The Importance Of Estate Inventories In Texas Probate

In this article, you will discover:

• What an estate inventory is and to what degree it’s required in Texas probate.
• Who is responsible for filing an estate inventory.
• Which assets must be listed in a Texas estate inventory.

What Is An Estate Inventory And Why Is It Required In Texas Probate?

An inventory is a listing prepared for the beneficiaries and creditors of what’s in the estate. It’s one of the required steps in probate. Probate is when you gather the estate’s assets, pay any final bills, and distribute everything.

In Texas, you’re no longer required to file the inventory with the court. You can instead file what’s called an Affidavit in Lieu of Inventory, which keeps the inventory private. However, you’re still required to give a copy of that inventory to all beneficiaries, and you must sign an oath that you’ve done that if you choose the Affidavit in Lieu of Inventory.

If there are many creditors, you must also file the inventory so they know whether to pursue the estate for any outstanding debts.

Who Is Legally Responsible For Filing An Estate Inventory, And What Happens If They Miss The Deadline?

The inventory or affidavit must be filed within 90 days. If not, then the court will send a warning notice in the form of a show-cause notice, asking you to appear and explain why you haven’t filed.

Typically, following the notice, executors will file. If they don’t, they can be removed and fined $1,000 personally.

What Assets Must Be Listed In A Texas Probate Estate Inventory, And Which Ones Are Legally Excluded?

There are two kinds of assets in Texas: probate assets and non-probate assets.

Probate assets are anything controlled by the will. Typically, that includes any real property, mineral interests, cars, and personal property. It also consists of any accounts or assets without a beneficiary.

Non-probate assets include bank accounts, life insurance policies, and any other benefits that list someone as a beneficiary. Those assets are distributed directly to the beneficiary without the court’s intervention. They are not listed in inventory because they’re not under the will’s control. In fact, they represent a contract that trumps the will.

If one person is the beneficiary of your life insurance policy, but another is left everything else under your will, your life insurance beneficiary still receives the policy, because it’s a contract and wouldn’t be listed on the inventory.

How Can An Estate Planning Attorney Help Ensure My Texas Probate Inventory Is Accurate And Timely?

The inventory is an essential part of the probate process. In Texas, you are required to retain an attorney for probate, unless it’s a specific, separate kind called a Muniment of Title, which is a simplified form of probate. In that case, no executor is appointed.

In any other case where you are appointing an administrator, an executor or a personal representative, you must hire an attorney because you can’t represent the estate as the executor and also represent the estate to the court.

Because probate is complicated, the court may not want to deal directly with lay people. In any event, representing yourself would violate the law. That is practicing law without a license.

Notes From The Field: How Do You Guide Clients In Distinguishing Between What’s Legally Required In An Inventory Versus What’s Emotionally Significant To Them?

I’ve had many clients tell me that their parents’ personal property is priceless. That’s not really the issue. There’s probably a value for the property, but whether you’d want to sell it is entirely up to you.

In any case, probate can be an emotional process. Walking into the probate hearing and hearing your loved one referred to as the “decedent” makes the loss suddenly feel final for many people.

I always try to prepare my clients to expect an emotional time, and that’s okay. I think our probate court personnel here in Travis and Williamson Counties are kind and try to be conscientious with families.

Still Have Questions? Ready To Get Started?

For more information on Texas probate estate inventories, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (512) 234-7913 today.