Disclaimer: This article is for informational purposes only and does not constitute legal advice.

Determining Remaining Assets in a Texas Estate After Debts and Fees

When a loved one passes, the personal representative must identify estate assets, pay debts and administrative costs, and distribute the remainder. Under the Texas Estates Code, these steps ensure you calculate the net value correctly.

Step 1: Inventory All Estate Assets

The personal representative must file an inventory and appraisement within 90 days of appointment per Texas Estates Code §309.051. This document lists real estate, bank accounts, investment holdings, vehicles, personal property and other items with their current market values.

Step 2: Identify and Classify Debts and Fees

Certain debts and administrative expenses have priority status. Texas law defines the order:

• Funeral and burial costs
• Reasonable expenses of administration including attorney fees and court costs
• Secured claims (mortgages or liens on estate property)
• Other claims such as creditor bills

Refer to Texas Estates Code §355.101 for the complete priority list.

Step 3: Pay Debts, Expenses, and Taxes

Using estate funds, pay each category in order. For example, cover funeral expenses before attorney fees. File creditor claims within four months after the date letters testamentary are issued per §355.105. Pay federal and state taxes next. Maintain detailed receipts and records for each payment.

Step 4: Calculate the Remainder

Subtract the total paid debts and fees from the gross estate value as shown in the inventory. The remaining assets form the estate “residue.” This figure represents what beneficiaries will receive.

Step 5: Distribute Remaining Assets

If the decedent left a valid will, distribute the residue according to its terms under Texas Estates Code §256.001. Absent a will, follow intestate succession rules in §201.001.

Conclusion

By inventorying assets, classifying and paying debts in statutory order, and subtracting these amounts from the estate’s value, you accurately determine the assets that remain. Follow Texas Estates Code deadlines and record-keeping requirements to ensure a smooth administration.

Helpful Hints

• Consult the executor or court clerk early to confirm filing deadlines.
• Obtain professional appraisals for real estate or unique property.
• Keep organized records of all invoices, payments and correspondence.
• Review creditor claim deadlines to avoid unexpected liabilities.
• Consider hiring an attorney familiar with Texas probate procedures.