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Estate Tax Calculator. Will you need a tax planning trust and will?

I will be adding information here, so check back early and often.  You may also want to review the Elder Law page for different information.

Clerk's Probate Manual

Probate Judge Pat Ferchill will hold court fourth Mondays in Hurst at the NE Subcourthouse 645 Grapevine Highway.  This will make it easier for local residents.

Estate Tax and the alien spouse

After several questions this week on this topic, I prepared this short memo about real property and the family home in a probate context.
 
Here is a short list of common statutes affecting Real Property in a probate context, with a non-exhaustive list of things to consider. 
First, the homestead may not be partitioned while the remaining spouse properly contests the sale.
Second, one might consider whether there was an actual marriage.
Third, determine if the property was community or separate and then apply the laws of descent and distribution.
Fourth, title could be affected if the deceased had too much or too little money.  Creditors might desire to apply for an administration of an estate if they remain unpaid (most divorce decrees make child suport an obligation of the estate) and an estate tax lien might be a problem if the deceased had too many assets.
Fifth, those who might take an estate could have abstracts of judgments or have already executed deeds to the property or disclaimed inheritance.
Sixth, a will, even an holographic will, might surface which could be admitted to probate at some point, perhaps even after four years as a muniment of title.
Seventh, unknown heirs (a child might later file a paternity suit) could appear.
Eighth, since homestead is a fact issue, creditors of the deceased might litigage that fact.  Consider that some property is transferred to a living trust.  Consider also that a taxing authority might not allow continued homestead expemptions to the deceased and a surprisingly large property tax bill could appear.
Ninth, Record title is a basic inquiry, but title by limitations (adverse possession) is a complex field with several different time limitations, some of which might be considered.
Tenth, a consultation with an attorney resulting in a properly drawn and executed will makes many of these issues less troublesome for the heirs.
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Texas Constitution
Section 51 - AMOUNT OF HOMESTEAD; USES
The homestead, not in a town or city, shall consist of not more than two hundred acres of land, which may be in one or more parcels, with the improvements thereon; the homestead in a city, town or village, shall consist of lot or contiguous lots amounting to not more than 10 acres of land, together with any improvements on the land; provided, that the homestead in a city, town or village shall be used for the purposes of a home, or as both an urban home and a place to exercise a calling or business, of the homestead claimant, whether a single adult person, or the head of a family; provided also, that any temporary renting of the homestead shall not change the character of the same, when no other homestead has been acquired; provided further that a release or refinance of an existing lien against a homestead as to a part of the homestead does not create an additional burden on the part of the homestead property that is unreleased or subject to the refinance, and a new lien is not invalid only for that reason.

Section 52 - DESCENT AND DISTRIBUTION OF HOMESTEAD; RESTRICTIONS ON PARTITION
On the death of the husband or wife, or both, the homestead shall descend and vest in like manner as other real property of the deceased, and shall be governed by the same laws of descent and distribution, but it shall not be partitioned among the heirs of the deceased during the lifetime of the surviving husband or wife, or so long as the survivor may elect to use or occupy the same as a homestead, or so long as the guardian of the minor children of the deceased may be permitted, under the order of the proper court having the jurisdiction, to use and occupy the same.
 
Property Code
§ 41.002. Definition of Homestead
(a) If used for the purposes of an urban home or as both an urban home and a place to exercise a calling or business, the homestead of a family or a single, adult person, not otherwise entitled to a homestead, shall consist of not more than 10 acres of land which may be in one or more contiguous lots, together with any improvements thereon.
(b) If used for the purposes of a rural home, the homestead shall consist of:
(1) for a family, not more than 200 acres, which may be in one or more parcels, with the improvements thereon; or
(2) for a single, adult person, not otherwise entitled to a homestead, not more than 100 acres, which may be in one or more parcels, with the improvements thereon.
(c) A homestead is considered to be urban if, at the time the designation is made, the property is:
(1) located within the limits of a municipality or its extraterritorial jurisdiction or a platted subdivision; and
(2) served by police protection, paid or volunteer fire protection, and at least three of the following services provided by a municipality or under contract to a municipality:
(A) electric;
(B) natural gas;
(C) sewer;
(D) storm sewer; and
(E) water.
(d) The definition of a homestead as provided in this section applies to all homesteads in this state whenever created.
§ 41.003. Temporary Renting of a Homestead
Temporary renting of a homestead does not change its homestead character if the homestead claimant has not acquired another homestead.
§ 41.004. Abandonment of a Homestead
If a homestead claimant is married, a homestead cannot be abandoned without the consent of the claimant's spouse.
 
