, or services a policy, contract, claim, annuity, retirement product, or benefit belonging to a vulnerable person.

Sec. 567.002. EMERGENCY PROTECTION NOTICE. A person subject to this chapter that receives an emergency protection notice under Section 1166.011, Estates Code, shall comply with Section 1166.012, Estates Code, to the extent consistent with federal law and rules adopted by the commissioner of insurance.

Sec. 567.003. IMMUNITY; OTHER AUTHORITY. A person that acts in good faith under this chapter or Section 1166.012, Estates Code, is entitled to the immunity provided by that section. This chapter does not limit another duty or authority under this code or federal law.

SECTION 25. Section 1101.001, Estates Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) An application for appointment of a guardian for an adult must be accompanied by the sworn family-information affidavit required by Section 1104.1035. The application must disclose the applicant's reasonable inquiry, all known agents under powers of attorney or medical powers of attorney, and any known estate-planning document that identifies a proposed guardian or family contact.

SECTION 26. The Office of Court Administration of the Texas Judicial System shall, not later than August 1, 2027:

(1) develop and publish the waiver form required by Section 1104.1036, Estates Code, as added by this Act;

(2) develop a model family-notice affidavit for use under Section 1104.1035, Estates Code, as added by this Act;

(3) develop a model material-medical-change motion for use under Section 1202.158, Estates Code, as added by this Act;

(4) develop a model notice of consensual safe-family residence arrangement and verified objection for use under Section 1151.053, Estates Code, as added by this Act;

(5) develop a model estate stewardship plan and estate-protection report for use under Chapter 1166, Estates Code, as added by this Act; and

(6) publish a public guide describing the emergency protection notice process established by Subchapter B, Chapter 1166, Estates Code, as added by this Act;

(7) modify the appointments-and-fees reporting system and guardianship-registration interfaces as necessary to implement Section 36.004, Government Code, as amended by this Act; and

(8) adopt model notices and procedures for provisional holds, essential-expense releases, and judicial review under Sections 1166.011 through 1166.013, Estates Code, as added by this Act.

SECTION 27. The Department of Family and Protective Services, the Finance Commission of Texas, the Texas Department of Insurance, the securities commissioner, and the Office of Court Administration of the Texas Judicial System may adopt rules necessary to implement this Act.

SECTION 28. (a) Except as provided by this section, the changes in law made by this Act apply to a guardianship or guardianship proceeding pending on or commenced on or after the effective date of this Act, regardless of the date the guardianship was created.

(b) Sections 1104.1035 and 1104.1036, Estates Code, as added by this Act, govern an appointment or succession occurring on or after the effective date of this Act. An appointment finally made before that date is not invalid solely because the appointment would not satisfy those sections, but the ward or an interested person may seek modification, removal, succession, or other prospective relief under the law as amended by this Act.

(c) Sections 1151.053, 1151.352, and 1166.153, Estates Code, as added by this Act, and Chapters 1202, 1203, and 1253, Estates Code, as amended by this Act, are procedural remedies available on and after the effective date of this Act in a pending or existing guardianship.

(d) A civil penalty, exemplary damages, fee forfeiture, surcharge, or other monetary liability based solely on a change in law made by this Act applies only to conduct occurring on or after the effective date of this Act. Conduct occurring before that date remains governed by the law in effect when the conduct occurred, and the former law is continued in effect for that purpose.

(e) The substantive estate protections and prospective accounting, notice, conflict-of-interest, and expenditure requirements of Chapter 1166, Estates Code, as added by this Act, apply on and after the effective date of this Act regardless of estate size. A court shall review an existing guardianship for compliance at the first annual review occurring after the effective date and may act earlier on motion of the ward or an interested person.

(f) Sections 1166.011 through 1166.014, Estates Code, as added by this Act, apply to an emergency protection notice made on or after the applicable effective date. Section 36.004, Government Code, as amended by this Act, applies to a report due on or after September 1, 2027.

SECTION 29. (a) Sections 26 and 27 of this Act take effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, Sections 26 and 27 take effect September 1, 2027.

(b) Except as provided by Subsection (a), this Act takes effect September 1, 2027.

When Protection Becomes Control, The Reason for the Texas Family First Guardianship Act

Executive Summary

What this proposal would change

The balance built into the bill

The Human Stakes

The Peggy Hill guardianship dispute

What the case illustrates

Rights and Oversight

Rights Already on Paper

A Statewide Oversight Problem

The Bill's Framework

Medical Review and Family Priority

Medical Facts Must Matter

Family First, Not Family Always

No Missing Relatives

Waivers Must Be Genuine

Home, Family, and Interstate Care

A Safe Family Home

Residence by Notice

Interstate Families

Protecting Property and the Estate

Protection Before the Estate Disappears

The Estate Belongs to the Ward

Estate Protectors

Conflicts and Related Parties

Enforcement and Accountability

Rights Need Remedies

Consequences for Misconduct

Review Beyond One Courtroom

Follow the Appointments and Money

How the Proposal Changes Texas Law

Current Law and Proposal

What the Bill Does Not Do

Major Policy Questions

Could a rigid family order appoint the wrong person?

Could relatives misuse emergency holds?

Will deadlines overburden probate courts?

Will professionals refuse appointments?

Does public reporting invade privacy?

Why This Reform Matters

Why Peggy's Case Matters

Legislative Proposal

Proposed Legislation

Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act

H.B. No. ____

References

Texas law and court administration - Sections 2, 3, 4, 6, and 7

Texas oversight evidence - Sections 2 and 6

Peggy Hill case reporting - Sections 1 and 8

National guardianship standards - Sections 2, 5, 6, and 7

Securing Texas Elections and Restoring Party Self-Governance

Texas House of Representatives District 109

Will Campbell for Texas