Texas Probate, Estate and Trust Administration
Few things in life are more difficult than losing someone you love. The grief alone is overwhelming. But on top of that grief, you may suddenly find yourself responsible for managing the financial and legal affairs of the person who passed away. Bills still need to be paid. Assets need to be identified. Creditors may come calling. Family members may have questions – or demands. The external stresses that come with settling an estate can feel crushing, especially when you are still processing your loss.
The Personal Representative
When someone passes away, a personal representative is appointed to manage the estate. If the decedent left a will, the personal representative is typically the person named as executor in that document. If there is no will, the court appoints an administrator. Either way, the personal representative has a fiduciary duty to act in the best interests of the estate and its beneficiaries. This means gathering and protecting assets, paying valid debts and taxes, and ultimately distributing what remains to the rightful heirs or beneficiaries.
How does probate work?
Probate is the legal process through which a court validates a will (if one exists), appoints a personal representative, and oversees the administration of a decedent’s estate. The process begins when someone files an application with the appropriate Texas probate court. If the decedent left a will, the court will determine whether the will is valid and admit it to probate. If there is no will, the court will appoint an administrator and the estate will be distributed according to Texas intestacy laws.
The probate process in Texas can take anywhere from a few months to several years, depending on the size and complexity of the estate, whether any disputes arise, and whether the decedent’s affairs were well-organized. During this time, the personal representative is responsible for managing the estate and keeping the court informed of its progress.
What should I know about the Texas probate process?
Inventory and Claims
One of the first duties of the personal representative is to prepare an inventory of all estate assets. This includes real property, bank accounts, investments, personal property, and any other assets the decedent owned at the time of death. The personal representative must also identify and notify known creditors, and publish notice to unknown creditors in a local newspaper. Creditors then have a limited time to file claims against the estate.
Beneficiary Distribution Timing
Beneficiaries often want to know when they will receive their inheritance. The answer depends on the complexity of the estate. In a straightforward estate with no disputes or significant debts, distributions can sometimes be made relatively quickly. In more complex estates – particularly those involving business interests, real property in multiple states, or contested claims – the process can take much longer. The personal representative must ensure that all debts, taxes, and expenses are paid before making final distributions.
Debt Settlement Process
The personal representative is responsible for identifying and paying the decedent’s valid debts from estate assets. This includes everything from credit card balances and medical bills to mortgages and car loans. Not all debts are equal in priority, and Texas law establishes a specific order in which claims must be paid. The personal representative must follow this order carefully to avoid personal liability.
Beneficiary Communication
Open and honest communication with beneficiaries is one of the most important – and most challenging – aspects of estate administration. Beneficiaries have a right to be kept reasonably informed about the progress of the estate, and the personal representative has an obligation to provide that information. Failing to communicate can lead to frustration, mistrust, and even litigation. Regular updates, even when there is little to report, go a long way toward maintaining family harmony during a difficult time.
Estate Property Management
During the administration process, the personal representative has a duty to protect and manage estate property. This may include maintaining insurance on real property, managing investment accounts, operating a business, or simply keeping personal property secure. The personal representative must exercise reasonable care and prudence in managing these assets, and may be held personally liable for losses caused by negligence or mismanagement.
Being a representative is a big job
Serving as a personal representative is one of the most significant responsibilities a person can take on. It requires time, attention, organizational skills, and a willingness to navigate complex legal and financial issues. The personal representative is accountable to the court, to the beneficiaries, and to the creditors of the estate. Mistakes can result in personal liability, family conflict, and unnecessary expense.
It’s okay to ask for help
If you have been named as the executor or administrator of an estate, you do not have to do it alone. In fact, Texas law allows personal representatives to hire attorneys, accountants, and other professionals to assist them in carrying out their duties. Working with an experienced probate attorney can help you understand your obligations, avoid costly mistakes, and move the process forward as efficiently as possible. At The Stegall Law Firm, we guide personal representatives through every step of the probate and estate administration process, so they can focus on what matters most – honoring the memory of the person they lost.