Section 1151.201 - Mortgage or Pledge of Estate Property Authorized in Certain Circumstances(a) Under court order, the guardian may mortgage or pledge any property of a guardianship estate by deed of trust or otherwise as security for an indebtedness when necessary for:(1) the payment of any ad valorem, income, gift, or transfer tax due from a ward, regardless of whether the tax is assessed by a state, a political subdivision of the state, the federal government, or a foreign country;(2) the payment of any expense of administration, including amounts necessary for the operation of a business, farm, or ranch owned by the estate;(3) the payment of any claim allowed and approved, or established by suit, against the ward or the ward's estate;(4) the renewal and extension of an existing lien;(5) an improvement or repair to the ward's real estate if: (A) the real estate is not revenue producing but could be made revenue producing by certain improvements and repairs; or(B) the revenue from the real estate could be increased by making improvements or repairs to the real estate;(6) the purchase of a residence for the ward or a dependent of the ward, if the court finds that borrowing money for that purpose is in the ward's best interests; and(7) funeral expenses of the ward and expenses of the ward's last illness, if the guardianship is kept open after the ward's death.(b) Under court order, the guardian of the estate may also receive an extension of credit on the ward's behalf that is wholly or partly secured by a lien on real property that is the ward's homestead when necessary to: (1) make an improvement or repair to the homestead; or(2) pay for the ward's education or medical expenses.(c) Proceeds of a home equity loan described by Subsection (b) may be used only for the purposes authorized under Subsection (b) and to pay the outstanding balance of the loan.Added by Acts 2011, 82nd Leg., R.S., Ch. 823, Sec. 1.02, eff. 1/1/2014.