Detailed Answer
When someone dies owning real property solely in their name, the personal representative must include that property in the probate estate so creditors can be paid. Under Texas law, follow these main steps:
1. Open Probate Proceedings
File an application in the probate court of the county where the decedent lived. If there’s a will, petition to admit it. If not, seek appointment as administrator. Once approved, the court issues Letters Testamentary or Letters of Administration, granting authority to collect and manage estate assets. See Texas Estates Code §256.001: https://statutes.capitol.texas.gov/Docs/ES/htm/ES.256.htm.
2. Inventory and Appraise Estate Property
Within 90 days of appointment, prepare and file an Inventory and Appraisement that lists all real estate, its value, and any encumbrances. This informs the court and creditors about property available to satisfy claims. See Texas Estates Code §351.101: https://statutes.capitol.texas.gov/Docs/ES/htm/ES.351.htm.
3. Identify Non-Probate Transfers
Review deeds for Transfer on Death designations under Texas Estates Code Chapter 114. These transfers bypass probate and may not be available to fund creditor claims.
4. Petition for Sale of Real Property
If liquid assets are insufficient, petition the court for approval to sell estate real property. The court will authorize sale under Texas Estates Code §355.001 and permit public auction or private sale per §362.001. See ES §355 and ES §362.
5. Provide Notice to Creditors and Pay Valid Claims
Publish a notice to creditors in a local newspaper and mail notice to known creditors. After the claims deadline, review and pay valid claims from estate funds, including sale proceeds. See Texas Estates Code §355.001: https://statutes.capitol.texas.gov/Docs/ES/htm/ES.355.htm.
6. Distribute Remaining Funds
After settling debts, distribute any leftover proceeds or property to beneficiaries according to the will or, if none, per Texas intestacy rules (Texas Estates Code §§201.001–205.003).
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney to address your specific situation.
Helpful Hints
- Review all titled assets—some real property may pass outside probate by operation of law.
- Consider a small estate affidavit to transfer real property without full probate under Texas Estates Code §205.051–.052: https://statutes.capitol.texas.gov/Docs/ES/htm/ES.205.htm.
- Protect homestead rights under the Texas Constitution Art. XVI § 50 to avoid forced sale of a family home.
- Maintain clear records of property valuations and sale proceeds to ensure transparent accounting.
- Consult a probate attorney early to navigate court procedures, deadlines, and potential pitfalls.