Short answer

After taxes, creditor claims, and administrative expenses are paid from the probate estate, the personal representative (executor or administrator) distributes the remaining cash and property to the decedent’s heirs or beneficiaries according to the decedent’s will or, if there is no will, under Texas intestacy rules. The exact steps depend on whether the estate is administered independently or under court supervision, whether property passes outside probate (joint accounts, TOD/beneficiary designations, life insurance), and whether any heirs are minors or the estate is insolvent.

Detailed answer: step-by-step overview under Texas law

1. Confirm which property is part of the probate estate

Not all assets go through probate. Nonprobate transfers (jointly titled property with right of survivorship, accounts or securities with beneficiary designations, life insurance, certain retirement accounts, and some trusts) pass directly to the named co-owner or beneficiary and are not part of the distributable probate estate. The personal representative should identify and separate nonprobate assets before distribution.

2. Identify who gets what — will or intestacy

If there is a valid will, distribution follows the will’s directions (subject to Texas law governing forced shares and community property issues). If there is no will (intestate), Texas statutory rules determine shares. For summary of intestate succession rules see Texas Estates Code, Chapter 201: https://statutes.capitol.texas.gov/Docs/ES/htm/ES.201.htm.

3. Complete administration tasks before distribution

• Obtain appointment and letters testamentary/letters of administration from the probate court so the personal representative has legal authority to act.
• Prepare and file an inventory and appraisement of estate assets, as required.
• Provide notice to creditors and pay valid claims in the statutorily required order. The personal representative must follow Texas procedures when handling claims and creditor notice.
• Pay estate administration expenses (court costs, attorney and executor fees if approved, appraisers, accountants), and any taxes (federal estate tax if applicable, and any state taxes if they apply).

4. Determine the residue and allocate shares

Once claims, taxes, and expenses are paid and all disputes resolved, the remainder is the distributable residue. The personal representative distributes that residue according to the will or, for intestate estates, according to Texas law. If the will gives specific gifts that are already satisfied or funded, the personal representative then follows residuary provisions to divide what remains.

5. Special handling of proceeds for minor or incapacitated children

If a child who is to receive funds is a minor, the personal representative generally cannot simply hand a large cash distribution to a minor. Common options include:

• Deposit funds in a guardianship or conservatorship account appointed by the court for the minor’s benefit;
• Establish a custodial account under the Texas version of the Uniform Transfers to Minors Act (UTMA) or a similar statutory custodial arrangement if available and appropriate;
• Follow any testamentary trust provisions in the will that provide for management and distribution to minors.

6. Get receipts and close the estate

The personal representative should obtain signed receipts or releases from heirs/beneficiaries, file a final accounting with the court if required, and request an order of final distribution or discharge from the court when administration is complete. In an independent administration (if authority exists), court approval may not be required for every action, but best practice is to document distributions and obtain releases.

Key legal considerations specific to Texas

• Community vs. separate property: Texas is a community-property state. That affects what portion of property formed during marriage belongs to the surviving spouse versus the decedent’s children. Identify whether assets are separate or community property before calculating shares.
• Independent vs. dependent administration: If the will or a court authorizes independent administration, the personal representative has broader power to settle claims and distribute assets without ongoing court supervision. See Texas Estates Code, Chapter 401 for rules about administration: https://statutes.capitol.texas.gov/Docs/ES/htm/ES.401.htm.
• Insolvent estates: If debts and taxes exceed assets, creditors are paid in a statutory priority order. There may be no residue left to distribute to children.
• Nonprobate transfers: Assets with beneficiaries or survivorship rights pass outside probate and reduce the assets subject to distribution through the estate.

Typical timeline

Every estate is different. A simple, uncontested independent administration with few assets might be completed in a few months. Complex estates, contested claims, tax issues, or dependent administrations can take a year or more. The timeline depends on creditor deadlines, the need to liquidate assets to pay debts, and whether disputes arise.

When children disagree or a distribution is contested

Disputes over validity of the will, interpretation of terms, unequal distributions, or allegations of undue influence can delay distribution. The personal representative should refuse distribution until a court order resolves contested matters or a settlement is reached. Heirs can seek court intervention to enforce distributions or challenge the administration.

Practical documents and records to keep

• Letters testamentary/letters of administration
• Inventory and appraisement
• Copies of paid invoices, creditor claim releases, canceled checks, and tax returns
• Receipts or releases signed by beneficiaries on final distribution
• Court orders approving fees and distributions (if issued)

Helpful hints

• Start by locating the will (if any) and determining whether the estate is subject to independent administration.
• Identify and exclude nonprobate assets first — these will not be part of the distribution to children via probate.
• Keep thorough records — clear documentation speeds court approval and avoids disputes.
• If any child is a minor or incapacitated, consult the court about appropriate custodial or guardianship arrangements before distributing funds.
• When in doubt about community vs. separate property or how Texas intestacy rules apply, consult a probate attorney — property classification and heirship rules can materially change each child’s share.
• If creditors’ claims are significant or the estate might be insolvent, consult counsel early to avoid improper distributions and personal liability for the personal representative.

Where to read the law

For the statutory rules on intestate succession and estate administration in Texas, review the Texas Estates Code, including Chapter 201 (intestate succession) and Chapter 401 (administration):

• Texas Estates Code, Chapter 201 — Intestate Succession
• Texas Estates Code, Chapter 401 — Administration of Estates

When to talk to an attorney

Consider getting legal help if any of the following apply: the estate is large or insolvent, property classification is unclear, there are minor or disabled heirs, beneficiaries dispute the will or accounting, or complex tax issues arise. An attorney can help prepare required filings, advise about distributions, and reduce personal liability for the personal representative.

Disclaimer

This article is educational only and does not create an attorney–client relationship. This is not legal advice. For guidance tailored to your situation, consult a licensed Texas attorney experienced in probate and estate administration.