The legal process of winding up the business affairs of a person who has died is called probating.The person is known as the Decedent.Assets owned by the Decedent that have not been left to anyone in her will are given out according to the testator's will.The Decedent's assets are handed out to her beneficiaries and any others who have a valid interest in her estate.If you understand the process and follow the correct steps, you can learn about an estate in Texas.
Step 1: Know the process's purpose.
A court-supervised process is used to sort out the transfer of a Decedent's property after her death.All rights to income, dividends, and other money, as well as all debts and taxes owed by the estate, are included in the basic process of probating an estate.By proving her will in a court of law, there is a transfer of ownership of the Decedent's property.In a court of law in Texas, the purpose of a will is to protect the rights of the family, those entitled to receive property, and the Decedent's estate.
Step 2: There are documents to gather.
There are a number of administrative matters that need to be addressed when someone passes away.Obtaining copies of her death certificate is one of the more important things.The Texas Department of State Health Services Vital Statistics Unit can give you these.You need to locate and gather important documents pertaining to the Decedent's will, any trusts that may exist, stocks, bank accounts, and insurance policies.
Step 3: Inform other people of the death.
The people that need to be contacted when the Decedent dies are related to her estate.To give notice of her death, you need to contact the Social Security Administration.You need to notify the administrator of her pension plan as well as any life insurance companies if you die.The attorney who prepared the will should be contacted.The attorney who prepared the trust and the Trustee should be contacted.She used financial institutions that need to be notified of her death.She had an account with any credit card company.Before you pay the medical bills, you should make sure that all insurance and Medicare claims have been processed.
Step 4: You can learn about the mechanics of title.
There is a way to get rid of title.There is a process for estates with no debts.There are no debts that are not paid.There are liens on real estate.A will that hasn't been probated within 4 years is the only option.There must be good cause to file after 4 years.You need to file a pleading in the probate court that there are no debts and that the will was not entered into the court before.You must include a clause in the will that it won't be admitted into probate if the proponent caused the delay.You can use an order from the court to transfer property.The order is like a new deed to real estate.
Step 5: Consider an affidavit of heirship.
This process allows you to transfer title to a homestead.When there is no will, it is used.If you don't have a will, using the Affidavit of Heirship will help you avoid the process.If the property was used to secure a debt, it cannot be transferred.There is an affidavit available.The form asks about the dead person and his family.It must be signed by two people who aren't heirs.There is an affidavit form for a vehicle.This form is available on the website.The affidavit should be filed with the clerk of the county where the property is located.
Step 6: Informal family agreements should be discussed.
Texas courts recognize that the estate belongs to the heirs.The courts will enforce the contract if they agree to a division of the property.Informal settlements of estates occur when the estate only has personal property.Informal family agreements are not appropriate in estates with stocks, bonds, or bank accounts.If a vehicle is left to the family, they can file an Affidavit of heirship with the tax office.When a party wants to contest a will, family settlement agreements can be used.The beneficiaries of a will agree on how the estate will be divided.They usually negotiate using attorneys.They don't agree on how to dispose of the property.
Step 7: There are assets that exist.
At the time of her death, any real and personal property owned by her was included in the Decedent's estate.Improvements located on the land are included in real property.Oil, gas, and other mineral interests are included in real property.Personal property includes cash and bank accounts, clothing and personal effects, household furnishings, motor vehicles, stocks and bonds, and life insurance policies.Government, retirement, and employee benefits are included in personal property.
Step 8: What are the assets of the court?
You have to figure out which assets will leave the estate.A will can help distribute the Decedent's property, but it doesn't control everything.There are assets included in a will.Assets and real properties titled in her name include jewelry, furniture, and automobiles.Bank accounts that are solely in her name, interests in a partnership, corporation, or limited liability company, and any life insurance policy or brokerage account that lists either the Decedent or the estate as the beneficiary are also probate assets.Cars, boats, recreational vehicles, stocks, bonds, investment and retirement accounts, and real estate are some of the common types of property that pass through an estate.You should know about the bank accounts.Some people have more than one bank and other accounts.
Step 9: There are non-probate assets.
Non-probate assets may be part of the Decedent's estate.The distribution of these assets is not in the control of the Decedent.Non-probate assets have rights of survivorship.IRAs, assets owned and accounts held with a pay-on-death are included in these assets.Transfer-on-death is a type of transfer.In cases with rights of survivorship, the other joint owner becomes the full owner of the property despite what a Decedent leaves in her will.
Step 10: The value of the estate can be calculated.
If you want to get the total value of the estate, you need to add up the values of each item.The value of her primary home, any outstanding debts she had, and all property located outside of Texas should be excluded.Property passing through Texas should be included in the value of the estate.
Step 11: Appoint someone to look after it.
The estate administration can begin once the necessary people are notified and the assets are divided.This is done by a person named in a will.Any outstanding needs of the estate are settled by this process.The remainder of the estate is paid to those who are entitled to it, as well as the debts and claims against it.If the Decedent died without a will, she determines the heirs.Estate administration isn't usually used in small cases.A person is called an administrator if the court appoints a representative because there is no will.The administrator has legal obligations and duties to the court and those who receive property from the estate.The appointment of the administrator may be terminated by the court if he or she acts in a way that causes damages to the estate.
Step 12: Administer an estate on your own.
There are two different ways to administer an estate in Texas.The estate is managed by independent administration.After an inventory of the estate assets is filed with the court, an administrator can take care of administration without court supervision.Any debts, property disputes, and monetary needs of the estate can be handled by the independent administrator.The costs and delays associated with the other form of administration are avoided by an independent administration.A Testator can provide for an independent administration of her estate by including a clause in her will.The court has the power to deny the request.
Step 13: You should have a dependent administration.
The court watches the acts of the personal representative during a dependent administration.She needs to get permission from the court before doing any work and she has to report her work to them.In these situations, the administrator needs to retain an attorney who can help them with court approval to sell assets and pay claims.Accounting reports and other information about the administrator's actions must be given to the court.
Step 14: The application needs to be filled out.
You need to fill out an application in Texas once you have the estate in order.The filing fee for applications to the court for administration of an estate in Texas can be as high as $273 per application.You can get these forms at the court.
Step 15: Wait for the hearing to start.
When you file the application, Texas law requires you to wait 2 weeks before you can have a hearing.During the waiting period, the County Clerk posts a notice at the courthouse that an application has been filed.This is a notice to anyone who might want to contest the will.The Court can move forward with recognizing the validity of the will if a contest to the Application for Probate is not filed by the due date.
Step 16: You should attend the hearing.
The hearing will be held once the waiting period is over.The will was valid, the Court has jurisdiction over the case for all administration procedures, and the person applying to be the executor is qualified.It is up to the judge to make the final decision.
Step 17: Hire an attorney.
An attorney is required to represent the estate's administrator.The local rules of most of the Courts in Texas require that a person applying to administer an estate be represented by an attorney so they can better understand the position.A person who does not have an attorney will not be allowed to serve as an independent executor without one.The executor has a duty to act for the benefit of the beneficiaries, so this stipulation protects them.The attorney can make sure both parties are protected.When the administrator performs important duties for all of the beneficiaries, this protects her.