Inherited Property in Texas: What Happens to a House After Someone Dies?

When someone dies owning a house or other real estate in Texas, one of the first questions the family often asks is simple: What happens to the property now?

The answer, unfortunately, is not always simple.

A house does not automatically become the property of whichever family member is living there, paying the mortgage, or taking care of the property. What happens next can depend on whether the owner had a valid will, how the property was titled, whether a transfer-on-death arrangement was made, and who the deceased person's legal heirs are.

Understanding those issues early can help families avoid title problems that may otherwise surface months—or even years—later.

Does a House Have to Go Through Probate in Texas?

Not necessarily.

Some Texas real estate can pass outside of a traditional probate administration. In other situations, some type of probate proceeding may be necessary to establish ownership and clear the property's title.

If the deceased person left a valid will, the first question is whether probate is actually necessary.

Related Resource: [Do You Need Probate If There Is a Will in Texas?]

Even when probate is necessary, Texas provides different procedures depending on the circumstances of the estate.

What If the Person Left a Will?

A will tells the court who the deceased person intended to receive property, but a will does not necessarily change the real estate records by itself.

For example, imagine a parent leaves a Texas home to two children in a will. After the parent's death, the county property records may still show the parent as the owner.

The family may need to take additional legal steps before the property's title accurately reflects the new ownership.

In some estates where there is a valid will and no need for a full administration, a Muniment of Title may provide a more streamlined probate option.

Whether that procedure is appropriate depends on the facts of the particular estate.

What Happens If There Is No Will?

When someone dies without a valid will, Texas intestacy laws determine who inherits the person's property.

This can become especially important with real estate.

The person everyone in the family assumes owns the house may not actually be the only legal heir. A surviving spouse, children from a prior relationship, parents, siblings, or other relatives can potentially have an ownership interest depending on the family circumstances.

When the identity of the heirs must be formally established, a Determination of Heirship may be necessary.

This is one reason families should be cautious about selling, transferring, refinancing, or making major decisions about inherited real estate before determining who legally owns it.

Can an Affidavit of Heirship Be Used Instead?

In some situations, an Affidavit of Heirship may be used to help address title to Texas real estate after an owner dies.

An Affidavit of Heirship is different from a court proceeding determining heirship. Whether it is appropriate depends on the circumstances, the property's history, and what the family ultimately needs to accomplish with the property.

For example, what works for a family planning to keep property may not necessarily satisfy the requirements of a future buyer, lender, or title company.

What About a Transfer on Death Deed?

Some property owners plan ahead by signing and properly recording a Transfer on Death Deed, commonly called a TODD.

A Transfer on Death Deed allows an owner to designate a beneficiary who can receive the real estate after the owner's death, subject to Texas law and the particular circumstances.

This can sometimes help avoid using probate solely to transfer that particular property, but the deed must have been properly prepared and recorded during the owner's lifetime.

What About a Lady Bird Deed?

Another estate-planning tool commonly discussed in Texas is the Lady Bird Deed, also known as an enhanced life estate deed.

A properly structured Lady Bird Deed may allow property to pass to designated beneficiaries at the owner's death while allowing the owner to retain significant control over the property during life.

Transfer on Death Deeds and Lady Bird Deeds can accomplish similar estate-planning goals in some circumstances, but they are not identical. Choosing between them should be based on the owner's particular situation rather than simply using a form found online.

What Happens to Inherited Property in Texas? Inherited Property Can Create Title Problems

One of the biggest issues families encounter after a death is not necessarily who should inherit the property—it is proving ownership in a way that creates clear title.

A title problem may not become obvious until someone tries to:

• Sell the property;

• Refinance it;

• Obtain a new loan;

• Divide it among family members;

• Resolve a boundary or ownership dispute; or

• Purchase title insurance.

At that point, an unresolved estate from years earlier can suddenly become a significant obstacle.

A title company reviewing a future transaction may identify probate, heirship, deed, lien, or ownership issues that must be resolved before closing.

Can the Heirs Just Sign a New Deed?

Sometimes a deed is part of the solution—but the important question is who actually has legal authority or ownership to sign it.

A deed signed by someone who does not own the interest they are attempting to convey does not magically solve the underlying title problem.

Before preparing a deed involving inherited property, it is important to understand how ownership passed after the prior owner's death.

The type of deed being used also matters.

Related Resources:[General Warranty Deeds in Texas][Special Warranty Deeds in Texas][Deed Without Warranty in Texas][Quitclaim Deeds in Texas]

Different deeds provide different protections and warranties. The appropriate document depends on what the parties are actually trying to accomplish.

What If the Property Has Been in the Family for Years?

Inherited property can become increasingly complicated when title issues are left unresolved across multiple generations.

For example, suppose a grandfather dies without a will and nothing is done with the house. Years later, one of his children dies. Then another heir dies.

The ownership interests may now extend through several branches of the family.

Instead of dealing with one estate, the family may have to determine ownership through multiple generations.

This is why addressing inherited real estate sooner rather than later can be important.

Before Selling an Inherited House in Texas

Before listing inherited property for sale, families should determine whether the person attempting to sell actually has authority to convey the entire property.

Questions to answer may include:

• Who currently holds legal title?

• Was there a will?

• Was the will probated?

• Are there multiple heirs?

• Was a Transfer on Death Deed or Lady Bird Deed recorded?

• Is an Affidavit of Heirship appropriate?

• Is a probate proceeding necessary?

• Are there liens against the property?

• Will a title company insure the transaction?

Resolving these questions before a buyer is waiting to close can prevent unnecessary delays.

Estate Planning Can Prevent Many of These Problems

Many inherited-property disputes begin because the owner never created—or never updated—an estate plan.

A good estate plan considers more than simply who should receive the house. It should also consider how ownership will actually transfer after death.

Depending on the circumstances, that planning might involve a will, trust, Transfer on Death Deed, Lady Bird Deed, beneficiary arrangements, or other documents.

Related Resource: [What Documents Are Included in an Estate Plan in Texas?]

Taking care of these issues during life can make an enormous difference for the people left behind.

When Should You Talk to a Texas Attorney?

You may want to speak with an attorney before taking action if:

• Someone died owning Texas real estate;

• The owner died without a will;

• Multiple family members claim an interest in the property;

• You are unsure whether probate is necessary;

• A title company has identified an heirship or probate issue;

• You want to sell inherited property;

• The property has passed through multiple generations; or

• You want to plan now so your own property can pass more efficiently later.

The correct solution depends heavily on the property's title history, the deceased owner's estate plan, and the family structure.

San Antonio Probate, Estate Planning & Real Estate Attorneys

At Walter Law, PLLC, we help clients understand the intersection between Texas probate, estate planning, and real estate law.

These areas frequently overlap. A probate issue can become a real estate title problem, and good estate planning today can help prevent those problems tomorrow.

If you have questions about inherited property, probate, heirship, deeds, or planning for your own Texas real estate, contact Walter Law, PLLC to discuss your situation.