The Texas Probate Code outlines the steps for administering an intestate estate, which involves determining the appropriate court, applying for Letters of Administration, and distributing assets according to Texas intestacy laws. In this section, we will explore these steps in detail to help you successfully settle an estate without a will in the Lone Star State.
1. Determine intestacy: Although it may seem the deceased did not leave a will, it is imperative that you look everywhere for a valid will such as the deceased’s personal lawyer, accountant, safety deposit box, safe, filing cabinets, etc. Settling an estate without a will can prolong probate and make it that much more difficult for the administrator.
2. Identify heirs: In the unfortunate event the deceased passed away intestate, the administrator must determine the legal heirs of the deceased according to Texas Estates Code, considering their relationship to the deceased and any surviving descendants.
3. Assess the estate's size and complexity: Small estates with minimal assets and no real property may qualify for a simplified process, while larger estates may require formal probate administration.
4. Identify the means of administration:
a: Affidavit of Heirship: The affidavit of heirship identifies the deceased's heirs, and their relationship to the deceased, and lists the estate's assets. Heirs must sign the affidavit before a notary public, and two disinterested witnesses must also sign it. Then, file the affidavit with the county clerk's office where the deceased's property is located.
b: Small Estate Affidavit: If the estate's assets, excluding homestead and exempt property, are worth $75,000 or less and there is no real property, heirs can file a Small Estate Affidavit. The affidavit requires information about the deceased, heirs, and the estate's assets and debts. All heirs must sign it, and a judge must approve it. File the approved affidavit with the county clerk's office to transfer assets to the heirs.
c: Probate Administration: For larger estates or those with real property, you may need to initiate a formal probate process, such as independent administration or dependent administration. Choose the appropriate administration type based on the estate's size, complexity, and whether all heirs agree on an independent administration.
5. Apply for Letters of Administration:
To apply for Letters of Administration in Texas, first locate the appropriate probate court in the county where the deceased lived or owned property.
Next, complete the Application for Administration, providing information such as the deceased's name, date of death, and residence, a statement confirming the absence of a valid will, the proposed administrator's details, a list of heirs and their relationships, a general description of the estate's assets and their estimated value, and the reason for requesting administration.
Finally, submit the completed application to the probate court and pay the required filing fees, which typically range from $200 to $400, depending on the county.
6. Post bond if applicable. The amount is based on the estate’s size and complexity.
7. Notify creditors and heirs: Inform creditors of the estate administration by publishing a notice in the local newspaper. This can be done by a Google search “notice to creditors - *county name*” You can also read our detailed guide on how to publish a notice to creditors: here
8. Inventory and appraise assets: Within 90 days of receiving Letters of Administration, file an inventory, appraisement, and list of claims form with the court. This form provides the court with a detailed list of estate assets and their value such as: Real property, stock and bonds, cash, and bank accounts etc.
9. Settle debts and taxes: If you’ve been approached by creditors and their claims are true, or if you’ve filed the deceased terminal taxes and prior years' tax returns and they owe money? You as the administrator are responsible for paying for the debts and taxes owed by the estate. *Unless the estate is insolvent.
10. Estate distributions: After the estate debts and taxes have been paid, distribute the remaining assets following Texas intestate succession laws.
11. Close the estate: File a final accounting report with the court and request permission to close the estate.