Family Code
§ 5.001. Sale, Conveyance, or Encumbrance of Homestead
Whether the homestead is the separate property of either spouse or community property, neither spouse may sell, convey, or encumber the homestead without the joinder of the other spouse except as provided in this chapter or by other rules of law.
§ 2.301. Fraud, Mistake, or Illegality in Obtaining License
Except as otherwise provided by this chapter, the validity of a marriage is not affected by any fraud, mistake, or illegality that occurred in obtaining the marriage license.
§ 2.302. Ceremony Conducted by Unauthorized Person
The validity of a marriage is not affected by the lack of authority of the person conducting the marriage ceremony if:
(1) there was a reasonable appearance of authority by that person; and
(2) at least one party to the marriage participated in the ceremony in good faith and that party treats the marriage as valid.
§ 2.401. Proof of Informal Marriage
(a) In a judicial, administrative, or other proceeding, the marriage of a man and woman may be proved by evidence that:
(1) a declaration of their marriage has been signed as provided by this subchapter; or
(2) the man and woman agreed to be married and after the agreement they lived together in this state as husband and wife and there represented to others that they were married.
(b) If a proceeding in which a marriage is to be proved as provided by Subsection (a)(2) is not commenced before the second anniversary of the date on which the parties separated and ceased living together, it is rebuttably presumed that the parties did not enter into an agreement to be married.
(c) A person under 18 years of age may not:
(1) be a party to an informal marriage; or
(2) execute a declaration of informal marriage under Section 2.402.
§ 3.001. Separate Property
A spouse's separate property consists of:
(1) the property owned or claimed by the spouse before marriage;
(2) the property acquired by the spouse during marriage by gift, devise, or descent; and
(3) the recovery for personal injuries sustained by the spouse during marriage, except any recovery for loss of earning capacity during marriage.
§ 3.002. Community Property
Community property consists of the property, other than separate property, acquired by either spouse during marriage.
§ 3.003. Presumption of Community Property
(a) Property possessed by either spouse during or on dissolution of marriage is presumed to be community property.
(b) The degree of proof necessary to establish that property is separate property is clear and convincing evidence.
 
Probate Code
§ 38. Persons Who Take Upon Intestacy
(a) Intestate Leaving No Husband or Wife. Where any person, having title to any estate, real, personal or mixed, shall die intestate, leaving no husband or wife, it shall descend and pass in parcenary to his kindred, male and female, in the following course:
1. To his children and their descendants.
2. If there be no children nor their descendants, then to his father and mother, in equal portions. But if only the father or mother survive the intestate, then his estate shall be divided into two equal portions, one of which shall pass to such survivor, and the other half shall pass to the brothers and sisters of the deceased, and to their descendants; but if there be none such, then the whole estate shall be inherited by the surviving father or mother.
3. If there be neither father nor mother, then the whole of such estate shall pass to the brothers and sisters of the intestate, and to their descendants.
4. If there be none of the kindred aforesaid, then the inheritance shall be divided into two moieties, one of which shall go to the paternal and the other to the maternal kindred, in the following course: To the grandfather and grandmother in equal portions, but if only one of these be living, then the estate shall be divided into two equal parts, one of which shall go to such survivor, and the other shall go to the descendant or descendants of such deceased grandfather or grandmother. If there be no such descendants, then the whole estate shall be inherited by the surviving grandfather or grandmother. If there be no surviving grandfather or grandmother, then the whole of such estate shall go to their descendants, and so on without end, passing in like manner to the nearest lineal ancestors and their descendants.
(b) Intestate Leaving Husband or Wife. Where any person having title to any estate, real, personal or mixed, other than a community estate, shall die intestate as to such estate, and shall leave a surviving husband or wife, such estate of such intestate shall descend and pass as follows:
1. If the deceased have a child or children, or their descendants, the surviving husband or wife shall take one-third of the personal estate, and the balance of such personal estate shall go to the child or children of the deceased and their descendants. The surviving husband or wife shall also be entitled to an estate for life, in one-third of the land of the intestate, with remainder to the child or children of the intestate and their descendants.
2. If the deceased have no child or children, or their descendants, then the surviving husband or wife shall be entitled to all the personal estate, and to one-half of the lands of the intestate, without remainder to any person, and the other half shall pass and be inherited according to the rules of descent and distribution; provided, however, that if the deceased has neither surviving father nor mother nor surviving brothers or sisters, or their descendants, then the surviving husband or wife shall be entitled to the whole of the estate of such intestate.
§ 45. Community Estate [THIS CONTAINS MAJOR CHANGES EFFECTIVE IN THE EARLY 1990'S]
(a) On the intestate death of one of the spouses to a marriage, the community property estate of the deceased spouse passes to the surviving spouse if:
(1) no child or other descendant of the deceased spouse survives the deceased spouse; or
(2) all surviving children and descendants of the deceased spouse are also children or descendants of the surviving spouse.
(b) On the intestate death of one of the spouses to a marriage, if a child or other descendant of the deceased spouse survives the deceased spouse and the child or descendant is not a child or descendant of the surviving spouse, one-half of the community estate is retained by the surviving spouse and the other one-half passes to the children or descendants of the deceased spouse. The descendants shall inherit only such portion of said property to which they would be entitled under Section 43 of this code. In every case, the community estate passes charged with the debts against it.
 

 
 
 
 
Basil L. Hoyl, Jr. * Attorney and Counselor at Law
Title Texas * 4001 Airport Freeway, Suite 190
Bedford * Texas * US * 76021
(817) 685-0555 tel * (817) 267-4114 metro * (817) 685-0593 fax
 
 
 
 
Copyright © 2002 Basil L. Hoyl, Jr., All Rights Reserved