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Small Estate Limits for Texas

In Texas you can use an Affidavit if the entire estate, not including homestead and exempt property, is worth $75,000 or less and there's no Will.  A probate judge must approve the Affidavit. Can be used to transfer homestead, but no other real estate. There is a 30-day waiting period.

Tex. Est. Code 205.001-008.

You can use a summary probate procedure if the value of the property doesn't exceed what's needed to pay family allowance and certain creditors.

Tex. Est. Code 354.001.

"Independent administration" is available, regardless of value of estate, it is requested in the Will or all inheritors agree to it.

Tex. Est. Code 401.001 and following.

Texas offers simpler procedures available for smaller estates. The two most common options are:

  1. Small Estate Affidavit: This is a simplified probate process that can be used when the value of the deceased person's assets, excluding real estate, is $75,000 or less. The deceased person must have had a valid will, or if they did not have a will, they must have died intestate (without a will) and met certain other criteria. The person who is entitled to inherit the property can complete a small estate affidavit and present it to the holder of the property (such as a bank or other financial institution) to transfer the property to them. Texas Estates Code § 205.001-205.008.

  2. Muniment of Title: This is a court order that can be used to transfer title of property when the deceased person had a valid will and there are no outstanding debts or liabilities other than those secured by liens on real property. This process does not involve the appointment of an executor, and can be used when the value of the estate, excluding real estate, is $75,000 or less. Texas Estates Code § 257.001-257.010.

It's important to note that these simplified procedures may not be appropriate or available in all cases, and the specific requirements and procedures may vary depending on the circumstances. It's always a good idea to consult with an experienced probate attorney to determine the best course of action.

Sources:

What's Included in valuing the estate?

Not everything a person owns is part of their "Estate" for probate purposes.

If you're wrapping up the estate of a Texas resident who died with an estate that's worth less than a certain dollar amount, you won't have to go through a formal probate court proceeding. 

It doesn't matter whether or not the deceased person left a will; what matters is the value of the assets left behind. If the estate's value is under the "small estates" limit in Texas, you can take advantage of a simplified probate procedure, often called a "summary probate." Instead of having a court hearing in front of a judge, you may need only to file a simple form or two and wait for a certain amount of time before distributing the assets.

In some states, it can be even easier: Inheritors can use a simple affidavit to claim assets. (An affidavit is a statement you sign in front of a notary, swearing something is true.) If you live in one of those states, you just have to wait a required period of time, then sign a simple, sworn statement that no probate proceeding is happening in your state and that you are the person entitled to inherit a particular asset--a bank account, for example. 

Adding it up, what's in, what's not

When you are trying to determine whether or not an estate's value is below the Texas small estates limit, the first thing to do is make a list of the assets. A simple spreadsheet or list will do.

Not everything a person owns counts, though.

Include only the things that pass to heirs and beneficiaries by will or, if there's no will, by Texas intestacy laws, which determine who inherits if there is no will.

Don't count:

  • assets that are held in joint tenancy,
  • retirement plans,
  • payable-on-death (POD) bank accounts,
  • real estate transferred by a transfer-on-death deed, or
  • transfer-on-death brokerage accounts.

These assets don't count towards the small estate limit because they pass to the named beneficiaries regardless of what a will (or state intestacy law) says. If a person had a life insurance policy with a named beneficiary, the insurance proceeds won't count either.

Loans on the property?

Some states also don't count the amount of money owed on a car, or a house, while others count the fair market value of an asset, even it is subject to a loan or a mortgage.

For example, say Donald died in Texas and owned the following assets:

  • A checking account with $2,345
  • A savings account with $2,567
  • A car with a blue book value of $6,500 (and no loan)
  • An IRA with $32,000, naming his son and daughter as beneficiaries
  • A life insurance policy worth $15,000, naming his son and daughter as beneficiaries

To figure out whether Donald is above or below Texas's small estate limit, only the bank accounts and car would be counted, for a total of $11,412.

His IRA and the life insurance proceeds aren't counted towards the limit because they will go to his beneficiaries directly. The value of the car is included because he doesn't owe money on it.

That means the value of Donald's estate is under the Texas small estates limit. His son and daughter, who inherit his assets under Texas's intestacy laws because Donald had no will, would follow the small estates procedure.

Options for Small Estates in Texas

in Texas there are simpler procedures available for smaller estates. The two most common options are:

  1. Small Estate Affidavit: This is a simplified probate process that can be used when the value of the deceased person's assets, excluding real estate, is $75,000 or less. The deceased person must have had a valid will, or if they did not have a will, they must have died intestate (without a will) and met certain other criteria. The person who is entitled to inherit the property can complete a small estate affidavit and present it to the holder of the property (such as a bank or other financial institution) to transfer the property to them. Texas Estates Code § 205.001-205.008.

  2. Muniment of Title: This is a court order that can be used to transfer title of property when the deceased person had a valid will and there are no outstanding debts or liabilities other than those secured by liens on real property. This process does not involve the appointment of an executor, and can be used when the value of the estate, excluding real estate, is $75,000 or less. Texas Estates Code § 257.001-257.010.

It's important to note that these simplified procedures may not be appropriate or available in all cases, and the specific requirements and procedures may vary depending on the circumstances.


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