Property or estate inheritance can be complicated. However, a financial advisor or an expert like those at Flash Realty can help you figure everything out regarding property inheritance. There are some essential things to know about property inheritance in Texas, and we will go over those things in this article. So, keep reading if you’re looking to brush up your skills on property inheritance.
Property Inheritance Tax?
Texas has no inheritance or estate taxes, so that is good news! Texas repealed taxes in 2015. However, you should be aware that you might have to file some taxes on behalf of the deceased. Filings include the final individual federal and state income tax returns, federal estate/trust income tax returns, and a federal estate tax return.
Dying with a Will in Texas
If the deceased organized a will before passing, everything is covered because the will has everything laid out and will be executed exactly as the deceased wished. Therefore, inheritance laws only apply if the deceased did not leave a will. So, let’s look at what happens if no will was left by the deceased.
Dying Without a Will in Texas
Dying without a valid will leaves the distribution of assets up to the intestate succession process of the state of Texas. Texas divides them into community and separate property to differentiate who receives the assets.
Community Property
If you are married, any property attained after your marriage is considered community property and jointly owned by you and your spouse. However, inheritances and gifts acquired during the marriage do not automatically become community property. Mixing inheritances or gifts into a joint bank account with the spouse can make them community property.
Separate Property
Separate property belongs solely to you as personal or real property. Personal property is anything that isn’t fixed to the ground, such as a car or investments. So anything fixed to the ground like a homestead is real property.
Bottom Line
The most important thing to note is that Texas does not have an estate or inheritance tax. Therefore, your assets will be distributed through the state’s intestate succession process without a will. The laws of this process only affect assets that would’ve typically been covered in a will. If you want to know more about property inheritance in Texas and the specifics, contact Flash Realty. We can help you navigate the situation and understand everything you need to know. So, contact us today if this is a situation you need assistance with or want to understand more about the subject in general.
